Palau, or Belau, is one of the world’s newest nations as well as one of the smallest. The last of the South Pacific islands to be discovered, although some believe that Spanish explorer Ruy Lopez de Villalobos may have seen them in 1543, Palau gained its independence in 1994. The presently pristine islands’ economy relies mainly on tourism based on scuba diving and snorkelling along its coral reefs.

Last August UK Investments Holdings, a Malaysian company, was involved in a scandal over plans to develop Pelelieu Island into a gambling resort and bribery of the now ousted State Governor. A similar project by a Korean businessman is now alleged to rely on bribes to local politicians. Interpacific Connection Inc has stated it will seek approval from the Foreign Investment Board of Palau for a US$150 million casino development.

The project includes an international airport that could bring in wealthy Korean, Japanese and Chinese by direct flights to a 300-room hotel, casino and two 18-hole golf courses. ‘Financial incentives’ are alleged to have been offered for supporting the approval of casino legislation. The Palau economy relies on assistance from the US but the population’s per capita income is around double that in the Philippines and much of Micronesia.

Problems such as insufficient water supply and inadequate sewage treatment facilities would seem to make development of the islands into casino resorts a difficult prospect. The addition of an expensive infrastructure system would need to include far more than the building of an international airport. Already there is criticism of attempts to make the islands more commercial and previous attempts to legalise casino gaming have failed. (E-01.03.07)

© Copyright 2006 CasinoCompendium



>>> return to archives
>>> return to frontpage