Transcript
PAUL HOLDEN: What has happened over the last few years is that there has been an explosion in tourism, which has taken the number of tourist arrivals in the past five years from somewhere in the region of 100,000 to close to 180,000. But many people say that the growth of the tourism industry is threatening to degrade the natural beauty sites in Palau and in fact they have two World Heritage sites there and the big danger is that these sites will become overcrowded and thereby destroy the experience. So, the centre of the debate is the type of tourists that they would like to see. The word or phrase that they're using is that they're seeking to attract high-value tourists and by that they don't necessarily mean tourists who spend a lot but really who come to savour the experience of the islands and their natural beauty as a whole and in doing so wish to return on a regular basis, to tell their friends about it, and so on.
AMELIA LANGFORD: So, the more tourists that come along the more danger there is that these precious sites will be damaged in some way?
PH: Well, yes. I think there are a number of issues there. One of which is their ability to enforce the existing laws and regulations, firstly, and secondly to develop new regulations that will protect the environment. Now, last year in 2016, there was a slowdown - this is partly attributable I think to the slowdown of economic growth in China, but secondly the fact that the US dollar, which is the currency of Palau, has appreciated very strongly against virtually every other currency in the world so Palau has become significantly more expensive than it was. So to some degree, there is a natural switch back towards higher spending tourists but there are many other issues that the country has to confront in order to realise its vision of a destination for high-value tourists.
AL: So Palauans are very aware I imagine of the impact these tourists are having to what is quite a small country?
PH: Oh, look absolutely. I have just finished a visit to the country where I presented this private sector assessment and one feature of Palau, which I think is very encouraging, is the degree to which the wider population are involved in the debate regarding the future of the country. One of the questions at the economic symposium, which I was a key-note speaker, was who exactly are we developing the tourism sector for? Are Palauans benefiting from the increase in the number of visitors? and so on and this is, I think, a very healthy development in terms of ensuring that there is a degree of consensus in the country regarding how they move forward.
AL: What is the answer to that? Are Palauans benefiting?
PH: Look, there's no question that they're benefiting but at the same time I think a number are quite dismayed at the overrunning of some of the facilities and so what has still not happened is a clear articulation of the policies that are necessary to put in place in order to realise the 'pristine paradise Palau' vision of the tourist industry and its role in society. There are all sorts of issues like land-use planning, overstretching of water and waste facilities, garbage - some pretty fundamental things.
AL: What you're talking about in terms of Palau would be relevant to a lot of small Pacific nations right now do you think?
PH: Oh, there's no question that is the case. Why this issue is of particular urgency to Palauans is that they're tourist industry is very very far advanced and with the possible exception of the Cook Islands by far the most evolved tourism industry in the Pacific.
AL: How urgent is this problem for Palau?
PH: Urgent. They do not have a long window in terms of being able to indefinitely postpone taking some of the more difficult decisions that have to be made.
