Budgeting & Costs: Palau

Currency and Transactions

The official currency of Palau is the United States Dollar (USD). This means no need for currency exchange for travelers from the U.S. Or those who use USD. Bring a mix of small and large denominations.

Cash & Cards

ATMs are available, mainly in Koror, at banks and some larger hotels. They dispense USD.
Major credit cards (Visa, MasterCard, Amex) are accepted at larger hotels, dive shops, and restaurants in Koror.
Smaller local businesses and eateries may prefer or call for cash payments. Always carry cash for smaller purchases.

Cost Breakdown by Travel Style

Budget Traveler

Frugal travelers enjoy Palau by focusing on local experiences and minimizing paid excursions.

Accommodation: $70-$120/night (guesthouses). Meals: $30-$50/day (local eateries, groceries). Transport: $5-$15/day (walking, limited taxis). Activities: $50-$100 (group tours). Total: $155-$285+ / day.

Excludes major diving packages, which significantly increase costs.

Mid-Range Traveler

Mid-range travelers balance comfort with value, for more structured tours and better dining.

Accommodation: $150-$300/night (mid-range hotels). Meals: $60-$100/day (mixed restaurants). Transport: $20-$40/day (taxis, shuttles). Activities: $150-$300 (daily tours). Total: $380-$640+ / day.

Dedicated diving packages mean an additional $150-$250+ per dive day.

Luxury Traveler

Luxury travel in Palau offers exclusive experiences, premium accommodations, and personalized services.

Accommodation: $350-$800+/night (luxury resorts). Meals: $100-$200+/day (fine dining). Transport: $50-$200+/day (private transfers). Activities: $300-$800+/day (private tours, spa). Total: $800-$2000+ / day.

Exclusive experiences and private arrangements are the main drivers of these higher costs.

Price Ranges for Various Services

Category	Item	Price Range (USD)
Accommodations	Budget Hotels/Guesthouses	$70-$120 per night
	Mid-Range Hotels/Resorts	$150-$300 per night
	Luxury Resorts	$350-$800+ per night
Meals	Local Eateries/Food Stalls	$10-$20 per meal
	Mid-Range Restaurants	$25-$50 per meal
	Fine Dining	$50-$100+ per meal
Transportation	Taxis (short rides)	$5-$10
	Airport transfer	$20-$30
	Car Rental	$50-$80 per day (excluding fuel)
	Boat Tours (group day trip)	$120-$180 (excluding permit fees)
Attractions/Permits	Rock Islands Southern Lagoon Permit	$50-$100 (valid for 10 days)
	Jellyfish Lake Permit	$50-$100 (additional endorsement)
	Peleliu Permit	$10-$20
	Museum Entry	$7-$10

Tipping Culture

Tipping is not traditional or expected in Palau.No Obligation
For exceptional service (resorts, dive ops), a tip is appreciated.Discretionary
Some dive operators have communal tip jars for crew.Common Practice
Contribute if your dive experience warrants it.Optional

Money-Saving Strategies

Eat at local eateries ("tapioca shops") for affordable meals.Local Dining
Cook your own meals if accommodation has kitchen facilities.Self-Catering
Choose guesthouses outside main resort areas for better value.Smart Accommodation
Join group tours for Rock Islands and dive trips.Group Excursions

Equipment Savings

Bring your own Mask, snorkel, and fins to save on rentals.Snorkel Gear
Certified divers bring a Wetsuit (3mm often enough) and Dive computer.Dive Gear

Additional Savings Tips

Limit alcohol consumption; imported alcohol can be expensive.Alcohol Budget
Utilize hotel shuttles for transfers to avoid taxi fares.Shuttle Use
Inquire about shuttle schedules upon check-in.Check Schedules

Visual Aids for Budgeting

Local Palauan market stall with fresh produce.View Image

A person using an ATM in Koror.View Image

Repel Sportsmen Max Insect Repellent.View on Amazon

Body Glove 3T Barefoot Cinch Water Shoe.View on Amazon

Stream2Sea Reef Safe Mineral Sunscreen.View on Amazon

Sawyer Squeeze Water Filter System.View on Amazon

Sustainable Tip

For sustainability and to reduce plastic waste, consider bringing a Personal water filter and refill your Reusable water bottle.
Water refill stations are becoming more common in Palau.

Climate-Appropriate Clothing

Palau’s tropical rainforest climate means warmth and humidity year-round. Pack clothing that handles these conditions effectively.

General Clothing Recommendations

Lightweight, breathable, and quick-drying fabrics are most important. Materials like cotton, linen, and moisture-wicking synthetics keep you cool and manage perspiration. These fabrics also dry faster after sudden rain showers or if you get wet from water activities.

Layering for Comfort

A Light rain jacket or Poncho (like Frogg Toggs) proves useful for sudden tropical downpours.
A light long-sleeved shirt or Rash guard (O'Neill Basic Skins) is highly recommended for sun protection.
You rarely need a heavy sweater outdoors, but one might give comfort in air-conditioned indoors.

Cultural Dress Code

Palauan society maintains a generally conservative approach to dress. While Swimwear is perfectly acceptable at beaches, resorts, and on tour boats, you cover up with a sarong, shorts, or light clothing in public areas, villages, or religious sites.

Modesty in Public

Show respect for local customs by dressing modestly.
This includes covering shoulders and knees when visiting government buildings, traditional meeting houses (bai), or local communities.
Resort casual is generally acceptable even for nicer dining experiences within hotels.

Footwear Recommendations

Water/Reef Shoes

These are for walking on rocky beaches, near coral, and for protection against marine hazards like stonefish or sea urchins.

Water Shoes / Reef Shoes

Sandals/Flip-flops

Ideal for general wear, around resorts, and for casual outings. They ventilate in the humid climate.

Sandals

Hiking Shoes

If exploring Babeldaob's interior or rugged trails, light hiking shoes give better grip and support.

Light Hiking Shoes

Essential Documents

Important Travel Papers

Carefully organize your required documents before departure.

Passport and Visa: Valid for 6+ months beyond your stay. Onward/return ticket proof. Any needed visa documents.
Travel Insurance: Printed and digital copies of policy details, including emergency contacts.
International Driving Permit (if applicable): Home country license often good for short stays; IDP supplements.
Vaccination Records: Not mandatory for entry, but useful for health purposes.

Health Documentation: For pre-existing medical conditions or allergies.
Reservations: Printed and digital copies of flights, accommodation, tours.
Emergency Contacts: List of family/friends, embassy/consulate contacts.
IDs for Discounts: Student/senior/press IDs (discounts are rare in Palau, but possible).

Technology & Electronics

Power and Connectivity

Palau’s tropical environment has specific considerations for your electronic devices.

Adapters & SIM Cards

Power: 120V, 60Hz. Type A/B outlets (same as US/Canada). A Universal travel adapter is useful.
Mobile: Most modern phones are compatible. Local SIM cards available from PNCC in Koror.
Check for eSIM support for convenience.

Camera & Charging

Capture Palau's beauty with the right camera gear and keep devices powered.

Photography & Power

Camera: A Waterproof camera (GoPro HERO12) for underwater.
Dry Bag: Kodiak Heavy-Duty to protect electronics on boats.
Charging: Spare batteries for cameras. Portable chargers (Anker Power Bank) for on-the-go.

Apps and Data Backup

Recommended Apps

Google Maps (offline), Weather app, Google Translate (offline Palauan/Japanese packs), Airline apps.

Data Backup

Utilize cloud storage for photos and important documents. Consider an External hard drive or large capacity SD cards.

VPN Services

Consider a VPN for secure internet. Check NordVPN or ExpressVPN.

Health & Wellness Items

First Aid Essentials

Your personal health and wellness are important. Pack a well-stocked Kit.

Kit Contents

Antiseptic wipes, bandages, medical tape for cuts.
Pain relievers (Ibuprofen/Acetaminophen), antihistamines.
Anti-diarrhea medication (Loperamide) for stomach issues.

Medications & Sun Care

Bring personal medications and sun protection.

Personal Care Items

Any personal prescription medications in original packaging, with prescription copy.
Insect repellent (high DEET/Picaridin).
High-SPF, broad-spectrum, Reef-safe sunscreen, wide-brimmed hats, UV Sunglasses.

Special Health Considerations

Motion Sickness

If prone to seasickness, Medication like Dramamine for boat excursions.
Sea conditions can sometimes be choppy.
Over-the-counter medication: cold/flu remedies, antacids, eyedrops.

Water & Hygiene

Water purification options: Personal water filter or Purification tablets.
Biodegradable soap/shampoo, especially near natural areas.
Feminine hygiene products (specific brands may be limited).

Activity-Specific Equipment

Snorkel/Dive Gear

Bring or rent the right gear for your planned adventures.

Snorkeling: Mask, snorkel, fins (personal gear for comfort).
Diving: Dive computer, dive mask, wetsuit (3mm common).
Dive shops rent BCDs and regulators.
Bring your own Mask and snorkel for hygiene.

Water Sports Gear

For kayaking or paddleboarding, protect your electronics.

Dry bag (Kodiak Heavy-Duty) for valuables.
Waterproof phone case.
A Quick-dry towel (Rainleaf Microfiber) is practical.
It dries fast and takes little space.

Hiking Essentials

For land exploration and staying hydrated.

A Small daypack (Osprey Daylite).
A Reusable water bottle.
A small Flashlight or Headlamp for dim areas or outages.
The Palau Pledge Passport Stamp is an unique item you receive upon entry.

Equipment Decisions

Consider Renting When:

You do not dive or snorkel frequently.
You want to avoid bulky luggage.
Dive shops in Koror offer high-quality rental gear (BCDs, regulators, wetsuits).
Snorkel gear is widely available for rent.

Consider Bringing Your Own When:

You prefer personal comfort and fit for your mask and snorkel.
You are a frequent diver and prefer your own dive computer and wetsuit.
You want to save on rental fees over multiple days.
You want guaranteed fit and hygiene with your own gear.

Miscellaneous Must-Haves

Comfort & Security Items

These items help your comfort, security, and overall travel experience.

Travel Comfort & Safety

Comfort: Neck pillows (BCOZZY), eye masks, Earplugs for long flights.
Security: Luggage locks. Money belt or neck pouch for valuables (Alpha Keeper RFID Blocking).
An RFID-blocking wallet for credit cards.
Travel-sized toiletries.

Reusable & Local Specifics

Embrace sustainability and local conveniences.

Sustainable & Practical Items

Reusable Water Bottle: (Hydro Flask) for hydration and plastic reduction.
Reusable Shopping Bag: For market purchases.
Reusable Utensils: For takeaway food.
Difficult to Find Locally: Specific toiletries, high-quality snorkel/dive gear, reef-safe sunscreen (may be more expensive).

Sustainable Travel Tools

Personal Water Filter

Reduces plastic bottle waste. Great for refilling.

Reusable Shopping Bag

For markets and stores, helps the environment.

Reef-Safe Sunscreen

Protects marine ecosystems from harmful chemicals.

Reusable Utensil Set

Avoids single-use plastic cutlery for takeaway.

Palau-Specific Essentials

For Water Activities

Rash guard: Sun protection, minor jellyfish stings.
Water shoes/reef shoes: For rocky beaches and coral.
Waterproof camera: Essential for underwater photos.

For Land & General Use

Long pants/convertible pants: Protection against insects and scratches on trails.
Small flashlight/headlamp: For unexpected power outages or dim areas.
Palau Pledge Passport Stamp: A unique memento of your commitment.

Packing Smart

Consider rolling clothes to maximize space and minimize wrinkles. Use packing cubes for organization.

Place heavier items at the bottom of your luggage. Keep a small bag handy for daily excursions.

Budgeting & Costs