Kokoda Trail Closure in 2007?
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Sent: Monday, December 18, 2006 3:28 AM

Subject: Response to News Item Friday 15 December "Threat over Kokoda turf"

Attention Maureen Gerawa,

Dear Maureen,

I refer to your news story in the Post Courier on Friday 15 December, 2006.

The Kokoda Track Special Purposes Authority (Kokoda Track Authority) or (KTA) was initiated to focus on the significance of the Kokoda Track due to its historic importance since World War II and to promote this legacy for present and future generations and to promote tourism related activities.

The National Executive Council, on 28 May 2003, approved the establishment of the Authority pursuant to the Local-level Governments Administration Act 1997 as an authority within the Kokoda Track/Trail areas of the Koiari Rural Local-level Government of the Central Province and of the Kokoda Rural Local-level Government of the Oro Province.  The Head of State (Governor General) then proclaimed the Authority on 11 June, 2003.  The Minister for Inter-Government Relations gave approval for the Oro Provincial Administration, Central Provincial Administration and KTA to negotiate and have in place Agreements relating to the funding arrangements for the Authority.

On 5 May, 2004 the Authority held its first meeting of the management committee and commenced operations.  On 9 December, 2004 the management committee was formally sworn in.  Both Oro and Central Provincial Governments and members of the KTA Management Committee negotiated for a MOU to be established for a Joint Border Agreement which would provide a minimum annual funding each of K50,000 to KTA to assist with administration costs, such allocations totalling K100,000 per annum.

Over a three year period (2004-2006), nothing has been received from the two Provincial Governments, despite some commitments and promises.  The Oro Provincial Government committed K50,000 in October, 2005 for Tourism Development to be paid to KTA but it is still awaited.  In July, 2005 K15,000 was advanced by KTA to Kokoda LLG (to be reimbursed by Oro Provincial Treasury) to help fund a delegation visit to Port Moresby to deliberate Kokoda issues with the National Government.  Reimbursement has still not been made. 

KTA prepared and submitted their 2006 Budget to the Koiari LLG and the Kokoda LLG for approval.  The budget was approved by both LLGs on the basis that some benefits would go to wards outside of the Track area.  If such was ignored, the Councillors would not have passed the budget.  Regretably with 50% of trek fees having to be used for administration, and the lack of Government financial support to KTA, it was not possible to satisfy all communities.  Under the Proclamation and Constitution of KTA, only 14 wards within the Track area are to benefit - a major cause of dissention which must be overcome by possible restructure of the Authority. With 70% of LLG wards excluded from the proclaimed area of KTA, it could be a difficult task to get KTA budgets approved by the LLGs.

Nothing has been received from the Central Provincial Administration to date.  Hon Sir Moi Avei (Minister for Petroleum & Energy at the time) and MP for Kairuku-Hiri paid K15,000 from his discretionary funds to assist the administration of KTA.  The President of the Koiari LLG was paid accumulated 2001-2005 trek fees totalling K124,000 by an Australian Tour Operator, and such moneys were to be paid to KTA as per the LLG approved KTA budgets.  These funds never reached KTA but were reported as misappropriated by Koiari LLG. A police investigation is underway on this matter. 

Apart from some donor funding for specific education or health projects, the only income received by KTA is from Trek Fees charged to trekkers of the Kokoda Track at K200 per international Trekker and K100 for international students or children.  PNG residents are half of the international rates.  Aid worker trekkers may get discounted or free permits. The purpose of income from trek fees is to provide community projects and benefits to communities along the Track.  During awareness patrols conducted in 2004 and 2005, the communities were advised that a proportion of the trek fees would need to be withheld to cover administration costs until such time as Government funding became available.  30% admin fee was accepted but with little enthusiasm.  Because of the need to establish an office in Port Moresby and the cost associated with regular visits by Kokoda Track landowners with their problems and requests for community assistance, the administration costs have risen to 50% of trek fee income. 

Another problem is that the organization staffing structure of KTA with qualified staff has not been possible without Government support for KTA administration.  Five of the nine management committee members perform administrative functions on a regular basis, which is not good governance.  The administration management and staff should be responsible for the daily administration of KTA and report to the Board at their quarterly meetings for the Board members to perform their Board duties and responsibilities.

The Kokoda Track is now the largest single destination tourist attraction in PNG.  Annual trekking statistics since the Trek Permit system was established in 2001 are as follows:    2001:    76,     2002:    365,    2003:    1,074,    2004:    1,584,    2005:    2,374,     2006:    3,750.       Trek fees collected in 2006 are K640,000 plus K100,000 received from Kokoda LLG from an Australian Tour Operator similar to the Koiari situation, but actually remitted to KTA by Kokoda LLG.  There is K43,000 still to be collected from six Tour Operators this year. 

K45,000 was received from Kokoda Track Foundation in Sydney and assisted with the provision of health and education supplies to villages along the Track.  K420,000 of Trek Fee money was spent on the following community projects or benefits:  Agriculture, airstrip maintenance, camping ground assistance, church projects, community buildings, community and customary obligation assistance, commercial enterprise assistance, education supplies and secondary/high school sponsorships (63 students), health supplies, memorial parks and village lawns maintenance, VHF radio repeater repair and upgrade, village VHF radios maintenance, track and vehicular road and bridges maintenance, new trekking areas or tracks development, war histrory celebrations, water supplies maintenance, conduct of community workshops, women, youth and welfare projects. 

KTA has certainly not been sitting on its laurels, but endeavouring to fund as much as financially possibly, community benefits projects.  The communities, in conjunction with their Ward committee and Councillor decide on their community project priorities for referral to their Local-level Government and to KTA.  Unfortunately the system has its pitfalls and quite often politics comes into the funding of projects.  This can be overcome with the proper administrative procedures in place once funding is available and appropriate competent staff are employed by KTA.

To assist with the shortfall in funding, the present executive officer has assisted KTA financially, being reimbursed at cost as funds become available.  This is certainly not following proper government procedures, however if such assistance had not been possible then KTA would have gone out of existence in October, 2005.  Again GOVERNMENT FUNDING IS REQUIRED TO MEET THE CONTROLLED ADMINISTRATION COSTS OF KTA.

To justify such request, the following information is supplied in relation to 2006 trekking based on an average 9 day trek for 3,750 trekkers at an average cost per trekker in PNG of K3,000:

Track Community - guide & porter wages, guest house and /or camp ground fees, village food and refreshments, local attractions handcraft sales, trek permit fee contribution to community projects, etc                                                                                                              K4 million

Port Moresby - hotel one night at beginning and end of trek, aircraft seat POM-KKD or reverse, road transport to Owers' Corner, supermarket and wholesale suppliers of food and other items, restaurant meals and refreshments, artifacts & gifts, tour operator costs, IRC taxes, etc         K7 million

Australia to POM -  say 3,000 passenegers on Air Niugini/QANTAS and recently Airlines PNG from Cairns, Brisbane, Sydney, Melbourne, Adelaide,  and Perth and further afield, but for this exercise base the calculation from Brisbane at K2,000                                                        K6 million

A total of K17 million foreign exchange earnings for PNG has been earned through Kokoda Track trekkers in 2006.  Based on the statistics collected since 2001 as shown above, a total of K46 million has been earned in foreign exchange through the Kokoda Track tourism icon.

I believe the Government is irresponsible for not giving earlier consideration to assist with funding the administrration of KTA.  In 2005, the Department of Provincial and Local Government Affairs wrote to their Minister for Inter-Government Relations recommending that as KTA was achieving results, unlike many other local level government authorities, some consideration should be given for funding assistance.  Alas no response.  Requests have been made to PNG Tourism Promotion Authority, but again nothing in funding administration, but the possibility of workshops and assistance with funding and accompanying awareness patrols.

The National Government Budget in 2006 allocated K3.4 million to the Kokoda Trail Development Project (KTDP) to be administered by National Cultural Commission in consultation with Kokoda Track Authority, consultants, Rotary International and the Kokoda Track communities.  The funding allocation is 2006: K1,000,000, 2007: K900,000,   2008:  K800,000 and 2009:  K700,000.  The KTDP committee has agreed to four camping ground complexes at Kovello, Isurava, Naduri, Owers' Corner, completion of construction of the Kokoda Police Station, water supply upgrades at Kovello and Hoi and preparations for four suspension footbridges for dangerous river and creek crossings. Nothing material has occurred in 2006 and we hope the funds will carry over to 2007 and projects implemented post haste.

We appreciate the concern of the Kokoda Track landowners in your news article.  Many landowners thank KTA for the assistance they receive.  Some are unhappy because they perceive politics has excluded them from benefits.  We all agree that KTA is not the ideal body in its present form to serve the purpose for which it was established. 

A KTA submission is currently before the Ministers for Culture & Tourism, Inter-Government Relations, Finance & Planning & Monitoring and Internal Security, Community Development, Agriculture & Livestock and an information copy to the Prime Minister seeking ex-gratia funding for the Authority and plans for the future.

The time is overdue for the PNG Government, with possible assistance from the Australian Government, to give serious consideration to a development plan for the expanded Kokoda Track area and the establishment of an appropriate structure to oversight developments.  Serious discussions are currently taking place, both in Port Moresby and Australia for such to be achieved, which will need much serious discussion with all stakeholders.  Funds permitting, an awareness patrol of the Kokoda Track communities in January/February will bring communities up to date on past and future developments.  Serious consideration must be given by all stakeholders to develop the best model for the Kokoda Track and other similar tourist attractions.

Any closure of Kokoda Track will create unemployment for hundreds of people in communities along the track together with seriously affecting support industries and businesses in Port Moresby and would have a disastrous effect on tourism development in Papua New Guinea.  We trust that Kokoda Track landowners and politically motivated people will think very carefully before considering any possible closure of the Kokoda Track in 2007.

Sincerely,

Warren R Bartlett

Executive Officer,

Kokoda Track Authority

P O Box 545, Boroko

Ph: (675) 323 6165  Fx:  (675) 323 6020

E.mail:  kokodatrackauthority@global.net.pg

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