Palau has launched a coordinated infrastructure upgrade at Palau International Airport, securing FAA-funded slope repairs and arrival terminal improvements. The developments aim to support the country’s tourism recovery as direct flight connections from Brisbane, Manila, Taipei, Narita, and Guam expand.
On August 7, 2026, the Bureau of Public Works, Republic of Palau held a pre-bid meeting and site visit for the airport’s East Phase I slope repair project (Procurement No. 2026-NTB-FAA-035). With bids closing on August 21 and separate terminal upgrade tenders closing on August 14, the island nation is upgrading its sole international gateway without interrupting current flight operations.
Rebuilding Aviation Gateway Infrastructure in Airai State
Palau International Airport, located at Ngerusar in Airai State on Babeldaob Island, serves as the primary aviation entry point for the country. To manage growing traffic safely, the government is executing multiple physical upgrades to address terrain vulnerabilities and optimize passenger flow.
- Airside Runway Stabilization: Financing from the US Federal Aviation Administration (FAA) Airport Improvement Program and the US Department of the Interior will fund the East Phase I slope failure repair project near the runway.
- Terminal Passenger Processing: A separate FAA-funded project targets arrival terminal improvements, including the transfer counter and passenger holding areas.
- Long-Term Aviation Master Plan: A US$1.37 million technical assistance grant from the US Trade and Development Agency (USTDA) is supporting the Palau National Aviation Administration in updating the airport master plan to accommodate larger aircraft.
The infrastructure investments are proceeding while commercial flight corridors remain fully active, ensuring zero passenger disruptions during the bidding phase.
Expanding International Connections Drive Tourism Resurgence
The infrastructure upgrades coincide with a strong recovery in Palau’s visitor traffic. Between January and June 2026, the country welcomed 44,077 international visitors. China led arrivals with 15,618 travelers (35.4%), followed by Taiwan with 7,073 (16.0%) and Japan with 6,227 (14.1%).
The growth is supported by a significant expansion in direct air routes:
- Brisbane Express: The Australian-supported Palau Paradise Express, operated by Qantas, has been extended through December 2026 after carrying over 5,000 passengers in its first nine months.
- Manila Link: Philippine Airlines operates direct flights twice weekly on Wednesdays and Sundays.
- Taipei and Tokyo Corridors: China Airlines offers direct Taipei-Koror flights, while United Airlines provides twice-weekly Narita-Koror flights and six weekly Guam frequencies.
According to the Ministry of Finance, the tourism surge drove a 9.0% expansion in local accommodation and food services, contributing to an overall real GDP growth of 6.0% in FY2025.
Environmental Stewardship and Sustainable Island Tourism
Palau is globally recognized for its pioneering conservation initiatives, including the mandatory Palau Pledge that visitors sign upon arrival. To protect the country’s marine ecosystems, travelers must use reef-safe sunscreens and avoid single-use plastics during their stay.
To support the local economy, the Palau Visitors Authority encourages tourists to hire indigenous Palauan guides for diving tours and stay in locally owned lodging. Pre-arranging airport transfers is essential, as there are no public taxis waiting at the terminal, and Koror is a 20-to-30-minute drive away.
Palau Travel Guide: Seasons, Etiquette, and Hidden Waterfalls
- Best Travel Window: Visit Palau during the shoulder seasons of May to June or September to October. These months offer tropical warmth with fewer crowds and excellent boat charter availability.
- The Palau Pledge: Remember that signing the pledge in your passport is a legal commitment to act ecologically. Avoid touching or stepping on live coral when snorkeling.
- Local Culinary Specialties: Try traditional Palauan taro dishes or fresh local seafood served in traditional coconut broth.
- Under-the-Radar Spot: Take a guided tour to Ngardmau Waterfall on Babeldaob Island, the tallest waterfall in Palau, located amidst lush rainforest walking paths.
FAQ: Palau International Airport Repairs 2026
Q1: Will the airport close during the runway slope repairs?
No, there are no flight suspensions or runway closures announced. The airport continues to operate normal schedules during the procurement and construction phases.
Q2: How far is the airport from the primary tourist hub of Koror?
The airport is located in Airai State on Babeldaob Island, approximately a 20-to-30-minute drive from Koror. Pre-arranging hotel transfers is highly recommended.
Q3: Which airlines connect Brisbane with Palau?
Qantas operates the Palau Paradise Express direct route from Brisbane, with government-backed support extended through December 2026.
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