More stereotyping than racist, but I won't argue that in general people would view it as a racist remark. It's sort of grown in its meaning to be synonymous with stereotyping (when dealing with race).
I think houbanaut has the right idea though. I really don't see how the guy's depiction of the natives is a racist caricature any more than drawing narrow eyes on a Chinese person would be. Is it just large lips/wide nose that's setting people off?
I just think it's a strange idea that drawing people with anything but white facial features can be considered racist. I suppose it's just a side effect of blackface and the extremely exaggerated caricatures like Whitewash that we have perhaps become overly sensitive to depictions of other races.