http://www.thenational.com.pg/100506/business1.htm


THE National Government needs to cut the “red tape” involved in setting up and running a tourism business in Papua New Guinea.
The tourism master plan produced by the Independent Consumer and Competition Commission (ICCC) and PNG Tourism Prom-otion Authority (PNGTPA) said a research by the World Bank indicated that PNG still had a long way to go to be competitive in this area.
“Both the costs of setting up and the process of establishment are slow and expensive compared to our neighbouring countries,” ICCC said.
Tourism is essentially private-sector driven and the Government's role is to create a conducive environment for private sector investment through enabling policies, whilst ensuring that the environmental and social impacts of tourism development are positively managed.
ICCC said that currently the cost of operating tourism enterprises in PNG was relatively high compared to other countries.
For instance, while fuel costs could be as high as 20% of total spending in PNG for rural resorts, it is only 5% for their counterparts in Australia.
“Security costs in PNG are also significant financial burden for most operators.
“Airfare prices both domestically and internationally are also relatively high in comparison to other competitive destinations in Asia and the Pacific,” ICCC said.
To improve the business environment and increase investment incentives for domestic and foreign companies in the tourism sector making PNG a competitive and safe destination in the region, the report suggested the following:
lImprove business procedures for setting up and operating business in PNG, through a streamlined process and coordination with relevant agencies, primarily the Investment Promotion Authority,
lProvide investment incentives to the industry and to new foreign investors encouraging large-scale commitment enabling the development of the sector; and
lReduce the cost of business operations for entities in the tourism sector through an industry-wide, taxation-based initiative.

Despite Red tape, compared this quater to last year, the number of tourist visits have jumped up by 13%. However, i believe it will revert back to normal next year. I was just wonder if the vistors during the EU-APC conference were classified as tourists?

No...i dont think those visitors would be classified as tourists. As for the red tape, airfares would probably deter most potential tourists from coming to our shores.For eg. given a choice between Vanuatu and PNG, one would tend to compare prices and go for the cheaper one...of course we get the raw end of the stick - again!

PNG we have the potential there but we lack management!....I know PNG Tourism can be much more better than Fiji's...if only we have security measures and good managements...

ples mangi

Tru tru....security measures and management. I doubt that tourists would stop coming to PNG despite all of our problems. I see them walking the streets in POM na kalap long PMV,sanap long buai market.. and its a little frightening tho...nogut wanpla samting kamap long ol and we get fingers pointed at us again. I guess all they're looking for is the real PNG experience, and people will leave them alone once we get used to seeing them around. Ating...