A Pacific Aerospace PAC P-750 XTOL single engine aircraft was chartered to transport store goods and five passengers from Kiunga to Gulgubip. Although Gulgubip is in mountainous terrain and the weather in the area is often poor, the pilot was tasked to fly there without ever having been to Gulgubip before. The terrain to the north north east of Gulgubip rises gradually behind the airstrip. Visual illusions which may affect the pilot’s perception of height and distance can be associated with airstrips situated in terrain of this kind. On arrival at Gulgubip, the pilot orbited and positioned the aircraft for landing. During the final approach he decided to discontinue the approach and go-around. The aircraft impacted terrain approximately 3 km north west of the airstrip and was substantially damaged. The six passengers were unhurt but the pilot sustained serious injuries. The pilot was treated in Gulgubip following the accident, and was airlifted the next day to Tabubil, where he was admitted to hospital.