‘My View’ by Graham Poon – The Cairns Post
Opportunity requires caution too!
Although tourism will always be a critically important part of the Cairns economy, and rightly so, it is recognised that this economy needs to be diversified. The GFC certainly highlighted this point. With tourism down this glorious city went into a tailspin from which we are only now clawing our way out of. Many economic opportunities are waiting for us and engaging overseas markets is an important part of our diversification. I will mention two areas to think about.
The most obvious one is right on our doorstep and it is servicing the needs of PNG. The much publicised LNG project which is now starting up has numbers attached that are mind-boggling. The project cost is around $12Bn, it will double the GDP of PNG and the country’s exports will triple. Cairns is only a bit over an hour’s flying time to Port Moresby and we are the logical supply centre for all kinds of services from our reservoir of tropical expertise. We can provide tropical building design, engineering services in water and waste, health services, environmental management, remote energy solutions and so the list goes on. We also should not forget that PNG is a lot more than the LNG project. For instance, there are numerous mining projects (you can check with the Cairns Chamber’s Resource Task Force for the opportunities available) and PNG is the largest recipient of Australia’s AusAID funding in the world. AusAID assists in such areas as health, education, training, infrastructure, agriculture and the law. Give me a call at TropLinks if you wish to know how to engage with AusAID. It’s a process but it’s a very interesting way to engage with PNG.
The other logical market for Cairns is the island of Guam and its neighbours in Micronesia. Again the figures are very large. There is a projected spend of over $10Bn in the next 5-6 years with the impending military build-up resulting from the relocation of around 8000 US troops and their families from Okinawa. Many of the services mentioned above are applicable to Guam too. Apart from a place to do business, Guam is also a great place to visit. It’s a picturesque island with fun shopping, friendly Chamorro people and easily accessible via a 4 hour direct flight out of Cairns.
Feel like jumping on a plane to do business in these markets? It all sounds great but take the time to do your export planning and research these important questions before you book your airfare:
- Do I have the capability and financial resources to develop business in a particular overseas market? Nothing happens overnight, you have to develop relationships over time.
- Am I confident of getting paid for my goods or services? THE critical question!
- Do I want to do business in a different culture? Cultural norms can be very diverse and though Australia has deep linkages to PNG, one needs great understanding about how business methods work there.
- Am I willing to research an overseas buyer’s needs and adapt my offering to what they want? In Guam, they are used to US standards and don’t even try to talk millimeters, they want feet and inches.
I’m a great advocate of diversification of our economy through overseas engagement and it’s so important for our future in Cairns but always consider the question: Is export right for the bottom-line of my business?
Article written by Graham Poon and published by the Cairns Post, 26 April 2010.
