KOROR, Palau — Palau’s tourism industry closed July with a strong though slightly reduced visitor count, as new data previewed major changes ahead: the launch of direct flights from Tokyo set for October 29, 2025 is poised to energize arrivals from Japan, according to the Palau Visitors Authority (PVA) and travel industry partners.
Palau welcomed 6,071 visitors in July—down 4.5% from June, yet maintaining an elevated pace for the year. China surged as the largest market, driven by new flight options and providing 2,379 visitors (39%). USA and Canada followed with 1,307 arrivals (22%), marking steady month-on-month growth. Taiwan contributed 1,208, or 20% of the total, while Japan accounted for 358 arrivals, reflecting 6% market share for the month.
Looking Ahead: Direct Japan-Palau Flights
Tourism officials report that United Airlines will inaugurate nonstop service between Tokyo Narita and Koror on October 29, 2025—a long-sought development expected to double Japanese monthly arrivals over the next several quarters. Historically, Japan’s share had dropped due to connectivity challenges, but the new air link positions Palau to recover pre-pandemic peak Japanese visitor totals, potentially reaching 8,000–10,000 annually for 2026 if demand holds.
“Direct flights will make Palau a far more attractive holiday destination for Japanese travelers, who have shown consistent interest when air access is easy,” sector experts say. Tourism marketers anticipate not only higher numbers, but an increase in longer stays and multi-country itineraries pairing Japan and Palau.
Market Performance and Diversification
From January to July, Palau welcomed 40,339 total arrivals—a robust 24% gain year-over-year—anchored by growth from China, Taiwan, and strong rebounds from Australia and Europe. While Japanese arrivals rose 19% in early 2025, analysts project even sharper gains once direct flights begin, offsetting recent seasonal dips and giving a boost to mid-range and luxury travel segments.
Tourism Trends and Industry Outlook
Hotels led accommodation choices for July (56.3%), and 78% of visitors were first-timers, with leisure travel for pleasure/vacation dominating demand. Notably, online search and digital marketing remain top channels for attracting international guests, positioning Palau for further gains as travel connectivity and partner promotions increase.
As the sector prepares for United Airlines’ historic Tokyo–Koror launch, officials and stakeholders express optimism that the new route will reinforce Palau’s reputation as a premier Pacific destination for Japanese tourists and the wider region.
