Locals Forced Out Of Koror City; Chinese Boom To Blame?

Koror State sometimes referred to, more about as “Koror city” is the most populated and busiest state in all of Palau, supporting various shops, businesses and all sorts of nationalities that have come to call this island nation home.

But in less than a year, this commercial center of Palau has been overcrowded by the rapid influx of Chinese visitors and investors, and it seems to be increasing at rapid speed.

In recent months, OTV has received information from various sources that people are being forced out of their homes as a direct result of this “boom”, which is pressuring and stressing an already stressed real estate market.

The demand for housing, leases and land has skyrocketed as the cost of living for an average Palauan increase and salaries remain the same.

Sources have expressed that the celebrated minimum wage signed into law in 2013 with a guaranteed $3.50 per hour pay rate by year 2016 can no longer sustain the livelihoods of Palauans.

Most Palauans and long-term residents earn less than $12,000 annually. Take into account the cost of food, utilities, gas, car payments, childcare expenses and customs, most $12K a year earners are left with a zero balance bank account, and anxiously waiting for the next payday. Living paycheck to paycheck seems to be the popular trend and it’s affecting almost every single household.

With an already burdened wallet, locals are now facing strong competition from this Chinese boom – competing for housing, resources and other services, to which they can’t afford.

Although there are few benefiting from this influx, some rich and some not so rich, many people are being impacted, negatively.

Those who have lost their rental homes and apartments are now forced to seek housing outside of Koror. Airai State, the second most populous state of Palau, is already burdened forcing people to seek housing in inner Babeldaob, a move that would double household and travel expenses for families already struggling.

While the administration pulls resources and organizes a worldwide campaign for signatures in support of the Marine Sanctuary legislation pending before the Ninth Olbiil Era Kelulau, the public is left to wonder who is responsible to regulate this influx and to fight for the betterment of the people of Palau.

On Feb. 25, 2015, Minister Charles Obichang notified chartered airlines serving Hong Kong and Macau that their landing schedules will be reduced. According to the flight arrival schedule for the month of March 2015, the four airlines (Dynamic Airways, Palau Pacific Airways, Mega Maldives Airlines, and Asian Air) have a total of 48 flights.

Dynamic Airways with a total of six flights mostly once per week flights for March other than one week, are to operate no more than two flights per week, according to Minster Obichang’s March 4, 2015 communication.

Asian Air has a total 11 flights for this month operating twice a week, with the exception of one week, where three arrival flights are scheduled. According to Minister Obichang’s letter to Asian Air also on Mar. 4, the airline will maintain a once a week flight indefinitely.

Mega Maldives Airline’s 10 arrival flights for the same month are a result of two flights per week with the exception of one week. The Ministry notified Mega that their flight schedule would be a maximum of two flights per week.

Finally, Palau Pacific Airways with a total of 21 flights are operating at the minimum 5 flights per week also for the month of March. According to the Ministry’s letter, the airlines’ flight schedule would be cut down to three flights per week.

All of these changes are to begin on Apr. 15, 2015.

In total, these charter flights are allowed a maximum of about 32 flights per month. Most of these airlines operate a Boeing 767-200 or 767-300 with seats ranging from 200 to 250 per flight.

Most of these airlines began servicing Palau in late 2014 with the exception of Mega Maldives who began servicing Palau in December 2013.

According to PVA’s January 2015 visitor arrival statistics, the People’s Republic of China (PRC) arrival numbers represent an increase of 359.07% or 6,176 in comparison to January 2014’s 1,720 arrivals. The four above named charter flights have more than 98% of passengers with PRC passport holders.

Its uncertain at this point if this reduction in landing frequencies would decrease the number of PRC passport holders to Palau in the coming months.

However, one thing may be certain, the changes occurring all across Koror is impacting a majority of Palauans and long-term residents and business owners.

1 thought on “Locals Forced Out Of Koror City; Chinese Boom To Blame?”

  1. And you wonder why Palauans opt to live somewhere else other than Palau. I don’t think tourism and the number of tourists visiting Palau is the problem. And why should we limit the number of flights from countries that love to visit Palau and offer to other countries that are may or may not want Palau as their choice of vacation? This is throwing money right out the window. Are we blind? Isn’t our economy suffering enough? What about the Palauan people? The government needs to control the number of people wanting to do business in Palau. A foreigner owning a business is Palau is earning dollars that is sent being back to his/her country and his family. The government needs to act and help the people of Palau take back what is rightfully theirs. Do not be sold. There is only one Palau.

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