Editing Economy of Palau (section)

==Industries==
[[Tourism]] is Palau's main industry. Activity focuses on [[scuba diving]] and [[snorkeling]] among the islands' rich marine environment, including the [[Floating Garden Islands]] to the west of [[Koror]]. Major scuba diving sites include [[German Channel]] and [[Blue Corner]]. The number of visitors—85% of whom come from [[Japan]], [[Republic of China|Taiwan]], and the U.S.—reached nearly 67,000 in 1997, more than quadruple the level of a decade earlier. Tourism earned $67 million in foreign exchange for Palau in 1996, (which is 1,000 dollars per person) accounting for roughly half of [[Gross domestic product|GDP]]. Arrivals from Asian countries dropped in 1998 and 1999 due to the regional economic downturn and the depreciation of many Asian currencies against the dollar, which made Palau's dollar-denominated prices more expensive.

The service sector dominates the Palauan economy, contributing more than 80% of GDP and employing three-quarters of the work force. The government alone employs nearly 30% of workers. One of the government's main responsibilities is administering external assistance. Under the terms of the [[Compact of Free Association]] with the United States, Palau will receive more than $450 million in assistance over 15 years, $30 million per year, and is eligible to participate in more than 40 federal programs. The first grant of $142 million was made in 1994. Further annual payments in lesser amounts will be made through 2009. U.S. grants in 1999 totaled $24 million.

Construction is the most important industrial activity, contributing over 9% of GDP. Several large infrastructure projects, including the rebuilding of the bridge connecting Koror and [[Babeldaob]] Islands after its collapse in 1996 and the construction of a highway around the rim of Babeldaob, boosted activity at the end of the 1990s.

Agriculture is mainly on a subsistence level, the principal crops being coconuts, root crops, and bananas. Fishing is a potential source of revenue, but the islands' tuna output dropped by over one-third during the 1990s.

There are no [[Patent]] Laws in Palau. [http://www.billanderson.com.au/Gazetteer-Patents.htm Gazetteer – Patents] {{Webarchive|url=https://web.archive.org/web/20180926141115/http://www.billanderson.com.au/Gazetteer-Patents.htm |date=2018-09-26 }}