Port Moresby is rapidly evolving into a modern Pacific hub, with large-scale urban development projects aimed at bolstering Papua New Guinea’s economy and transforming the city into a regional destination for business, tourism, and investment. At the forefront of this transformation is the newly launched Paga Hill Special Economic Zone (SEZ), which promises to attract international tourists, high-net-worth visitors, and global investors. With developments such as luxury hotels, recreational areas, and a casino designed exclusively for overseas guests, the Paga Hill SEZ is expected to generate significant revenue, create local jobs, and drive Port Moresby’s reputation as a cosmopolitan destination.
The SEZ, overseen by the Paga Hill Development Company (PHDC), is part of a larger strategy to position Port Moresby as a gateway to the booming Asian markets. By providing world-class amenities and entertainment, the project aligns with similar initiatives across the region, where SEZs have been successful in attracting foreign investment and boosting tourism. The Paga Hill project also aims to ensure benefits for local communities, with an emphasis on hiring local workers, particularly from the indigenous Motu-Koita people, and providing them with sustainable employment opportunities.
In parallel, Port Moresby’s urban plan envisions the creation of two primary districts: a business and commerce hub extending from Koki to Konebada, and the Waigani Precinct, which will serve as the governmental heart of the city. This dual-district structure is designed to streamline economic activities and administrative functions, creating a more efficient, connected urban centre that meets international standards. Such infrastructure improvements will not only enhance Port Moresby’s functionality but also boost its appeal to both investors and residents.
Port Moresby’s potential as a modern metropolis is further evidenced by the success of the Vision City Mega Mall, the nation’s largest shopping centre, which has become a popular attraction for residents and visitors alike. Vision City has set a high standard for commercial developments in the capital, demonstrating the demand for contemporary retail and recreational spaces. Building on this success, further expansion in retail, hospitality, and entertainment is expected to cater to both international tourists and the growing urban population.
These initiatives come as PNG experiences substantial economic growth, with the GDP projected to reach K122 billion in 2024 and K150 billion by 2027. This economic trajectory makes Port Moresby an increasingly attractive location for investors, who are drawn by the city’s rising development, strategic location, and government-backed incentives. As the city expands its infrastructure, attention is also being given to addressing key issues like law and order, healthcare, and education, which are essential for sustainable urban growth.
As it continues to modernise, Port Moresby aims to bridge Papua New Guinea more effectively with global markets, supporting broader national ambitions of economic diversification and increased regional collaboration. With a clear vision for the future, Port Moresby stands ready to redefine its role within the Pacific, offering new opportunities for businesses, residents, and visitors alike.
Main picture: Port Moresby skyline with APEC House in foreground. Photo Dev Nadkarni.
