Palau, and especially the Rocky Islands, are world famous and impress visitors with one of the best underwater worlds on the planet. Many travelers who visit Palau come solely for diving and snorkeling. But the country offers much more, and the best way to explore it is by rental car. If you want to learn more about what you can do in Palau, check this out: Palau Guide
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How do you get from A to B?
Public transport
Since 2024, there has been a bus line in Koror. The rest of Palau is not connected by public transport.
Taxis
Taxis are available in Koror, but it works differently than in big cities. Drivers do not actively look for passengers, so you have to call a taxi and it will pick you up.
Rental car
The easiest way to explore Palau is by rental car. Cars can be rented directly at the airport or in Koror. In Palau there are several local rental companies as well as large international providers like Hertz or Budget.
Important: There are no taxis at the airport, so you should arrange a transfer to your hotel or a rental car in advance.
Where can you rent a car?
There are several rental car companies at the airport in Koror. We rented a car directly at the airport from Alamo. Alternatively, you can rent from local providers in Koror.
Tip: If your flight arrives late, book your car before the trip. Many rental companies close in the evening and will only be there if you have a reservation.
To rent a car, an International Driving Permit is required.
Driving in Palau
Palau has right hand traffic and speeds are listed in mph. The speed limit is 25 mph, which is about 40 km/h.
With around 224 rainy days per year, Palau is one of the rainiest countries in the world. Roads can be slippery, and many cars do not have the best tires. Be extra careful when driving in the rain.
In general, driving in Palau is easy. In Koror, traffic jams can happen from time to time, but outside the city there is hardly any traffic. The driving style of locals is usually calm and cautious.
Road network in Palau
The road network in Koror is fairly small. The main roads are in very good condition, which is not always true for side roads. Side roads often have potholes or are unpaved.
In Koror, there is essentially one main road and several smaller roads branching off. The Japan Palau Friendship Bridge connects Koror with Babeldaob, Palau’s largest island. On Babeldaob there is a kind of ring road that circles the island.
On the east side of this ring road are some of the most important sights, for example the Airai Bai, the Japanese Communications Center, the Capitol, and the airport. Further north, near the turnaround point of the ring road, you’ll find Ngardmau Waterfall as well as a turnoff to the far north, including the stone monoliths.
How much does a rental car cost?
Rental cars usually cost 50 to 70 USD per day, depending on the size of the vehicle. One liter of fuel costs about 1.4 USD.
Our hotel would have charged 25 USD per direction for an airport transfer. That’s why we decided to rent a car directly at the airport instead. Our rental car from Alamo cost 53 USD per day, which was roughly the same as the transfer from the airport and back.
License plate for the collection
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