Palau’s tourism recovery is gaining momentum, with Qantas set to add a second weekly Brisbane-Koror service from December as demand from Australia continues to grow.
The direct Palau Paradise Express service, launched in 2024, has carried more than 15,400 passengers and will now continue until at least November 2027.
Australian visitor arrivals to Palau rose 68 per cent in the first seven months of 2026, providing the strongest evidence yet that the direct air connection is helping build a new tourism market for the island nation.
The additional weekly flight is significant for Palau, where tourism is one of the country’s most important sources of private-sector activity and foreign exchange.
Greater air capacity has the potential to benefit hotels, tour operators, restaurants, dive businesses, transport providers and other parts of the visitor economy, while giving Australian travellers easier access to a destination previously more commonly reached through Asian hubs.
The service also strengthens Palau’s broader connectivity with Australia at a time when Pacific aviation remains under pressure from high fuel costs, limited aircraft availability and relatively small passenger markets.
For Palau, however, the growth in Australian traffic suggests that targeted direct routes can stimulate demand where reliable connectivity is available.
The development also comes as Palau seeks to attract a broader mix of visitors and reduce reliance on a small number of traditional Asian tourism markets.
Australian travellers are a potentially valuable segment because of relatively high per-capita travel spending and interest in diving, nature-based tourism and high-end experiences.
Palau is particularly well positioned in those areas. Its Rock Islands, marine environment and diving sites give it a distinctive tourism offering, while the country has increasingly marketed itself around sustainability and conservation.
The second weekly service should also improve flexibility for business travellers and government delegations, an important consideration given Palau’s growing role in regional diplomacy and international meetings.
The next challenge will be ensuring that aviation growth is matched by sufficient accommodation, tourism products and service capacity.
For now, the expansion of the Brisbane-Koror route is a strong vote of confidence in Palau’s tourism recovery and a useful example of how improved connectivity can unlock demand in a small Pacific market.
