When I told friends I was visiting Palau, the most common response I got was, “Sounds nice – but where exactly is it?” A lack of brand awareness is usually not something to strive for, but Palau doesn’t see it that way. While other countries around the world struggle with the impact of mass tourism, staying under the radar is a key goal for this island nation.
About 500 miles east of the Philippines and with flights to Manila, Hong Kong, Singapore, Seoul and Taipei, the Republic of Palau is home to just 18,000 people, making it the fourth smallest sovereign state on the planet, but it encompasses some 340 islands. Only nine are inhabited. Many of the others are completely untouched, set in spectacular clusters of towering limestone and covered from shoreline to peak in ancient tropical forest.
In short, it’s paradise—and the government is determined to keep it that way. In 2020, the Palau National Marine Sanctuary was established, which protects 80 percent of the country’s waters and covers an area larger than France. Since 2017, every tourist visiting the island has been required to sign the Palau Pledge, a promise “to act in an environmentally and culturally responsible manner on the island, for the benefit of the children of Palau and future generations of Palauans.”
That’s not to say tourists aren’t welcome. Palau still has to consider economic necessity, particularly as the country’s close ties to the US mean its citizens can easily study and settle there, an arrangement that has caused a brain drain unlikely to be stopped by an upcoming hike in Palau’s minimum wage to $4.25 (£3.30) an hour. However, the country is keen to eschew the high-impact, low-spend tourism model seen in countries like Thailand in favour of less-luxury, high-spending travellers.
It’s hardly the only country doing its best to deter backpackers in favor of the wealthy. During the pandemic, Fiji rolled out the Blue Lanes initiative to attract billionaires with superyachts willing to rent out entire islands. In Bhutan, visitors pay a sustainable development fee of $100 a day, putting it out of reach for budget travelers. Palau’s strategy includes partnerships with luxury airlines (don’t expect Ryanair equivalents to land there anytime soon), significant tourist taxes (more on that later), and a careful hotel development policy focused on luxury accommodations. It wants to become the next Seychelles or the Maldives, not another Bali.
All of which makes the recent arrival of Four Seasons, the first international hospitality brand to set up shop in Palau, no surprise at all. Launched in December, Four Seasons Explorer is not a hotel but a 125-foot luxury catamaran that now cruises around the sprawling island nation. The cruises have no set departure dates, so guests can arrive when they want and stay as long as they like. Upon landing in Palau, a tender whisks them to the larger ship—wherever that may be. Once on board, they enjoy a Palau experience that is unparalleled in terms of service standards, cuisine, activities and general extravagance. Guests stay in one of 10 cabins or the Grand Master Suite; mornings begin with yoga on deck and days are spent attending nature talks and cultural tours, kayaking, snorkeling and diving. It’s about as close as you’ll get to owning your own superyacht.
Four Seasons operates more than 100 properties around the world, but the concept is a game-changer for the company and represents the first phase of a broader, long-term investment in the country. Construction is set to begin soon on a Four Seasons resort on an uninhabited island near the capital, Ngerulmud. It already offers training programs for Palauans to learn the fine art of luxury hospitality, including internships at Four Seasons resorts in the Maldives. Another course involves teaching young people to dive, so they can become dive instructors in the future.
I got a sense of the impact of such connections when I was met at the airport by Kaali, a Palauan woman in her early 20s who had recently completed her training in the Maldives and now looks after clients at Four Seasons Explorer. Her role meant she didn’t have to consider emigrating, and during our journeys she proved to be a fascinating ambassador for the country. I learned about the Palauan language (ancient, unique and resilient, but now also vulnerable as children become increasingly enmeshed in English-language material online), funeral customs (locals consult a specific Facebook page to know which ones to attend on a given weekend) and media (despite its small size, Palau has five radio stations).
Because Palau is so small, I was even able to meet the president. The son of a conservationist, diver and early tourism entrepreneur, Surangel S Whipps Jr. is deeply invested in Palau’s current tourism strategy. He told me a story about how, around 2015, when Palau welcomed a record 170,000 tourists, mostly from China, locals were poaching hundreds of protected mussels from a marine reserve to serve illegally in restaurants. “We wanted to discourage that kind of activity,” the president told me. It was incidents like this that led to an increased focus on environmental protection, including the creation of the Palau Pledge and the introduction of new tourist taxes, including a $100 Pristine Paradise Environmental Fee added to every air ticket to fund conservation initiatives. To participate in water activities, tourists must also purchase a 10-day permit that costs between $50 and $100, with funds directed to the Palau National Marine Sanctuary.
Such extra costs will deter many budget-conscious travelers from vacationing in the country (last year, Palau welcomed just 35,000 visitors), but they will go unnoticed by the privileged few who book a stay on Four Seasons Explorer. Although meals and most activities are included, a couple will pay around £2,850 per night – incredibly expensive, but as we sailed alone through pristine, ancient landscapes completely untouched by man, I could see why Palau could command such a premium.
Emerald islands, sprouting like mushroom caps from the water, were covered with arching ferns and towering breadfruit trees. Within the canopy, we occasionally spotted native Palauan fruit doves, their violet crowns and wings a vibrant lime green. Occasionally, we landed to learn about Palau’s culture and difficult history. In Airai, one of Palau’s 16 states, local women in colorful skirts woven from hibiscus bark performed ancient songs and dances. In Peleliu, rusted tanks and skeletal military ruins stood as relics of a World War II confrontation between American and Japanese troops that left thousands dead. It was hard to fathom how such a thing could happen in a place that now seemed so peaceful.
Most on board had come to Palau to get out on the water. Palau’s reefs are in good health and the country is known for offering some of the world’s best snorkeling and diving. Every night, the avid divers in our group raved about encounters with manta rays and kaleidoscopic corals that were some of the most vibrant they had ever seen.
I was happy enough snorkeling. Alone in a sheltered bay on a calm morning, I cut through waters so still and blindingly clear that it somehow felt like I was flying through the air instead of swimming. Yellowed leaves from the trees above me spiraled slowly down toward a coral carpet that glittered with iridescent flashes of amethyst, peppermint, and tangerine. Despite all the bells and whistles the Four Seasons Explorer offered on board, it felt like the ultimate luxury to have the chance to experience such beauty, hundreds of miles away from anything resembling mass tourism.
Stay on board Four Seasons Explorer Palau in the entry-level State Room start at $3,696 (£2,861) per room per night, based on double occupancy. This includes diving, snorkelling, water sports and most activities and excursions, but excludes alcoholic drinks. Flights extra.
Cookson Adventures can arrange a seven-night adventure on the Four Seasons Explorer Palau from $59,995 (£46,442) based on two people sharing the Explorer Suite with a private sundeck and business class flights on China Airlines via Taipei. This includes diving, snorkelling, water sports and most activities and excursions, but excludes alcoholic drinks.