Paga Hill Aims to Bring a Slice of the Global Cruise Market to Papua New Guinea

THE Paga Hill Estate development is poised to transform Port Moresby into a premier tourism destination by tapping into the global cruise market. Chairman of Paga Hill Development Company (PHDC), Gudmundur Fridriksson, has unveiled plans to significantly enhance Papua New Guinea’s (PNG) tourism sector, attracting international cruise traffic and reshaping the visitor experience in the capital city.

The resurgence of the cruising market post-COVID has been remarkable. The Cruise Lines International Association reported that passenger numbers surpassed pre-pandemic levels in 2023, with 32 million people taking cruises globally.

Despite this growth, Papua New Guinea has been largely overlooked, with 350 cruise ships bypassing the nation before the pan-demic. At the recent 2024 Business Advantage PNG Investment Conference, Fridriks-son explained: “Before COVID, we had 350 cruise ships pass PNG by.

Our discussions with major cruise lines like Carnival Australia indicate that if we can improve basic services—such as upgrad-ing hotels, enhancing the cruise port, and developing around six attractions—there is potential for 80 ships to visit in the first year, bringing approximately 250,000 tourists. Currently, PNG only receives about 12,000 tourists annually.”

Strategic Development and Infrastructure Investment

Paga Hill, a 25-hectare site adjacent to Port Moresby’s central business district, is strategically positioned to become a key entry point for cruise ships and a focal point for tourism development. PHDC has invested K35 million in materials over the past 18 months and is preparing to commence development in the second quarter of 2025, contingent upon government co-funding. The project envisions 13,000 square meters of open space and 600,000 square meters of built space, including a state-of-the-art Radisson Blu resort.

The Radisson Blu will be a landmark addition, offering 229 rooms, 100 serviced apartments, and 24 villas. Lachlan Hoswell, Managing Director of Radisson Hotel Group – Australasia, emphasized the hotel’s significance: “Radisson operates 1.3 million rooms worldwide and boasts over 160 million loyalty members. Our luxury Radisson Collection will be a perfect match for Paga Hill. This development will be a game changer for PNG, providing travelers with a unique opportunity to experience the coun-try in a premier setting.”

Enhanced Tourism Infrastructure

The first phase of the project includes a satellite casino and a 1.5-kilometer boardwalk, envisioned to rival Sydney’s Barangaroo but “wider and more beautiful,” according to Fridriksson. Additionally, the development will benefit from special economic zone status, facilitating streamlined processes with a one-stop shop for tax, customs, immigration, and investment services.

Fridriksson is confident that Paga Hill will redefine the tourism landscape in PNG. “Paga Hill is designed for everyone - local residents, visitors, and workers. It will enhance the overall experience of PNG’s capital, making it a must-visit destination for international tourists,” he said.

Tourism Potential and Economic Impact

The expansion of cruise tourism could significantly boost PNG’s economy. Cruise tourism often stimulates local economies through job creation, increased spending, and infrastructure development. By attracting a higher number of international tourists, Paga Hill is expected to generate substantial economic benefits, including job creation and increased revenue for local businesses.

Moreover, with improved tourism infrastructure, PNG can diversify its economy, reducing reliance on traditional industries and enhancing its global tourism appeal. The development of high-quality accommodation, entertainment facilities, and cultural attractions will position Port Moresby as a vibrant and attractive destination on the global tourism map.

Local Involvement and Sustainable Development

Fridriksson also highlighted the importance of local involvement in the project. “We are committed to involving local leaders and communities in this development. We want to ensure that local people benefit from the opportunities created by this project, including employment and business ventures,” he said.

The project aims to support sustainable tourism by integrating local culture and environmental considerations into its development plans. By fostering partnerships with local stakeholders and adhering to best practices in tourism management, Paga Hill seeks to contribute positively to the community and the environment.

Looking Ahead

The successful implementation of the Paga Hill project could pave the way for further tourism initiatives in PNG. Minister Maru and other government officials recognize the potential of this venture to set a precedent for future developments in the country. “The JV with RD is a crucial step towards transforming PNG into a key player in the global tourism market. It will require hard work and dedication, but it is an exciting opportunity for PNG,” Minister Maru stated.

With its ambitious plans and significant investments, the Paga Hill Estate development is set to make a lasting impact on Papua New Guinea’s tourism sector, positioning Port Moresby as a leading destination for global cruise travelers and paving the way for future economic growth.