Tourist spending

ADB encourages Palau to seek bigger spending tourists

The bank said strong economic growth was masking urgent infrastructure and environmental challenges that threaten the long term sustainability of Palau's economy.

In an ADB assessment it warned the rapid growth of low-end tourism could damage Palau's famed natural environment and World Heritage sites.

The bank's Liliana Warid says figures showing GDP growth of 5.3 percent in 2014 and 8.2 percent in 2015 don't capture the risks that increased tourist numbers bring to popular sites.