Short-term rentals, commonly known as vacation homes or temporary lodgings in Palau, have become an integral part of the tourism landscape, offering travelers an opportunity to experience the breathtaking beauty of this Pacific paradise. Popular destinations such as Koror, Babeldaob, and the Rock Islands attract visitors from around the world, with short-term rentals providing an ideal base to explore these stunning locales. In 2023, the impact of short-term rentals in Palau was significant, with the government generating substantial revenue from this sector, reflecting its growing importance in the local economy. Popular platforms like Airbnb and Booking.com are the preferred choices for listing accommodations, connecting travelers with unique stays that showcase the best of Palauan hospitality.