An effective ban on tour groups to Palau is taking its toll on the island nation, which still retains its diplomatic links to Taipei

South China Morning Post 
Date: 19 August, 2018
By: Reuters
Empty hotel rooms, idle tour boats and closed travel agencies reveal widening fissures in the tiny Pacific nation of Palau, which is caught in an escalating diplomatic tug of war between mainland China and Taiwan.

Late last year, Beijing year effectively banned tour groups from visiting the idyllic tropical archipelago, branding it an illegal destination due to its lack of diplomatic status.

As China extends its influence across the Pacific, Palau is one of Taipei’s 18 remaining allies worldwide and is under pressure to switch allegiance, officials and businesspeople there say.

“There is an ongoing discussion about China weaponising tourism,” said Jeffrey Barabe, owner of Palau Central Hotel and Palau Carolines Resort in Koror. “Some believe that the dollars were allowed to flow in and now they are pulling it back to try and get Palau to establish ties diplomatically.”

In the commercial centre of Koror, the Chinese pullback is obvious. Hotel blocks and restaurants stand empty, travel agencies are boarded and boats which take tourists to Palau’s green, mushroom shaped Rock Islands are docked at the piers.    [FULL  STORY]