Who Leads Palau?

Leadership

Surangel Whipps Jr.

President of Palau

Political Party

Independent

Inaugurated

Jan 21, 2021

Term Ends

2028

Next Election

2028

Born

Aug 8, 1968 in Koror, Palau

Country Population

18K

Continent

Oceania

Surangel Whipps Jr. has been president since January 2021. A businessman and former senator, he has maintained Palau's strong relationship with the US while championing ocean conservation. He has been vocal about climate change threats to Pacific islands and has pushed for sustainable tourism development.

Government

Capital

Ngerulmud

Official Language(s)

Palauan, English

Currency

US Dollar (USD)

Government Type

Presidential Republic

Area

459 km²

Palau is a Pacific island nation of over 500 islands known for its stunning marine biodiversity, including the famous Jellyfish Lake. It was the first country to create a large-scale marine sanctuary, protecting 80% of its ocean territory. Palau has a Compact of Free Association with the US. The Rock Islands Southern Lagoon is a UNESCO World Heritage Site.

Palau is a presidential republic. President Surangel Whipps Jr has been president since January 21, 2021. The Olbiil Era Kelulau (Parliament) has two chambers: Senate (13 seats) and House of Delegates (16 seats). Palau has a Compact of Free Association with the United States (1994; renewed 2023); Palauan citizens can live and work in the United States. Palau recognizes Taiwan, not the PRC.

Economic Snapshot

GDP

$264M

GDP Per Capita

$14,600

Income Group

Upper-middle income

Trade Balance

Deficit

Inflation

4.8% (Bureau of Budget and Planning, 2023)

Palau's economy is tourism (~50-60% of GDP) and U.S. Compact grants. The COVID-19 pandemic was catastrophic (Japanese and Korean tourists stopped; Palau was almost entirely closed; GDP fell approximately -13% in 2020). Recovery has been ongoing but visitor numbers have not fully recovered to pre-COVID levels as Japanese tourism has declined. The government's ocean conservation strategy (Palau National Marine Sanctuary; Palau Pledge) is both an environmental policy and a tourism branding strategy (Palau's sustainability reputation differentiates it from competing dive destinations).

Major Industries

• Tourism (~50-60% of GDP; primarily Japanese; Korean; Taiwanese; diving; snorkeling; Rock Islands)
• U.S. Compact grants (~20-25% of government revenue)
• Fishing license fees (~10% government revenue)
• Agriculture (taro; cassava; sweet potato; small-scale)
• Government services (public sector; significant)

Palau is known for: Palau's Jellyfish Lake (Eil Malk Island; Rock Islands; one of approximately 70 marine lakes in Palau; the most famous is Jellyfish Lake; millions of golden jellyfish/moon jellyfish have evolved in isolation with minimal stinging capacity; snorkeling with them is extraordinary; briefly closed 2016-2019 due to drought; reopened) is one of the world's most unique marine experiences. The Rock Islands Southern Lagoon (UNESCO World Heritage; 2012; approximately 445 km²; approximately 300 limestone rock islands; crystal water; coral reefs; marine lakes; WWII wrecks; possibly the Pacific's single most beautiful seascape) is Palau's primary asset.

Trade Profile

Large goods deficit offset by tourism revenues and U.S. Compact grants.

Top Exports

• Tourism revenues (~50-60% of GDP; diving; Rock Islands)
• Fish (limited)
• Handicrafts (minor)

Top Imports

• Food
• Petroleum
• Consumer goods
• Machinery
• Vehicles

Export Destinations

• Japan
• United States

Import Partners

• United States
• Japan

The world depends on Palau for: World-class marine conservation (first shark sanctuary; largest MPA systems; Rock Islands); model ocean governance; Jellyfish Lake unique experience

Palau depends on the world for: Food; petroleum; consumer goods; tourist visitors (primarily from Japan; South Korea; Taiwan; USA)

Global Role

Palau's global significance is being one of the world's top diving destinations (Jellyfish Lake; Rock Islands UNESCO; Blue Corner; Blue Hole), the world's first shark sanctuary (2009), the Palau National Marine Sanctuary (80% of EEZ protected; 2020), the Palau Pledge (all visitors sign an environmental pledge in their passport), and as one of Taiwan's remaining diplomatic allies.

• Palau established the world's first national shark sanctuary in 2009 (all shark fishing and finning prohibited in all waters) and the Palau National Marine Sanctuary (January 2020; 80% of EEZ; approximately 500,000 km² closed to all commercial fishing and mining; world's sixth-largest MPA)
• The Rock Islands Southern Lagoon (UNESCO 2012; approximately 300 mushroom-shaped limestone islands; crystal-clear water; 700+ coral species; 1,500+ fish species; marine lakes including Jellyfish Lake) is considered the Pacific's most beautiful enclosed seascape
• Jellyfish Lake (Eil Malk Island; millions of golden jellyfish that have evolved in isolation and lost most stinging ability; swimming through them is extraordinary) is one of the world's most unique marine experiences
• The Palau Pledge (introduced 2017; all visitors must sign an environmental commitment stamped in their passport) is the world's first passport immigration environmental pledge; studied as a conservation tourism policy model
• Palau is one of approximately 13 countries worldwide that officially recognize Taiwan (Republic of China) rather than the PRC; this diplomatic recognition is central to Palau's foreign policy

Frequently Asked Questions

Who governs Palau?

President Surangel Whipps Jr has been president since January 21, 2021. Palau has a Compact of Free Association with the United States (renewed 2023); Palauan citizens can live and work in the USA. Palau officially recognizes Taiwan rather than China.

What is Jellyfish Lake?

Jellyfish Lake (Eil Malk Island; Rock Islands; Palau) is one of approximately 70 marine lakes in Palau; it was isolated from the ocean approximately 12,000 years ago; the golden jellyfish and moon jellyfish in the lake have evolved in isolation for so long that they have essentially lost their stinging ability (very few stinging cells; harmless to humans); millions of jellyfish migrate back and forth across the lake daily following the sun; snorkeling through millions of softly pulsing jellyfish is considered one of the world's most extraordinary wildlife experiences. The lake was briefly closed 2016-2019 due to a severe drought that reduced jellyfish populations; it has recovered.

Related Countries

• Micronesia: Adjacent Pacific Micronesian nation; also has a Compact of Free Association with the United States; Yap stone money quarried from Palau; comparison of Pacific Compact economies
• Philippines: Closest major country (~800 km west); significant Filipino workforce in Palau; Philippine Airlines flies Palau route; historical Palauan-Philippine maritime connections
• Taiwan: Palau officially recognizes Taiwan (not PRC); Taiwan provides development assistance; Taiwanese tourists are a significant visitor group; Palau-Taiwan diplomatic relationship is one of Taiwan's most durable Pacific partnerships
• Australia: Australia provides significant Pacific aid to Palau; Australian divers are a significant tourist group; Australia is a key security partner in the Pacific