At least three people have been killed and several injured in a head-on bus crash in Vanuatu’s capital of Port Vila, a local newspaper reports.

The incident happened when a bus carrying locals rammed into a tourist bus with Australians returning from a trip to the Ekasup Cultural Village, the Vanuatu Daily Post said.

All three casualties are locals and most of those wounded are Australian nationals.

Reports say at least ten Australians have “significant injuries” with a number of them being airlifted to hospital with head injuries, open wounds and long-bone fractures.

P&O Cruises Australia, a cruise line that brought Australians to the island, says it is working with the families of those injured.

“Our thoughts are with our guests and families at this time and also with members of the Ni Van community who were injured,” the company said in a statement.

It has also cited a statement from Vanuatu’s government where it vowed to toughen road rules to ensure safety of tourists.

Tourism is a key industry in the South Pacific island nation.

– with other agencies