Papua New Guinea International Visitor Survey

Papua New Guinea International Visitor Survey January June 017 Simon Milne

Papua New Guinea Tourism Project Introduction Project Objectives Objective 1: Grow tourism arrivals to PNG by working with government and private sector to understand and develop arrivals markets. Objective : Increase the value of tourism to businesses and communities by working with government and private sector to improve the PNG tourism product. Objective 3: Increase investment in PNG tourism by helping to build a pipeline of bankable projects. Linkages: Complement the World Bank s upcoming tourism lending program Pacific Partnership: IFC s work in the Pacific is guided by the Pacific Partnership. Australia, New Zealand and IFC are working together through the Pacific Partnership to stimulate private sector investment and reduce poverty in the Pacific.

Papua New Guinea Tourism Project Introduction International Visitors Survey Provides unique insight to current tourism markets Creates a baseline from which government and industry stakeholders can measure growth and track trends Presents a profile of the current visitor Increases understanding of travel patterns in the regions Provides data to inform marketing strategies including key market segments, distribution channels and motivation factors Allows for businesses and government to make evidence based decisions for marketing, product development, policy and strategies

Summary of the Key Findings Summary Total Direct Economic Impact for Jan-Jun 017 Figures exclude employment and cruise visitors US $105 Million (PGK $343 million) flowing back to the PNG economy. US $,558 (PGK $8,33) spend per visitor per trip; from a total of 41,16 visitors US $47 (PGK $805) per visitor per day Respondent Profile and Characteristics 57% from AU/NZ 54% under 50 years 34% female 75% household income less than US $100,000 Decision Making Friends and family, previous visits and general travel websites are key sources for planning holidays 63% purchased travel by themselves Satisfaction 93% would come back Satisfied with people, scenery or landscape, activities and attractions, and culture Safety and security, environment and rubbish least appealing

Direct Economic Impact - Spend in Country and Prior to Arrival Summary $4.3 million Accommodation $9. million Airfares $10.6 million Food and Beverage $5.6 million Local Transport $5.4 million Domestic Travel $4.3 million Tours Economy US $105 million $3.1 million Retail $.0 million Other $1.5 million Souvenirs $1.4 million Internet & Service

Presentation Structure Visitor Profile Visitor Characteristics and Preferences Visitor Spending and Impact Information and Decision Making Visitor Satisfaction Methodology

Visitor Characteristics - IVS Respondent Data Visitor Profile People Covered 96 Adults 57 Children Household Income 4% Under $50,000 33% $50,000 -$100,000 15% Over $100,001 Gender 34% Females Age 13% 18-9 years old 17% 30-39 years old 5% 40-49 years old 3% 50-59 years old 18% 60-69 years old Country of Origin 5% Australia 3% Asia 8% Long Haul* 7% North America 5% New Zealand 5% Pacific 66% Males *Note: Long haul countries are countries not included in specific long haul destinations (i.e., Asia and North America).

Australian Respondents - IVS Respondent Data Visitor Profile Western Australia 6% Northern Territory 1% South Australia 4% Tasmania % Queensland 38% New South Wales 8% Australia Capital Territory 5% Victoria 16% New South Wales, Queensland and Victoria make up 8% of all Australian visitor arrivals

New Zealand Respondents - IVS Respondent Data Visitor Profile Auckland 35% Waikato 9% Canterbury 8% Wellington 14% Auckland, Wellington, Waikato and Canterbury make up 66% of all New Zealand visitor arrivals

Long Haul Country Breakdown (IVS Respondent Data) UK Switzerland Germany Italy France South Africa Norway Netherlands Belgium Zimbabwe Trinidad and Tobago Spain Slovenia Portugal Poland Malta Malawi Iceland Finland Czech Republic Chile Andorra Long Haul Country Breakdown 8% of IVS respondents 3 3 3 5 7 8 10 1 0 5 10 15 0 5 30 Share of respondents (%) for long haul IVS data 8 Visitor Profile Long Haul Country Breakdown 8% of IVS respondents Europe 85 Africa 10 Scandinavian 3 Other America 0 0 40 60 80 100 Share of respondents (%) for long haul IVS data Note: Due to rounding, some figures will be 105%

Long Haul Country Breakdown (IVS Respondent Data) Visitor Profile Republic of Korea Hong Kong (S.A.R.) Bangladesh Lao People's Democratic Republic Afghanistan Asia Country Breakdown Philippines Malaysia Singapore India Thailand Japan Indonesia China Israel Nepal Myanmar Cambodia 1 1 1 1 1 11% of IVS respondents 4 4 8 8 13 1 11 4 Fiji Solomon Islands Papua New Guinea Vanuatu Samoa Tonga Palau Federated States of Micronesia North America Country Breakdown United States of America Pacific Country Breakdown Canada 7% of IVS respondents 19 3 9 4 8 37 0 5 10 15 0 5 30 35 40 Share of respondents (%) for Pacific IVS data 10% of IVS respondents Note: Due to rounding, some figures will be 97% or 101% 0 5 10 15 0 5 30 Share of respondents (%) for Asia IVS data 0 0 40 60 80 100 Share of respondents (%) for North America IVS data

Country of Origin Visitor Profile 60 56 5 50 40 Percent 30 3 0 10 11 10 7 8 8 8 7 5 5 0 Australia Asia North America Long haul New Zealand Pacific % of IVS Responses % of PNGTPA Arrivals

Presentation Structure Visitor Profile Visitor Characteristics and Preferences Visitor Spending and Impact Information and Decision Making Visitor Satisfaction Methodology

Visitor Characteristics Summary Visitor Characteristics and Preferences Airlines Used 64% Air Niugini 8% Qantas 13% Virgin Australia 6% Philippine Airlines % PNG Air Length of Stay 10.3 Nights on average 44% Stayed up to 1 week Previous Visits 41% First trip 18% 1 or times 11% 3 or 4 times 30% 5+ times Travel Companions 45% Solo 5% One companion Note: Due to rounding, some figures will be 99% or 101% Purpose of Visit 41% Business 4% Holiday 0% Visiting Friends/Family Regions Visited on Trip 76% Papua Region % Islands Region 1% Momase Region 15% Highlands Region

Visitor Characteristics Main Purpose of Visit Country Segmentation and Preferences Australia 39 8 6 3 New Zealand 5 15 9 Asia 66 1 16 Pacific 49 5 7 5 1 North America 3 38 0 1 4 3 Long haul 31 44 10 7 7 0 10 0 30 40 50 60 70 80 90 100 Share of visitors (%) Business Holiday VFR Volunteering Other Education

Previous visits Country Segmentation Visitor Characteristics and Preferences 80 Share of visitors (%) 70 60 50 40 30 37 31 43 6 55 67 First time visitors 41% 1 or times 18% 6 3 3 35 46 8 8 0 10 19 11 16 18 10 1 13 6 10 1 5 0 First time 1 or times 3 or 4 times 5+ times Australia New Zealand Asia Pacific North America Long Haul

Previous Visits Purpose of Visit Segmentation Visitor Characteristics and Preferences 70 60 61 50 Share of visitors (%) 40 30 35 6 3 36 38 0 17 17 10 10 1 13 13 0 First time 1 or times 3 or 4 times 5+ times Note: Due to rounding, some figures will be 99% or 101% Holiday Business VFR

Length of Stay (nights) Country Segmentation Visitor Characteristics and Preferences 80 70 Australia AVERAGE 9.7 nights 67 75 60 New Zealand 11 nights Share of visitors (%) 50 40 30 31 37 33 Asia Pacific North America Long Haul 9.6 nights 10.5 nights 1.8 nights 13.9 nights 46 51 36 37 0 10 0 1 17 16 14 11 11 8 8 8 8 9 6 6 7 7 4 4 4 4 4 3 3 3 1 5 or less 6 7 8 9 10 and more Australia New Zealand Asia Pacific North America Long Haul

60 Length of Stay (nights) Purpose of Visit Segmentation Visitor Characteristics and Preferences 57 50 AVERAGE 51 Holiday 10.7 nights 40 39 Business 9.7 nights 40 Share of visitors (%) 30 6 VFR 11.3 nights 0 10 15 5 10 8 7 6 1 9 4 5 3 3 0 5 or less 6 7 8 9 10 and more Due to rounding, some figures will be 99% or 101% Holiday Business VFR

Airlines Used for Travel Country Segmentation Visitor Characteristics and Preferences 43% Australia 8% New Zealand % Asia 7% Pacific 33% North America 8% Long Haul 17% Australia 5% New Zealand % Asia % Pacific 6% North America 10% Long Haul 0% Australia 0% New Zealand 0% Asia % Pacific 15% North America 7% Long Haul 55% Australia 34% New Zealand 79% Asia 95% Pacific 65% North America 80% Long Haul Note: Multiple responses, therefore total do not add up to 100% 1% Australia 3% New Zealand 1% Asia 0% Pacific 6% North America 7% Long Haul Other 1% Australia 5% New Zealand 3% Asia % Pacific 9% North America 7% Long Haul

Airlines Used for Travel Purpose of Visit Segmentation Visitor Characteristics and Preferences 8% All Visitors 5% Holiday 8% Business 31% VFR 13% All Visitors 11% Holiday 14% Business 14% VFR 6% All Visitors 4% Holiday 8% Business 5% VFR 64% All Visitors 69% Holiday 6% Business 61% VFR % All Visitors % Holiday % Business % VFR Other % All Visitors % Holiday 3% Business 1% VFR Note: Multiple responses, therefore totals do not add up to 100%

Regions Visited All Visitors Visitor Characteristics and Preferences Momase Region 1% 50% Morobe 37% Madang 0% East Sepik 4% West Sepik Highlands Region 15% 47% Western Highlands 35% Eastern Highlands 14% Southern Highlands 1% Jiwaka 7% Simbu 6% Hela Islands Region % 39% East New Britain 36% New Ireland 1% West New Britain 1% Bougainville 10% Manus Papua Region 76% 83% National Capital District 15% Central Province 11% Milne Bay 10% Northern Province 3% Western Province % Gulf Province Note: Multiple responses, therefore totals do not add up to 100%

Visiting each PNG Region Purpose of Visit Segmentation Visitor Characteristics and Preferences Momase Region Holiday 4% Business 1% VFR 15% Highlands Region Holiday 17% Business 13% VFR 16% Islands Region Holiday 31% Business 19% VFR 16% Papua Region Excluding NCD Holiday 68% Business 70% VFR 87% National Capital District Holiday 71% Business 86% VFR 88% Note: Multiple responses, therefore totals do not add up to 100%

Visiting each PNG Region - Holiday and Long Haul Holiday Visitor Characteristics and Preferences Momase Region Holiday 4% Long Haul Holiday 53% Highlands Region Holiday 17% Long Haul Holiday 38% Islands Region Holiday 31% Long Haul Holiday 38% Papua Region Excluding NCD Holiday 68% Long Haul Holiday 37% National Capital District Holiday 71% Long Haul Holiday 69% Note: Multiple responses, therefore totals do not add up to 100%

Regions Visited Country Segmentation Visitor Characteristics and Preferences Share of visitors (%) 100 90 80 70 60 50 40 30 0 10 0 75 7 81 87 75 65 3 19 AVERAGE Length of Stay on Islands Papua Region National Capital District Islands Region Momase Region Highlands Region 8.4 nights 6.7 nights 9.7 nights 7.4 nights 7.1 nights 31 8 5 6 0 19 16 15 7 Papua Region Islands Region Momase Region Highlands Region National Capital District Australia New Zealand Asia Pacific North America Long haul 48 10 0 1 11 4 7 79 81 93 88 73 76 Note: Multiple responses, therefore total does not add up to 100%

Presentation Structure Visitor Profile Visitor Characteristics and Preferences Visitor Spending and Impact Information and Decision Making Visitor Satisfaction Methodology

Expenditure by Purpose of Visit Segmentation Visitor Spending and Impact Per Person Per Visit 3,188 1,7,510 US$ 1,303 1,534 1,961 771 1,07 763 Holiday Business VFR Pre-paid spend flowing into PNG In-country spend

Expenditure by Country Segmentation Visitor Spending and Impact Per Person Per Visit 3,883 3,450 3,089 1,333 US$,0,08 1,59,64 1,396 966 934 1,36 1,094 1,560 1,058 1,188,054,550 Australia New Zealand Asia Pacific North America Long Haul Pre-paid sepnd flowing into PNG In-country spend

Visitor Expenditure Prior to Arrival Purpose of Visit Segmentation Visitor Spending and Impact International flights 91 94 99 Accommodation 30 6 78 Domestic transport 43 4 71 Breakfast or meals 4 4 64 Tours 4 5 50 Activities 8 7 43 Other 5 9 0 0 40 60 80 100 10 Note: Multiple responses, therefore total does not add up to 100% Share of visitors(%) Holiday Business VFR

Average Spend in PNG per day Visitor Spending and Impact Per Person Per Day Overall - $110 per day Spend per person per day (US$) 180 160 140 10 100 80 60 40 0 0 100 85 By Market 159 100 109 96 110 Other, $4.6 Local Transport, $5.8 Retail, $7.4 Tours, $10.1 Domestic Travel, $13.1 Internet & Service, Souvenirs, $3.3 $3.5 Food & Beverage, $18.1 Accomodation, $44.4

Average Spend in PNG by Australia and New Zealand Visitors Visitor Spending and Impact Local Transport, $4. Retail, $6. Other, $6.5 Australia - $100 per day Domestic Travel, $11.3 Internet & Service, Souvenirs, $.9 $3. Accomodation, $33.5 Retail, $.8 Souvenirs, $3.1 Local Transport, $4. Food & Beverage, $15.6 New Zealand - $85 per day Internet & Tours, $1.3 Service, $. Other, $1.6 Accomodation, $37.7 Tours, $14.9 Food & Beverage, $16.9 Domestic Travel, $16.3

Average Spend in PNG by Asia and Pacific Visitors Visitor Spending and Impact Asia - $159 per day Pacific - $100 per day Internet & Service, $5.6 Retail, $11.9 Local Transport, $1.1 Tours, $9.9 Domestic Travel, $11.7 Souvenirs, $4.1 Other, $.1 Food & Beverage, $6.8 Accomodation, $75.1 Internet & Service, $4.9 Souvenirs, $5.8 Local Transport, $8. Domestic Travel, $10.1 Other, $4.8 Retail, $13.8 Tours, $0.7 Accomodation $35.7 Food & Beverage, $16.3

Average Spend in PNG by North America and Long Haul Visitors Visitor Spending and Impact North America US $109 per day Long Haul US $96 per day Souvenirs, $3.4 Retail, $4.1 Local Transport, $4.6 Internet & Service, $1.4 Local Transport, $.1 Souvenirs, $.7 Internet & Service, $3.0 Tours, $4.8 Tours, $4.8 Retail, $6.4 Other, $7.3 Food & Beverage, $10.0 Accomodation, $51.4 Domestic Travel, $16.3 Accomodation, $4.7 Domestic Travel, $. Food & Beverage, $17.7

Visitor Expenditure Per Person and Total Visitor Spending and Impact Pre-Paid Spend flowing into PNG In-country Spend Total Spend US $137 PGK $447 US $110 PGK $360 US $47 PGK $805 Per Day Whole Trip US $1,417 PGK $4,615 US $1,141 PGK $3,716 US $,558 PGK $8,33 Direct economic impact on PNG for Jan - June 017 US $105 million / PGK $343 billon in total US $17.5 million / PGK $57. billon per month

Presentation Structure Visitor Profile Visitor Characteristics and Preferences Visitor Spending and Impact Information and Decision Making Visitor Satisfaction Methodology

Information Sources and Decision Making Information and Decision Making How did you find out about PNG? 51% Previous Visits 49% Friends and Family 1% General Websites What influenced your decision making? How did you purchase your travel? 33% Travel Agent 31% By Myself 9% By Others 3.0/5 Business and Conference.8/5 History and Culture.7/5 Friends and Family in PNG Information Sources for Planning 48% Friends and Family 7% Previous Visits % General Travel Websites 0% Travel Agent/Travel Brochures

Influences on the Decision to Choose PNG (score out of 5) Country Segmentation Australia Business/Conference.8 Culture and History.8 Friends and Family in PNG.5 Natural Attractions/ Ecotourism/ Photography.3 New Zealand Business/Conference 3. Friends and Family in PNG.9 Culture and History. Natural Attractions/ Ecotourism/ Photography.1 Asia Business/Conference 3.8 Friends and Family in PNG 3.0 Natural Attractions/ Ecotourism/ Photography.9 Culture and History.6 Pacific Business/Conference 3.4 Friends and Family in PNG 3.4 Special Events.9 Natural Attractions/ Ecotourism/ Photography.8 North America Culture and History 3.1 Natural Attractions/ Ecotourism/ Photography.9 Friends and Family in PNG.7 Snorkelling and Diving. Long Haul Culture and History 3.3 Natural Attractions/ Ecotourism/ Photography 3. Business/Conference.5 Snorkelling and Diving.5

Sources Used for Planning Total and Holiday Visitors Information and Decision Making Friends/family 45 48 Previous visits 7 47 General travel websites (e.g. Trip Advisor) 1 Travel agent/travel brochures 0 34 The official Papua New Guinea travel websites 14 15 Travel books (e.g. Lonely Planet) 10 19 Social media (Facebook, Twitter etc.) 8 10 Other 4 8 Magazine and newspaper articles 4 9 Television or radio programmes 3 0 10 0 30 40 50 60 Share of visitors (%) Note: Multiple responses, therefore total does not add up to 100% Total Holiday visitors only

Sources Used for Planning Purpose of Visit Information and Decision Making Friends/family 34 45 85 Travel agent/travel brochures 10 16 34 Previous visits 7 57 56 General travel websites (e.g. Trip Advisor) 14 1 6 Travel books (e.g. Lonely Planet) 6 5 19 The official Papua New Guinea travel websites 1 15 14 Social media (Facebook, Twitter etc.) 6 8 10 Magazine and newspaper articles 0 9 Other 1 3 8 Television or radio programmes 3 0 10 0 30 40 50 60 70 80 90 Share of visitors (%) Holiday Business VFR Note: Multiple responses, therefore total does not add up to 100%

Travel Purchasing Behaviour Country Segmentation Information and Decision Making Made my own travel arrangements using the internet 36% Australia 9% New Zealand 3% Asia 14% Pacific 38% North America 5% Long Haul Arrangements were made by a travel agent 30% Australia 37% New Zealand 37% Asia 39% Pacific 36% North America 3% Long Haul Travel arrangements were made by others 9% Australia 6% New Zealand 33% Asia 36% Pacific 1% North America 7% Long Haul

Travel Purchasing Behaviour Purpose of Visit Segmentation Information and Decision Making Holiday 39 34 14 1 Business 34 1 40 5 1 VFR 0 50 4 6 0 10 0 30 40 50 60 70 80 90 100 Share of visitors (%) Travel arrangements were made through a travel agent I made my own travel arrangements using the Internet Travel arrangements were made by others (business, friends, relatives) Travel arrangements were a mix of online booking and using a travel agent Other

Cruise visits to PNG Australia and New Zealand Holiday Visitors Information and Decision Making Been on a cruise to PNG before? If Yes, how many times? No - 93% 6% 13% 61% 5+ 4 3 1 60 50 40 30 0 10 0 5 35 No influence Did a previous cruise influence your decision to come back? 10 Little influence Total (all cruises) 18 1 18 Some influence 17 9 Very influential 010-016 (recent crusies) Prime reason Yes - 7%

Presentation Structure Visitor Profile Visitor Characteristics and Preferences Visitor Spending and Impact Information and Decision Making Visitor Satisfaction Methodology

Visitor Satisfaction* Visitor Satisfaction 7% of total visitors were satisfied 76% of first time visitors were satisfied 70% repeat visitor were satisfied Holiday 85 Australia New Zealand 70 77 Business 64 Asia 58 Pacific 7 VFR 74 North America 8 0 0 40 60 80 100 Long Haul 73 Share of visitors (%) 0 0 40 60 80 100 Share of visitors (%) *A satisfied visitor includes respondents who answered satisfied or very satisfied

Willingness to Return Visitor Satisfaction Yes 93% Would you return to PNG? * Other reasons have not been included due to low percentages. No 7% Security and Safety 41% Cost 31% Would like to go somewhere else 4% Under developed 5% Only for business not as a tourist 5% Corruption 5% Environment 5% Airlines 4% Service 4% Activities 4% Distance to travel 3%*

Satisfaction with PNG Holiday Visitors and Total Population Restaurants, cafes, bars and evening entertainment Frequency of air transport within PNG Internet and phone availability, cost and coverage Total Friendliness of the people in PNG Local handicrafts / artwork Overall level of service in PNG Quality of accommodation Variety of things to see and do General shopping opportunities Experience of using local transport Cost of International Airfares Cost of accommodation Safety and Security General cleanliness Cost of Domestic Airfares Holiday visitors Value for money.7.7.8.7.8 3.1 3.1 3.0 3.0 3.0.9 3.0 3.0 3. 3. 3.3 3.3 3.4 4.0 4.0 3.7 4.0 3.7 3.6 3 3.7 3.6 3.7 3.5 3.8 Visitor Satisfaction 1.0.0 3.0 4.0 5.0 Mean (out of 5) (1) Very dissatisfied (5) Very satisfied 4.3 4.6 LEAST SATISFIED ITEMS

Least and Most Appealing Overall and Holiday Visitors Visitor Satisfaction Overall Most Appealing 4% People 5% Scenery or Landscape 1% Activities and Attractions Overall Least Appealing 34% Safety and Security 4% Environment and Rubbish 14% Cost 14% Infrastructure Most Appealing - Holiday Visitor 45% People 31% Activities and Attractions 8% Scenery or Landscape Least Appealing - Holiday Visitor 8% Safety and Security 6% Environment and Rubbish 13% Cost 11% Infrastructure

Share of Visitors (%) 50 45 40 35 30 5 0 15 10 5 0 4 Most Appealing Aspects All Visitors and Holiday Visitors 47 9 5 1 33 11 11 1 Visitor Satisfaction 7 5 3 4 4 3 3 3 3 3 3 3 1 3 3 1 1 0 1 1 1 1 1 1 0 1 1 1 0 All Visitors Holiday Visitor

Least Appealing Aspects All Visitors and Holiday Visitors Visitor Satisfaction 40 35 34 Share of Visitors (%) 30 5 0 15 10 5 0 5 6 4 14 14 14 11 11 9 8 6 5 7 4 4 8 3 4 5 3 3 6 3 4 1 0.5 1 1 1 0 0.4 0 All Visitors Holiday Visitor

Suggestions for Improvement All Visitors and Holiday Visitors Visitor Satisfaction 35 3 30 Share of Visitors (%) 5 0 15 10 5 0 4 14 15 13 13 5 1 1 1 13 11 9 5 6 6 9 5 5 5 3 4 1 3 3 1 0 All Visitors Holiday Visitor

Participation in Water Based Activities All Visitors vs Holiday Visitors Visitor Satisfaction Visit the beach Swimming Snorkelling 7 34 47 49 57 70 Diving 0 36 Fishing Hot Springs Kayaking/Canoeing Sailing Ocean cruise Surfing Water Skiing 1 1 4 5 8 8 10 6 7 7 9 14 16 18 0 10 0 30 40 50 60 70 80 Share of visitors (%) Alll visitors Holiday visitors

Participation in Cultural Based Activities All Visitors vs Holiday Visitors Visitor Satisfaction Local markets 73 78 Local dance and music Museums Local events and celebrations Traditional cooking 7 6 4 4 3 36 38 Cultural tours Local language and art 0 0 30 Cultural festivals and shows 17 1 0 10 0 30 40 50 60 70 80 90 Share of visitors (%) Alll visitors Holiday visitors

Participation in Land Based Activities All Visitors vs Holiday Visitors Visitor Satisfaction Sightseeing Hiking and walking WWII history related tours Port Moresby Nature Park Parks, nature reserves and animal sanctuaries Kokoda Trail Birdwatching Sports related activities Mountain climbing Wildlife tours Butterfly watching Caving 5 4 4 4 5 7 9 15 14 11 14 1 18 1 3 3 7 8 9 34 41 44 55 55 0 10 0 30 40 50 60 Share of visitors (%) Alll visitors Holiday visitors

Presentation Structure Visitor Profile Visitor Characteristics and Preferences Visitor Spending and Impact Information and Decision Making Visitor Satisfaction Methodology

Respondents Methodology Total number of emails sent: 7,385 Conversion Rate 13% Total number of responses: 96 Spend responses cover a total of 996 adults and 63 children 3 % of all visitors during the period

Prior to Arrival Visitor Expenditure Methodology x 50% AIRFARES x 50% 5% PRE-PAID visitor spend per person x 50% OTHER ITEMS + x 80% amount flowing to PNG 40% amount flowing to PNG 65% pre-paid spend per visitor flowing to PNG COOK ISLANDS 40% 40% flowing to local economy YAP flowing to local economy

Breakdown of Pre-Paid Spend Methodology

Thank You End

ANNEX

Heat Maps Australia Annex Darlinghurst, Sydney Top 3 Postcode Areas 4870 Cairns 4000 Brisbane 010 Darlinghurst, Sydney

Heat Maps New Zealand Annex Auckland

Share of visitors (%) 80 70 60 50 40 30 0 10 0 Annual Household Income Country Segmentation 9 7 73 70 46 40 38 33 33 18 41 13 9 14 15 Average Australia: US $9,031 New Zealand: US $91,436 Asia: US $55,14 Pacific: US $34,841 North America: US $106,95 Long Haul: US $55,444 7 7 8 7 8 4 3 1 3 <$50,000 $50,001-100,000 $100,001-150,000 $150,001-00,000 $00,001-50,000 $50,001-300,000 >$300,001 Australia New Zealand Asia Pacific North America Long Haul Annex 3

Annual Household Income Purpose of Visit Segmentation Annex 60 Share of visitors(%) 50 40 30 0 10 0 4 40 48 34 3 33 10 14 6 1 8 8 4 3 1 1 1 <$50,000 $50,001-100,000 $100,001-150,000 $150,001-00,000 $00,001-50,000 $50,001-300,000 >$300,001 Holiday Business VFR Average Holiday: US $74,511 Business: US $84,710 VFR: US $65,939

Length of Stay (nights) Breakdown - Country Segment Visitor Characteristics and Preferences Share of Visitors (%) 40 35 30 5 0 15 10 5 31 1 37 33 17 11 33 36 31 30 8 9 1 18 9 11 7 AVERAGE Australia 9.7 nights New Zealand 11.0 nights Asia 9.6 nights Pacific 10.5 nights North America 1.8 nights Long Haul 13.9 nights 17 17 15 1 13 13 11 8 8 5 5 4 4 7 4 9 0 5 or less nights 6 to 10 nights 11 to 15 nights 16 to 0 nights 1 to 5 nights 6+ nights Australia New Zealand Asia Pacific North America Long Haul

45 40 Length of Stay (nights) Breakdown Purpose of visit Segment 39 43 AVERAGE Visitor Characteristics and Preferences 35 Holiday 10.7 nights Share of Visitors (%) 30 5 0 15 10 5 15 6 6 30 6 1 3 Business VFR 10 11 9 9.7 nights 11.3 nights 7 4 5 3 5 7 0 5 or less nights 6 to 10 nights 11 to 15 nights 16 to 0 nights 1 to 5 nights 6+ nights Holiday Business VFR

Cruise visits to PNG Holiday Visitors Annex Been on a cruise to PNG before? If Yes, how many times? 4% 5+ Did a previous cruise influence your decision to come back? No - 94% 9% 1% 56% 4 3 Share of visitors (%) 50 40 30 0 10 0 40 31 No influence 8 Little influence 16 16 16 Some influence 36 38 Very influential Prime reason 1 Total (all cruises) 010-016 (recent cruises) Yes - 6%

Influences on the Decision to Choose PNG (score out of 5) Purpose of Visit Segmentation Holiday Culture and History 3.6 Natural Attractions/ Ecotourism/ Photography 3.1 Adventure Experiences 3.0 Snorkelling and Diving.4 Business Business/Conference 4.4 Culture and history. Natural Attractions/ Ecotourism/ Photography. Friends and Family in PNG.0 VFR Friends and Family in PNG 4.8 Culture and History.8 Natural Attractions/ Ecotourism/ Photography.7 Relaxing Atmosphere/ Warm climate.4

Degree of Satisfaction Country Segmentations Australia New Zealand Asia Pacific North America Long Haul 4.5 4.0 4.1 3.5 4.7 4.5 Friendliness of the people in PNG Local handicrafts / artwork 4.1 3.8 4.0 4.0 4.1 3.6 3.9 3.5 3.5 3.4 3.9 3.4 Overall level of service in PNG Restaurants, cafes, bars and evening 3.8 3.4 3.5 3.7 3.6 3. entertainment Frequency of air transport within PNG 3.8 3.5 3. 3.9 3.7 3.4 Quality of accommodation 3.8 3.4 3. 3.8 3.7 3.4 Variety of things to see and do 3.5 3.3 3. 3.3 3.8 3.7 Cost of International Airfares 3.3 3.0.3 3.1 3.1.5 Cost of accommodation 3..4.4 3.0 3.3.4 Value for money 3..6.6.8 3.3.7 Experience of using local transport 3.1 3.1 3.1.6 3.4 3.0 General shopping opportunities 3.1.7.7 3. 3.3.7 Safety and Security 3.0.7.7.5.8.9 Cost of Domestic Airfares.9.3.3.7 3.1.5 General Cleanliness.8.3.3.4.8.7 Internet and Phone Availability, Cost and Coverage.7.5.5 3.0.8.4 Annex

Degree of Satisfaction Purpose of Visit Visitor Satisfaction Holiday Business VFR Friendliness of the people in PNG 4.6 4. 4.3 Local handicrafts / artwork 4.0 3.9 4. Overall level of service in PNG 4.0 3.6 3.6 Variety of things to see and do 3.8 3. 3.4 Frequency of air transport within PNG 3.7 3.5 3.6 Quality of accommodation 3.7 3.5 3.5 Restaurants, cafes, bars and evening entertainment 3.6 3.6 3.9 Value for money 3.4.7.9 Experience of using local transport 3.3.8.8 Safety and Security 3.3.6.6 Cost of accommodation 3..7.8 Cost of International Airfares 3..8.8 General shopping opportunities 3.1.9 3. Cost of Domestic Airfares 3.0.5.4 General cleanliness 3.0.6.4 Internet and phone availability, cost and coverage..8.6.5

Expenditure by Visitor Type Annex Holiday Business VFR Overall Average Average Spend Prior to arrival Per Person - Whole Trip $3,018 $1,857 $1,173 $,180 Flowing into local economy - Estimated 65% of the pre-paid spend flows into the PNG economy Per Person - Whole Trip $1,961 $1,07 $763 $1,417 Per Person per Day $183 $14 $68 $137 Length of stay 10.7 nights 9.7 nights 11.3 nights 10.3 nights Average Spend while in PNG Per Person - Whole Trip $1,7 $1,303 $771 $1,141 Per Person per Day $115 $134 $69 $110 Total spend flowing into PNG economy Whole Trip Total spend flowing into PNG economy Per Day $3,188 $,510 $1,534 $,558 $98 $58 $137 $47

Expenditure by Market Annex Australia New Zealand Asia Pacific North America Long Haul Overall Average Average Spend Prior to arrival Per Person - Whole Trip $1,90 $1,683 $,400 $1,87 $3,160 $3,93 $,180 Flowing into local economy - Estimated 65% of the pre-paid spend flows into the PNG economy Per Person - Whole Trip $1,36 $1,094 $1,560 $1,188 $,054 $,550 $1,417 Per Person per Day $17 $99 $163 $113 $161 $184 $137 Length of stay 9.7 nights 11.0 nights 9.6 nights 10.5 nights 1.8 nights 13.9 nights 10.3 nights Average Spend while in PNG Per Person - Whole Trip $966 $934 $1,59 $1,058 $1,396 $1,333 $1,141 Per Person per Day $100 $85 $159 $100 $109 $96 $110 Total spend flowing into PNG economy Whole Trip Total spend flowing into PNG economy Per Day $,0 $,08 $3,089 $,46 $3,450 $3,883 $,558 $7 $184 $3 $13 $70 $80 $47

Expenditure by Purpose of Visit Annex Expenditure Items Holiday Business VFR Accommodation 35 68 19 Tours/Tour Operator Services Domestic Travel Food & Beverage Other Retail Souvenirs Local Transport Internet & Service 31 1 1 16 13 11 14 5 1 7 3 4 5 8 10 3 3 5 10 3 4 3 Total expenditure (US$) $115 $134 $69

Least and Most Appealing Business and First Time Holiday Visitors Annex Most Appealing - Business Visitor 43% People 3% Scenery or Landscape 16% Activities and Attractions Least Appealing - Business Visitor 37% Safety and Security 17% Environment and Rubbish 15% Cost Most Appealing - First Time Holiday Visitor 46% People 31% Scenery or Landscape 16% Culture Least Appealing - First Time Holiday Visitor 43% Safety and Security 19% Environment and Rubbish 14% Social Issues

Visiting each PNG Region - Repeat and First Time Visitors Visitor Characteristics and Preferences Momase Region First Time 1% Repeat 1% Highlands Region First Time 17% Repeat 14% Islands Region First Time 3% Repeat 1% Papua Region First Time 75% Repeat 75% National Capital District First Time 8% Repeat 83% Note: Multiple responses, therefore totals do not add up to 100%

Travel Purchasing Behaviour Country Segmentation Information and Decision Making Australia 36 30 9 5 New Zealand 9 37 6 8 Asia 3 37 33 7 Pacific 14 39 36 1 North America 38 36 1 14 Long Haul 5 3 7 15 0 10 0 30 40 50 60 70 80 90 100 Share of visitors (%) I made my own travel arrangements using the Internet Travel arrangements were made by others (business, friends, relatives) Other Travel arrangements were made through a travel agent Travel arrangements were a mix of online booking and using a travel agent