Given the expenses associated with visiting Papua New Guinea, the government is focusing on attracting more tourists via cruise ships and developing niche segments that appeal to global adventurers.
CRUISE TOURISM: The global cruise liner industry has enjoyed exponential growth in recent times and is the fastest-growing sector of international tourism, doubling in size every decade since 1990, according to a 2011 academic paper “Responsible Cruise Tourism: Issues of Cruise Tourism and Sustainability” by Ross Klein, professor at the Memorial University of Newfoundland.
Australians make up the largest cruise source market in the world per capita, according to the Cruise Lines International Association (CLIA) Australasia’s 2016 “Cruise Industry Source Market Report”, with 5.3% of Australians taking a cruise in 2016, up from 4.5% in 2015. The South Pacific, including PNG, is their destination of choice, with 42% of Australian cruise travellers heading to the region in 2016.
In 2010 the government launched its first cruise strategy, which sought to improve port infrastructure, better facilitate shore excursions, waive visa fees for cruise passengers and reduce pilot fees by 50%. The primary aim of the plan was to attract more luxury mid-sized ships and large operators.
In conjunction with growing demand for cruising in the Pacific, this policy appears to have had notable success. According to CLIA’s “Asia Cruise Trends 2017 Edition” report, in partnership with CHART Management Consultants, who created the strategy for PNG, the plan has led to an increase in cruise ships visiting its ports and island destinations.
Approximately 6% of tourists who visited PNG in 2017 did so aboard ocean cruises, with Alotau, the capital of Milne Bay Province, receiving 33 cruise ships, and Rabaul township in East New Britain receiving 16. Kiriwina, Kitava and the Conflict Islands received 15, 14 and seven ships, respectively, compared to three in Port Moresby. In 2016 the World Bank’s International Finance Corporation (IFC) and cruise operator Carnival Australia found that tourism in the segment brought A$5.9m ($4.6m) into PNG in 2015, as well as A$200,000 ($154,760) in indirect economic benefits. The segment also provided for 203 job opportunities, with 200 of these employed directly in the industry. More than half (58%) of the indirect economic impact went to transport providers, while the other 42% went to local retail stores. Alotau and Rabaul accounted for most of the cruise passenger expenditure in 2015, at 42% and 41%, respectively, as these are the entry ports and are most developed for tourism.
PORT DEVELOPMENT: As cruise tourists tend to spend relatively lower amounts in-country than general visitors, accounting for around A$7 ($5.41) to A$75 ($58.03) per day depending on the port, compared to $231 per day for air visitors, encouraging cruise passengers to spend more time on land is a major focus. The availability of pre-booked tours, ATMs, foreign currency exchanges, shaded areas and port facilities are key factors which shape passenger expenditure ashore. Retail options can provide opportunities to boost visitor spend with local specialised souvenirs and handicrafts creating the most local employment in port areas, despite receiving only 6% of total economic impact.
Allan Tobalbal Oliver, agriculture specialist for PNG at the World Bank, told OBG that the slated tourism hubs of East New Britain Province and Milne Bay Province may see a decrease in cruise ships, highlighting the need to refurbish the port areas and better inform short-term visitors of the options available while onshore, which would encourage travellers to spend more time and make return visits.
One potentially lucrative addition to port development is the introduction of casinos. The government and the National Gaming Control Board (NGCB) are reported to be currently thinking about introducing casinos to PNG. If connected to the country’s resorts and the growing cruise business, this new segment could provide a major boost to gaming, as well as to the wider tourism industry.
PASSENGERS: In 2013 P&O Cruises’ ship Pacific Dawn, which has a passenger capacity of more than 2000, made its maiden voyage to Alotau. An IFC study from 2016 found that PNG received 136 cruise ships at various ports during 2015. While this number was similar to that of 2007, the average passenger capacity of ships arriving in PNG in 2015 was 705 passengers, compared with just 347 in 2007.
P&O’s Pacific Jewel became the first cruise ship to visit PNG’s Conflict Islands in 2016, located some 150 km from Alotau. The company has partnered with Australian conservationist Ian Gowrie-Smith, who bought the islands in 2003 seeking to sustainably develop them by investing in a marine research centre, turtle hatchery and renewable energy sources.
In May 2018 P&O Australia announced six new dedicated cruises to PNG, which are planned to stop at Alotau, Kitava Island, Rabaul, Kiriwina Island and the Conflict Islands, with plans also announced for the firm’s expanded itinerary commencing in the 2019-20 PNG cruise season. There are six cruise ship arrivals scheduled at Rabaul for the second half of 2018, followed by nine a further in 2019.
ADVENTURE POTENTIAL: According to the results of the PNG International Visitor Survey (IVS), released in April 2018 by the IFC and in partnership with the PNG Tourism Promotion Authority (TPA), the country could attract an extra 40,000 tourists annually, contributing $286m per year by 2027.
Noah Mikmik, coordinator of research at the TPA, told OBG that focusing on niche markets such as cultural and historical tourism, birdwatching and adventure tourism, including diving, trekking, mountain climbing and rafting, could help PNG boost visitor numbers by appealing to experiential travellers who are prepared to pay a premium for a unique visit. These markets are worth more than $970bn globally, of which PNG’s share is currently about $93.5m.
Visitors have also shown an interest in engaging with PNG’s culture. In 2016 some 10,000 cultural tourists went to PNG, and this segment is forecast to grow by 10% each year over the next decade. According to the IVS, 67% of all tourists who went to PNG in 2017 visited local markets, 46% went on tours to villages, 36% saw local dance and music, and 25% engaged in local events and celebrations.
Given it is one of the least explored countries on earth by outsiders, both geographically and culturally, PNG remains an exciting destination for intrepid travellers seeking for a less manufactured holiday. Only around 18% of the population live in urban areas, with the majority living in customary communities. While constituting just 1% of the earth’s land mass, PNG is home to around 8% of global species, offering appealing hiking opportunities, with some 44% of tourists engaging in this activity in 2017. A further 39% of tourists undertook Second World War history-related tours, 23% visited nature reserves or animal sanctuaries and 22% went birdwatching.
According to the TPA, the oceans surrounding the country are home to twice as many marine species as the waters of the Red Sea and up to five times as many as the Caribbean. The results of the IVS found that most visitors to PNG engage in water-based activities, with 60% of tourists visiting the beach, 49% swimming, 34% snorkelling and 31% diving.
According to the Wildlife Conservation Society, due to PNG’s relatively low human population and geographical isolation, reefs have remained in good health compared with other countries in the region like Indonesia and Australia. Nevertheless, burgeoning mining and forestry industries and climate change pose threats to the health of the reefs.
