Ann Sherry, Chairman, Carnival Australia: Interview

How important are public-private partnerships (PPPs) to the development of the tourism sector?

SHERRY: With its natural beauty, cultural diversity and ideal location between Australia and Asia, Papua New Guinea offers enormous potential to become a key tourism destination in the region. The government of PNG recognises that tourism can become a driver of economic development for the country and has a number of incentives in place for tourism investment.

Opportunities for investment include accommodation developments and land- or sea-based tours. However, a major objective is creating awareness of the product offering, with PPPs able to play a key role in the next phase of PNG’s tourism growth. As the fastest-growing area of tourism in PNG, the cruise industry has been at the forefront of public-private collaboration and is crucial to bringing awareness of PNG’s potential to a broader audience. Many of the shore-based offerings in key hubs such as Alotau and Rabaul have been established through PPPs, and these two regions are the obvious choice for further investment. Madang also offers potential to become another tourism hub for PNG.

What investments are needed to integrate onshore activities with cruise services?

SHERRY: For PNG to expand tourism and leverage the products already in place, it needs scale. This means expanding accommodation offerings in key hubs, and improving connectivity through adequate air and road links. This would provide existing onshore products with even more opportunities for expansion and allow for year-round offerings, not limited to cruise season.

It is also important for PNG to continue its marketing to develop the profile of its tourist spots beyond cruise passengers. PNG has the potential to become a significant tourism hub in the Pacific and can learn from other markets. Vanuatu offers a comparable case study in terms of its emergence as a key tourism hub – it was the cruise industry that first opened it as a destination. Port Vila, Vanuatu’s capital, is now a destination in itself, as is the regional area of Santo. While there are differences between the two nations, Vanuatu’s story holds many lessons for PNG, particularly around developing and leveraging the success of the cruise industry to grow inbound tourist arrivals. Many Australians have a strong affinity for PNG, with most of Carnival Australia’s brands making regular visits to the country. As one of the key markets for tourism in the region, the ability to capitalise on this connection would also open up further opportunities.

To what extent does cruise tourism have positive trickle-down effects on communities?

SHERRY: In the 2015 report “Assessment of the Economic Impact of Cruise Tourism in PNG & Solomon Islands” cruise tourism was found to have had an economic benefit of A$5.9m ($4.6m) to PNG, with potential to grow. The vast majority of spend was in Alotau and Rabaul, with other destinations benefitting on a smaller scale. Ongoing development of tourism hubs and shore experiences, combined with infrastructure and public policy, would provide more opportunities for the cruise industry to expand, thereby enabling PNG to take the next steps in its tourism strategy. Increased cruise calls provide opportunities for communities to establish permanent businesses and to employ additional staff. This has been demonstrated in other pacific nations including Vanuatu, Fiji and New Caledonia. These countries offer PNG a possible blueprint to increase employment in tourism at a faster pace. Furthermore, cruise services provide opportunities to enhance and maintain the unique cultural aspects of Pacific Island nations.

In addition, APEC will provide a platform for PNG to showcase itself on the world stage, with the opportunity to recast perceptions around security by delivering a safe and enjoyable experience for all delegates.