Tourism is PNG’s sleeping giant and casinos are a proven means of attracting tourists.

Our country’s rich and diverse culture is truly unique and makes PNG an incredible destination. Still, we attract a fraction of the international visitation of neighbouring countries Fiji, New Caledonia and Vanuatu. The missing links are tourism infrastructure such as resorts, attractions, products and services, together with an image of PNG that replaces legacy and negative perceptions. Paga Hill Estate was designated the nation’s flagship Special Economic Zone for its plan to address these very items. The recently announced Radisson hotel precinct, and now the satellite casino, will form key components of Paga Hill Estate SEZ’s tourism strategy.

Casinos are recognised for their significant role in tourism and are a proven means of both attracting and prolonging international visitation. Research indicates that casinos prolong visitors’ stay in a city and stimulate expenditure. The World Tourism Organisation concludes that they also stimulate the local economy surrounding the casino, bringing in more people, more often to the area, creating demand for year-round entertainment.

China presents a massive opportunity for PNG’s tourism industry, whose growing middle class is forecast to account for a quarter of all international tourism by 2030. 80% of Chinese first-time international tourists visit a casino, and 90% of Chinese visitors to the USA visit Las Vegas. With regular direct flights between Port Moresby and Guangzhou in place since December 2023, this market presents a growing opportunity for PNG, particularly where improved tourism infrastructure is in place, such as hotels, attractions, tours and day trips.

Cruise tourism, which is seeing a resurgence post COVID, is another opportunity for new tourism. It has been the fastest growing travel industry sector for the past 20 years, averaging 7.5% year on year. Australia is the world’s 5^th largest cruise market, with the South Pacific its most popular route. Cruise itineraries that feature Port Moresby are limited, and cruise operators need destinations with various attractions to dock.

A casino, as part of a suite of tourist attractions at Paga Hill Estate, as well as the planned upgrade of the city’s t-wharf to a cruise terminal, will help PNG capture a share of these opportunities.

‘Satellite’, or temporary facilities are a proven method of developing casinos internationally, especially where no casino existed before, as is the case in PNG. For example, Sydney’s Star City Casino operated a temporary facility for two years ahead of opening the current venue.

Paga Hill Estate’s satellite casino will similarly operate for up to five years. This will provide an opportunity to test the market, inform plans for the eventual permanent facility, train staff, enable the regulator (NGCB) to fine tune governance process, as well as allow for international tourism operators, including cruise liners, to feature Port Moresby in their plans.

A Paga Hill Estate casino will target foreign nationals (tourists and expatriates), with mechanisms in place to protect the local population. Specifically, casino operations will be modelled on Singapore. In Singapore, passports are required to be shown on entry, providing free entry to foreigners and requiring a cost-prohibitive entry fee for locals.

Like most casinos around the world, the permanent venue will include much more than gambling and establish a multi-faceted entertainment destination. Complementing Paga Hill Estate’s planned hotel and tourism-oriented elements, the permanent casino will likely feature a live entertainment venue, retail outlets, as well as restaurants and bars.

Operating a casino requires a very specialised skillset. Just like we secured Radisson’s involvement in operating the planned hotel atop Paga Hill, the casino will be run by a suitably capable, credentialled and experienced operator.

PHDC, in collaboration with the National Gaming Control Board (NGCB), is in the final stages of selecting this operator. This organisation will be experienced in Anti-Money Laundering (AML) compliance, as well as have the network and methods for sourcing new visitors to PNG.

A casino is part of a suite of tourist attractions designed to attract greater tourism to PNG. We estimate the casino will create hundreds of jobs, both directly and indirectly. The development itself would create jobs and trade apprenticeship opportunities during its construction, then various hospitality, marketing, administrative, logistics, security and other jobs in its ongoing operation. The casino would also support various spinoff businesses, such as tour operators, provisions and other suppliers.

In addition to safeguarding the local community, Paga Hill Estate SEZ’s casino will be a major contributor to local causes. As is the law in PNG, 30% of all gaming revenue will go back to the Government via the National Gaming Control Board (NGCB) and includes a Community Benefit Levy. This will help fund grass roots activities and much-needed social programs through the likes of church and other groups. So, while the venue will operate for international tourists – helping to attract and entertain them – it will be very much working to support the people of PNG.

Now that construction is underway, we expect it to be completed in approximately six months. This would allow for an opening date in early Q3 2025. We look forward to the chosen operator to announce the casino’s exact opening date in due course.