Understand economic benefits of Tourism: BPNG
Sir Peter Barter showing Bank of PNG Deputy Governor Benny Popoitai and Minister for Petroleum and Energy and Madang Open member Nixon Duban his new Kalibobo Village apartments in Madang.
A need for agriculture and tourism boost has been readdressed by the Bank of Papua New Guinea (BPNG) as these sectors directly affect the lives of people in PNG.
Bank of Papua New Guinea Deputy Governor Benny Popoitai stressed this during the opening of Madang Resort Hotel’s K4 million 303 Kalibobo Village Apartments on Monday 14, December.
Deputy Governor Popoitai said tourism is one sector that has the growth to improving the living standards of our people, however, the importance of the tourism and hospitality sector can only be appreciated when its economic benefits are understood.
“Firstly, there are direct benefits such as tourist arrivals, employment in tourism sector and contribution to GDP through direct spending by tourist and visitors as well as public and private investors in the sector while indirect benefits are intermediate consumption throughout the supply chain like spending on marketing and promotion services, purchase of fuel, catering services by airlines.
“According to the 2015 World Travel and Tourism Council report, the world average of tourism’s direct contribution to GDP was 3.1% in 2014, and this share increased to 9.8% when indirect contributions were included. Tourism generated 3.6% of the total employment around the world in 2014 and its total contribution to employment was 9.4% through all the indirect and induced economic effects,” he adds.
However, of the 184 countries surveyed in 2014, PNG was ranked last in terms of these benefits. The country’s direct tourism contribution to GDP was less than 1% and its total contribution accounted for was 2.1% of GDP and that represents a tourism sector employment to only 0.5% total and when adding indirect effects, it generated 1.8% of employment.
Mr Popoitai while thanking Sir Peter Barter for his contributions to the tourism industry in the country concluded that the right foundation for economic development not only for tourism is to have the right infrastructure, increase security and improve ways of doing business in PNG.
“While it is important to have good policies to develop the sector and encourage public and private sector investment, we must educate our people to harness and take ownership of the opportunities in the development of the tourism sector.
“Therefore, the Bank has championed two major initiatives, the financial literacy and financial inclusion programs to educate our people about financial banking systems and to have the financial capability to source financial resources,” he said.