So Remengesau hopes to rebrand Palau as a luxury destination both to reduce visitor numbers — and therefore the risk of destructive tourists — and boost visitor spending.
He said the new law would include tax breaks for investors.
"In our definition of high end [tourism] would be that they would also come in with their own designed water treatment system, power backups," he said.
"If there are any other infrastructures that they have to do, like opening a road, the investor would do that themselves.
"In return for that we will give them the necessary tax break and exemptions for them."
Chinese tourists are the biggest group of foreign visitors in Palau, but they notoriously spend little money, The Telegraph reports. Last year, Palau decided to halve the number of chartered flights from China — a move Remengesau said paid off.
"While the numbers went down, the actual tourist spending went up," he said.
"It confirms our direction [to attract] less tourists who spend more which equates to more tax dollars.
"We [will] go for quality rather than quantity ... to create a goal of high-end, high-value tourism."
According to The Telegraph, there are just a few five-star resorts currently in Palau, mostly on the most populous island of Koror.
Should the president's plan go ahead, Palau wouldn't be the only travel destination skewed towards wealthy tourists.
Bhutan, in the Eastern Himalayas, already adopts a "low-volume, high-value" tourism strategy and charges tourists a fixed minimum tariff of a whopping $340 per day, making it one of the world's most expensive places to visit.
A similar approach has also made Botswana home to Africa's priciest — but most satisfying — safari tours.
Further information: See pristineparadisepalau.com
