Palau's president says the country's tourism revenue is up despite a 16 percent drop in arrivals from China.
The arrivals plummeted after Beijing told its tourist agencies to stop flights to Palau over its ties with Taiwan.
However, Tommy Remengesau told a tourism forum that overall revenue is still up because tourists are spending more.
The Marianas Business Journal reported him saying Palau is focussing not on the number of visitors, but on attracting what he calls high-end tourists who will spend top dollar.