Palau

Cost of living

What a month costs

Palau imports almost everything by ship, so groceries, fuel and dining run far above what the small size suggests. Housing is limited and foreigners lease rather than own.

The scores

How it rates for a moving family

See and do

Top 10 in Koror

1. Rock Islands Southern LagoonThe UNESCO-listed maze of green mushroom islets, launched daily by boat straight from Koror.
2. Jellyfish LakeSnorkel among millions of stingless golden jellyfish in a landlocked marine lake.
3. Belau National MuseumFounded in 1955, the oldest museum in Micronesia, with strong exhibits on traditional Palauan life.
4. Etpison MuseumPrivate collection of storyboards, traditional money and shells in central Koror.
5. Palau International Coral Reef CenterThe town aquarium, a good rainy-day stop to see the reef life up close.
6. Japan-Palau Friendship BridgeThe KB Bridge linking Koror to Babeldaob, with wide lagoon views at sunset.
7. Blue CornerWorld-famous drift dive on the reef edge, thick with sharks and pelagics.
8. Milky WayA turquoise lagoon pocket where boats stop for the famous white mineral mud.
9. Long Island ParkA small waterfront green space and beach on the edge of Koror for an easy afternoon.
10. Malakal Island harbourThe working port and dive-shop hub, home to Sam's Tours and the marinas.

Where to go

Weekend escapes

1. PeleliuBoat south to the sobering WWII battlefield, with rusting tanks, caves and quiet white-sand beaches.
2. Babeldaob and NgerulmudPalau's big green island holds the near-empty national capitol, jungle roads and ancient village sites.
3. Ngardmau WaterfallThe country's tallest waterfall on Babeldaob, reached by a jungle trail and an old mining monorail.
4. Kayangel AtollA remote northern ring of coral and palms for travellers who want the map to end.
5. Angaur IslandSouthern outpost known for surf, WWII relics and a small troop of long-tailed macaques.

Coffee

Best cafes

1. Coffee BerryDowntown Koror's cosy coffee stop, open from 7:30am with real espresso, pancakes and free wifi.

Restaurants

Where to eat

1. Elilai Seaside DiningKoror's smartest table, with ocean views and seared tuna, steaks and local clam.
2. The TajLong-running Indian kitchen with a laid-back patio and generous curries.
3. Drop Off Bar and GrillChilled waterfront spot at Neco Marina for grilled fish, burgers and sunset drinks.
4. Fuji RestaurantReliable Japanese standby for sushi, sashimi and set meals.
5. Rock Island CafeEasygoing American diner on Malakal with a Palauan twist and a broad menu.
6. Kramer's CafeCasual local favourite since 1999 with a changing daily special and Red Rooster beer on tap.
7. Bottom Time Bar and GrillOn the dock at Sam's Tours, the classic post-dive burger and cold-drink stop.

Morning

Best breakfast

1. Coffee BerryThe go-to morning spot in town for pancakes, eggs and proper coffee before a boat trip.
2. Rock Island CafeDiner-style breakfast plates on Malakal, handy for early dive mornings.
3. Kramer's CafeRelaxed casual kitchen that opens for an easy breakfast and strong coffee.