The President of Palau says he acknowledges his country has room for improvement, as he welcomed the Palau Peer Review team.
Tommy Remengesau says sustainability is the key challenge for his country and the economy is the environment.
He says Palau is headed towards a high-end tourism industry and it is not concerned about quantity, but quality tourism.
Mr Remengesau says this will be achieved by limiting construction of hotels to no less than five-star rating, diversifying tourism attractions, building a golf course and banning commercial fishing within 200 square miles of Palau's Exclusive Economic Zone.
The Government says it is also working with NGOs and the private sector as they play a key role in the economic development of Palau.