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🇵🇼 Palau

Curated by Vinod Kumar Jain & Amit Jain · All Frontier Global · free, no login · reviewed 2026-07-05

Rock islands and the world's finest diving

Capital
Ngerulmud
Currency
US dollar (USD)
Population
18,000
Languages
Palauan, English
Region
Oceania
Drives on
right
Plugs
I
Voltage
230V / 50Hz
Emergency
112

Facts & figures

Official figures, each with its source and the date it was read — the key-facts panel above is rounded and undated.

Population 17,663 (2025), down from 17,695 (2024) — World Bank's two most recent data points show a small year-on-year decline of 32 people; data last updated by World Bank on 13 July 2026 per the API response. Palau is among the world's smallest national populations.

GNI per capita (Atlas method) US$19,890 (2025), up from US$16,920 (2024); World Bank income classification: High income — Year-on-year increase of roughly 17.6%; both figures per World Bank data last updated 13 July 2026.

World Bank region classification East Asia & Pacific; lending category IBRD — IBRD lending category is standard World Bank metadata for a high-income economy not eligible for IDA/blend lending, not a data gap.

Sourced notes — every figure above, with where it was read and when.

  1. 17,663 — World Bank Open Data (SP.POP.TOTL) · accessed 2026-08-24
  2. US$19,890 — World Bank Open Data (NY.GNP.PCAP.CD; country metadata) · accessed 2026-08-24
  3. US$19,890 — World Bank Open Data (NY.GNP.PCAP.CD; country metadata) · accessed 2026-08-24
  4. East Asia & Pacific — World Bank Open Data (country metadata) · accessed 2026-08-24

Trade & FTA

Trade agreements (2): Palau benefits from a Compact of Free Association with the United States granting preferential trade and aid access, alongside Melanesian Spearhead Group ties; India has no FTA with Palau, and direct trade is minimal.

Passport strength: visa-free/VOA to ~120 destinations. US Compact state; strong Pacific and some international visa-free access.

India × Palau hub ↗ All countries factsheet

Visas & entry

Indian passport holders need a visa in advance for Palau, generally issued for stays up to 30 days; citizens of the US, Japan, Taiwan, EU, and many other nations receive visa-free entry for up to 30-90 days.

e-Visa: yes · Visa on arrival: Varies by nationality

Getting around

Koror is easily explored by rental car or taxi, while access to the famous Rock Islands and Jellyfish Lake requires a licensed boat tour, as independent boating in protected areas is restricted.

Car vs taxi: Self-driving in Koror is straightforward on the right side of the road with reasonable infrastructure, making rental cars a practical option for reaching dive shops and restaurants independently.

Money, SIM & tipping

Money: Palau uses the US dollar (USD) as its official currency, simplifying budgeting for travelers, and cards are accepted at most hotels and dive operators in Koror.

SIM & data: PNCC (Palau National Communications Corporation) is the main carrier, with tourist SIMs available in Koror; coverage is solid around Koror and the main dive sites but can be weaker further from the capital.

Tipping: 10% is increasingly customary in Palau's dive resorts and restaurants given the strong US and Japanese tourist influence, though it's less rigid than in the mainland US.

Culture & language

Etiquette: Palau places strong emphasis on marine conservation, and visitors are required to sign the Palau Pledge (a passport stamp commitment to eco-responsible behavior) on arrival; respecting reef and marine protected area rules is taken very seriously.

Food: Fresh seafood dominates Palauan cuisine, with dishes like fruit bat soup considered a traditional delicacy, alongside taro, cassava, and reef fish prepared in coconut milk.

Say hello: Local language — “Hello” · thanks “Thank you” · how much? “How much?”

Safety & emergency

Palau is very safe with negligible crime, and the main safety considerations relate to ocean activities like diving and snorkeling, where following guide instructions around currents and marine life is essential.

Emergency
112
Police
112
Ambulance
112
Fire
112

Living, nomad & costs

For nomads: Very small nomad scene; limited infrastructure in Koror; US Compact state with strong American ties; expensive cost of living; tourism-focused economy.

Education: Limited options; mostly US-aligned curriculum; high costs due to import dependence.

Healthcare: Basic facilities; serious cases referred to Guam (US); moderate quality for island nation.

Good to know (legal)

Cities we cover (5)

KororBabeldaobAngaurPeleliuMelekeok

Koror — Gateway to the Rock Islands

Places Rock Islands (Island) · Jellyfish Lake (Lake) · Blue Corner (Dive site)

Babeldaob — The great jungle island

Places Ngardmau Waterfall (Waterfall) · Ngerulmud Capitol (Landmark) · Badrulchau Stone Monoliths (Archaeological site)

Angaur — Wild southern island

Places Angaur Battlefield (WWII site) · Japanese Lighthouse (Historic site) · Angaur Reef Wall (Dive site)

Peleliu — Storied island of war and reef

Places Peleliu World War II Historic Sites (Historic Site) · Blue Corner Dive Site (Diving Site) · Peleliu Island Beaches (Beach)

Melekeok — Jungle capital where ancient rock islands meet verdant forests

Places Melekeok Hidden Waterfall (Waterfall) · Chief's Palace Ruins (Historic Site) · Melekeok Village Museum (Museum)

City notes from Amit's own travels — the interactive travelogue holds the full record

Trade deep-dive

Palau is a high-end tourism and fishing economy under a US Compact, with strong marine conservation.

Trade framework: Palau benefits from a Compact of Free Association with the United States granting preferential trade and aid access, alongside Melanesian Spearhead Group ties; India has no FTA with Palau, and direct trade is minimal.

India angle: India engages through development and tourism.

Outlook: sustainable tourism and the Compact steer the outlook.

Bloc — Pacific Islands Forum: Palau is a member of the Pacific Islands Forum, the regional bloc founded in 1971 to coordinate trade, development and political cooperation among Pacific island states. This forum framework anchors Palau's regional diplomatic and trade relationships across the western Pacific and Micronesia.

Sector — Compact of Free Association: Palau operates under a Compact of Free Association with the United States, a constitutional and economic framework granting preferential trade access and fiscal-transfer arrangements distinct from a standard bilateral trade agreement. This compact structurally anchors the national economy and its budget.

Sector — High-End Tourism & Marine Conservation: Palau's coral-reef geography and marine-sanctuary policy structurally anchor a high-end tourism sector oriented toward diving and conservation-focused travel, a geography- and policy-stable feature distinctive among Pacific island economies. Tourism sits alongside fishing-licence revenue as a principal structural pillar.

Future vector — Compact & Sustainable Tourism: Palau's Compact of Free Association with the United States, alongside its marine-conservation-oriented tourism model, frames a future-vector theme centred on balancing high-value, low-volume visitor development with continued fishing-licence and maritime-resource management across its reef systems.

Qualitative profile for orientation — confirm current figures and agreement status before acting.

Frequently asked

Do Indian passport holders need a visa for Palau?

Indian passport holders need a visa in advance for Palau, generally issued for stays up to 30 days; citizens of the US, Japan, Taiwan, EU, and many other nations receive visa-free entry for up to 30-90 days.

What currency does Palau use?

Palau uses the US dollar (USD). Capital: Ngerulmud.

What trade agreements does Palau have?

Palau benefits from a Compact of Free Association with the United States granting preferential trade and aid access, alongside Melanesian Spearhead Group ties; India has no FTA with Palau, and direct trade is minimal.

Is Palau safe for travellers?

Palau is very safe with negligible crime, and the main safety considerations relate to ocean activities like diving and snorkeling, where following guide instructions around currents and marine life is essential.

What is Palau's population, and is it growing or shrinking?

Palau's population was 17,663 in 2025, a small decline of 32 people from 17,695 in 2024, per World Bank data (last updated by the World Bank on 13 July 2026). Palau is one of the world's smallest national populations.

How wealthy is Palau, and how has its GNI per capita changed?

Palau's GNI per capita (Atlas method) was US$19,890 in 2025, up roughly 17.6% from US$16,920 in 2024, per World Bank data. The World Bank classifies Palau as a high-income economy on this basis.

How does the World Bank classify Palau by region and income group?

The World Bank places Palau in its East Asia & Pacific region, classifies it as a high-income economy, and lists its lending category as IBRD — standard for high-income economies not eligible for IDA or blend lending.

Sourced notes — every figure above, with where it was read and when.

  1. What is Palau's population, and is it growing or shrinking? — World Bank Open Data · accessed 2026-08-24
  2. How wealthy is Palau, and how has its GNI per capita changed? — World Bank Open Data · accessed 2026-08-24
  3. How does the World Bank classify Palau by region and income group? — World Bank Open Data · accessed 2026-08-24

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