Welcome to IMG Palau... Palau, officially the Republic of Palau (Palauan: Beluu er a Belau), is an island nation in the Pacific Ocean, some 500 miles (800 km) east of the Philippines and 2000 miles (3200 km) south of Tokyo. Having emerged from United Nations trusteeship (administered by the United States) in 1994, it is one of the world's youngest and smallest nations. It is sometimes referred to in English under its native name Belau. Palau's economy consists primarily of tourism, subsistence agriculture, and fishing. Tourist activity focuses on scuba diving and snorkeling in the islands' rich marine environment, including the Floating Garden Islands to the west of Koror and the Rock Islands to the south. The government is the major employer of the work force, relying heavily on financial assistance from the US. Business and tourist arrivals numbered 50,000 in the financial year 2000/2001. The population enjoys a per capita income twice that of the Philippines and much of Micronesia. Long-term prospects for the key tourist sector have been greatly bolstered by the expansion of air travel in the Pacific, the rising prosperity of leading East Asian countries, and the willingness of foreigners to finance infrastructure development. In July 2004, Palau Micronesia Air was launched with service from Palau to Yap, Guam, Micronesia, Saipan, Australia, and the Philippines. It was thought of giving Continental Micronesia a run for its money due to the low fares which it offered to its passengers, however it has ceased operations in December of the same year, mainly because the airline began operating at a time where fuel prices were skyrocketing and also because the cost of operation had been much more than anticipated. Palau Micronesia Air has not restarted operations since but has made a codeshare alliance with Asian Spirit, a carrier that operates flights between Palau and the Philippines (Davao, Cebu, and Manila) and is much more affordable than Continental Micronesia. There are two flights weekly Manila via Cebu to Palau and one flight weekly from Davao. The flight costs $230 from Davao and $280 from Manila with one week advance booking. (Stand May 4. 2007) Taxes are moderate, the income tax has 3 brackets with medium rates (9.3%, 15% and 19.6%), corporate tax is 14% and general sales tax is 7.5%. There are no property taxes. |