Hotels

Battle Of The

Pro and Con in Port Moresby

rE “war of the hotels” has been raging in Port Moresby for some time.

It started when the Administration offered for tender the lease of the block of land at the comer of Musgrave and Douglas Streets, at present occupied by the European school; and accepted the tender of Steamships Trading Co. Ltd. It was announced that the latter tender provided for the erection on the block of a hotel at an estimated cost of £12,000, subject to the Commonwealth Govern ment granting the necessary permit.

That stirred up a good deal of oppo sition. It was pointed out that already Port Moresby has one modern hotel, owned by Bums, Philp and Co., and that company has plans actively afoot for the erection of another. It is understood that strong representations were made to Canberra to the effect that the erection of a third hotel would seriously depre ciate the value of the two enterprises already in existence.

Then the Commonwealth Government refused permission under National Security (Financial) Regulations for a permit for Steamships Trading Company Ltd. to erect the new hotel in Port Moresby, as suggested.

This brought opposition from the other side, and it appears that many residents, members of various bodies, signed peti tions to the Commonwealth authority urging reconsideration, on the ground that the town urgently needs further hotel accommodation, owing to growing population, and also because competition was required to control rising costs, due to monopoly of interests.

At the moment, there appears to be a deadlock. The Commonwealth authority will not agree to the erection of a third new hotel in Port Moresby, and Steam ships Trading Company, on its part, declines to purchase the block of land referred to—and thus make valuable revenue available to the Administration —unless it is permitted to erect a hotel.