Tourism potential untapped

Business
As parts of the Pacific begin to reopen to tourists, the Pacific private sector development initiative (PSDI) last week launched a suite of Pacific tourism-focused publications to help governments and regional bodies assess the impact of the Coronavirus (Covid-19) downturn and guide recovery and future growth. The publication is on Papua New Guinea’s tourism sector.

The largest country in the Pacific, Papua New Guinea is a unique tourism offering.
With a well-established market for WWII history, including several historic and adventurous walking tracks, PNG also boasts vibrant traditional cultures, as well as excellent fishing, diving, snorkeling, surfing, and bird-watching opportunities.
PNG’s tourism potential remains largely untapped.
Its economy is dominated by labour-intensive agriculture and capital-intensive extraction of oil, gold, copper, and silver.
Tourism contributed only 1.5 per cent of gross domestic product (GDP) in 2019 (Pacific Tourism Organisation (SPTO 2020) and the government estimates tourism employs up to 25,000 Papua New Guineans (SPTO and Government of Papua New Guinea, unpublished data) – approximately 1 per cent of the country’s total employment.
The scope to grow PNG’s tourism sector is considerable.
The country’s strengths – good international connectivity and unique natural beauty – are matched by major challenges, particularly unreliable infrastructure and a perception PNG is unsafe for travellers.
With improvements in these areas, as well as increased government support and collaboration with the private sector, potential is strong for PNG to develop its tourism sector, beginning with exploitation of niche tourism opportunities.

A lakatoi, a double-hulled sailing watercraft, sailing at Ela Beach, Port Moresby.

Transport and Connectivity
In 2019, Port Moresby had direct flights to 11 international destinations.
These included inter-regional routes (Chuuk, Honiara, Nadi, Pohnpei, and Port Vila) as well as services into Australia (Brisbane, Cairns, and Sydney) and Asia (Hong Kong, China; Manila; and Singapore).
All services were operated by PNG’s national airline, Air Niugini, which had the largest number of international flights.
Australian routes were also serviced by Qantas and Virgin Australia, while Solomon Airlines operated flights to and from Honiara, and Philippine Airlines operated flights to and from Manila.
Domestic travel within PNG can be difficult.
The country has no nationwide road network and even Port Moresby lacks interprovincial connections.
More than two-thirds of roads are in poor condition, and many –an estimated 75 per cent – become inaccessible at certain times of year due to flooding and landslides (Sumb 2020).
The main mode of transport for coastal communities is by sea.
However, coastal shipping services are limited and adherence to safety standards is inconsistent.
Most tourists travel domestically by air.
PNG has around 52 commercial domestic airports, which are serviced by two carriers – Air Niugini’s domestic arm, Link PNG, and PNG Air.
Air Niugini is a state-owned enterprise, while PNG Air is a listed company majority-owned by PNG’s national superannuation fund.
Domestic flights can be expensive, often do not link up with international arrivals and departures and are plagued by frequent cancellations and delays.
Many provincial airports require improvements to infrastructure and ground handling operations. While public transport – particularly public buses and taxis – is available in PNG’s urban centres, such as Port Moresby, its use by tourists is discouraged.
Taxis are often unmetred and in poor condition and concerns have been raised regarding quality of service and tourist safety.
Most hotels in major centres offer airport pick-ups and can arrange chauffeured transport.

A graph showing Papua New Guinea’s tourism destination.

Accommodation
PNG has a range of accommodation options, from budget to high-end international hotels.
In 2019, there were an estimated 500 hotels and guest houses (SPTO 2020), mostly located in and around Port Moresby.
Smaller properties, especially outside Port Moresby, often have only basic infrastructure and the availability of amenities, such as hot water, is limited.
Scope is significant for improvement in accommodation quality and value for money (International
Finance Corporation 2018).
According to the government, occupancy rates have held steady in Port Moresby for several years –however, some industry operators suggest that supply has begun to exceed demand.