The number of Chinese tourists in Palau doubled last year over 2014 and Chinese visitors now account for a majority.
The Palau Visitors Authority says more than 87,000 people visited from China last year.
Japan used to be the largest demographic of visitors, but their numbers continue to drop to a distant second place.
The increase in Chinese tourists is due direct charter services between Palau, Hong Kong and Macau.
Despite the government's directive slashing charter flights in half in April, Chinese tourists continue to arrive from direct services from South Korea and Taiwan.
Private planes also carried Chinese visitors to Palau.