Report 2

MARKET FEASIBILITY STUDY
FOR PROPOSED
LODGING FACILITY DEVELOPMENT WITHIN MOLOPO GAME RESERVE
NORTH WEST PROVINCE, SOUTH AFRICA
Prepared by
Yaw Johnson Arkaah
July 2009

Research and Planning Unit
North West Parks and Tourism Board
South Africa
www.tourismnorthwest.co.za
Tel.: +27 18 397 1500
Fax: +27 18 397 1660

Market Feasibility Study for Proposed Lodging Facility Development within Molopo Game Reserve
Research and Planning Unit, North West Parks and Tourism Board 1
MARKET FEASIBILITY STUDY
FOR PROPOSED
LODGING FACILITY DEVELOPMENT WITHIN MOLOPO
GAME RESERVE
NORTH WEST PROVINCE, SOUTH AFRICA
Prepared By
Yaw Johnson Arkaah

TABLE OF CONTENTS
General Conditions 4
Positioning Recommendations 5
Executive Summary 6
1 Project Overview 9
1.1 Introduction 9
1.2 Purpose and Scope of Study 9
1.3 Assumptions 10
2 Study Processes and Area Review 11
2.1 Introduction 11
2.2 Study Processes 11
2.3 General Aims and Objectives 11
2.4 Area Review 12
3 Market Demand Assessment 16
3.1 Introduction 16
3.2 Views from Management Staff 16
3.3 Views from Existing Lodging Facility Operators/Managers 18
3.4 Views from Municipal Officers 21
3.5 Views from LED Managers 25
4 Competitive Supply Assessment 27
4.1 Introduction 27
4.2 Madiakgama Game Reserve 27
4.3 Sandhurst Safari Lodge 28
4.4 Mayfair Game Farm 28
4.5 Bray Guest House 28
4.6 Molopo Kalahari Safaris 28
4.7 Warthog Safaris 28
4.8 Tosca Gastehuis 28
4.9 Additions to Supply 29

5 SWOT and Gap and Analyses 30
5.1 Introduction 30
5.2 SWOT Analysis 30
5.3 Gap Analysis 33
6 Study Recommendation 36
6.1 General 36
6.2 Market Positioning 36
6.3 Market Segmentation 37
6.4 Estimated Operating Levels 37
6.5 Pricing 37
6.6 Development of Various Pricing Strategies 38

General Conditions
Every reasonable effort was made to ensure that the data contained in this report are accurate
as of the date of this study; however, factors exist that are outside the control of Research
Team and that may affect the findings noted herein. This report is based on information that
was current as of time of the compilation of this report. Because future events and
circumstances, many of which are not known as of the date of this study, may affect the
recommendations contained therein, no warranty or representation is made by the Research
Team that any of the findings contained in this study will actually be achieved.
This study may not be used for purposes other than that for which it is prepared or for which
prior written consent has first been obtained from the Research and Planning Unit of the North
West Parks and Tourism Board, Mafikeng, South Africa. The report is qualified in its entirety
by, and should be considered in light of these conditions and considerations:
• The Research Team has no interest or bias with respect to the subject matter of this
market feasibility study or the parties involved.
• To the best of our knowledge and belief, the findings of fact contained in this market
feasibility study, upon which the analysis, opinions, and conclusions expressed herein are
based, are true and correct.
• This market feasibility study sets forth all of the limiting conditions, including non-
inclusion of financial analysis and economic projections, that may affect the analysis,
opinions, and conclusions contained therein.
• The opinions, analyses, conclusions were developed, and this market feasibility study
feasibility report has been prepared with caution and care.

Positioning Recommendations
As a result of both market analysis and lodging demand assessment, the Research Team believes
strongly that an upscale extended stay product such as chalets will be feasible to be developed
within the Molopo Game Reserve, and that the number of beds should not exceed 40.
Not only will this facility type capitalize on the successful lodging sub-market in the surrounding
Molopo Game Reserve area, it will also meet the desires of potential overnight guests and local
residents, as well as the quality needs and product desires of visitors and travellers who
chooses the area as their preferred destination. Recommended additional amenities should
include a conference facility that should not accommodate more than 50 guests.

Executive Summary
This summary highlights the key findings of the market study to assess the potential
development of a lodging facility within Molopo Game Reserve. This executive summary
extracts key findings from our research. It is important for the reader to review the report in
its entirety in order to have a complete understanding of the information that was used to
develop these conclusions.
Primary Focus of the Study
The proposed lodging facility, as envisioned, would act as an economic generator and a public
resource to increase the number of commercial rooms in the Molopo Game Reserve area. An
important goal of the facility would be to help attract visitors and travellers to the Reserve in
particular and the Molopo Game Reserve area in general. The data gathering process included:
• Interviews with approximately 3 management officers stationed at the Molopo Game
Reserve;
• Survey of Municipal Leaders from communities surrounding the Molopo Game Reserve;
• Survey of local residents from communities around the Molopo Game Reserve; and
• Survey of competitive and comparable lodging facility managers/operators within the
locale of the proposed lodging facility.
Summary of Study Findings
Based on the research conducted including an assessment of current operations, interviews
with management staff, community members, LED managers, and analysis of comparable facility
operations, the following summarizes key strengths and recommendations regarding the
proposed lodging facility.
• While the lodging market in the Dr. Ruth Mompati Region is generally stable and viable,
the market is highly seasonal, price sensitive and tourist-oriented.
• The growth of commercial lodging demand looks positive, in general, across the Dr.
Ruth Mompati Region and positive in particular, at the Molopo Game Reserve area.
• The commercial lodging market has improved considerably in recent years. This has
contributed to the considerably high levels of room and bed demands across the Dr.
Ruth Mompati Region in general, and the Molopo Game Reserve area in particular.

• The responses to our surveys resulted in a relatively low knowledge about the existence
of the Molopo Game Reserve. This finding suggests that a substantial marketing effort
will be required to education the surrounding communities about the existence of the
Reserve, as well as to create competitive advantages versus other competing lodging
properties within the Molopo Game Reserve area.
• Considering the Dr. Ruth Mompati Region market’s lack of good-quality guestrooms, we
recommend the development of good-quality lodging facility, preferably, chalets with
meeting space for approximately 40 guests.
• The proposed lodging, if approved, should not have too large number of guestrooms.
• The proposed lodging facility should also consider offering self-catering and leisure
services and must have conference and meeting facilities.
• The proposed lodging facility should be able to serve both upper-end leisure travellers
and the majority of small to mid-size groups.
• The proposed lodging facility should be positioned as a premier lodge in order to
capture business from the leisure segment as well as from corporate meetings as well
national and regional association meetings.
• The proposed lodging facility should be positioned at a price point that is commensurate
with the regionally competitive lodging properties.
• The proposed lodging facility should also be positioned at a high-service and high-quality
level, in terms of general accommodation, meeting support, food and beverage, and
recreational offerings in order to compete with the primary competitive lodging
• The recommended addition of conference facilities to the proposed lodging facility
should be designed and equipped in such a way it be utilized by the various demand
sources for meetings, retreats and other training programs and seminars or
conferences.
• The market mix for the proposed lodging facility should be able to cater for demands
from the various sources, including demand of numerous types primarily related to
leisure travel, conferees, and social demand (weddings, family reunions).
• By pricing the facility on a daily-per-person basis, with a package price that includes all
other services, the proposed lodging facility should be in a position to maximize its
revenues per guest day.

• It is critical that a regional tourism strategy be developed and implemented to offer
direction and coordination of resources from different partners involved in tourism and
economic development in the Dr. Ruth Mompati Region to help pull visitors and
travellers to patronize in the region’s tourism industry, especially, in the lodging sub-
sector of the region’s tourism industry.
• The need to develop a regional tourism product strategy to help showcase the regions’
tourism product, including the lodging sector of which the proposed lodging facility will
be part.
• The Dr. Ruth Mompati Region needs to develop an infrastructure development strategy
that will include:
- Significantly upgrading of the roads to attract visitors and travellers to the region
to patronize in the region’s tourism product offerings including the lodging sub-
sector of which the proposed lodging facility will be part. The tourism market
generally looks for attractively designed facilities which fit with the natural
settings and include such amenities as lodging for guests.
- Upgrading existing tourism facilities to marketplace standards in order to be
considered “market ready.” This will ensure that visitors and travellers who
patronize in the region stay longer, making full use of the proposed lodging
facility.
- Developing a strategic hub model where key anchor attractions are developed, for
instance upgrading the Molopo Game Reserve with such products as golf-
courses outside of the Reserve. The anchor attractions could act as hubs and
attract supporting and spin-off tourism products and services, as well as
maximizing the utilization of the lodging properties including the proposed
lodging facility within the Reserve.
• A marketing strategy should be develop and include the following components:
- Partnering with communities to develop and implement a regional tourism
marketing plan with special attention to marketing of tourism products including
accommodation, natural and heritage products.
- Developing regional marketing strategies that aggressively showcase the Dr. Ruth
Mompati Region as a preferred destination for visitors and travellers with special
emphasis on accommodation and hunting subsector of the regional tourism
industry.

1 PROJECT OVERVIEW
1.1 Introduction
Conducting a feasibility study for a new venture, such as accommodation facility, requires a
thorough analysis of market conditions. Simply put it, market conditions play a significant role in
the profitability of an accommodation facility, notwithstanding the fact that the local lodging
market influences how many room can be sold and how much can be charged.
This report is intended to assess the demand for
and type of lodging facilities within the environs of
the Molopo Game Reserve. It specifically provides
an overview of the general state and potential for
the development and the type of a lodging facility
within the Molopo Game Reserve.
It is also intended to supplement the business plan
for the development of such a facility within the
Molopo Game Reserve.
The Research and Planning Unit of the North West Parks and Tourism Board collected and
analyzed both primary and secondary data various sources including the North West Parks and
Tourism Board.
1.2 Purpose and Scope of the Study
The purpose of this study is to determine the potential market demand for the proposed
development of a full-service lodging facility to be located within Molopo Game Reserve. The
scope of our study may be summarized as follows:
• Potential site analysis;
• Analysis of market trends;
• Analysis of supply of and demand for lodging
rooms in the competitive market within the
area;
• Development of estimates of average daily
room rates; and
• Development of estimates of occupancy levels that might be obtained at the proposed
lodging facility.

1.3 Assumptions
In reaching our conclusions and recommendations, a number of assumptions were made based
on information gathered during the research and analysis process for this market study. Among
these key assumptions are the following:
• The number of tourism products offered by the Molopo Game Reserve, in particular,
will increase. It is further assumed that this expansion of the number of tourist
attractions within the Dr. Ruth Mompati Region, in general, will increase in no so
distance future;
• There would be an expanded budget and expectations of a sophisticated sales and
marketing campaign nationally and provincially, both for regional tourism in general and
for the proposed lodging facility in particular;
• That only skilled and experienced personnel would be employed to management or
operate the proposed lodging facility or that proposed lodging facility would be
operated by a management company which has a full understanding of the hotel
industry; and
• At the appropriate time, the proposed lodging facility would be designed, built,
positioned and operated as an upscale lodging property with conference facilities that
beat the services offered by competing lodging properties within the Reserve area.

2 STUDY PROCESSES AND AREA REVIEW
2.1 Introduction
Our analysis involved primary research, which included interviews with community members,
competitive lodging facilities (establishments), representatives of Molopo Game Reserve
management, and municipal officers. Based on this analysis, conclusions and recommendations
were developed regarding the extent and nature of the lodging market within the Molopo
Game Reserve area and the historical trends in room occupancy. Trends in demand for lodging
facility were assessed from various indicators and compared with information regarding the
levels of supply that were deemed to be competitive with the proposed project.
The assessment of viability or feasibility of the
proposed lodging facility were based on the results
of interviews, consideration of the current state of
demand for lodging facilities in the area, and the
results of similar facilities as reported in statistical
information compiled by the Research Team.
2.2 Study Processes
A proposed lodging facility, as envisioned, would act as an economic generator and a public
resource for the local community, hosting conferences, meetings and other events of both a
local and non-local nature. In addition, the facility will have the capability to attract events to
the area that presently cannot be accommodated by existing competing lodging properties
within the Molopo Game Reserve area.
The study process consisted of detailed research and analysis, including a comprehensive set of
market-specific information derived from extensive stakeholder interview, local community
interviews, similar competitive lodging operator interviews and management staff.
2.3 General Aims and Objectives
The overall purpose of this study is to evaluate the feasibility of a potential new lodging facility
within the Molopo Game Reserve. Oftentimes, conclusions as to project feasibility or viability
can be assessed in various ways, including:
• Market feasibility, which seeks to evaluate the facility’s ability to attract and support levels
of activity and facility usage that are consistent with or in excess of industry standards.

• Financial feasibility, which is the ability of the facility to break-even or generate an
operating profit focusing only on direct facility-related operating revenues and expenses.
• Economic spending, which is the facility’s ability to generate new spending activity in the
local community. This amounts to the direct and indirect spending that is attributable to
clients, which in this context, are visitors and guests.
• Tax generation, which assesses the facility’s ability to generate new tax revenue for the
local area, is generated from direct, indirect and induced spending that is attributable to
events and activities that would not otherwise occur in the local area.
• Return on investment, which is the facility’s ability to generate new revenues in excess of
quantifiable facility-related costs.
The research, data, information and analysis presented in this report is intended to shed light
on the feasibility of a potential lodging facility within the Molopo Game Reserve. The report has
particularly paid attention to the following:
• Local Market Conditions and Demand Analysis, which provides information regarding the
accommodation industry resources of the Molopo Game Reserve area. The analysis
provides an indication of lodging facilities’ ability to successfully provide services to
visitors and travellers to the Molopo Game Reserve area.
• Analysis of Competitive and Comparable Facilities and Communities, which provides a
comparison of various physical characteristics and resources of competitive lodging
facilities spread across the Molopo Game Reserve area.
2.4 Area Review
The proposed lodging facility would be located within the Molopo Game Reserve in the North
West Province, South Africa. The proposed subject lodging property is expected to compete
with other lodging facilities spread around the Molopo Game Reserve. Factors that may
determine the economic feasibility and viability of this proposed lodging facility within the
Molopo Game Reserve include location, price point, product quality, length of stay, room type,
among other factors.
The Molopo Game Reserve, which was established in 1987, is located on approximately 24,000
hectare of land. It is bordered in the east by Botswana, 250 km north of Vryburg, and 7 km
west of the village of Vostershoop. The climate is generally mild-to-hot but winter nights can be
extremely cold. The maps below provide an indication of the location of the proposed facility.

For the purpose of this study, the Research Team
gathered and analyzed relevant market data to
determine whether the overall economic environment
in the Molopo Game Reserve area is suitable or feasible
for the development of additional lodging facility.
The reserve has flourishing herds of eland, blue
wildebeest, gemsbok, red hartebeest, kudu, zebra,
impala, waterbuck, springbok, as well as numerous
steenbok, duiker and warthog.
Other game include cheetah, brown hyena, caracal, black-backed jackal, African wildcat, honey
badger and the small spotted genet are also resident in the reserve. The reserve also boasts of
over 120 species of birds, including breeding pairs of bateleur, tawny and martial eagles. White-
backed vultures and lappet faced vultures are also common.

3 MARKET DEMAND ASSESSMENT
3.1 Introduction
This part of the market analysis report collected and analyzed primary market research
information from potential stakeholders in the lodging industry within the environs of the
Molopo Game Reserve. These included management staff at the Reserve, similar lodging facility
operators and community members. The intent of this analysis was to obtain direct feedback
from potential sources of demand concerning the potential attractiveness of the proposed
lodging facility.
It represents one of the primary elements of the market
study in terms of impact on overall conclusions for this
assessment report.
A combination of direct one-on-one interviews and surveys
of industry stakeholders represented the primary source of
information upon which the conclusions of the assessment
report were partly based.
3.2 Views from Management Staff
The Research Team surveyed local area lodging properties to understand demand generators,
visitor characteristics, and operating performance around the locality. Lodging properties
around the subject site were considered in the market analysis. This measure is consistent with
visitor preferences as it has been noted that within the Dr. Ruth Mompati Region, guests prefer
to stay in not-so-large lodging facilities.
3.2.1 Guest Profile
The following findings are anecdotal responses from three management staff members at the
Molopo Game Reserve.
• Participants indicated that both international and local guests are received at the game
reserve. International guests included those from the USA, Germany, Botswana and
Namibia.
• Domestic guests were mainly from four provinces - North West, Gauteng, Northern
Cape and Limpopo.
• When participating management were asked about the pattern of travel by visitors they
indicated that most of the visitors make their trips with their partners or spouses, with
their friends or relatives, while others also travel together as members of organized
groups.

• Participating management indicated that April-June is the period within which they
receive volumes of visitors and that the average length of visitor stay was 2-4 nights.
• Participating management indicated that most of the guests they receive preferred to
sleep in lodges and camps/tents and that the purpose of their visits to the area was
hunting and game viewing.
The demand that exist for the proposed accommodation within the Molopo Game Reserve can
be determined through the demand that guests of the area have in terms of overnight
accommodation as well as the demand that exist by the local people to utilize the proposed
accommodation facility.
• Participating management indicated that between 20 and 40 guests were received at the
Reserve in a single month and that, on average, about 340 guests were received at the
Reserve in 2006, 483 in 2007 and 627 in 2008 period (see Figure 1).
• As observed, the upward trend in the number of guests received over this period gives
a clear indication on the level of guest patronization in the park. This is sign of
encouragement.
340
483
627
0
100
200
300
400
500
600
700
`2006 `2007 `2008
Year
AverageNumberofGuestsReceived
Figure 1: Average Number of Guests Received at the Reserve, 2006-2008
• Of the three participating management in the market study, 2 indicated that sales at the
Reserve has been increasing or stayed the same since the Reserve came into operation
while the remaining 1 indicated sales have gone down.

• Participants also indicated that the Reserve is principally kept in operation by hunting
activities engaged in by the guests they receive.
3.2.2 Demand Assessment and Lodging Facility Preference
The viability of the development of a new accommodation facility within the Molopo Game
Reserve and its subsequent survival depends primarily on the level of demand of related
tourism products offered by the Reserve.
• When participating management staff where asked to rate the level of tourism product
demand at the Reserve, two of the three rated it ‘high’ while the remaining one
participant gave it an ‘average’ demand rating.
When further asked whether there is the need for
the development of a new accommodation facility
within the premises of the Reserve, all three
participating management staff indicated that chalets
would be preferable due to the location of the
Reserve.
Participants’ preferences for the development of
chalets over other type of accommodation are:
• That, chalets will provide attractive type of accommodation given the location of the
Reserve;
• That, the availability of chalets would automatically attract more tourists to the Reserve
with the assurance that there is always accommodation available for them;
• That, chalets will better suit the lifestyle of visitors to the Reserve; and
• All three participating management staff indicated that marketing of the Reserve has not
received any attention and that an aggressive marketing strategy will have to be adopted
once the new accommodation facility becomes operational.
3.3 Views from Existing Lodging Facility Owners/Operators
In an attempt to further ascertain the feasibility of the proposed lodging facility within the
premises of Molopo Game Reserve, a sample of eight comparable lodging facilities were
interviewed and the responses assessed to ascertain the viability of the proposed facility.

3.3.1 Guest Profile
• All eight participating establishments interviewed were B&Bs and guesthouses.
• Participating established lodging facility operators described their visitors as
predominantly domestic and that main source markets were Gauteng, North West, and
the Northern Cape Provinces.
• Most of the guests who visit the participating were lone guests, group visitors and family
guests.
• The main activities engaged by guests received at the participating logging facilities
include hunting and game viewing.
• The bulk of the guests who visit the participating lodging facilities are received the April-
June period and that most of the guests stay for 2-4 days.
3.3.2 Area Lodging Market Performance
Participating lodging facilities were asked a number of
questions regarding the performance of their businesses.
• Most of the participating lodging facilities indicated
that their businesses have either increased of
virtually stayed the same in terms of growth.
• Guest numbers received by participating lodging
facilities ranged between 20 and 150 per month or
100 to 1500 guests per year.
• Room rates charged by participating lodging facilities ranged between R150 and R320
per night for non-packaged guests and between R250 and R450 per night for packaged
guests.
Participating lodging facilities were further asked to evaluate the tourism activities around the
Molopo Area. Below is a summary of the responses provided by the participants:
• Two of the participants indicated tourism activity around the Molopo area is very low,
because the only activity that basically takes place is hunting.
• Four of the participants said tourism activity is growing or that it is good.
• The remaining two were unsure about the level of tourism activity around the area.

3.3.3 Lodge Demand Assessment
A number of questions were further asked
regarding the level of demand for
accommodation around the Molopo area.
• Four of the eight participating lodges
indicated that demand for accommodation
around the area is high while one each
said demand was average and low.
• As to whether there is the need for the
development of a new hotel around the
area, all participating lodges responded in
the negative.
The reasons provided for not supporting the development of a new hotel are summarized
below:
- That, most guests who visit the Molopo area do not prefer hotels, but rather
lodges and guesthouses in the wild.
- That, there is a demand for lodging, but not for a big establishment like
hotels;
- That, too many guesthouses and B&Bs are spread in and around Vryburg, but
there is the need for chalets around the Molopo area; and
- That, even though a hotel give a personal comfort, visitors would want a
home from home experience, which could be obtained by staying in a lodge
in the wild.
• In general, participating lodges indicated they were dissatisfied/very dissatisfied with the
marketing of tourism around the Molopo area.
• Participants gave a number of obstacles facing the performance of tourism businesses
around the Molopo area, including:
- The extremely rural location of the area;
- The distance and the state of the roads around the Molopo area;
- The level and style of marketing - lack of billboards, and infrastructure
including supermarkets.
• Other comments provided by participating lodges include:

- There needs to be more advertising for Molopo area;
- Government office should spread their bookings equally, and not utilize only
one guesthouse or lodge; and
- Grading Council has not graded some establishments even though they might
have paid.
3.4 Views from Municipal Officers
Focus group interview was conducted in communities around the Molopo Game Reserve. Their
purpose was to gain a better understanding of community participation in the lodging business,
levels of satisfaction with accommodation services, as well as their opinions about the development
of the proposed lodging facility within the Molopo Game Reserve.
The focus group interview was highly productive albeit relatively high participation. There were 102
participants in total, from the surrounding communities.
3.4.1 Participant Profile
61
41
12
43
46
69
23
10
31
44
26 26 25
29
17
0
10
20
30
40
50
60
70
80
Male
Female
16-21years
22-34years
35+years
Employed
Unemployed
Retired/Student
Nomatric
Matric
Post-matric
Less
thanR1000
R1000-R3499
R3500-R4999
R5000+
Gender Age Employment
Status
Highest
Education Level
Household Income
NumberofParticipants
Figure 2: Profile of Participating Community Members

• Of the 102 participating community members, 59.8 percent (61) were males while the
remaining 40.2 percent (41) were females.
• The majority (43 or 45.5 percent) of the participants were aged 35 years or more
followed by 43 (42.6 percent) who were 22-25 years old. The remaining 12 were 16-21
years old.
• 69 (67.7 percent) of the participants were part-time, full-time or self-employed while 23
(22.6 percent) were unemployed. The remaining 10 were retired persons and students.
3.4.2 Knowledge about Molopo Game Reserve
Participating community members were further asked a number
of questions regarding their knowledge on Molopo Game
Reserve as locale for the development of the proposed lodging
facility as well as their level of patronization in the Reserve.
• 31 (30.4 percent) of the 102 participating community
members, when asked whether they knew about the
Reserve, indicated they have never heard of the Reserve nor
where it is located.
• When further asked whether they had visited the Reserve,
only 29 (28.4 percent) indicated they had ever visited the
Reserve while the remaining 75 (71.6 percent) said they had
never visited the Reserve before.
3.4.3 Details about Visits to Molopo Game Reserve
• Of the 29 who indicated they had visited the Reserve before, most (11 or 37.9 percent)
said they had visited the Reserve only once while 10 (34.5 percent) said they had visited
the Reserve at least five times (Figure 3).
• Of the 29 who indicated they had visited the Reserve before, 14 (48.3 percent) said they
visited the Reserve during ‘other’ times other than Easter, festive season (say
Christmas) or a school holiday (Figure 3).
• Most (12 or 42.9 percent) of the participants who indicated they had visited the Reserve
before said they were there for a holiday or camping while 8 indicated they were there
for ‘other’ purposes (Figure 3).

11
8
10
5 5 5
14
4
12
4
8
19
6
2
0
2
4
6
8
10
12
14
16
18
20
Once
2-4times
5+times
Easter
Festiveseason
Schoolholiday
Other
Research/School
trip
Holiday
break/Camping
Business/Team
building
Other
Yes
Somewhat
satisfied
No
Number of vists Time visited Purpose of vist Satisfied with visit?
Figure 3: Profile of Participants who Have Once Visited the Molopo Game Reserve
• As to whether those who had once visited the Reserve were satisfied, 19 (70.4 percent)
indicated they were satisfied with the experience they had during their visit while 2 (7.4
percent) indicated they were not necessarily impressed by their experience (Figure 3).
3.4.4 Levels of Satisfaction with Experience
• 9 of the 26 participants who indicated they had once visited the Reserve said they were
satisfied with the accommodation experience while 4 said they were not satisfied. Seven
were not sure of the quality of accommodation (Figure 4).
• 15 of the 23 participants who indicated they had once visited the Reserve said they
were satisfied with the game drive or game viewing experience while 1 said he/she was
not particularly satisfied. Two were not sure of the quality of game drive or game
viewing (Figure 4).
were satisfied with the signage while 3 said they were not satisfied. Six were somewhat
satisfied (Figure 4).
• 8 of the 22 participants who indicated they had once visited the Reserve said they were
satisfied with the facilities available at the Reserve while 3 said they were not satisfied.
Four were not sure (Figure 4).

9
6
4
7
15
5
1
2
12
6
3
1
8
7
3
4
10
7
3 3
0
2
4
6
8
10
12
14
16 Satisfied
Somewhat
satisfied
Not
satisfied
Notsure
Satisfied
Somewhat
satisfied
Not
satisfied
Notsure
Satisfied
Somewhat
satisfied
Not
satisfied
Notsure
Satisfied
Somewhat
satisfied
Not
satisfied
Notsure
Satisfied
Somewhat
satisfied
Not
satisfied
Notsure
Accommodation
satisfaction rating
Game drive
satisfaction rating
Rating of signage Rating of facilities Rating of information
availability
Figure 4: Satisfaction Levels of Experience
were satisfied with the information available on the Molopo Game Reserve while 3 said
they were not particularly satisfied. Three were not sure (Figure 4).
3.4.5 Lodging Demand Levels and Need for a New Lodging Facility
• When participants were asked about their view about accommodation demands around
the Molopo Game Reserve and surrounding communities, most (35 or 35.7 percent) of
the 98 who responded said to be ‘average’ while 32 (32.7 percent) said it was ‘high’
(Figure 5).
• On whether there is the need for a new lodging facility within the area, 61 (63.5
percent) indicated that chalets will be more appropriate, while 28 (29.2 percent) said a
hotel seem to be appropriate (Figure 5).

25
6
35
32
61
28
7
0
10
20
30
40
50
60
70
Not sure Low demand Average
demand
High
demand
Yes, chalets
seem OK
Yes, a hotel
seem OK
No, there is
no need
Lodging demand levels Need for new lodge?
Numberofparticipants
Figure 5: Lodging Demand Levels and Need for New Lodging Facility
3.5 Views from LED Managers
The views of LED Managers from the Dr. Ruth Mompati Region and Molopo Municipality are
summarized below.
3.5.1 LED Managers from Dr. Ruth Mompati Region
• There is a need for new lodging facilities, more preferably, chalets. In recent years, the
region has been experiencing a high demand of accommodation, especially in the
Molopo Game Reserve area.
• A hotel would not be suitable for an ecotourism due to the geographic nature of
building around the Molopo Game Reserve area.
• Chalets, if developed and become operational should cost not less than R450 a night for
a 2-sleeper chalet.
• The proposed lodging facility, preferably chalets, should be able to accommodate a
minimum of 40 people initially, but capacity should increase over time.
• The lodging facility should have conference facilities that could accommodate up to 100
people. The region in general and the Molopo Game Reserve area, in particular, lacks
getaway kind of a conference facility that can accommodate a lot of people.

• For the proposed lodging facility to be profitable, and aggressive marketing strategy
would have to be adopted, and must be done locally, regionally, provincially and
nationally. Furthermore, events or activities should also be organized throughout the
year, and not only during hunting season, to attract visitors and travellers to the
Reserve to make use of the proposed lodging facility.
3.5.2 LED Managers from Molopo Municipality
• There is a very high demand for accommodation within the
Molopo Game Reserve. There have always been both
domestic and international visitors who call to inquire about
accommodation within the Reserve where they would sleep
when they come to hunt, but many do not show up due to
inadequate accommodation.
• Besides hunting, the Reserve stands the chance of benefitting immensely from other
visitors and travellers who come for game-viewing, which may directly or indirectly
require them to spend some nights at the Reserve if they can be assured of
accommodation within the Reserve. But such visitors and travellers would never come
due to lack of accommodation at the Reserve.
• A hotel would not be suitable for the wild environment, chalets conforms to the
environment surrounding the Reserve.
• The proposed lodging facility should be able to accommodate at least 40 guests at one
time.
• A conference facility attached to the proposed lodging facility would be ideal, but since
Government and the municipality employees would be the target market for the
conference facility, the gravel state of the roods would discourage the target market
from utilizing the conference facility. This situation can be averted if the roads are
tarred.
• The price range for the proposed lodging facility could be R280 - R300 per guest per
night.
• The proposed lodging facility, preferably chalets, should also offer self-catering services
for guests who may need it.

4 COMPETITIVE SUPPLY ASSESSMENT
4.1 Introduction
The new Molopo Game Reserve accommodation facility concept represents a unique approach
to the subject of lodging within the Reserve. The characteristics of the local area's inventory of
existing lodging facilities are critical to evaluate when considering the feasibility of new product
development. This type of evaluation focuses on type, size, location and capacity. To date, the
only types of lodging available around the Molopo Game Reserve are relatively small numbers
of lodges and guesthouses that were built some years ago that provide lodging facilities. Not all
neighbouring lodging properties provide both accommodation and conference facilities - in fact,
only one lodging property from around the Molopo area has a conference and meeting facility.
Exhibit C presents a summary of primary existing lodging facilities that, in our opinion, are
directly comparable to the proposed lodging facility to be put up within the Molopo Game
Reserve.
Exhibit C: Lodging Facilities around the Molopo Game Reserve Area
Establishment Name Description Rooms Beds Location
Madiakgama Game Reserve Lodge 8 23 Bray
Sandhurst Safari Lodge Lodge 13 16 Bray
Mayfair Game Farm Game Reserve 4 10 Bray
Bray Guest House Guesthouse 3 6 Bray
Molopo Kalahari Safaris Hunting Lodge 3 6 Bray
Warthog Safaris Lodge and Safari 1 1 Bray
Tosca Gastehuis Guesthouse and Conference 5 8 Tosca
This list is not intended as a comprehensive list of potential comparable or competitive lodging
properties in the area, but demonstrates their type and capacity that may end up being direct
or indirect competitors to the proposed game lodge within the Reserve. In terms of
accommodation supply, there are only 7 lodging properties located within the market drawing
area - that is, the area around the Molopo Game Reserve. Following is a brief description of
each of the lodging property’s amenities, location and market segmentation.
4.2 Madiakgama Game Reserve
Madiakgama Game Reserve is an 8-room lodge located in Bray. This lodge, which caters
primarily to the commercial market with little leisure, has 23 beds for sale to guests and
travellers. The estimated market segmentation is 100 percent business.

4.3 Sandhurst Safari Lodge
Sandhurst Safari Lodge consists of 13 rooms. This lodging property, which is also located in
Bray, has 16 beds, suggesting that most of the rooms are singly-occupied at a time. The
estimated market segmentation is 100 percent business.
4.4 Mayfair Game Farm
As the name suggests, Mayfair Game Farm is a privately-owned game reserve that caters
primarily to the commercial accommodation market with some leisure. The lodging property,
which is located at Bray, has 4 rooms with 10 beds available for sale to tourists and travellers.
The estimated market segmentation is 60 percent business and 40 percent leisure.
4.5 Bray Guest House
Bray Guest House, also located at Bray, is a 3-room
guesthouse with 6 beds available for sale to tourists and
travellers. This lodging property offers commercial
accommodation and has an estimated market
segmentation of 100 percent business.
4.6 Molopo Kalahari Safaris
Molopo Kalahari Safaris, which is located at Bray, caters primarily to the safari market with 3
rooms available for sale to tourists and travellers. The lodging property has 6 beds and the
estimated market segmentation is 50 percent business and 50 percent leisure.
4.7 Warthog Safaris
Warthog Safaris, also located at Bray, has just 1 room with 1 bed available for sale to tourists
and travellers. This property offers primarily safari experience to guests and has an estimated
market segmentation of 100 percent leisure.
4.8 Tosca Gastehuis
Tosca Gastehuis is a 5-room guesthouse located at Tosca. This lodging property which has 8
beds available for sale to tourists and travellers caters primarily to the commercial
accommodation market. The estimated market segmentation is 100 percent business.

4.9 Additions to Supply
Based on the Research Team’s fieldwork, it was gathered that there appears to be no planned
additions to supply within the market drawing area (that is, the Molopo Game Reserve area) at
the time of information gathering.

5 SWOT AND GAP ANALYSES
5.1 Introduction
The development prospect of the proposed lodging facility within the Molopo Game Reserve
has a number of competitive strengths and opportunities, but also some competitive
weaknesses to overcome and potential threats to avoid and prepare against. This part of the
report provides an outlook of the strengths and weaknesses, as well as opportunities and
threats from a market and economic perspective as well as the gaps that presently exist.
5.2 SWOT Analysis
This section presents a summary SWOT (Strengths,
Weaknesses, Opportunities and Threats) analysis, obtained as
the result of input by industry players during the interview and
consultation process as well as input by the Research Team.
Overall, there was a high degree of repetition or commonality
among views supplied by participants and industry players.
5.2.1 Strengths
• The Reserve’s unique natural features and attractions offer a distinctive competitive
advantage which when the lodging facility is developed, would serve as a bait for bringing
more guests to the Reserve.
• The remoteness of the Reserve with unspoiled territory, which can be viewed as wild
and mostly unexplored, supported by the existence of a reputable lodging facility, will
greatly attract more guests to the Reserve.
• The un-crowded nature of the Reserve, which is different from many other tourism
destinations and supported by the existence of a reputable lodging facility, could be
major plus.
• Safety is now a concern with many tourists and travelers. The Reserve, considered to be
a relatively safe destination and supported the existence of a reputable lodging facility,
will further help boosts visitor numbers at the Reserves.
• Hunting expeditions will greatly be boosted as the new lodging facility will encourage
hunters to extend their stay at the Reserve.
• The opportunity that exists for wildlife viewing by visitors and travellers, with
accommodation issues solved as a result of the development of a new lodging facility,
will greatly enhance wildlife viewing at the Reserve.

5.2.2 Weaknesses
• Lack of good quality infrastructure in the area.
Infrastructure spread within the Molopo area which
does not meet the quality standard expected by
tourists and visitors especially when compared to
other destinations could have impact on the mindset
of would-be patrons of the proposed lodging facility.
• Difficulty and cost of access: Expensive and difficult to
get to the Molopo Game Reserve compared to other
destinations could adversely affect user patronization
in the proposed lodging facility.
• The many unpaved roads leading to the Molopo Game Reserve are a disincentive to
tourists and visitors as well, and may hamper user patronization in the proposed lodging
facility.
• Inadequate marketing of the Dr. Ruth Mompati Region, in general, due to limited
marketing budgets by the Province could seriously impact the expectations from the
• Acute shortage of developed tourism products offered by the Reserve could work
against patronization of the proposed lodging facility.
• Difficulty and costs of access by vehicle, as well as the great distances to travel to the
Reserve could affect negatively on the patronization of the proposed lodging facility.
• General quality of tourism product offered by the Dr. Ruth Mompati, in general, is a
source of concern, which may directly or indirectly impact on the patronization of the
• Visitor length of stay may be expected to become longer upon the development of the
proposed lodging facility, but this may not happen due to the virtual lack of attractive
tourism products offered by the Reserve.
• Inadequate signage: better signage needed to get tourists and travelers to the proposed
lodging facility.
• The Molopo Game Reserve area, as a whole, is touristy-looking and could seriously
hamper expectations about the proposed lodging facility.
• The limiting focus on hunting and the lack of other tourism products could serious
hamper the general expectations for the proposed lodging facility.
• Long length of winter season could hamper the general expectations for the proposed
lodging facility.

• Lack of packaging and partnering of tourism products and services offered at the
Reserve could impact negative on the general expectations for the proposed lodging
facility.
• Relatively lower incomes, limited visitor industry as well as low hotel room rates and
occupancy rates could adversely affection the expectations of the proposed lodging
facility once it becomes operational.
5.2.3 Opportunities
• Upon the development of the proposed lodging
facility, there is the opportunity to re-package the
Reserve as a preferred tourist destination.
• Increase marketing resources available to the
Reserve and the area, as well as increase the
presence of the Dr. Ruth Mompati Region in
marketing initiatives.
• The need to develop more tourism products within
the Reserve that will entice more tourists and
travellers to it using the proposed lodging facility as
preferred accommodation.
• Packaging of tourism products: packages are currently almost non-existent at the
Reserve. With the proposed lodging facility in place, new attractive packages can be
designed with the proposed lodging facility at the centre.
5.2.4 Threats
• High Cost of Travel to the Molopo Game Reserve: expensive to travel to the Molopo
area compared to other destinations.
• Competition from other destinations that are not so far from the Molopo Game
Reserve, especially the privately-owned game reserves, lodges and safaris.
• Hunting market is aging and has become so monotonous. There is, therefore, the need
to diversify or attract new markets that will encourages tourists and travellers to make
use of the proposed lodging facility.
• Market is becoming more sophisticated and demanding: travelers want quality products
and service

• The Molopo Game Reserve area is bypassed by most traffic: most drive through to
other regions without stopping in area to sleep over.
• Tourism appears not to be part of the culture of communities surrounding the Molopo
Game Reserve. Sleeping outside of home is basically not practiced by most community
members.
• Lack of long-term marketing plan for the Molopo Game Reserve: concern that the
marketing is piece-meal and is not accurately reflecting the products offered by the
Reserve.
• Lack of tourism awareness amongst residents around the Molopo Game Reserve:
tourism not necessarily a priority and/or lack of awareness on the benefits of tourism
on the part of community members.
• Virtual collapse of existing big game markets: there has been a decline in the area of big
game hunter visits. The Reserve does not seem to offer alternative activities to
supplement its hunting business.
• Strong competition provincially and locally for tourism products and hunting, especially
from the neighbouring provinces.
• The combined lack of business and marketing skills, as well as innovativeness could pose
a serious threat to the way and manner the proposed lodging facility would be ran.
5.3 Gap Analysis
The gap analysis is a grouping and summary of findings
obtained through the tourism establishment operator
questionnaire, the community consultation and through
observations. The gaps have been grouped into the
following categories:
• Adequate and Attractive Tourism Experiential
Products;
• Tourism Infrastructures; and
• Tourism Product Marketing.
5.3.1 Adequate and Attractive Tourism Experiential Products
Adequate and attractive tourism experiential products form the backbone of the tourism
industry. These products provide the services and experiences necessary to accommodate and

cater to the visitors’ needs and expectations. Without adequate and attractive tourism
products and services, it is almost impossible to take advantage of the unique attractions and
assets that a destination has to build a prosperous and competitive tourism industry.
Even as it is evident that the North West Province has many attractions, it is also evident that
the Province’s Dr. Ruth Mompati Region suffers from an acute shortage of market-ready
tourism products. A shortage in tourism products will also have a trickle-down effect and
impact areas such as packaging and marketing, as well as the patronization of the lodging
facilities. Without a sufficient inventory of market-ready products, it is almost impossible to
consider extending their stay in a particular destination. Extension of stay comes into the
picture once proper accommodation facilities, such as the proposed lodging facility, are only
available. The development of tourism products in the North West Province’s Dr. Ruth
Mompati Region is greatly hampered by factors including the lack of critical mass of tourists and
tourism products necessary to sustain tourism businesses including lodging facilities.
5.3.2 Tourism Infrastructure
The tourism industry cannot thrive without
physical tourism infrastructure. Physical
infrastructure are the man-made capital which
is required to produce tourism products for
visitor enjoyment, such as accommodation,
food and beverage establishments, attractions,
campgrounds as well as transportation
infrastructure such as roads and airstrips.
Without the required infrastructure, tourism
operations cannot service visitors, nor can
visitors access tourism products.
When compared to the Province’s other destinations, tourism infrastructures in the Dr. Ruth
Mompati Region do not seem to compare favorably - an urgent call for action in this regard.
Visitor attractions seem insufficient in quantity and offer deficient or inconsistent quality. For
instance, only a handful of the few lodging facilities scattered around the Molopo Game Reserve
area can be described as quality establishments. Quite frankly, most of the Region’s traveller
accommodation sub-sector is, relatively, of low quality. The road system is undeveloped or
mostly damaged or difficult to access. Other than natural attractions, there is very little in
terms of developed tourism attractions in the Region.
Many tourism products, including establishments and attractions are not market-ready or well-
marketed and need to be further developed or enhanced in order to be taken to the
international tourism marketplace. In a statement, one could say that there is a total
disconnection between tourism marketing and infrastructure in the Dr. Ruth Mompati Region.
The lack of developed infrastructure is a sufficient disincentive to visitors and travellers who
might wan to use the proposed lodging facility once it becomes operational.

5.3.3 Tourism Product Marketing
Because the Dr. Ruth Mompati Region is sparsely populated, one of the particularities of the
Regions’ tourism industry is that almost all tourists originate from outside the Region. This
suggests that that marketing efforts must target national and international markets. More
marketing funds will be needed to attract visitors and travellers so as to be at par with the
marketing spending of competing destinations scattered around the North West Province. The
desired expectations and results from the proposed lodging facility may not be realized if these
marketing contingencies are not enforced.
The community consultation process revealed the following in regards to marketing:
• There is a wide support for the development of a lodging facility within the Molopo
Game Reserve, more preferably, the development of chalets and not a hotel.
• There is the feeling that the Molopo Game Reserve area lacks the necessary resources,
such a reputable lodging facilities, to compete with other areas and attract visitors and
travellers to the area and that such a lodging facility, once it is developed and becomes
operational, will greatly boost the image of the area.

6 STUDY RECOMMENDATIONS
Based on these various characteristics, factors and findings from the surveys and discussions, it
is our opinion that the proposed lodging facility be developed and that chalets are
recommended. Other recommendations are highlighted below.
6.1 General
• That, considering the Dr. Ruth Mompati Region market’s lack of good-quality
guestrooms, we recommend the development of good-quality lodging facility, preferably,
chalets with meeting space for approximately 50 guests.
• That, the number of guestrooms to be developed should not be too large.
• The proposed lodging facility should also offer self-catering and conference facilities,
high-tech capabilities, and leisure services.
• The proposed lodging facility should be able to serve both upper-end leisure travellers
and the majority of small to mid-size groups that could be attracted to the Dr. Ruth
Mompati Region in general and the tourism market in particular.
6.2 Market Positioning
• The proposed lodging facility should be positioned as a
premier lodge in order to capture business from the
leisure segment as well as from corporate meetings as
well national and regional association meetings. If the
proposed lodging facility is successfully marketed as a
preferred lodging base for visitors and travellers that
offers a comfortable environment with excellent
recreational amenities and services, its chances of
competing successfully for leisure and group business will
be enhanced.
• The proposed lodging facility should be positioned at a price point that is commensurate
with the regionally competitive lodging properties discussed earlier in this report due to
the need to provide a competitive advantage over its competitors. With this foundation
in pricing philosophy, the proposed lodging facility must also be relatively aggressively
priced compared to similar lodging properties within the Molopo Game Reserve area.

• The proposed lodging facility should also be positioned at a high-service and high-quality
level, in terms of general accommodation, meeting support, food and beverage, and
recreational offerings in order to compete with the primary competitive lodging
6.3 Market Segmentation
• The recommended addition of conference facilities to the proposed lodging facility
should be designed and equipped in such a way it be utilized by the various demand
sources for meetings, retreats and other training programs and seminars or
conferences.
• The market mix for the proposed lodging facility should be able to cater for demands
from the various sources, including demand of numerous types primarily related to
leisure travel, conferees, and social demand (weddings, family reunions).
6.4 Estimated Operating Levels
• Based on our evaluation of the overall lodging market environment and performance in
the Dr. Ruth Mompati Region in general and the Molopo Game Reserve area, in
particular, the operating performance of the proposed lodging facility is estimated to be
high with lower occupancies in the early years, reflecting a typical startup period for a
lodging facility during which time its reputation is established and a repeat client base is
being created.
6.5 Pricing
Because of the relatively lower occupancy levels sometimes experienced by small commercial
lodging properties other than standard hotel operations in the same market environment,
combined with the potentially higher costs of development, the pricing of the services becomes
very crucial.
By pricing the facility on a daily-per-person basis,
with a package price that includes all other services,
the proposed lodging facility should be in a position
to maximize its revenues per guest day. We must,
however, reiterate that the successful
implementation of this pricing strategy would
require that consistently high-quality services be
delivered in a manner that it becomes clear to
guests the value of money paid.

6.6 Development of Various Strategies
The financial and economic success of the proposed lodging facility will depend heavily on a
number of well-implemented strategies without it very survival of the facility will not last. The
recommended strategies have been grouped as follows:
i. Regional Tourism Development Strategy
ii. Regional Tourism Product Development Strategy
iii. Regional Tourism Infrastructure Development Strategy; and
iv. Mompati Regional Tourism Marketing Strategy
6.6.1 Regional Tourism Development Strategy
• It is critical that a regional tourism strategy be developed and implemented. The
document should offer direction and coordination of resources from different partners
involved in tourism and economic development in the Dr. Ruth Mompati Region. This
strategy, once implemented, would go a long to help sell the region to visitors and
travellers.
6.6.2 Regional Tourism Product Development Strategy
The development of tourism products is a win-win-win
situation. Visitors and traveller stand to gain because
they would have another opportunity to experience a
showcased product. Tourism industry operators also
stand to benefit for obvious economic reasons.
Communities profit as tourists are more inclined to
stay longer and spend their monies locally. The
development and support of any new and attractive
tourism products will ensure that visitors and travellers
stay longer in the region where utilization of the
proposed lodging facility within the Molopo Game
Reserve could be maximized.
6.6.3 Infrastructure Development Strategy
The Dr. Ruth Mompati Region needs to develop an infrastructure development strategy that
will include:
• Significant upgrading of the roads. This is required throughout the entire region especially
in the more remote areas, including the Molopo Game Reserve area. The tourism

market generally looks for attractively designed facilities which fit with the natural
settings and include such amenities as lodging for guests.
• Upgrading existing tourism facilities to marketplace standards in order to be considered
“market ready.” This will ensure that visitors and travellers who patronize in the region
stay longer, making full use of the proposed lodging facility.
• Developing a strategic hub model where key anchor attractions are developed, for
instance upgrading the Molopo Game Reserve with such products as golf-courses
outside of the Reserve. The anchor attractions could act as hubs and attract supporting
and spin-off tourism products and services, as well as maximizing the utilization of the
lodging properties including the proposed lodging facility within the Reserve.
6.6.4 Regional Marketing Strategy
A marketing strategy should be develop and include the following components:
• Partnering with communities to develop and
implement a regional tourism marketing plan with
special attention to marketing of tourism products
including accommodation, natural and heritage
products.
• Develop regional marketing strategies that aggressively showcase the Dr. Ruth Mompati
Region as a preferred destination for visitors and travellers with special emphasis on
accommodation and hunting subsector of the regional tourism industry.

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