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and medical equipment. I return to the wanton luxury of the Explorer. While Peleliu is still being de-mined, the
US military is restoring the Japanese runway and installing radar. ‘Our location and posi- tion attract interest,’ says Norman Ngirat- echeboet, state governor of Airai. ‘But we are friends to all, enemy to none.’ In the postwar settlement, Palau became
a US vassal until ‘independence’ in 1994, qualified by a Compact of Free Association agreement that allows the USA rights over Palau in return for funding and defence. Given the unpredictable currents at the White House, it is perhaps not surprising that Palau wants to strengthen economic independence by boosting tourism, which represents 45 per cent of GDP.
‘W
elcome to the Pacific in micro- cosm!’ says Surangel Whipps Jr, the president, when we meet in
his souvenir-filled office in Koror, the main city. ‘Kayangel, the northernmost atoll, is like the Marshall Islands: low-lying atolls and islands formed by coral reefs growing on submerged volcanoes. Babeldaob, the largest island, is like Hawaii, but older; Ha- waii doesn’t yet have a big barrier reef. The limestone rock islands are like Raja Ampat in Indonesia. In the south, Peleliu and An- gaur are low-lying like Guam. In this tiny place, you have the whole of the Pacific.’
The president sits atop a hybrid power
structure of 16 states each with their own ancient clan system, on which is superim- posed a US-style democratic constitution. While Whipps handles domestic issues, it is said the US ambassador influences Palau’s foreign policy, such as its pro-Taiwan stance. ‘China doesn’t want diplomatic relations
with us,’ says Whipps. ‘We understand that. Oh, they try to entice us. One Chinese diplo- mat said, “I can get you one million tourists and build all the hotels you want.” We don’t need that. We want people to leave foot- prints that disappear, not bad memories.’ Whipps is aſter the carriage trade. He rat- tles off a list of shiny resort brands he’d like: Aman, Ritz-Carlton, St Regis and the rest. But there are a number of constraints on any sort of development. Almost everything – materials, labour, food, beverages and so on – must be imported via long supply chains vitiated by few flights and an airport runway that takes nothing larger than an A320 or 737; refuelling costs are high.
At present, most hotels on Palau operate at 10-40 per cent of capacity. It’s likely that new entrants from the president’s list would be ‘hermetically sealed’ and run by foreign- ers since Palauans are ‘generally not service- oriented’. What’s more, Palau’s remoteness means it would be unlikely to attract many repeat visitors, so that it would have to mar- ket itself continually to fill up new lodgings. Nevertheless, Palau can provide a kind of
‘luxury’ that has little to do with opulence and everything to do with the untouched beauty of the natural environment, a deep cultural heritage, as well as a commitment to preserving one of Earth’s last great para- dises. Perhaps it will even serve as a trump card to silence all those people who drone on about the Maldives, which received a far less exclusive 1.8 million tourists in 2023. ‘We have a saying,’ says Whipps, ‘“The
land is our mother; the ocean our father.” They provide for us, care for us. We need to take care of them. That is how we continue to survive.’
The Four Seasons Explorer offers
spectacular views from its luxury suites
Palau’s president, Surangel Whipps Jr, would like to see other luxury hotel brands come to the islands
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