By Nazario Rodriguez Jr.
Horizon news staff

Members of the Governors Association have expressed their concern about the new bill amending the Protected Areas Network Act and proposing a $50 conservation fee to be collected from all tourists and visitors that come to Palau.
The Governors said that if the bill is passed it might supersede state laws that provide collection of similar fees from tourists such as the $35 Rock Islands fee for Koror, $5 fee for the water falls in Ngardmau, and visitors fee in Peleliu and Kayangel.
The Governors spent several hours in discussing this issue as they held their regular monthly meeting on Tuesday May 1 at the Koror State Assembly Hall. Invited as resource speakers were House of Delegates (HOD) Vice Speaker Noah Idechong, Minister of Resources and Development Fritz Koshiba and PAN Executive Director Joe Aitaro.
The HOD passed on third reading Wednesday (May 2) HB No. 7-156-9, HD2 (amending 24 PNC 3401-3446).
The new bill, which is now in the Senate, authorizes the Minister of Finance to collect $50 as "conservation tourist arrival fee" in cooperation with the MRD, PAN, and all other relevant public and private parties.
The fee, which would be used for the operation of the PAN, will be included in the price of all tickets, packages or fare of transportation companies, including airline carriers, sailing vessels and other modes of transport.
The bill also states that "the money collected through the conservation arrival fee shall initially be deposited into an account within the National Treasury that shall be separate and distinct from all other accounts."
It also states that the OEK, in each year’s national government fiscal year budget, should authorize and appropriate all money collected through the conservation arrival fee, except for reasonable administration costs of no more than 10 percent to be donated to PAN Corporation and that the money collected in such separate bank account should not be eligible for any governmental reprogramming and such other provisions.
The Governors wrote a position letter to Senate President Surangel Whipps Sr. saying that this language of the bill may be read as prohibiting the States from charging tourists a fee to visit and engage in activities within the States.
The Governors explained that the law, 40 PNC 21029(a), already prohibits the States from charging any tax or fee on persons, activities or matters that are already taxed or charged by the national government.
They said that if the national government adopts the PAN financing provisions, then the new PAN Act might automatically repeal the provisions of State law charging a tax or fee on tourists and tourist activities.
The Governors asked the Senate to insert express language into the propose bill that would ensure that the states would be able to continue collecting fees and charges from tourists.
"As we approach the end of Compact funding, we need to insure that tourism does not suffer from a lack of local revenue support. Each State should be allowed to develop their tourism industry in a manner that is consistent with the national policies and goals, and which is tailored to the resources and environment of each State. States will not be able to promote local tourism without the revenues generated from those who visit the States, and who create an impact on the local state environments," the Governors wrote.
They urged the Senators to consider the extreme financial impacts that the proposed Bill could have on local tourism and on the ability if the States to accommodate tourism.
"We urge you and the Senate to insure the financial independence of the States, so that the States do not have to rely only upon handouts from the national government," the Governors said.