Part 11/12:
Tourism, which accounts for roughly 40% of Palao’s GDP, has suffered due to the COVID-19 pandemic and the ongoing politicization of regional relations. Taiwan initially launched a travel bubble in 2021, but tourism numbers remain well below pre-pandemic levels, especially from China.
Diving operators and local entrepreneurs face economic hardships amplified by China's withdrawal of Palao from its travel groups since 2017. Many locals express a desire to develop economic relationships both with China and Taiwan, advocating for an open approach to tourism to diversify and bolster their economy.