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Financing Tourism Concessions Sue Snyman


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This presentation by Sue Snyman was delivered at the 'Concessioning tourism opportunities in conservation areas and maximising rural development' workshop, held in Maputo between 19-22 March 2012 (Day 2, Session 5, Financing tourism concessions)

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Financing Tourism Concessions Sue Snyman

  1. 1. 2012/04/04 Financing for the private sector in tourism History and Background concessions in southern Africa Wilderness has always considered itself first and foremost as a With an ecotourism arm. conservation companySue Workshop on TourismConcessions in Southern AfricaMaputo, Mozambique, 19-22 March 2012 i.e. we aim to: • conserve the wild places of Africa • by enabling people to visit them • and earn a return for the business and its employees at the same time Our Journeys Change Lives Our Journeys Change Lives But today we are in the business of “building sustainable conservation economies”, achieved through the employment of a responsible tourism model. We began by creating “journeys and experiences for discerning globally caring travellers”… Our Journeys Change Lives Our Journeys Change Lives Wilderness Safaris Camps Brand Overview Our Journeys Change Lives Our Journeys Change Lives 1
  2. 2. 2012/04/04 Wilderness Safaris Concession Relationships• Botswana Business Planning – Okavango Community Trust (OCT) – Khwai Community Development Trust – – National Parks Private owners with management contracts • Specific conservation areas – biomes & endemism• Congo – Private partner – management contract • Tourist routes/circuits• Kenya – Private partner – management contract • Accessibility• Malawi – National Parks • Communication – Relationships with community and NGO partner• Namibia • Supplies – Joint ventures (Damaraland Camp & Doro Nawas Camp) – Palmwag – payments to the Big 3 Conservancies • Viable business model – Skeleton Coast Camp – National Park & voluntary community levies paid to 4 conservancies – – National Parks Privately-owned land • Partnership opportunities• Seychelles – Private owner – management contract• South Africa – Tripartite agreement - WS; Government & Makuleke community – Joint Venture – Mpukane community & WS• Zambia – National Parks• Zimbabwe – National Parks – relationships with communities Our Journeys Change Lives Our Journeys Change Lives African Biomes African Biomes “Of the 27 853km2, only 2.0354 km2 is African Centres of Endemism covered by infrastructure (less than 1% of total area)” Our Journeys Change Lives Our Journeys Change Lives Business Planning Different options for capital investment • Specific conservation areas – endemism • Third party funders • Tourist routes/circuits  Industrial Development Corporation (IDC) • Accessibility  Stanbic  FNB • Communication • Supplies • Private partners  Chitabe & Abu Camp, Botswana • Viable business model  North Island, Seychelles • Partnership opportunities  Odzala Camps, Republic of Congo • Joint ventures  Damaraland Camp, Namibia  Rocktail Beach Camp, South Africa • Own sources/equity • Sale of non-core assets • Cost reduction and productivity improvement Our Journeys Change Lives Our Journeys Change Lives 2
  3. 3. 2012/04/04 Case Study: Damaraland Camp • Joint venture from Snyman, forthcoming Our Journeys Change Lives Our Journeys Change Lives Options for revenue generation Lessons learned • Bednights • No tourism circuit – no tourists • Curios • Assess market demand and WTP before investment • Road and air transfers • Short seasons hard to break-even (Zambia) • Third party bednights (travel shop) • Political instability causes concerns in the market • Sale of capital assets • Health risks cause concern • Management fees • Product knowledge/awareness is key and needs to be • Marketing fees on-going • Partnerships need to be based on understanding of all aspects of the business • Expectations needs to be managed – continuously • Open, honest dialogue and communication essential Our Journeys Change Lives Our Journeys Change Lives What are the challenges: THANK YOU• Tourism market fluctuations;• Tourists’ changing desires and needs;• Exchange rate fluctuations;• Regional political/social/health issues;• Managing expectations of all stakeholders;• Costs of alternative energy;• Costs of operation (remoteness);• Training costs & retaining staff Our Journeys Change Lives Our Journeys Change Lives 3