Tourism Market Opportunities in Papua New Guinea 
                                                                      
             
             
             
             
              
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
             
            Papua New Guinea Tourism Promotion Authority 
             
             
             
             
            Papua New Guinea Tourism Investment Guide                          Page    1 
                     Tourism Market Opportunities in Papua New Guinea 
                     LIST OF CONTENTS AND TABLES 
                      
                     LIST OF CONTENTS AND T AB L E S  ..................................................................................................... 2 
                     FOREWORD ........................................................................................................................................... 4 
                     1.  EXECUTIVE SUMMARY .................................................................................................................. 5 
                     2.  OVERVIEW OF PAPUA NEW GUINEA .......................................................................................... 7 
                           2.1     Introduction ......................................................................................................................................................... 7 
                                             Table 1         Summary of Economic Indicators and Population Statistics ......................................... 9 
                     3.  PAPUA NEW GUINEA TOURISM INDUSTRY ............................................................................. 10 
                           3.1     Overview of Papua New Guinea Tourism Industry ........................................................................................10 
                                             Table 2         Total Arrivals: 2005-2010 ............................................................................................10 
                                             Table 3         Forecast Arrivals: 2010-2020 .......................................................................................10 
                                             Chart 1         Total Annual Visitor Arrivals in Papua New Guinea: 2005-2010 ................................10 
                           3.2     Government tourism policy ...............................................................................................................................11 
                           3.3     Tourism Products ..............................................................................................................................................12 
                                   3.3.1     Primary Product Segments ...................................................................................................................12 
                                   3.3.2     Secondary Product Segments ...............................................................................................................13 
                                             Summary 1       Summary of Tourism Products .....................................................................................15 
                           3.4     Travel Accommodation .....................................................................................................................................16 
                           3.5     Transportation ...................................................................................................................................................17 
                                             Table 4         Air Nuigini’s International Destinations .......................................................................17 
                                             Table 5         Airlines PNG’s International Destinations ...................................................................18 
                           3.6     Tourism Segments ..............................................................................................................................................19 
                     4.  ANALYSIS OF TOURISM ARRIVALS .......................................................................................... 23 
                           4.1     Purpose of Visit ..................................................................................................................................................23 
                                             Table 6         Arrivals by Purpose of Visit: 2005-2010 ......................................................................23 
                                             Table 7         Forecast Arrivals by Purpose of Visit: 2010-2020 ........................................................23 
                                             Chart 2         Arrivals by Purpose of Visit: 2003-2012 ......................................................................24 
                           4.2     Modes of Transport ...........................................................................................................................................25 
                                             Chart 3         Arrivals by Mode of Transport: Air and Sea transport, 2008 and 2012 ........................26 
                                   4.2.2     Air Travel .............................................................................................................................................26 
                                   4.2.3     Sea Travel ............................................................................................................................................27 
                           4.3     Main Source Markets ........................................................................................................................................28 
                                             Chart 4         Arrivals by Country of Origin 2010 .............................................................................28 
                     5.  PAPUA NEW GUINEA INVESTMENT CLIMATE ......................................................................... 31 
                           5.1     General Investment Requirements ...................................................................................................................31 
                                   5.1.1     The Investment Promotion Authority ....................................................................................................31 
                                   5.1.2     Types of Companies .............................................................................................................................32 
                                   5.1.3     Incorporation of a Company ................................................................................................................33 
                                   5.1.4     Taxes and Duties ..................................................................................................................................33 
                                             Table 8         Income Tax Rates for Resident Individuals effective since 1 January 2009 .................35 
                                             Table 9         Income Tax Rates for Non-Resident Individuals effective since 1 January 2009 .........35 
                                   5.1.5     General Investment Incentives .............................................................................................................37 
                           5.2     Legislation on Labour and Employment .........................................................................................................38 
                                   5.2.1     Residency and Employment Visas ........................................................................................................39 
                                   5.2.2     Work Permits ........................................................................................................................................39 
                                   5.2.3     Wages ...................................................................................................................................................40 
                           5.3     Regulations for Foreign Companies .................................................................................................................41 
                                   5.3.1     Registration and Certification ..............................................................................................................41 
                     Papua New Guinea - Tourism Investment Guide                                                                               Page    2 
                      Tourism Market Opportunities in Papua New Guinea 
                                   5.3.2     Foreign Exchange Control ...................................................................................................................41 
                                   5.3.3     Land Dealings and Implications for Investors .....................................................................................44 
                                   5.3.4     Investment Protection and Guarantees ................................................................................................44 
                           5.4     Incentives for Tourism Investment ...................................................................................................................45 
                      6.  INVESTMENT OPPORTUNITIES IN PAPUA NEW GUINEA TOURISM ..................................... 50 
                           6.1     Analysis of Key Trends and Developments in Papua New Guinea Tourism Industry .................................50 
                                   6.1.1     Hospitality ............................................................................................................................................50 
                                   6.1.2     Transportation......................................................................................................................................52 
                                   6.1.3     Food and Beverages .............................................................................................................................54 
                                   6.1.4     Tourist Attractions ...............................................................................................................................55 
                                   6.1.5     Travel Retail Services and Infrastructure.............................................................................................57 
                           6.2     Analysis of Investment Opportunities in Papua New Guinea Tourism .........................................................59 
                                   6.2.1     Macro-environmental Analysis (PESTEL Framework) ........................................................................59 
                                   6.2.2     Sources of Comparative Advantage .....................................................................................................61 
                                   6.2.3     Development Prospects for Tourism Products .....................................................................................62 
                                   6.2.4     Potential Target Tourism Segments .....................................................................................................64 
                                   6.2.5     Papua New Guinea Tourism Investment Opportunities .......................................................................66 
                      LIST OF CONTACTS ........................................................................................................................... 71 
                      APPENDIX ............................................................................................................................................ 72 
                           Appendix I: List of Business Activities Restricted to Citizen Enterprises.................................................................72 
                                              Table 10       List of Other Restricted Cottage Business Activities ....................................................73 
                           Appendix II: Additional Tourism Tax Concessions ....................................................................................................74 
                                              Table 11       Additional Incentives Available to the Papua New Guinea Tourism Sector.................74 
                       
                       
                       
                      Papua New Guinea - Tourism Investment Guide                                                                                Page    3 
         Tourism Market Opportunities in Papua New Guinea 
         FOREWORD 
         Foreword by Minister for Culture and Tourism 
         Papua New Guinea - Tourism Investment Guide         Page    4