A presentation on the process of developing tourism concession guidelines for southern African transfrontier conservation areas (TFCAs). The paper includes a situational analysis from SADC, and an outline of the process of developing the guidelines.

1. 1
TECHNICAL WORKSHOP ON CONCESSIONING
{
TECHNICAL WORKSHOP ON CONCESSIONING
A PROFESSIONAL TEAM DELIVERING CREATIVE PROJECT SOLUTIONS
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!
1
Guidelines
on
Concessioning
&
Sustainable
Tourism
Investment
in
TFCAs
in
SADC
Dr
Anna
Spenceley
annaspenceley@gmail.com;
www.anna.spenceley.co.uk
Garden
Court
OR
Tambo,
Johannesburg,
2-­‐3
September
2014
A PROFESSIONAL TEAM DELIVERING CREATIVE PROJECT SOLUTIONS
E: michaelw@sivest.co.za T: +27 31 581 1573 C: +27 83 670 1436 W: www.sivest.co.za
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AND INVESTMENT IN TFCAs IN SADC
THE PROCESS OF PACKAGING PROJECTS
Presented by: Michael Wright
Consulting Engineers y Project Managers y Environmental Consultants y Town and Regional Planners
TFCAs: The Process of Packaging Projects 1
Insert client
logo
AND INVESTMENT IN TFCAs IN SADC
THE PROCESS OF PACKAGING PROJECTS
Presented by: Michael Wright
Consulting Engineers y Project Managers y Environmental Consultants y Town and Regional Planners
TFCAs: The Process of Packaging Projects 1

2. Tourism
concessions
in
SADC
TFCAs

3. Guidelines
Scoping
Situational
analysis
Conference
Process

4. Guidelines
Scoping
Situational
analysis
Conference

5. PracKcal
process
guidance
to
support
Step
1
decision
making
Step
2
Step
3

6. Torra Conservancy &
Damaraland Camp
Align
conservaKon
&
investment
goals
Namibia
Author: Anna Spenceley.
Photographs: Dana Alan, Wilderness

7. 4
Tracing the tourist dollar on Mount Kilimanjaro
To climb the Mountain, tourists must use a TANAPA registered guide. Almost all
climbers book their climb as a package, which means that a local tour operator
organises the climbing staff (guides, porters and cooks), park fees, food and
equipment. Some tourists buy their package directly from a Tanzania in-bound tour
operator, but most book their climb with a tour operator in their home country and
the international tour operator then sub-contracts a local operator.
A typical climb package is sold by local tour operators for an average of US$1,205 for
a seven day tour itinerary. This is an all-inclusive arrangement and includes five days
on the mountain with a night in a hotel before and after the climb (normally in the
neighbouring towns of Moshi or Arusha). In addition to this package cost, interviews
with tourists revealed an average of US$171 of out-of-pocket or discretionary spending
is made during the climb – a total in-country spend of US$1,376 per tourist.
Figure 2 illustrates the breakdown of total (package and discretionary) climber
expenditure, based on information obtained from tour operators, accommodation
provider and tourist surveys.
The largest single item of tourist expenditure
is National Park fees at 47% of the total cost.
Each climber pays an average of US$649 in
National Park fees as part of their tour operator
package.
The second largest item of expenditure is
payments for climbing staff, which amounts
18% of total spending when wages from tour
operators and tips from tourists are combined.
.PVOU ,JMJNBOKBSP DMJNCJOH TUBGG SFDFJWF BO
average annual income (including both wages
and tips) of US$1,830 for guides, US$842 for
porters, and US$771 for cooks.
Porters wages vary significantly between
different tour operators and routes. Using
B MBSHF TBNQMF JO
UIF ,JMJNBOKBSP
1PSUFST TTJTUBODF 1SPKFDU GPVOE WFSZ
widespread abuses of porters working
conditions and day rates that vary from
US$3.50 to $10.60 per day.
Figure 2: Cost components of a typical Mountain-climbing
holiday (US$1,376 in-country)
3% 4%
6%
6%
18%
16%
47%
Park fees
Tour operator margins
Wages Tips
Accommodation
Food Beverages
Transport
Cultural goods services
Mount Kilimanjaro
tour operators market
There are many tour operators in
5BO[BOJB PGGFSJOH .PVOU ,JMJNBOKBSP
climbing packages. There are half a
dozen long-established operators that
each sell about 3,000 packages per
year, and the other half of the market
comprises of packages that are sold
by smaller, niche and less-established
operators. There is a steady increase
in the number of packages sold by
emerging tour operators – often
established by former tourist guides.
Emerging operators typically sell
about 300 climbing packages a year.
Examples
of
good
pracKce
Kps
Planning development issues:
Damaralland IInsttiittuttiionall Arrangementts
Torra Conservancy
Lessor / partner
10% revenue.
£300 p/a rent
15-yr BOT
arrangement
Damaraland Camp
Wilderness Safaris
Lessee, Developer and Operator
• Damaraland is a Build Operate partnership with the community Wilderness Safaris) (a hybrid • WS and INDRC organised and organised rental/transfer • 15 year agreement between conservancy for ~10 hectares hunting concession area)
• 10% of the net accommodation guest's stay are allocated community
• For the last 5 years of the have transferred 20% ownership the conservancy and decrease turnover by 20% each year.
• By year 15 conservancy would manage the lodge, and WS market it.
• Books presented to Trust • Joint management committee community to discuss lodge wider area
State
Land owner
Permission to Occupy
Brian Jones, Jones and Ashley (2001), Bruce

8. Clear
Simple
Short

9. Guidelines
Scoping
Situational
analysis
Conference

10. Policies,
strategies,
legislaKon
Namibia:
-­‐‑ Concession
policy
-­‐‑ Draft Parks and
Wildlife
management
Bill
-­‐‑ Tourism policy
Malawi:
-­‐‑ PPP Policy
framework
-­‐‑ National
Tourism
Policy
South Africa:
-­‐‑ Public Finance
Management Act –
Treasury
regulation 16
-­‐‑ Municipal Finance
Management Act
SADC: Protocol on the Development of Tourism; Protocol
on Wildlife Conservation and Law Enforcement

11. Policies,
strategies,
legislaKon
Botswana:
-­‐‑ Tourism policy
-­‐‑ National Ecotourism
Strategy
-­‐‑ Draft Tourism Policy
-­‐‑ National Licensing
Act
Tanzania:
-­‐‑ National Tourism
Policy
-­‐‑ Wildlife Policy of
Tanzania
-­‐‑ National Policies
for National Parks
in Tanzania
Plans: Tourism Masterplans (country); Integrated Development Plans (TFCA; outside
Protected Areas); Protected Area Management Plans

12. Concession
models
Management • Awelani, South Africa
• Witsieshoek, Maloti-­‐‑
Lease Drakensberg TFCA
• Singita Lebombo, GLTFCA
• Chemucane, Lubombo TFCA
Concession /
PPP
(BOT, ROT)
Best Practice: Use of the model and duration that is most appropriate to
the level of investment and product type

13. Concession
processes
• Botswana, Malawi, Mozambique,
Namibia, South Africa, Tanzania,
Zambia, Zimbabwe
Competitive
bid (Tender)
Unsolicited • Angola, Mozambique
Direct award • Mozambique, Namibia
(communities)
Best Practice: Competitive bidding -­‐‑Most competitive and transparent.

14. Transboundary
products
-­‐
AccommodaKon
tours
TransfronKer
Park
DesKnaKons:
Kgalagadi
TFCA,
GLTFCA,
MaloK-­‐
Drakensberg
TFCA
Wilderness
Safaris:
GLTFCA,
KAZA,
Ponta
do
Oura-­‐Kosi
Bay
Marine
TFCA

15. Transboundary
products
-­‐
Events

16. Tourism
investment
guidelines
SOUTHERN
AFRICA
TOURISM
INVESTMENT
HANDBOOK
First Edition
INVESTMENT HAN D BOO K
DEVELOPED BY RETOSA
Angola, Botswana, DR Congo, Lesotho,
Mauritius, Mozambique, Namibia, Seychelles, South
Zambia and Zimbabwe. The organisation
States’ Tourism Ministries, Tourism Boards
Designed by Indigo Marketing
www.indigo.co.za
retosa.co.za
co.za
• Lesotho: Tourism Investment Guide Toolkit
• Mozambique: Mozambique Investment Climate Library; Tourism concession
manuals (public private sector)
• South Africa: PPP Manual – National Treasury
• Tanzania: Investment Guide To Tanzania (UNCTAD); Guidelines for Coastal Tourism
Development in Tanzania; Tanzania Investors Guide; TANAPA Development Action
Lease Procedures
• Zambia: Zambia Investor Guide Handbook

17. Guidelines
Scoping
Situational
analysis
Conference

18. • Review and revise draft guidelines
• Add content, examples, tools, cases

20. Next steps:
• Proceedings of
meeting
• Revise guidelines
(vs 2)
• Review period
(email; SADC
portal)
• Final revision of
guidelines (Nov)
• Dissemination

21. Thank you!
Dr Anna Spenceley
Email:
annaspenceley@gmail.com
PresentaKons:
www.slideshare.net/AnnaSpenceley
Website:
www.anna.spenceley.co.uk