🇵🇼 Palau

Palau is a Pacific archipelago of 18,000 people with a GDP of about $280 million. The country's Rock Islands Southern Lagoon is a UNESCO World Heritage Site with over 400 limestone islands covered in forest, surrounded by some of the most pristine marine environments on earth. Palau created the world's first shark sanctuary in 2009, banning all commercial shark fishing in its waters. The country has a Compact of Free Association with the US, which provides financial assistance and defense. Palau is one of the few countries that recognizes Taiwan, which has created tensions with China.

Tourism (primarily diving — Palau is consistently ranked among the world's top dive destinations) and US Compact payments are the main revenue sources. The country charges a $100 Pristine Paradise Environmental Fee to all visitors. Fishing licenses provide additional income. Palau uses the US dollar. The economy was devastated by COVID-19 travel restrictions and has been slow to recover. The country imports nearly all manufactured goods and most food.

Palau's Jellyfish Lake contains millions of golden jellyfish that have evolved without stingers — swimmers can float among them harmlessly. The country's immigration stamp includes an environmental pledge that visitors must sign, promising to protect the islands. Palau's traditional bai (meeting houses) feature elaborate storyboard carvings depicting legends and historical events.

Palau has turned its marine environment into an economic asset through smart conservation branding. The model works but the economy is tiny and vulnerable to any disruption in tourism or US support.