The Mineral Resources Development Company (MRDC) participated in the Ministry of International Trade and Investment Stakeholders High-Level Planning Workshop in Lae, Morobe Province on 16 February 2026.
Deputy CEO and Chief Investment Officer John Tuaim presented MRDC’s vision to transform the East New Britain township of Kokopo into the regional tourist hub of the Pacific under the Kokopo Tourism Economic Zone (K-TEZ) Initiative.
The K–TEZ initiative proposes a comprehensive infrastructure uplift program, including the construction of multiple internationally branded hotels and resorts, development of marine facilities, and supporting tourism infrastructure, with an estimated total investment exceeding US$4 billion.
The infrastructure plan includes the development of Tokua Airport as an international gateway, road upgrades linking Kokopo, Rabaul, Pomio, and all tourism precincts, development of wharf, marina, and cruise ship terminal facilities, upgrades to water, power, sewerage, sanitation, and communications facilities, and further strengthening of digital connectivity and tourism safety infrastructure.
The master plan envisions the construction of approximately 4,500 hotel and resort rooms across 22 properties, alongside marine and diving facilities, a precinct hub for cultural tourism and heritage, and the development of a PGA-standard 36-hole golf course.
“What we are proposing under the Kokopo Tourism Economic Zone Initiative is more than a tourism proposal; it is a foreign exchange engine, a jobs and skills development engine, a domestic industrial stimulus, and a diversification strategy for PNG,” Tuaim said.
He noted that tourism is one of the most powerful and proven economic multipliers available to island economies like PNG. Globally, tourism contributes approximately 10% of GDP, supports one in ten jobs, and remains one of the fastest-growing service export sectors.
He said Kokopo was the ideal platform for this initiative because of its proximity to Australia, the Pacific, and Southeast Asia; its active volcanoes and geothermal attractions; World War II sites; world-class marine and diving ecosystems; strong cultural heritage; and a stable provincial government environment.
MRDC has commenced exploratory discussions with the East New Britain Provincial Government, customary landowners, community leaders, and other key stakeholders to ensure that the Kokopo Tourism Economic Zone is developed through inclusive partnerships and aligned provincial planning.
He said Kokopo is geographically positioned to become PNG’s tourism gateway, a domestic aviation hub, and a model province for diversified growth.
“If we are to build a tourism economic zone anywhere in PNG, Kokopo is the logical starting point,” Tuaim said.
He added that under the plan, the K–TEZ is expected to attract 600,000 visitors annually, delivering US$1.2 billion per year. It is expected to create 10,000 jobs directly, another 25,000 jobs indirectly, strengthen the balance of payments and foreign exchange liquidity, and contribute to Kina stability. The initiative is projected to contribute 3–5% growth to the national GDP.
