Palau Responsible Tourism Policy Framework 2017 - 2021

3.0 Responsible Tourism Implementation The organizational framework for implementing the Responsible Tourism Policy Framework and Action Plan involves the creation of one new entity and the collaboration of others. As a first step to strengthen the institutional arrangements needed to effectively implement the policy framework and Tourism Action Plan, the ROP will establish the critically important National Tourism Coordination Board (NTCB), which will include representation from key government ministries, states, private sector organizations, and NGOs, especially those in the environmental sector (Appendix 2). NTCB will provide leadership and policy guidance to steer implementation of the Responsible Tourism Policy Framework and Action Plan; provide guidance to related ministries, direct the functions of the Bureau of Tourism and oversee and coordinate the implementation of the actions called for by this framework. While BOT, with the support of NTCB, must take the leading role in coordinating these efforts to ensure needed outcomes, the implementation of this framework will require a whole-of-industry approach. Both the government and the private sector must commit to the actions called for in this framework.

3.1 Roles and Responsibilities of Key Agencies and Organizations National Tourism Coordination Board (NTCB) With members appointed by the president, NTCB will include representation from key government ministries, states, private sector organizations, and NGOs, especially those in the environmental sector. NTCB, chaired by the Minister of Natural Resources, Environment, and Tourism, will provide leadership and policy guidance to steer implementation of the Responsible Tourism Policy Framework and Action Plan; provide guidance to related ministries, seek support from development partners for priority projects, and convene ad-hoc meetings to formulate responses to unforeseen events requiring high-level decision making. See Appendix 3 for member agencies/organization and structure. Bureau of Tourism (BOT) Primary government agency charged with the systematic development and management of Palau’s tourism industry. BOT will implement and/or coordinate the policies, projects, and programs endorsed by NTCB, promote national and international investment in the tourism sector; organize programs and training to upgrade the quality and technical skills of the tourism industry, measure the flows and impacts of tourism activity (research), and manage the regulation and enforcement of standards and certifications. Palau Visitors Authority (PVA) Quasi-public agency tasked with brand management, promotion, and strategic marketing of Palau as an international tourism destination. Belau Tourism Association (BTA) 18 Nonprofit membership organization focused on the development of a quality visitor experience in Palau by expanding business opportunities for members through advocacy, education, community outreach, and stewardship of Palau’s environment and cultural heritage. Palau Chamber of Commerce (PCOC) Nonprofit organization with the mandate of publicizing, promoting, and developing commercial and business opportunities within the Republic of Palau. Palau Conservation Society (PCS) Non-governmental organization focused on empowering Palau’s communities to be good stewards of the environment. State Tourism Councils (STC) Comprised of state leadership, PAN coordinators, and tourism representatives, and and CBO (cheldebechel) /citizen stakeholders, state tourism councils will engage tourism planning and management at the subnational level. The councils will seek support from development partners to strengthen their ability to mainstream tourism planning into local governance structures. States will engage with BOT, PVA, BTA and other actors to implement tourism- related policies, projects, and activities.

3.2 Action Plan This strategic framework is accompanied by an action plan that describes the necessary activities that are needed to ensure a responsible tourism industry in Palau. See Appendix 1.

4.0 Monitoring Performance and Impact While the proposed National Tourism Coordination Board (NTCB) will provide leadership and policy guidance to steer implementation of the Responsible Tourism Policy Framework and Action Plan; BOT is the primary government agency charged with the systematic development and management of Palau’s tourism industry. BOT, with assistance from industry partners, will implement and/or coordinate the policies, projects, and programs endorsed by NTCB, and is responsible for monitoring and evaluating Palau’s Responsible Tourism Policy Framework objectives and activities. Performance monitoring will be achieved by: • Measuring, tracking, and communicating key indicators, as described in Appendix 5, with industry and community. • Measuring and tracking the specific activity indicators recommended in the Action Plan (Appendix 1). 19

5.0 Financing Responsible Tourism Development The success of the Responsible Tourism Policy Framework is contingent upon sufficient funding support for the Bureau of Tourism and approved projects. Key priorities will be support for visitor and impacts research, community outreach, and regulatory and/or standards enforcement. While funding support for some activities has been identified, the majority of the actions necessary for the viability of Palau’s tourism industry, which are key to reaching Palau’s sustainable development goals, require the ROP government’s investment. 20 6.0: Appendices

6.1 Appendix 1: Palau Responsible Tourism Policy Framework 2017–2021 Action Plan Background The following action plan is designed to facilitate the implementation of the Palau Responsible Tourism Policy Framework (2017–2021). Policy actions are grouped by goals, objectives and specific activities. The action table comprises columns that specify • Key objectives and activities for each target and goal • Activity priority • Responsible agencies • Indicators to measure progress, problems, and success The proposed actions are not meant to be prescriptive or exclusive. Rather, they are core activities that will be need to be undertaken, along with many others, as appropriate, to achieve the desired results by 2021. While most of these activities will require the contributions of multiple agencies and/or organizations, the national tourism coordination board (NTCB), implemented by BOT, is responsible for the coordination of those activities and for supporting the dialogue and engagement that is needed to facilitate action and positive results. Finally, this Action Plan should inform the development of annual BOT work plans as well as the work plans of agencies and organizations whose core functions involve Palau tourism objectives. 21 Target 1: RESPONSIBLE TOURISM AWARENESS AND ALIGNMENT IS A NATIONAL PRIORITY The actions in Table 1 are designed to ensure national capacity to manage the sustainable development of the tourism sector, support a regulatory framework for land-use planning and tourism zoning to protect cultural heritage and the built and natural environment, and support a government-to-business mechanism for the collection and dissemination of market intelligence, statistics, marketing plans, and development activities. Goal 1: Tourism development and management is prioritized, organized, and coordinated across national and local government sectors. Key Objectives and Activities Lead Priority Performance Agencies Indicators Objective 1.1: National and state governments are united on the central priority of engaging responsible tourism policy toward the fulfillment of Palau’s social, economic, environment, and cultural goals. Palau’s Responsible Tourism Framework MNRET, OEK, 1 ü Public and private and Action Plan is endorsed by the OEK President’s sector are unified and the President’s Office. Office in their support of a responsible tourism policy. Comprehensive national and state land- NTCB, BOT, 1 ü Updated national use/development plans are amended to EQPB, PPLA, and state land- include explicit responsible tourism states use/development concepts, measures and functional plans exist and enforcement mechanisms. have explicit application to tourism. (yes/no) ü % building proposals denied or sent back for revision (tracks rigor of process). ü Number of fees charged for plan, zoning, or site violations. Objective 1.2: Tourism development, management, enforcement, and marketing is coordinated between national and state governments and private sector organizations. Organize national tourism coordination President’s 1 ü NTCB is approved; board (NTCB); mandate operational Office, MNRET agencies/members processes; identify key members are appointed; representing government ministries, procedures are private sector organizations, and NGOs; established. 22 establish decree and operational processes to establish the Board; organize program to impart industry knowledge to NTCB members. (See

Appendix 3) Review and clarify the mandates, President’s 1 ü BOT and PVA organizational structures and activities of Office, NTCB, partner effectively Palau Visitors Authority and Bureau of PVA, BOT to achieve distinct Tourism to support responsible tourism and shared policy objectives, ensure efficiency and targets. cooperation, and route adequate funding. Conduct institutional gaps and needs Independent 1 ü BOT has the assessment for BOT. Develop and Consultant systems and implement capacity building to increase capacity to institutional and personal capacities and execute its to ensure functionality. mandate. Nationwide industry licensing BOT 1 ü Certification and requirements, certifications, and standards are standards are developed, effectively integrated into the communicated, implemented, and licensing process enforced. for tourism industry operations. ü Enforcement procedures are clear and actionable. Existing national and state laws, BOT, KSG, BCD 1 ü Conflicting laws regulations and official definitions are and regulations, reviewed for consistency and redundancy. are resolved and Conflicting areas are identified and communicated. resolved by appropriate agencies. Responsible tourism development and BOT, BTA, 1 ü All relevant state asset management capacity building is STCs, PCS master plans and ongoing for State Tourism land-use plans Councils/tourism representatives in all include relevant states. (See Appendix 2) responsible tourism strategies and asset management plans. ü Workshops are provided throughout the year to support state product development and asset management. 23 The collection of visitor fees for state- PVA, BOT, 1 ü Number of owned attractions throughout the states is governors, state workshops held in coordinated and managed to provide a tourism states to raise welcoming, user-friendly visitor representatives, value of experience. Fee schedules reflect BTA. experiences and awareness of tourism product best calibrate fees. practices and fair value for ü State tourism service/experience. revenues increase. ü Visitor complaints decrease. Objective 1.3: The collection, management, and public dissemination of tourism data is formalized. The cooperation of all public and private sector data sources is required. A Destination Management System MNRET, BOT, 1 ü Transparent, data- (DMS) is established and managed within MOF, PVA based decisions the Bureau of Tourism to gather market regarding tourism intelligence, performance data, and development, information on the social, environmental, marketing and and economic impacts of tourism to management are enable effective decision-making and made. necessary policy reforms. Mechanisms are created to collect timely, BOT, PVA 1 ü Key data points comparative market intelligence, sector and their performance, environmental/community relevance are impacts, and visitor satisfaction feedback. reported on a regular basis to industry and community. Palau’s top 10 indicators to measure NTCB 1 ü Industry agrees on tourism strategy success are selected and set of bellwether data points are established. Mechanisms indicators that are put in place to regularly capture data indicate trends and respond to trends. See Appendix 3. and enable policy adjustments. 24 Target 2: PALAU’S VISITOR ECONOMY IS RESPONSIBLY MANAGED The actions in Table 2 are designed to manage visitor arrivals, behavior, and access to fragile sites to reduce tourism impacts on Palau’s environment, culture, and communities. Goal 2: Visitor-to-resident ratio reflects sustainable carrying capacity. Key Objectives and Activities Lead Priority Performance Agencies Indicators Objective 2.1: Sustainable carrying capacity ranges are established, determining acceptable levels of environmental, cultural, and community impacts. Visitor carrying capacity can be estimated States, BOT, 1 ü Thresholds are using any of a number of techniques, such as PICRC, PCS identified Limits to Acceptable Change (LAC) and and beyond which Visitor Impact Management (VIM). increased growth of An ad hoc carrying capacity committee is tourism may no established or outside consultant is engaged longer be to analyze existing studies and survey results sustainable. that document Palau’s biophysical and social dimensions to identify the nature and extent of potential impacts from current and new tourism development, visitation and climate change. Efforts to mitigate issues related to climate States, 1 ü Degree to which change such as rising sea levels and extreme PICRC, PCS, key tourist weather events are incorporated into tourism BOT, BTA sites/zones are development planning and management. covered by contingency or emergency planning (existence of plan, % area included). A monitoring and reporting system is BOT, PCS, 1 Key data is established to capture total tourist numbers PAN collected to facilitate (mean, monthly, peak) and density of use at understanding of specific tourism sites. ü the percentage of capacity used, ü trends relative to capacity, and ü number of instances where capacity limits 25 are reached or exceeded. Workshops are held to provide active tourism BOT with 2 ü Number of sites with methods to manage capacity levels assistance tourism sites and negative impacts from outside with active consultant policies designed to minimize environmental, social, and cultural impacts. A comprehensive community survey is BOT, PCS 1 ü Metrics of undertaken to capture views of Palauans social/cultural toward tourism and the social, environmental, impacts of and economic impacts of tourism. tourism on Palau’s community exist. Objective 2.2: Airline access is closely aligned with carrying capacity, accommodation stock, and targeted markets. Create mechanism to ensure airport MPIIC, NTCB, 1 ü Industry has transparency to allow coordinated effort to President’s access to best manage optimal visitor arrivals. Office operation Recommendations include daily schedules, procedures, routes, transparent legal documents such as routes, SOP, ASAs, etc., and accessible website. schedules and airline access. Landing rights are provided to scheduled and MPIIC, NTCB, 1 ü % hotel charter flights to coordinate with desired PVA, BOT occupancy rates markets and available room stock. Recommendations include a route bidding forum to incentivize consistently scheduled service on routes currently overlapped between scheduled and charter carriers. Objective 2.3: User fees levied appropriately assist in reduction of low-end markets Support the replacement of current gross President’s 1 ü Legislation is revenues tax (GRT) with a goods and services Office, EAG passed to tax (GST) to capture more value from visitor reform the tax industry and ensure tax system is efficient and system to equitable. improve efficiency and ensure participation of all businesses. 26 Entry/exit fees are carefully researched and NTCB, BOT, 1 ü Visitor adjusted to prevent negative impact on PVA, MOF comments re desired markets. Visa fees Objective 2.4: Strengthened visitor communication and outreach ensures that all visitors are provided with clear information about respectful, appropriate behavior and environmental dos and don’ts. Build on the existing Responsible Tourism PCS, BOT, 1 ü Number of Campaign to develop a multi-year campaign PVA trainings held targeting visitor behavior change. with tour operators to educate on best practices ü Increased visitor compliance of best-practice behaviors at tourism sites (as determined by community and site surveys). 27 Target 3: RESPONSIBLE PRODUCT DEVELOPMENT ATTRACTS TARGETED HIGH-VALUE MARKETS The actions in Table 3 are designed to prioritize the development of accommodations, services, and experiences that meet the market demands and expectations of diverse, high-value visitors such as Free Independent Travelers (FITs) and targeted niche markets. Goal 3: Diverse, high-value, low-impact consumer segments are the core of Palau’s visitor industry Key Objectives and Activities Lead Priority Performance Agencies Indicators Objective 3.1: The development of accommodations, services, and experiences that meet the market demands and expectations of high-value visitors such as Free Independent Travelers (FITs) and targeted niche markets such as birding, soft adventure, cultural heritage, private cruising, ecotourism, etc., is prioritized. Establish one-stop shop to attract and assist President’s 1 ü Number of tourism development investors. Develop on- Office, MNRET, investments line guidebook to support investors. FIB, NTCB, fitting desired PCOC, MOF, Responsible See Appendix 6. state Tourism profile governments Implement mechanism to incentivize higher- NTCB, BOT, 1 ü Percentage mix value accommodations investors. FIB, State of luxury/upper Governments scale rooms in Palau’s tourism profile ü Room rates (ADR) and revenue per available room (RevPAR) Consider tax reform that includes incentives President’s 1 ü % of current to current hotel owners to
encourage Office, NTCB, hotels taking reinvestment in existing facilities.
MOF advantage of incentive Private sector develops voluntary Quality BTA 1 ü % private sector Assurance Program to incentivize businesses internationally recognized best practices in engaged in customer service, accessibility, and Quality sustainability. Assurance Program. ü Visitor satisfaction as shown in exit survey and 28 social media platforms States invest in improving the value State 1 ü Number of proposition and visitor experience of their governments, identifiable natural and cultural assets, diversifying BOT, BTA, cultural and Palau’s tourism portfolio. BCHP terrestrial- focused experiences in states. Conduct a feasibility/impact study to BOT, PVA, 2 ü Number of evaluate infrastructure improvements and PNOC sports-related capacity necessary to plan and successfully events draw international participants in sports attracting tourism events such as marathons, international triathlons, ironmans, regattas, surfing participants competitions, etc. ü Percentage of FIT vs package traveler in visitor stats Conduct a feasibility/impact study to BOT, PVA, 2 ü % FIT vs evaluate cruise market and private yachting. Bureau of package Transportation traveler in visitor arrival statistics Objective 3.2: Marketing activities focus on a variety of high-performing, niche, and diverse geographic source markets in pursuit of highest-value customers—those who stay the longest and spend the most. Identify primary and secondary high-value NTCB, PVA, 1 ü Target markets tourism markets based on data, research, BOT are identified, and transparent decision making. justified, and clearly communicated to industry and communities. Conduct targeted consumer and travel trade PVA 2 ü Palau’s rank on marketing, media, and public relations list of efforts to increase Palau’s brand awareness destinations in selected markets. (key competitors) on broad surveys in key market(s); ü Percent of operators (inbound) who perceive the destination as a high-value destination.
29 Target 4: PALAU’S VISITOR EXPERIENCE IS THE LIVING BRAND The actions in Table 4 are designed to set, incentivize, and/or enforce standards of quality, sustainability, authenticity, health, safety, and security for all tourism sector products and services. Goal 4: The complete visitor experience reflects the Pristine Paradise. Palau brand. Key Objectives and Activities Lead Priority Performance Agencies Indicators Objective 4.1: Standards of quality, authenticity, health, safety, and security are established, incentivized, and/or enforced for all tourism sector products and services. Tourism standards for certification and BOT, BTA 1 ü Service, value operation in all sectors (accommodations, for money, and eateries, transportation providers, etc., safety including but not limited to: satisfaction ratings of • tour operators visitors • tour guides (with separate ü Number of considerations for land vs. scuba standards guides) citations • boat drivers issued. are reviewed for relevance, improved and ü Number of enforced. complaints received. ü Ratings by travel sites. ü Number of repeat visitors.
A building code appropriate to Palau’s built PCOC, NTCB, 1 ü Appropriate environment is in place and enforced, MPIIC code has been providing internationally recognized building adopted by safety assurance for residents and guests. ROP. ü Number of code violations cited (thereafter). A Complete Streets-type campaign is funded BOT, state 2 ü Number of and implemented to support safe, attractive, governments, public-private walkable commercial areas. local partnerships to communities, enhance MOH, BPS, safety and MPIIC walkability of commercial areas 30 ü Number of pedestrian accidents and injuries. Product authentication standards are in place BOT, BTA, 1 ü Local products and enforced. BCHP, MOF, enterprises MCCA, BCD increase. ü Revenue from local products increases ü Number of Palauans engaged in handicraft production increases. The airport infrastructure and its associated MPIIC 1 ü Number of human resources are optimized to provide a complaints re positive visitor entry and exit experience. airport experience and facilities. Objective 4.4: ROP policies and practices support Palau’s identity as a pristine conservation nation and meet visitor expectations. Palau’s recycling efforts are enhanced, KSG, MPIIC, 1 ü National increasing community and business President’s strategy or participation. Office, MNRET policy in place to support waste reduction program. ü Volume of solid waste recycled Plastic bags for packaging purchases and PCOC, MOE, 2 ü Number of customary events are phased out via a communities businesses combination of education and public and incentivizing private-sector initiatives. and promoting use of cloth carry bags Education and incentives support the PPUC, MNRET, 2 ü Number of stewardship of water resources. EQPB businesses employing water conservation measures. 31 Tourism industry operations support emissions Palau Energy 2 ü Annual reduction as defined by Palau’s Climate Office, OCC, emissions Change Policy. BPS compared to baseline year. 32 Target 5: PALAU’S TOURISM INDUSTRY PROVIDES IMPROVED VISITOR YIELD The actions in Table 5 are designed to ensure that responsible tourism policy benefits Palauans first. They include improving the local profile and preparation for tourism careers; access to finance and support mechanisms for small, medium, and micro community enterprises; and strengthening agriculture and fisheries sectors to reduce reliance on imports. Goal 5: Responsible tourism practices support the optimal retention of revenue in the local economy. Key Objectives and Activities Lead Priority Performance Agencies Indicators Objective 5.1: Guidelines for the evaluation and approval of tourism development projects are based on Responsible tourism concepts. An agency, commission, or mechanism is NTCB 1 Approved FDI established to ensure approved development reflects Palau’s projects match Palau’s Responsible Tourism Responsible Policy. Tourism priorities including: ü Maximum local ownership and participation ü Strengthening linkages with other sectors of the economy ü Preservation and promotion of Palau’s culture and heritage ü Preservation and enhancement of the environment ü Utilization of local resources ü Local job creation ü Increased national revenue and net foreign exchange earnings. Responsible tourism principles are central to EQPB, MNRET, 1 ü All relevant Palau’s Sustainable Land Management MOJ/Division of state master implementation efforts. Fish & Wildlife, plans and land- Palau National use plans 33 Marine include Sanctuary responsible tourism strategies and asset management plans. Objective 5.2: A culture of Palauan tourism entrepreneurship is developed and fostered. A mechanism is in place to facilitate local MOF, SBDC, 1 ü Number of entrepreneur entry into the industry. PCOC, BTA, Palauan owned PCC, NDBP and operated SME and micro businesses Objective 5.3: Agriculture and fisheries sectors and markets are strengthened to improve local entrepreneurship, food security, and protection for identified species. Mechanisms are in place to facilitate market BOA, PCOC, 2 ü % change in development and strengthen linkages SBDC, BMR, imported food between agriculture and fisheries with PCC, NDBP quantities hospitality industry.
ü % local food on restaurant menus Specified vulnerable marine and terrestrial MNRET, 1 ü Number of life is protected against rogue fishing and MOJ/Division of illegal fishing hunting activity and informal commerce by Fish & Wildlife, infractions effective enforcement of infractions. Palau National cited. Marine ü Fees collected Sanctuary, KSG for illegal fishing infractions. ü Species count for identified vulnerable marine life Objective 5.4: Public-private partnerships support a local Palauan-made production industry, including the development of creative industries, with market links. Workshops are held to develop community BTA, PCOC, 2 ü Number of skills in creative industries reflecting SBDC, BNM, workshops held traditional practices. Public-private MCCA ü Number of partnerships assist Individuals with distinct developing market links. ,authentic local products available for sale 34 Objective 5.5: Raise local profile and preparation for tourism careers. The tourism industry, types of enterprises, BOT, MOE, 2 ü Education units skills needed including languages, and BTA, PCC covering opportunities are included in National tourism topics Education Policy. at public and private high schools ü Tourism- enterprise internships available for students The curriculum and capacity of Palau Office of the 1 ü Number of Tourism & Hospitality School of Excellence President, BOT, students are enhanced and promoted both locally and PCC, BTA, enrolled in throughout Micronesia. Linkages are PCOC, PVA, tourism school strengthened with local tourism industry. ü Number of students employed in local industry after graduation. 35 Target 6: PALAU’S TOURISM DEVELOPMENT IS COMMUNITY-DRIVEN The actions in Table 6 are designed to ensure that communities are actively engaged in responsible tourism planning and decision making. Goal 6: Communities are actively engaged in responsible tourism planning and decision making. Key Objectives and Activities Lead Priority Performance Agencies Indicators Objective 6.1: National industry partners work together to educate and inform local media and communities about Palau tourism success stories and positive impacts. Expand existing Responsible Tourism BOT, PCS, 1 ü Number and types of education and awareness campaign to PVA, BTA, avenues used to build greater awareness in the local KSG, Governors promote responsible media, schools, and community Association tourism (printed media, groups. TV, events, workshops) ü Number/% of people accessing information, participating. ü Number of agencies/organizations applying sustainability aspects to their strategic planning processes Conduct biannual survey of residents’ BOT 1 ü Local satisfaction level attitudes towards tourism to assess with tourism (and with resident perception of tourism value specific components of and impacts. tourism) based on community questionnaire ü Number of complaints by local residents (requires mechanism for complaints collection ) Objective 6.2: A Tourism Council is established in each state to engage bottom-up responsible tourism development and follow through. State Tourism Councils (STCs) are State 1 ü Number of states with comprised of state leadership, PAN governments active STCs. coordinators, and relevant private and CBO sector and community representation (cheldebechel) in each state (as appropriate).
/citizen stakeholders 36 Objective 6.2: Public-private partnerships focus on community-driven cultural and terrestrial nature-based tourism outside of Koror. Initiate and implement a series of pilot BOT, BTA, 1 ü Sustainably managed tourism projects promoting cultural PVA, STCs, cultural and nature- and nature-based assets BCHP based tourism products increase. ü State tourism revenue increases. ü Tourism-focused SMEs outside of Koror increase. 37 6.2 Appendix 2: Roles and Responsibilities of Tourism- related Agencies and Organizations Agency/ Organization Roles and Responsibilities National Tourism With members appointed by the President, NTCB will include Coordination Board representation from key government ministries, states, private sector (NTCB) organizations, and NGOs, especially those in the environmental sector. NTCB will provide leadership and policy guidance to steer implementation of the Responsible Tourism Policy Framework and Action Plan; provide guidance to related ministries, seek support from development partners for priority projects, and convene ad-hoc meetings to formulate responses to unforeseen events requiring high- level decision making. See Appendix 4 for recommended members and structure. Bureau of Tourism Primary government agency charged with the systematic development and management of Palau’s tourism industry. BOT will implement and/or coordinate the policies, projects, and programs endorsed by NTCB, promote national and international investment in the tourism sector; organize programs and training to upgrade the quality and technical skills of the tourism industry, measure the flows and impacts of tourism activity (research), and manage the regulation and enforcement of standards and certifications. Palau Visitors Authority Quasi-public agency tasked with brand management, promotion, and strategic marketing of Palau as an international tourism destination. Belau Tourism Association Nonprofit membership organization focused on the development of a quality visitor experience in Palau by expanding business opportunities for members through advocacy, education, community outreach, and stewardship of Palau’s environment and cultural heritage. Palau Chamber of Nonprofit organization with the mandate of publicizing, promoting, and Commerce developing commercial and business opportunities within the Republic of Palau. State Tourism Councils Comprised of state leadership, PAN coordinators, tourism representatives, and CBO (cheldebechel) /citizen stakeholders, state tourism councils will engage tourism planning and management at the subnational level. The councils will seek support from development partners to strengthen their ability to mainstream tourism planning into local governance structures. States will engage with BOT, PVA, BTA and other actors to implement tourism-related policies, projects, and activities. 38 6.3 Appendix 3: Palau Responsible Tourism Institutional Environment 39 6.4 Appendix 4: National Tourism Coordination Board (NTCB) Good practice in sustainable tourism governance requires a national-level structure that creates an inter-ministerial liaison process bringing together those responsible for tourism, transport, development, environment, culture, and safety. This structure also needs the involvement of the tourism private sector as well as other stakeholder interests such as conservation bodies. While Palau is a small nation with tourism as its number one industry, the numerous public- and private-sector actors involved in and affected by the management and promotion of the tourism industry are deeply uncoordinated and often working at cross purposes. As a first step to strengthen the institutional environment, it is recommended that the Ministry of Natural Resources, Environment, and Tourism establish a National Tourism Coordination Board. With members appointed by the president, NTCB will include representation from key government ministries, states, private sector organizations, and NGOs in the environmental sector. To facilitate a nimble process, a 9-person board is optimal, however it may be necessary to include more stakeholders to ensure full government and private-sector support and engagement. Recommended Members Board Chair: Minister of Natural Resources, Environment, and Tourism (de facto) BOT (dual role of both member and secretariat) PVA BTA PCOC Governor’s Association Bureau of Aviation Bureau of Public Safety National Development Bank Bureau of Cultural and Historical Preservation Roles and Responsibilities While NTCB’s detailed roles and responsibilities will be defined by the Minister of Natural Resources, Environment, and Tourism at the Board’s first meeting, the Board will: • Meet to review progress in implementing the Responsible Tourism Policy and Action Plan and provide guidance on necessary adjustments to related Ministries and the operations of state tourism councils and other actors • Seek support from development partners for priority projects and activities specified in the Action Plan; and • Convene ad-hoc meetings to formulate responses to unforeseen events and/or needs that require high-level decision making. 40 !";$%&&'()*+$;,$<3=='5/')$>'?$@()*A./045$B04$ 8'(AC6.4D*(=E$F0F$ $ UW$^+9$_,#*(')"&-$7"&$A+'-.&*,2$C+-%",-*/0+$;".&*-1$?"0*(9$N.((+--$ "#$!%#&'(&)*+,#!-+./,*0(&1! 2345!6#10/)*0#.7! 2324!8*&9#0! 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$ $;".&*-1$*,("1+$*,3+-)+#$ *,$(",-+&3')*",$%&"2&'1-$ !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!! U $CH?$N)')*-)*(-$C+%"&)Q$VWUXYU5VWUZY[$ V $+",)-)./&0"$&12/3#)4#5,.&6$"73(&8.9)/)3.%:&;&+$)9#3.&1.-3"$&;//.//<.43&0"$&+#,#28$VWU\8$@OF$ [ $'-$"7$]+/:$VWU\$ ! "$! ! 6.6 Appendix 6: Guide for Tourism Investors A one-stop shop for potential investors will provide an efficient, welcoming, service-oriented process for potential desired, high-end investments. It is recommended that an investment guide be developed and available online for easy download as a first-step resource. The following topics are recommended to assist investor research and development: • Palau economic information • Palau’s responsible tourism vision • Why invest in Palau • Land acquisition • Tax system • Investment incentives • Employment policies • Life in Palau • List of institutions, useful links, and contacts 42 6.7 Appendix 7: Projected Visitor Arrivals Impact The charts below illustrate the potential implications of tourism on Palau in three different visitation scenarios: 150,000 annual visitors, 250,000 annual visitors, and 500,000 annual visitors. Table 1 projects the change in the resident mix (Palauan vs. foreign), which shifts from a local-to-foreigner ratio of 26:9 at the current level of visitors to an approximate ratio of 5:4 at the 500,000 annual visitors scenario. The foreign resident projection is conservative, as it does not take into account the higher ratio of workers per hotel room that the upscale market demands, nor does it include the additional laborers needed for construction, agriculture, and retail. Projected Local/Foreign Resident Mix based on annual visitor arrivals scenarios 100% 4,500 6,192 80% 10,439 60% 40% 13,000 13,000 13,000 20% 0% 150,000 250,000 500,000 Local Residents Foreign Residents Table 1: Local-to-foreign resident mix based on visitor arrival scenarios. Data courtesy PVA. Table 2 illustrates the approximate number of new hotels needed using Palasia (164 rooms) as a size reference. New Hotels Needed (size of Palasia) based on annual visitor arrivals scenarios 30 24 25 20 15 10 7 5 0 0 150,000 250,000 500,000 New Hotels Needed (size of Palasia) Table 2: Estimated number of new hotels needed to service increased visitor arrivals. 43 8.0 Acronyms BOA Bureau of Agriculture BCHP Bureau of Cultural and Historical Preservation BOT Bureau of Tourism BTA Belau Tourism Association EAG Economic Advisory Group (to the President) EQPB Environmental Quality Protection Board FIB Foreign Investment Board FIT Free Independent Traveler GEF Global Environment Facility KSG Koror State Government MOE Ministry of Education MOH Ministry of Health MOJ Ministry of Justice MNRET Ministry of Natural Resources, Environment, and Tourism MPIIC Ministry of Public Infrastructure, Industries, and Commerce NDBP National Development Bank of Palau NTCB National Tourism Coordination Board OCC Office of Climate Change PAN Protected Areas Network PCOC Palau Chamber of Commerce PCS Palau Conservation Society PNMS Palau National Marine Sanctuary PPLA Palau Public Lands Authority PPUC Palau Public Utility Corporation PVA Palau Visitors Authority RISL Rock Island Southern Lagoon SBDC Small Business Development Council SPLA State Public Lands Authority STC State Tourism Council UNESCO United Nations Educational, Scientific and Cultural Organization UNWTO United Nations World Tourism Organization 44 9.0 Definitions Ecotourism Responsible travel to natural areas that conserves the environment, sustains the well-being of the local people, and involves interpretation, and education. Education is meant to be inclusive of both staff and guests. (The International Ecotourism Society, 2015) High-value/ low-volume Tourism A tourism strategy that is characterized by smaller- and medium-scale operations emphasizing local and authentic experiences. High-value tourism has a higher per-visitor expenditure yet its market volatility and environmental/cultural impacts are lower. (Responsibletravel.org) Niche-market Tourism Tourism strategy that targets a very specific segment of the overall tourism market, for example specialized services or goods with few or no competitors Mass-market Tourism Tourism strategy that focuses on high sales and low prices and aims to provide products and services that will appeal to the whole market Travel refers to the activity of travelers. A traveler is someone who moves between different geographic locations, for any purpose and any duration. Tourist a tourist (overnight visitor) who stays at least one night in a collective or private accommodation in the place visited. Visitor is a traveler taking a trip to a main destination outside his/her usual environment, for less than a year, for any main purpose (business, leisure or other personal purpose) other than to be employed by a resident entity in the country or place visited. These trips taken by visitors qualify as tourism trips. Tourism refers to the activity of visitors Visitor economy activities and expenditure involved in supplying products and services for visitors by both the private and public sectors. It also includes the primarily public sector activities and substantial expenditure on the creation, maintenance, and development of the public realm and the infrastructure within which and through which visitor activities take place. 45