The Mineral Resources Development Company (MRDC) has proposed a tourism master plan to position Kokopo in East New Britain Province, Papua New Guinea, as a regional hub in the Pacific under the Kokopo Tourism Economic Zone (K-TEZ).
The proposal was introduced on Monday, 16 February 2026, at the Ministry of International Trade and Investment’s Stakeholders High-level Planning Workshop in Lae, Morobe Province. At the workshop, MRDC deputy chief executive officer and chief investment officer John Tuaim spoke about plans to expand Kokopo’s tourism capacity through airport upgrades, marine infrastructure and new accommodation.
The plan includes the construction of a wharf, marina and cruise ship terminal facilities. It also proposes road upgrades connecting Kokopo with Rabaul, Pomio and surrounding tourism areas, alongside improvements to water, power, sewerage, sanitation and communications systems. Stronger digital connectivity and tourism safety facilities are also included.
The master plan provides for approximately 4,500 hotel and resort rooms across 22 properties. Marine and diving facilities, a cultural and heritage tourism precinct and a golf course are also proposed.
MRDC estimates the initiative could attract 600,000 visitors annually and generate around $1.2 billion USD each year. It projects 10,000 direct jobs and a further 25,000 jobs indirectly. The company expects the development to contribute between three percent and five percent to national GDP growth while supporting foreign exchange liquidity and balance of payments stability.
“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, a diversification strategy for PNG,” Tuaim said.
He also noted that tourism contributes about ten percent of global GDP and supports one in ten jobs worldwide. He said Kokopo’s proximity to Australia, the Pacific and Southeast Asia, together with its active volcanoes, geothermal attractions, World War II sites, marine environment and cultural heritage, makes it suitable for a tourism economic zone.
“If we are to build a tourism economic zone anywhere in PNG, Kokopo is the logical starting point,” Tuaim added.
The Minister for International Trade and Investment, Richard Maru, responded with support for the proposal.
“The proposed K-TEZ will transform the tourism industry of Papua New Guinea. The challenge is making it happen,” he said.
As part of the overall concept, MRDC has proposed upgrading Tokua Airport into an international gateway. The airport development is estimated to cost K1 billion kina (approximately $233 million) and would handle regular direct international flights.
Minister Maru said he would meet stakeholders in Kokopo in the coming weeks before taking the submission to the National Executive Council next month to seek concept approval for the development of the economic zone. He said the concept approval would give confidence to investors to begin developing a master plan and acquiring land for the project, with MRDC as the lead developer.
He further stated that the proposed K-TEZ would not take off without the development of Tokua International Airport.
MRDC has begun discussions with the East New Britain Provincial Government, customary landowners and community leaders to align the proposal with provincial planning.
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