ABC News
August 25, 2918
By Lauren Beldi
A ban on Chinese tourists to the tiny Pacific nation of Palau has left hotels empty, an airline in limbo, and shown the power China has over its vacationing middle class.
The number of Chinese visitors to Palau had increased from just 634 people in the 2008 financial year to 87,000 during 2015, according to figures from Palau’s Bureau of Immigration and the South Pacific Tourism Organisation.
But by the end of 2017 — after China seemingly randomly banned state-run package tours from visiting the country — Chinese arrivals plummeted to 58,000.
That has left some tourism operators in the Pacific island country reeling, and one airline says it’s been forced to suspend operations because it can’t fill seats.
Analysts have suggested Palau’s diplomatic ties with Taiwan — being one of its 17 remaining allies worldwide — combined with Beijing’s ability to control and oversee its tourists have a lot to do with it. [FULL STORY]