TAIPEI (Taiwan News) — The President of Palau, Surangel Whipps Jr., whose country is a formal diplomatic ally of Taiwan, said that climate change and countering Chinese influence are the biggest challenges to his country, and said that increased direct flights from Taiwan could help combat the latter.

Speaking to The Sunday Guardian on June 25, Whipps Jr. said the Palauan economy was devastated by the pandemic, and the largest direct investor in the Micronesian nation’s economy is currently China. “It’s a challenge to try to not open up direct flights from China back to Palau,” he said.

Palau’s economy relies heavily on tourism, and the sector is estimated to represent around 38% of the country’s GDP.

Whipps said he was exploring multiple options to combat Chinese influence, including increasing direct flights to the country from its East Asian neighbors. “Japan might start direct flights towards the end of the year, but that’s a long way away,” he said, and added that one Korean airline was interested in increasing flights but was deterred by Palau’s short runway.

When it came to Taiwan, however, Whipps said there would be no additional direct flights to Palau. “Right now, there are two flights a week from Taiwan, they are full, they can’t increase,” he said.

Taiwan’s national carrier, China Airlines, currently operates direct flights between Taipei and Palau twice weekly on Wednesdays and Saturdays, which Taiwan News understands are 70-80% full. Information provided by sources indicates that China Airlines expects to carry around 252-288 passengers per week on direct flights from Taipei to Palau over the 2023 summer period.

Taiwan’s foreign ministry did not respond to Taiwan News’ questions regarding possible government intervention to increase the number of China Airlines flights to Palau, but said that Taiwan has always supported the development of the country’s tourism. “In the post-pandemic era, Taiwan has actively assisted… in maintaining the stability of direct flights between Taiwan and Palau,” the statement read.

Even before the pandemic, Palau had experienced the economic shock of a sudden drop in tourist numbers, with the explosion of Chinese tourists into, and sudden withdrawal from Palau’s tourism market that occurred in recent years.

Between 2008 and 2015, Chinese tourists to Palau increased 14,000% to just over 91,000 (in a country with a total population of around 18,000), after it was designated a preferred destination by the Chinese government. However, after it became clear that Palau intended to maintain ties with Taiwan, the Chinese government severely restricted tourism to the country, resulting in a nearly 23% reduction in Chinese visitors and a 16% drop overall.