The Conservation Society in Palau says mass tourism may be damaging one of the country's most valuable tourist attractions, which is its coral reefs.
Large numbers of unguided visitors walking on the coral kill the plants and animals that make up the delicate habitat.
The Society's Director of Conservation and Protected Areas, Anu Gupta, says fewer tourists would mean a better visitor to guide ratio.
However, she says this is only one approach to protect this environment.
"The second approach is to change the target audience to those who tend to know more about the environment and how eco-systems work. And those tend to be people who are highly educated and they understand that things are connected and that biodiversity can actually be harmed by human activity."
Ms Gupta says eco-tourism projects which aim to leave as little impact on the environment as possible are growing in Palau.
The Conservation Society works with communities to ensure new projects are sustainable.
