The Pacific Tourism Organisation (SPTO), in collaboration with the Papua New Guinea Tourism Promotion Authority (PNGTPA), has released PNG’s first Business Confidence Index (BCI) report this month.
This report offers valuable insights into the country’s business outlook and tourism sector recovery, providing a crucial tool for evidence-based policymaking and enhanced private sector engagement. It also signals the start of a data-driven approach to tourism development and recovery in PNG.
The findings are set to inform future planning, guide strategic investment, and support initiatives to strengthen businesses across the sector, the organizations said in a statement.
The collaboration between SPTO and PNGTPA “shows a shared commitment to building an inclusive and dynamic tourism industry.”
PNG is one of ten Pacific Island countries participating in the Pacific Tourism Data Initiative (PTDI), joining the Cook Islands, Niue, Kiribati, Samoa, Vanuatu, Tonga, Solomon Islands, Timor-Leste, and FSM-Yap.
Funded by the New Zealand Government, the PTDI plays a pivotal role in reinforcing regional tourism strategies through high-quality data collection and research.
The initiative encompasses several key surveys, including the bi-annual International Visitor Survey (IVS), the annual Business Confidence Index (BCI), and the annual Community Attitude Survey (CAS).
The BCI survey was conducted over a four-month period from November 2024 to February 2025. It gathered 299 responses, of which 206 were deemed valid for analysis.
The success of this nationwide effort is credited to the strong partnership between SPTO and PNGTPA, who worked collaboratively to engage businesses across all four of PNG's regions: Southern, Momase, Highlands, and Islands.
SPTO Chief Executive Officer Christopher Cocker commended the partnership, stating: “This achievement reflects the strong leadership of PNGTPA.”
“Their close connection with the local business community and focus on data-driven planning were key to collecting valuable insights that will help shape the future of tourism in Papua New Guinea.”
The survey primarily targeted tourism-related businesses in line with its objective of gauging recovery and confidence within the sector.
As a result, 62% of respondents were from tourism enterprises, while the remaining 38% represented diverse sectors such as real estate, healthcare, media, engineering, and events management.
The survey revealed that 90% of the participating businesses were PNG-owned, underscoring the local ownership and involvement in the economy. Geographically, 52% of surveyed businesses were in the Southern region, with 25% each in the Momase and Islands regions, and 22% in the Highlands.
Revenue data showed a wide range of business sizes and financial outputs. Large tourism businesses reported an average annual revenue of PGK 10.3 million, whereas micro-enterprises recorded average revenues of PGK 15,594.
Expenditure analysis indicated that businesses allocated 33% of costs to labour, 37% to inventory, and 31% to other operating expenses. Importantly, nearly half (47%) of goods and services used by these businesses were sourced locally, with the remaining 53% imported.
Despite facing a range of operational and economic challenges, many businesses expressed cautious optimism about the future.
About 59% of respondents indicated that they were actively hiring, though constraints around workforce availability (40%), recruitment challenges (33%), and financial limitations (19%) were identified as key barriers.
Broader systemic issues such as security concerns (21%), inadequate infrastructure (19%), and limited government support (10%) were also highlighted.
In terms of growth potential, many businesses pointed to several opportunities: 19% cited growing visitor demand, 16% saw promise in strategic partnerships, 15% aimed to expand their operations, and 14% emphasized the need for stronger government support to facilitate growth.
PNGTPA CEO Eric Mossman Uvovo welcomed the report and praised the collaborative effort behind it.
“The BCI report is an important step forward in understanding the real-time challenges and opportunities our businesses face. We thank SPTO for its technical leadership and are proud to have partnered in this effort,” Uvovo said.
“This collaboration reflects our shared commitment to shaping a resilient, inclusive, and data-driven tourism sector for PNG.”
SPTO CEO Mr. Cocker said: “The Business Confidence Index is a key part of the New Zealand-funded Pacific Tourism Data Initiative, designed to capture local perspectives and guide tourism development that truly reflects community needs.
“We sincerely thank NZMFAT for funding this important survey, the PNGTPA team for their strong collaboration, and the businesses that contributed their time and insights.”
