Palau 
Few Filipinos know that the Republic of Palau is only 1041 statute miles southeast of Manila, a mere two and a half hours by plane. Even fewer still know that Palau is closer to the Philippines not only geographically but in many other ways as well.
The
Republics of the Philippines and Palau have some unusual affinities and striking historical similarities. According to Kambes Kesolei of the Palau International Coral Reef Center (PICRC),
Palau and the Philippines both sit on the same Philippine Sea Plate, with Palau at the southeastern boundary. Based on Mr. Kesolei’s detailed explanation of our geological ties, I like to think that the two archipelagos have a common “geologic navel”. Ecologically, the similarity between our two archipelagos is obvious in the vegetation common to both. Coconuts, papayas, mangoes, gumamelas, orchids, kalachuchi, and other familiar plants grow abundantly in backyards and along the roads.
Like the
Philippines, Palau came under the rule of Spain (1885), Germany (1899), Japan (1919), and finally the United States at the end of World War II in 1946. In 1994, Palau gained its independence when it signed the Compact of Free Association with the United States. As in the Philippines, these countries imprinted their influences on Palau. Spain introduced Catholicism, Japan left strains of Japanese melody on Palauan popular music, and German names are visible all around.
The relationship between the two countries became closer when Filipinos began supplying Palau’s labor needs. Now, Filipinos comprise one-fifth of Palau’s population of around 19,129. In every establishment we entered, be it an Internet café, a museum, a gift shop, even an eye clinic, we ran into a countryman, so that you could speak Tagalog almost anywhere you go. Words like “Kuya” or “Manang” have become commonplace.
Like Guam, the Mariana Islands, Micronesia and the Marshall Islands, Palau was part of the Spanish East Indies, and was administered from the
Spanish Philippines until the Spanish-American War of 1898.
In 1885, after Germany occupied some of the islands, a dispute was brought to Pope Leo XIII, who made an attempt to legitimize Spanish claim to the islands (but with economic concessions for Britain and Germany). Spain in 1899, after defeat during the Spanish-American War, sold the islands to Germany in the German-Spanish Treaty (1899).
The economy consists primarily of tourism, subsistence agriculture, and fishing. Tourist activity focuses on scuba diving and snorkeling in the islands' rich marine environment, including the Floating Garden Islands to the west of Koror and the Rock Islands to the south. The government is the major employer of the work force, relying heavily on financial assistance from the US. Business and tourist arrivals numbered 50,000 in the financial year 2000/2001. The population enjoys a per capita income twice that of the Philippines and much of Micronesia. Long-term prospects for the key tourist sector have been greatly bolstered by the expansion of air travel in the Pacific, the rising prosperity of leading East Asian countries, and the willingness of foreigners to finance infrastructure development.
In July 2004, Palau Micronesia Air was launched with service from Palau to Yap, Guam, Micronesia, Saipan, Australia, and the Philippines. It was thought of giving Continental Micronesia a run for its money due to the low fares which it offered to its passengers, however it has ceased operations in December of the same year, mainly because the airline began operating at a time where fuel prices were skyrocketing and also because the cost of operation had been much more than anticipated. Palau Micronesia Air has not restarted operations since but has made a codeshare alliance with Asian Spirit, a carrier that operates flights between Palau and the Philippines (Davao, Cebu, and Manila) and is much more affordable than Continental Micronesia. There are two flights weekly Manila via Cebu to Palau and one flight weekly from Davao. The flight costs $230 from Davao and $280 from Manila with one week advance booking.
The official languages of Palau are Palauan and English, except for two states (Sonsorol and Hatohobei) where the local language, along with Palauan, is official. Japanese is also spoken widely amongst older Palauans, and, indeed, retains official status in the State of Angaur. (It is to be noted that Kuniwo Nakamura, President of Palau 1993-2001, is himself of Japanese extraction).
Wikang Filipino is not official in Palau, but it is the
4th largest spoken language.