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With fewer than 50,000 visitors travelling to Papua New Guinea each year for leisure, according to figures from the PNG Tourism Promotion Authority (TPA), the country is far from a mainstream tourism destination. The sector remains largely undeveloped and is a relatively minor contributor to the overall economy. PNG is a challenging destination to travel to and within. Yet the more intrepid traveller who is willing to overcome some of the associated concerns and costs will be rewarded with a sense of adventure and authenticity that is difficult to match elsewhere. PNG boasts a diversity of attractions bundled together. And while not catering to the mass holiday market, enthusiasts in pursuit of any combination of distinct local cultures, history from the Second World War, unique flora and fauna, and some of the world’s best hiking, surfing and dive spots will not leave disappointed. This chapter contains an interview with Richard Knight, Owner, Loloata Island Resort.

While overshadowed by energy and mining investments, Papua New Guinea’s agricultural sector is a key earner of foreign currency and a primary employer for many of its citizens. The country’s fertile land makes the sector and its downstream processing and value-added spin-offs the most viable option for absorbing its growing workforce, while continuing to provide potential for the economy in the long term. The palm oil industry dominates the sector, accounting for two-thirds of all agriculture exports excluding the forestry and fisheries industries. While the smaller fisheries benefit the country by supplying local markets with fish and modest exports when their respective fisheries are healthy, the sector remains largely reliant upon the tuna trade. The government has allocated significant funding for agriculture development, which should help the industry become more cost competitive in the long run. Growth will come from several subsectors, including improvements in the cultivation of coffee and cocoa as a result of yield-boosting initiatives. This chapter contains interviews with Pedro Celso, CEO, RD Tuna; and John Nightingale, Managing Director, Agmark.

While Papua New Guinea has a long history of manufacturing, the sector accounts for only around one-tenth of GDP, and output is mostly confined to staple goods bound for the domestic market. PNG is endowed with a number of highly traded global commodities including timber, coffee, cocoa, palm oil and fish, although currently much of this is exported in raw form. With hydrocarbons production pegged to expand the economy by 15% in 2015 and 5% thereafter, there are prospects for more advanced manufacturing to take root, and for locally extracted commodities to receive more in-country value addition prior to export. Should ongoing reforms result in improved perceptions of the ease of doing business in the country, PNG could emerge as a regional destination for the processing of a number of mid-stream and finished goods. This chapter contains a viewpoint from Somu Bhattacharya, General Manager, Coca-Cola Amatil; and an interview with Michael Kingston, CEO, KK Kingston.

Although Papua New Guinea’s construction sector contracted in 2014 after a four-year boom from the massive PNG liquefied natural gas project, industry growth is expected to pick up again in 2015. New petroleum revenues are set to support the government’s sizeable infrastructure investment programme, which is seeing major improvements to roads, ports and airports in preparation for the 2015 Pacific Games and the 2018 APEC summit. The business environment remains challenging for private contractors, particularly in terms of obtaining construction permits; however, a growing emphasis on public-private partnerships (PPPs) and rising foreign financing has improved the near-term outlook, and new efforts to supply affordable housing and expand home ownership will certainly underpin steady, long-term growth. Rising inflation, as recorded in the country’s consumer price index (CPI) housing category, saw property prices and rental rates spike between 2008 and 2013. This trend continued into 2014, suggesting that the property market is likely to remain on an upwards trajectory, reinforced by robust GDP growth and a growing urban population. This chapter contains interviews with Marcelo Minc, Country Director, Asian Development Bank’s Papua New Guinea Resident Mission; and Andrew Potter, General Manager, Pacific Palms Property.

Divided by ridges of high mountains and dense with tropical rainforests, Papua New Guinea has some of the world’s most difficult terrain to traverse. The country also possesses around 800 islands, with much of its 6500km of coastline only accessible by sea. Thus, transport and logistics in the country has long been a major challenge. Still, much of the country’s overall economic development hinges on these transport barriers being faced and overcome. New plans and strategies are being rolled out, with some of the state’s new largesse, gleaned from new hydrocarbons activities, finding its way into a major new infrastructure boost. For investors, the opportunities are significant, with the country looking for everything from project financing, to international expertise in design and engineering. PNG may well be a challenging environment, but it remains one that is also full of possibility. This chapter contains an interview with Greyling Park, CEO, Post PNG.

The telecommunications sector in Papua New Guinea, long synonymous with high prices and poor service, is undergoing a sea change as fresh competition, infrastructure rollout, and market reforms result in increased coverage and access. More connections to major international subsea cable systems are being put in place. Domestically, with fibre as the backbone and microwave links and satellite systems acting as complementary technologies offering redundancy and connectivity to more remote parts of the country, the government’s goal of achieving 50% broadband penetration by 2018 seems on track. As speeds increase, capacity improves and costs come down, ICT is set to become a more integral part of many PNG businesses and help them improve their competitiveness and global integration. This chapter contains interviews with Jimmy Miringtoro, Minister for Communication and Information Technology; Bhanu Sud, CEO, EMTV; and Reuben Kautu, Chairman, Dataco.