Palau's scenic areas include the Rock Islands, a large number of small, mushroom-shaped islands that are unique in the region. The marine environment is rich in live coral formations and tropical fish, making the country a prime destination for snorkeling and scuba diving. Many tourists visit the World War II battlefields, war memorials, and shrines.
In 2000, Palau had 55,493 tourist arrivals. According to 2002 US government estimates, the daily cost of staying in Koror was $218.