Palau: Doing business and staying in touch

Doing Business in Palau

In general, business etiquette in Palau is the same as in the United States or Western Europe, although it can be slightly more informal. The typical greeting amongst business associates is a handshake, whether between men or women and in general, business dress is casual and ties are not normally worn. In some situations floral or Hawaiian-type shirts and shorts can be acceptable, although long trousers are the norm for more formal meetings.

While Palauan is spoken in casual situations, English is spoken in business environments and with foreigners. Polite small talk is common before meetings and gifts are appreciated although not expected if visiting from abroad. The chewing of betel nut is common for all Palauans (especially men) and this can be unusual to visitors, especially in business situations.

Office Hours

Mon-Fri 1000-1800.

Economy

Palau's main economy is tourism, most notably from Japan, South Korea, China and the United States, although other services include trade in fish and shellfish, subsistence agriculture mainly in coconuts, copra, cassava (tapioca) and sweet potatoes and craft items made from shell, wood and pearls.

Indeed, 20% of the labour force is employed in agriculture, with a 4.2% unemployment rate and an inflation rate of 2.7%. From 2010 to 2011 Palau saw a 27% increase in tourist and business arrivals to the country (109,000) and there has been significant expansion of air travel from Asia and the United States allowing for easier access.

Following the end of UN trusteeship on 1st October 1994, Palau received financial assistance from the United States under the Compact of Free Association in return for unrestricted access to its lands and waterways.

GDP

$221 million (2011).

Main exports

Shellfish, tuna, copra, garments, yachts.

Main imports

Machinery (including cars), equipment, fuels, metals and foodstuffs.

Main trading partners

Japan, Philippines, Australia, China and South Korea.

Keeping in Touch in Palau

Telephone

Palau does have a rudimentary telecommunications system, and there are landlines in use, with which you can use a pre-paid phone card. However do not expect an extensive telephone network.

Mobile Phone

Depending on where you are from, it is possible to use a mobile phone on Palau as the main telecommunications operator PNCC does have a few roaming agreements in place with various international operators. However, it's best to assume that your phone's not going to work, and be pleasantly surprised if it does. If you'll be on Palau for an extended period of time, and your phone is unlocked, it may be more prudent to pick up a sim card from a local vendor and use this to make any calls.

Internet

Internet access is readily available in Palau but by most standards it is horrifically slow. However this is slowly improving as private companies and the government invest into infrastructure supporting broadband connections. There are various WiFi hotspots on Koror that you can access (including one at the airport) but it's unlikely you'll be able to do much more than send and download emails. Most hotels will have a Wi-Fi connection that guests can use, although there may be a fee for usage. There are several internet cafes on Koror.

Media

Palau has a free press, but most of it is state-owned. Island Times comes out twice weekly, whilst English-language newspaper Tia Belau is published once a week, as is Palauan Roureur Belau. The other English weekly Palau Horizon, closed down in 2010. The privately-owned TV station OTN is the only form of media in the hands of foreign ownership. Cable TV is popular in homes. The main radio stations are Palau Wave and T8AA Eco Paradise, a government-run station.

Post

There is one post office, located on Koror. Officially it takes around 10 working days for post from Palau to reach the USA, as most packages and letters go via Guam first. Unofficially, it make take much longer. Palau's bright stamps are often considered collector's items.

Mon-Fri 0800-1600.