The President of Palau, Johnson Toribiong, is to reverse an order by the Foreign Investment Board imposing fees on foreigners working in Palau on the Philippines version of the television series, Survivor.
The Board had decreed that each of the 100 foreign workers employed during the filming had to pay 500 US dollars.
Mr Toribiong ordered the Board to reconsider its decision, but it refused.
Two members of the board have resigned over the Presidential interference.
But Mr Toribiong says the imposition of the workers' fees on the film company is discriminatory.
He says he wants to promote tourism and the national economy and the hosting of the Philippines Survivor series should be encouraged.
Mr Toribiong says the makers will spend more than 800,000 US dollars in the country and employ more than 100 Palauans.