By NIDRA KEWERE MAPI
THE National Development Bank (NDB) and the PNG Tourism Promotion Authority (PNGTPA) last Thursday signed a memorandum of agreement (MoA) at the Holiday Inn for a tourism credit facility for tourism projects for ordinary Papua New Guineans.
The credit scheme was established to assist small to medium scale entrepreneurs in the tourism industry.
NDB and the PNGTPA have committed K1 million each to the credit facility and will contribute more capital each year to expand the scheme.
The money under this credit scheme will be made available as soft loans to those seeking finance to venture into small to medium size tourism businesses.
Many ordinary Papua New Guineans had been disadvantaged by the high interest rates and shorter repayment periods by commercial banks, thus, preventing them from venturing into small businesses.
It is hoped that through this collaborative effort, ordinary Papua New Guineans can easily access readily available funds with an affordable interest rate, which they can repay over a reasonable period of time
TPA and NDB hope this credit facility will over time become an important vehicle to drive tourism development in PNG.
NDB board chairman William Lamur said this was another step towards expanding tourism industry in PNG.
“Tourism expansion will improve the socio-economic lifestyle within the tourism sector and the rural community where many of the projects will be based as it will generate income,” Mr Lamur said.
He added that the expansion and improvement of the tourism industry would enable participants to make PNG a far more attractive destination.
Andrew Abel of the TPA said often the focus was on bigger and better things which often left out the small people and that this was a significant achievement on empowering the people.
TPA chief executive officer Peter Vincent said PNGTPA had been trying to secure funds for small tourism businesses since 2003 and NDB had given them the opportunity.
He said: “Tourism has huge potential in this country and we are now committed to grow and develop this industry at the grassroots level.”
Mr Vincent added that the funds were not for free but would have to be repaid over a period of six months to seven years depending on the loan amount.