The Legacy of Lae International Hotel: A Vision of Excellence and Determination

In the heart of Lae, a city known for its industrial strength and historical significance, stands the iconic Lae International Hotel—an enduring testament to the vision and resilience of Sir Bob Sinclair. What began as a historic property owned by Qantas in the 1950s has, through determination and unwavering commitment, transformed into a premier establishment that embodies world-class hospitality in Papua New Guinea.

 

A Vision Takes Flight

 

Sir Bob Sinclair’s journey began in 1978, when he, along with his partners Graeme Dunnage, Graham Francis, John Haugie, and Robin Kumaina, took a bold step in acquiring the property from Air Niugini. At the time, Papua New Guinea was still finding its footing after independence, and opportunities to invest in such ventures were rare and fraught with obstacles.

 

Despite their passion, the consortium faced significant roadblocks. The Morobe Provincial Government, under Premier Utula Samana, refused to engage in the project, leaving the group to fund the venture independently. Corporate giants like Steamships sought to acquire the hotel, yet Sir Bob remained steadfast in his vision. He was determined that Lae International Hotel would not just be another commercial property but a symbol of excellence for the people of Papua New Guinea.

An aerial view of Lae International Hotel

Click to watch Sir Bob Sinclair tells the story of Lae International Hotel in this video interview:

                        

 

Recalling a critical moment, Sir Bob shared: “We went to the provincial government to ask if they were interested in taking shares in the hotel. Unfortunately, at the time, Utula Samana wouldn’t see us. He kept sitting in his office while we waited outside. John Haugie and Robin Kumaina got upset because we were left waiting for hours. Eventually, Samana stormed out of his office yelling, ‘Get out of my office!’” This unexpected resistance led to the partners increasing their own stakes in the hotel, ensuring it remained independent.

 

Overcoming Challenges, Building a Legacy

 

With resilience and business acumen, Sir Bob and his partners nurtured the hotel, ensuring that it would not only meet international standards but also serve as a source of employment and professional growth for young Papua New Guineans. From its modest beginnings as the TAA Lodge, the hotel grew into a world-class facility, offering top-tier hospitality and amenities that rival those of international luxury establishments.

 

One of the greatest challenges came from corporate competitors who sought to acquire the hotel. Sir Bob vividly recalls: “Sir Danny Leahy and Sir Mike Bromley from Steamships always wanted to buy the Lae International Hotel. But I told them, ‘If you got the Lae International Hotel, you’d stuff it up!’ I told their chairman, ‘You guys don’t maintain your hotels, you don’t put the money back in. If you got the Lae International, you’d ruin it.’” His unwavering commitment ensured that the hotel remained independent and continuously reinvested in quality and service.

 

One of Sir Bob’s most cherished achievements is the employment and mentorship of young Papua New Guineans. “Some of the staff are only 19, 20, or 21 years old, and they’re learning how to serve and interact with international guests. It broadens their view of life, gives them confidence, and makes them feel they have a future.” Many of the hotel’s employees have grown in their careers, taking the skills learned at Lae International Hotel to greater opportunities.

 

An Unwavering Commitment to Excellence

 

Over the years, Lae International Hotel has undergone a remarkable K30 million renovation, ensuring that it continues to set the standard for hospitality in Papua New Guinea. Sir Bob’s meticulous attention to detail is evident in every aspect of the hotel—from the beautifully landscaped gardens to the locally crafted furniture that adds a unique touch of Papua New Guinean heritage to the interiors.

 

“This is the hotel I built,” Sir Bob proudly states. “Even the Prime Minister and the Governor have given me their best wishes for the hotel, recognising it as the leading international hotel in Lae.” His dedication to maintaining world-class standards has set the hotel apart from others in the country.

 

Beyond aesthetics, the hotel stands as a beacon of quality service, with staff trained to offer an exceptional experience to visitors from around the world. International guests, accustomed to the finest accommodations globally, step into Lae International Hotel and are consistently amazed at the level of comfort and hospitality it offers. “I’ve had guests like Ray Warren, the famous rugby league commentator, come to Lae. They drive on terrible roads from the airport and wonder what they’ve gotten themselves into. But then they arrive at the hotel, step inside, and stand there amazed. They can’t believe that such a building exists in Lae.”

 

A Lasting Impact

 

At 81 years old, Sir Bob looks back on his journey with immense pride. His determination to build an establishment that represents excellence, fosters economic growth, and uplifts the people of Papua New Guinea has paid off. His leadership has not only shaped Lae International Hotel but has also inspired countless aspiring entrepreneurs across the nation.

 

His story is one of courage, resilience, and an unshakable belief in the potential of Papua New Guinea. It is proof that with passion and perseverance, even the most formidable challenges can be overcome.

 

Lae International Hotel is more than just a hotel—it is a legacy. It is a symbol of what can be achieved when visionaries refuse to compromise on their dreams. And as it continues to flourish, it remains a shining beacon of inspiration for future generations of Papua New Guinean entrepreneurs.

Sir Bob Sinclair: The Next 50 Years of Papua New Guinea Must Be Ours

For more than half a century, Sir Bob Sinclair has been a towering figure in Papua New Guinea’s business and economic landscape. Arriving in Lae in 1964, he has witnessed the country’s transition from a colonial territory to an independent nation and has played an active role in shaping its business environment. At 81 years old, his voice remains as powerful as ever—calling on Papua New Guinea to take ownership of its vast natural resources and steer itself towards a more prosperous and self-sufficient future.

In an exclusive interview, Sir Bob issues a passionate plea for economic transformation, warning that the past 50 years of mismanagement and undervaluation of forestry, fisheries, and other critical resources have kept Papua New Guinea from reaching its true potential. He argues that PNG has been selling its resources for "peanuts" since independence in 1975, leaving the country struggling while foreign investors reap the bulk of the benefits.

However, Sir Bob does not dwell on the past with regret. Instead, he offers a bold vision for the next 50 years—one where downstream processing, sustainable management, and fairer investment partnerships put Papua New Guinea on a path toward real economic independence.

Sir Bob Sinclair

                                    Click to watch the video interview with Sir Bob Sinclair

A Nation at a Crossroads

Reflecting on his recent discussion with Prime Minister James Marape, Sir Bob acknowledges that there is a shared understanding at the highest levels of government about the need for economic reform.

“Having talked to the Prime Minister just right now and listening to what he thinks about our future and our vision, the two of us are on the same lines,” he says. “We are thinking about the economy and the future for our people, our children, for the next 50 years.”

Sir Bob warns that if PNG continues to allow its resources to be exploited cheaply, the nation will "sink" rather than rise. But he is also confident that with the right policies, the country can turn the page on decades of poor resource management and economic disparity.

“We’ve had 50 years of growing up as a nation. Now, it’s time to stand on our own two feet, to say what we want for ourselves, and to demand fairness from those who come into our country.”

His primary concern lies in how PNG’s resources are being used and valued. He argues that other nations have successfully transitioned from raw resource exports to high-value processing industries, and PNG must follow suit.

Lessons from Indonesia: The Timber Industry Example

One of the most striking examples Sir Bob offers is Indonesia, a country that has turned its forestry sector into an economic powerhouse by focusing on downstream processing rather than raw log exports.

“Indonesia stopped exporting raw logs 20 years ago, and today, they are the world leader in plywood,” he says. “They export billions of dollars worth of plywood for housing, furniture, and other products. They are getting the real value from their timber.”

With a population of more than 275 million people, Indonesia’s economic model is built on maximising resource value. In contrast, PNG—with just 12 million people—has failed to capitalise on its forestry sector in the same way.

Sir Bob sees a massive opportunity in following Indonesia’s lead.

“We should be building plywood factories here in Papua New Guinea, using our own timber, and getting on the global market with our own finished products,” he says.

Beyond timber, he believes the same principle should apply to all PNG’s industries. Instead of exporting raw materials, the country should focus on processing and manufacturing to create jobs, increase revenues, and strengthen the economy.

Fixing the Fishing Industry: Millions Lost Every Year

Sir Bob also zeroes in on the fishing industry, another area where PNG has been losing out due to poor regulations and unfair business practices.

PNG issues around 250 fishing licenses, allowing foreign companies to harvest massive amounts of fish from PNG waters. However, many of these fishing vessels never dock in PNG ports. Instead, they are refueled and resupplied at sea by large mother ships, meaning PNG loses millions in excise revenue and economic activity.

“That’s millions of kina we could be taking advantage of, but we’ve been letting it slip through our fingers for the past 50 years,” Sir Bob says.

His solution? Enforce strict regulations requiring all licensed fishing boats to dock in PNG ports, refuel locally, and purchase supplies within the country.

“This is how you take control of your industry,” he explains. “We should be processing more of our own fish, creating jobs, and making sure that the profits stay in PNG—not just benefiting foreign companies.”

No More Exploitation: A Call for Fair Investment

Sir Bob strongly believes that foreign investment is necessary, but he is adamant that it must be fair.

“Right now, it’s a 90-10 deal,” he says. “90% of the profits go out of the country, and only 10% stays here. That has to change.”

He calls for a shift towards equal partnerships, where PNG retains at least 50% of the benefits from resource-based industries.

“We need the right investors, the ones who will treat PNG fairly, not take everything and leave us with crumbs,” he says.

Beyond economic policies, Sir Bob also stresses the importance of enforcing national laws and ensuring that foreign businesses operate within PNG’s rules—just as they would in their home countries.

“We can’t go to China, Malaysia, or Australia and do what some companies are doing here,” he says. “No way in the world would they let us do that. It’s time we demand the same respect for PNG.”

A Future Built on Strength, Not Dependence

Sir Bob Sinclair’s message is clear and urgent: Papua New Guinea must take control of its resources, enforce its laws, and ensure that investment deals benefit the nation—not just foreign corporations.

The next 50 years must be different.

“I’m all about downstream processing because it can employ thousands and thousands of Papua New Guineans,” he says. “We must protect our resources and extract the maximum benefit from them.”

His call to action is directed at leaders, policymakers, businesses, and the people of PNG.

“This is our country. We’ve had 50 years of lessons—now it’s time to use them. The next 50 years are ours to shape, and we must do it the right way.”

As Papua New Guinea marks its 50th anniversary of independence, the choices made today will determine whether the nation continues on a path of resource dependency or steps into an era of economic empowerment and self-sufficiency.

Sir Bob Sinclair has issued the challenge. The question now is: will Papua New Guinea rise to meet it?