AUGUST 201402 Tourism Tattler Trade Journal

AUGUST 2014 03Tourism Tattler Trade Journal

EDITORIAL04 Accreditation05 Cover Story06 Article Comments ATTRACTIONS08 V&A Waterfront Expands Attractions10 Seychelles Art Scene BUSINESS16 SATSA Market Intelligence Report18 SA Tourism Business Index22 Access to Finance for SMME's24 Tax Season Explained COMPETITIONS06 Win a DVD25 Win 1 of 5 iKhokha mPOS devices

PUBLISHERTourism Tattler (Pty) Ltd.PO Box 891, Umhlanga Rocks, 4320KwaZulu-Natal, South Africa.Company Reg.No.: 2006/015252/07Website: www.tourismtattler.com

EXECUTIVE EDITOR Des LangkildeTel: +27 (0)32 815 0414 Cell: +27 (0)82 374 7260Fax: +27 (0)86 651 8080E-mail: editor@tourismtattler.comSkype: tourismtattler

Issue 08 (August) 2014

Disclaimer: The Tourism Tattler is published by Tourism Tattler (Pty) Ltd and is the official trade journal of the Southern Africa Tourism Services Association (SATSA). The Tourism Tattler digital e-zine, is distributed free of charge to bona fide tourism stakeholders. Letters to the Editor are assumed intended for publication in whole or part and may therefore be used for such purpose. The information provided and opinions expressed in this publication are provided in good faith and do not necessarily represent the opinions of Tourism Tattler (Pty) Ltd, SATSA, its staff and its production suppliers. Advice provided herein should not be soley relied upon as each set of circumstances may differ. Professional advice should be sought in each instance. Neither Tourism Tattler (Pty) Ltd, SATSA, its staff and its production suppliers can be held legally liable in any way for damages of any kind whatsoever arising directly or indirectly from any facts or information provided or omitted in these pages or from any statements made or withheld or from supplied photographs or graphic images reproduced by the publication.

Adv. Louis NelAlbi ModiseAndre du ToitBrian Sandberg

Contents

CONSERVATION27 Rhino Horn Trade: Statement by DEA28 Rhino Horn Trade: Assessing the Risks30 Rhino Horn Trade: A Litmus Test HOSPITALITY32 Property Review: Entabeni Conservancy LEGAL36 Risk in Tourism - Part 1 PHOTOGRAPHY37 The Camera Histogram RISK38 Managing Risk - Part 2 TRADE NEWS Visit our website for daily travel news

02 Tourism Enterprise Partnership (TEP)07 Mercedes-Benz Commercial Vehicles09 V&A Waterfront13 World Travel Market - London15 Comair / kulula.com16 White Shark Projects17 Sports & Events Tourism Exchange

EDITORIAL CONTRIBUTORS

MAGAZINE SPONSORS

19 Sprout Consulting / SYNC Accounting20 Gautrain22 Campaign Against Canned Hunting27 SATIB Conservation Trust31 National Sea Rescue Institute (NSRI)35 SATIB Insurance Brokers36 SATIB Insurance Brokers

IN THIS ISSUE

10

Conservation: Rhino Horn Trade - Assessing the Risks

28

Kagiso MoseuKevin WatsonMartin Jansen van VuurenPaula Bester

Peter WickhamRenate de VilliersSusan Barrett

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Attractions: Seychelles Artists and Sculptors

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Competition: Win 1 of 5 iKhokha mPOS Bank Card Payment Devices

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AccreditationThe African Travel & Tourism Association (Atta)Tel: +44 20 7937 4408 • Email: info@atta.travel • Website: www.atta.travelMembers in 22 African countries and 37 worldwide use Atta to: Network and collaborate with peers in African tourism; Grow their online presence with a branded profile; Ask and answer specialist questions and give advice; and Attend key industry events.

Official Travel Trade Journal and Media Partner to:

National Accommodation Association of South Africa (NAA-SA)Tel: +2786 186 2272 • Fax: +2786 225 9858 • Website: www.naa-sa.co.zaThe NAA-SA is a network of mainly smaller accommodation providers around South Africa – from B&Bs in country towns offering comfortable personal service to luxurious boutique city lodges with those extra special touches – you’re sure to find a suitable place, and at the same time feel confident that your stay at an NAA-SA member’s establishment will meet your requirements.

Regional Tourism Organisation of Southern Africa (RETOSA)Tel: +2711 315 2420/1 • Fax: +2711 315 2422 • Website: www.retosa.co.zaRETOSA is a Southern African Development Community (SADC) institution responsible for tourism growth and development. RETOSA’s aims are to increase tourist arrivals to the region through sustainable development, improved regional competitiveness, and effective destination marketing. RETOSA Member States are Angola, Botswana, DR Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.

Southern Africa Tourism Services Association (SATSA)Tel: +2786 127 2872 • Fax: +2711 886 755 • Website: www.satsa.comSATSA is a credibility accreditation body representing the private sector of the inbound tourism industry. SATSA members are Bonded thus providing a financial guarantee against advance deposits held in the event of the involuntary liquidation of a SATSA member. SATSA represents: Transport providers, Tour Operators, Destination Management Companies, Accommodation Suppliers, Tour Brokers, Adventure Tourism Providers, Business Tourism Providers and Allied Tourism Services providers.

Seychelles Hospitality & Tourism Association (SHTA)Tel: +248 432 5560 • Fax: +248 422 5718 • Website: www.shta.sc The Seychelles Hospitality and Tourism Association was created in 2002 when the Seychelles Hotel Association merged with the Seychelles Hotel and Guesthouse Association. SHTA’s primary focus is to unite all Seychelles tourism industry stakeholders under one association in order to be better prepared to defend the interest of the industry and its sustainability as the pillar of the country’s economy.

World Travel Market London 2014Tel: +44 (0)20 8910 7897 • Email: polly.magraw@reedexpo.co.uk • Website: www.wtmlondon.comWorld Travel Market - London is the leading global event for the travel industry. It is a vibrant must attend business-to-business event presenting a diverse range of destinations and industry sectors to UK and International travel professionals. It is a unique opportunity for the whole global travel trade to meet, network, negotiate and conduct business. Last years event attracted over 50,000 attendees, representing 186 countries. WTM is the place to do business with 5,000 international exhibitors.

International Coalition of Tourism Partners (ICTP)Tel: Haleiwa, USA: +1-808-566-9900 • Cape Town, South Africa: (+27)-21-813-5811 • Rio de Janeiro, Brazil: +5521 40428205 • Germany: +49 2102 1458477 • London, UK: +44 20 3239 3300 • Australia +61 2-8005 1444 • HongKong, China: +852 8120 9450.Email: member@tourismpartners.org • Website: www.tourismpartners.orgICTP is a travel and tourism coalition of global destinations committed to Quality Services and Green Growth. ICTP advocates for: sustainable aviation growth; streamlined travel; fair taxation and jobs.

The Safari Awards 2014Tel: +44 (0)1865 989280 • Website: www.safariawards.comWith nominations from over a thousand luxury travel professionals, hundreds of readers of Tourism Tattler, Conde Nast Traveller, Brides and Travel Africa Magazine you can rest assured that any safari business nominated for a Safari Award is amongst the best in its genre. Finalists are amongst the top 3% in Africa and the Safari Award Winners are unquestionably the best, their reputation earned through excellence recognised by people who know what they are talking about.

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Southern African Vehicle Rental and Leasing Association (SAVRALA)Contact: manager@savrala.co.za • Website: www.savrala.co.zaFounded in the 1970's, SAVRALA is the representative voice of Southern Africa’s vehicle rental, leasing and fleet management sector. Our members have a combined national footprint with more than 600 branches countrywide. SAVRALA are instrumental in steering industry standards and continuously strive to protect both their members’ interests, and those of the public, and are therefore widely respected within corporate and government sectors.

cover storyOur front cover for this edition features an iconic rhino viewing safari scene from the image bank of South African Tourism.

An appropriate image considering the rhino poaching issue that will be debated at the SATSA 2014 Conference, from 08 to 09 August at the Spier Wine Estate in Stellenbosch, during a session titled 'Preserving our rhino – pro-trade versus anti-trade'.

South Africa is home to more than 80% of the world’s rhino population, which are rapidly being decimated. Between the years 2000 to 2007, an average of 17 rhino were poached per annum (120 deaths over 7 years). Since 2008 however, the annual average has burgeoned to 495 (3,216 deaths over 6.5 years).

Solving the rhino poaching scourge is by no means an easy task. There are proponents for legalising the trade in rhino horn (mostly by those who have stockpiles of horn accumulated through natural deaths of rhino), while others favour dehorning, dying or even poisoning the horn to curb the trade (read our article on these options on pages 20 - 21 of the May 2013 edition or at www.tourismtattler.com/to-breed-to-dehorn-or-to-poison).

The South African government, claims that it's position regarding the trade in rhino horn is being distorted by the anti-trade lobby and the media, while the Department of Environmental Affairs states that no final proposal has been compiled regarding the legal trade in rhino horn as an additional intervention to reduce the levels of poaching. Ironically, the same statement is contradicted with a line that reads; "South Africa believes that legalising the trade in rhino horn will in no way contribute to increased poaching." (Read more on page 23).

Some conservationists believe that reducing demand for rhino horn consumption by making it unfashionable in the end-user markets is the way to go, but others argue that the cost of mass marketing would be inhibitive and take so long to change mind sets that Africa’s rhino population would be depleted before this objective could be achieved. (read the OSCAP Conference summary on pages 28 to 29).

The rhino horn trade debate in this edition is concluded with an opinion piece by the late Brian Sandberg, titled 'A Litmus Test for Environmental Governance'. (Read more on pages 30 to 31).

Tourism Tattler will feature the outcome from the SATSA Conference rhino deliberations in the September edition.

EDITORIAL

On to some good news; I'm proud to announce that the Southern African Vehicle Rental and Leasing Association (SAVRALA) have adopted the Tourism Tattler as the associations official travel trade journal. SAVRALA's rental and leasing members represent approximately 600 000 vehicles. (See page 04 for SAVRALA's contact details).

“SAVRALA members are an integral part of the tourism transportation sector, and clearly any issues that adversely affect the transport sector will impact on the entire tourism industry. We see our collaboration with Tourism Tattler as a platform through which to speak with one voice as collective trade associations, aimed at enhancing travel sector communications and regional cooperation in cross border transport issues.” says Sandile Ntseoane, General Manager at SAVRALA.

Since the founding of Tourism Tattler as a media title by SATSA in the 70s, the editorial objective has remained consistent; namely to provide the travel trade with informative and educational content aimed at assisting tourism product owners, entrepreneurs and their staff in providing quality tourism services. I look forward to welcoming other travel and tourism associations onboard in the near future.

In the Attractions section of this edition, we feature Cape Town's V&A Waterfront (page 08), and profile the artists of Seychelles (pages 10 to 14). Our regular features in the Business section include the SATSA MIR on the latest inbound travel and hotel occupancy statistics (page 16), South Africa's tourism business performance for the second quarter of 2014 (page 18), access to finance for SMME development (page 22) and an explanation of what the annual tax season really means for businesses in South Africa (page 24).

The Conservation section focuses on the rhino horn trade (pages 27 to 31), while the Hospitality section features a property review on Ledgend Lodge's Entabeni Conservancy in Limpopo, South Africa. In the Legal section, Louis the Lawyer starts a new series on Risk in Tourism and the theme continues on pages 38 to 39 with Part 2 on Managing Risk. And finally, the Photography section explains how to use the camera histogram feature (page 37).

We also have two reader competitions in this edition, so don't forget to enter. Also post your comments online under any of the articles.

Enjoy your read.

Yours in Tourism, Des Langkilde. editor@tourismtattler.com

Image © South African Tourism.

WINNER OF THE JULY WINE COMPETITION

CONGRATULATIONS to Beverley Loods of Acacia Guesthouse.

Beverley won a case of DURBANVILLE HILLS Rhinofields Pinotage wine by entering our July wine competition, with the compliments of Cape Legends.

www.capelegends.co.za

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•

PHOTOGRAPHYPart 2: Understanding Exposure

July 2014's article comments received on the Tourism Tattler website and Facebook pages.

www.livingstonessupplyco.co.za

WinCandice Marder's comment has been chosen as the prize winner for July 2014.

Candice's prize of a coffee table book ' The African Diaries' by Derek and Beverley Joubert, will be delivered with the compliments of Livingstones Supply Co – Suppliers of the Finest Products to the Hospitality Industry.

Editor.

This 55 minute film follows the remarkable life of one small leopard from when she is just 8 days old every step of the way until she is 3 years old and on the brink of adulthood. Legadema, as she is named, works her way into your heart as she slips in and out of danger virtually every day, running from baboons and hyenas but also making landmark strides in hunting and surviving. It is the story of a mother and daughter relationship as well as that of an emerging huntress in Botswana’s magnificent Mombo region of the Okavango Delta.

AUGUST 201406 Tourism Tattler Trade Journal

www.tourismtattler.com/photography-part-2-understanding-exposure/

Submitted on 2014/05/19 at 7:51 am

Thank you for a very informative series of articles. I have read all 3 posts in this series and look forward to the August article in the magazine. As an amateur photographer, I rely on the auto focus settings of my camera (a Canon 500D).

I have found though, that when photographing sunsets the colour is never as impressive as the reality of the scene. Instead of an image with vibrant colours reflecting off clouds on the horizon, I end up with a pale sun and very little tonal value. I tried your suggestion, and set my camera to manual focus with the lens aperature set to f2.8. Mindfull of your warning about camera shake, I set the camera on a tripod and voila! A perfect shot with all the setting sun tonal values captured!

Now all I need is another African thunder storm to try out my

The winning comment posted on the Tattler website or Facebookduring the month of August 2014 will receive a copy of National Geographic’s ‘Eye of the Leopard’ DVD

with the compliments of Livingstones Supply Co – Suppliers of the Finest Products to the Hospitality Industry.

Article Comments

new found skill at capturing lighting bolts at night! One question though - with the amount of white light coming into the camera lens from a lightning bolt, would I need to decrease the aperature setting to avoid motion blur?

Candice Maeder

BUSINESS

So you want to be a Tour Operator?

Congratulations to Candice

Connect with Livingstones on:

• A Film by Derek and Beverly Joubert • Running Time: 55 minutes

www.tourismtattler.com/so-you-want-to-be-a-tour-operator/

Submitted on 2014/07/23 at 8:04 pm

When is your next course in Joburg? Hazel

Submitted on 2014/07/24 at 6:22 am | In reply to Hazel.

Hi Hazel. You can email Lin Smith at SATSA (lins@satsa.co.za) who is the Tour Operator training convenor and she will advise you when next a course is being planned for Joburg / Gauteng.

Editor

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AUGUST 201408 Tourism Tattler Trade Journal

Cape Town's V&A Waterfront Expands Tourism

Attractions

Africa’s First Major Museum of Contemporary ArtThe Zeitz Museum of Contemporary Art Africa (Zeitz MOCAA), to be housed in the historic Grain Silo at the V&A Waterfront, is set to welcome its first visitors at the end of 2016.The V&A is committing over R500-million to the development required for the establishment of the Museum. Built in 1921, and at 57m tall, the Grain Silo remains an icon of the Cape Town skyline. This investment will further the development of art in Africa and acknowledges the important cultural and financial contribution the visual arts sector makes.Zeitz MOCAA, a new not-for-profit institution, is considered by many to be the leading collection of contemporary art from Africa and its Diaspora, Jochen Zeitz will commit his collection in perpetuity, underwrite the running costs of the Museum and provide a substantial acquisition budget to allow the Museum to acquire new important artworks over time to remain on the edge of contemporary cultural production.Zeitz MOCAA will comprise over 9,500 square meters (102,000 square feet) placing it among leading contemporary art museums worldwide. Zeitz MOCAA will be spread over nine floors, of which 6,000 square meters (65,000 square feet) will be dedicated to exhibition space. Through an entire floor dedicated to education, the museum will develop a new art-loving, museum-going audience.Until the extensive renovations to the Silo complex are complete, selections from the Zeitz Collection will be presented at Zeitz MOCAA Pavilion, a museum-quality temporary exhibition space at the V&A Waterfront. A recently released independent Economic Impact study done on the V&A Waterfront clearly shows the impact the V&A Waterfront has had on the City, the Province and the country. Zeitz MOCAA brings another dimension – a cultural facility of global significance that provides both an intellectual and cultural focus point.

V&A Waterfront’s Craft MarketThe R50 million reimagining of the V&A Waterfront’s existing Blue Shed and Craft Market is as much a drastic external renovation as it is an evolution of product offering and range. Well-established as an

As the most visited site in Africa, with over 24 million visitors annually, the V&A Waterfront is the perfect

venue to share the cultural artifacts and ideas of Africa with the world.

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enterprise development platform, with traders traditionally offering wares from leather goods to African curios, a dynamic shift will see the focus broaden to craft and design, as well as the renaming of the space.In the spirit of change, the new space will be renamed to signify the change of course. The Watershed, as it will be named, is the platform on which the V&A Waterfront’s enterprise development is built and the entrepreneurial spirit of the African experience is grown.The Watershed will be positioned as a talent incubator, giving tenants exposure to the millions of local and international visitors the Waterfront welcomes on an annual basis. It is also an ideal platform to showcase South African and African creativity, launching in a pivotal year for our design industry, Cape Town World Design Capital 2014.

About the V&A WaterfrontThe V&A Waterfront is a 123 hectare mixed-use destination, and one of Africa’s most visited cultural and historical hubs. Set on the edge of a natural, historic working harbour with the iconic Table Mountain as its backdrop, it offers local and international visitors a cosmopolitan mix of experiences ranging from leisure, shopping and exclusive entertainment. It also offers prime residential and commercial property. The prime positioning of the V&A boasts sweeping views of the ocean, city bowl and mountain peaks. Up to 100 000 people visit every day during peak season. Contributing R198 billion to the South African economy over the last ten years, the V&A Waterfront’s cumulative contribution to the provincial GDP since 2002 was over R173bn. Of the total visitors to the V&A, 55% are Capetonians, 19% are South African and 26% are international. With 22 official landmarks on-site, it is also part of South Africa’s historical legacy. Jointly owned by Growthpoint Properties Limited and the Government Employees Pension Fund (GEPF), represented by the Public Investment Corporation Limited (PIC), the V&A Waterfront was developed in 1988 by the state-owned transport corporation, Transnet Limited, while commercial trading commenced in 1990.For more information, visit www.waterfront.co.za

Artist impression of Watershed - V&A Waterfront's new craft market. The existing Silo (inset) and its conversion to the Zeitz Museum © HeatherwickStudio

Artists impression of the Zeitz Museum of Contemporary Art Africa © HeatherwickStudio

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Bohemian Rhapsody

SEY

CHEL

LES

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While covering the Carnival International de Victoria during April this year, I asked my host at Seychelles Kempinski Resort what local attractions exist

within walking distance of the hotel. "The pirate cave" is a popular attraction responded Lashley Pulsipher, the Kempinski Group's Regional Director of PR for India, Middle East and Africa, who happened to be on location to meet the swarm of media attending the Mahé island's annual event.

On a balmy tropical afternoon, with two friendly attendants from the Kempinski Kids Club as guides, I set off with Maritafa and Chantal for a leisurely walk past

the beach sport kiosk and PADI dive centre, skirted the horse stables and ascended a moderately steep beach access road that winds beneath the forest canopy and

loudly squabbling fruit bats, to arrive at a signboard that proclaimed our arrival at Maria's Rock Cafeteria, Antonio's Art Gallery Sculptor Studio, Pirate Cove and Nature Walk Fort m.Toupie.In modern usage, the term "Bohemian" is applied to people who live unconventional, usually artistic, lives. The word "rhapsody" is derived from the Greek rhapsõdos, a reciter of epic poetry, and refers to any extravagant expression of sentiment or feeling, In music the word relates to a one-movement work that is free- flowing in structure, featuring a range of highly contrasted moods, colour and tonality.These two words sprang to mind when meeting Italian born sculptor Antonio Filippin, who had just stopped his chainsaw from gnawing away at his latest wood sculpture somewhere in the back of the property and refused to shake my hand until after he had showered and changed out of his work clothes.

The building in which these proclaimed attractions reside, towers above the road in a jumble of unconventional architectural styles, with natural rock intermingling with artificial rock-like curves, designed to represent a pirate galley complete with sails and skull motif and a steep stairwell leading up to a castle turreted structure with

ferro-crete sculptures of a goat and rooster precariously placed alongside the stairs.Freshly bathed and dressed in brightly stripped shorts, t-shirt and yellow 'Croc' sandals,

Antonio meets me in the Art Gallery looking like a peacock with his signature crest of dyed hair neatly styled atop his closely cropped head of greying stubble.

Antonio's distinctive sculptures are interspersed throughout the well lit and spacious gallery with paintings displaying a mix of styles and mediums, from oil on canvass to litho-prints, water colours, gouache and acrylic on paper and canvas as well as pencil and charcoal, screen prints and hand

coloured paper and fabric artworks.

The Seychelles is renown as a 'melting pot of cultures' and the centre of 'Creolity', as Alan St.Ange, the Seychelles Minister of Tourism and Culture puts it. But there's also a rich tapestry of artistic creativity scattered about this Indian Ocean paradise that attracts an eclectic mix of artists and

sculptors who can best be described as bohemian.

By Des Langkilde.

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"The paintings are not my work," explains Antonio in his heavy Italian / Austrian accent. "I just provide gallery space to showcase other Seychellois artists and to help them sell their work."I comment on what looks like an abstract self portrait rendered in acrylic paint, and Antonio is quick to clarify that this vibrantly coloured and stylized piece of art was created by Hungarian born Zsaklin Miklos, who moved with her family to Seychelles in 2010.Antonio's wood sculptures have a rough hewn form that reflect a strong sense of sexuality, celebrate the female form, and intersperse with cartoon-like imagery depicting animals, birds and fantastical creatures. I ask if his art is intended to impart a philosophical message, but he is reticent in explaining, saying that "art is in the eye of the beholder - I only create what inspires me and leave interpretation to those who view my work."His statement is reinforced as we depart the gallery for a tour of his Pirate Cove fantasy.And what a fantasy it is! As Antonio's enthusiastic young helpers, Michael Benoit and John Subana lead the way, we pass through the wrought iron spiderweb gate and after John has tapped the 'secret' code using the skull-knocker on the front door, we enter the first chamber.Built into the hillside between towering sandstone rocks, which are

At the entrance to the Pirate Museum are Maritafi, Antonio, Chantal, Michael and John.

a geological feature of Baie Lazare, the Pirate museum extends over three floors, each accessed via steps and ladders through trapdoors to reveal chambers festooned with pirate bric-à-brac, from treasure chests to cutlasses, period tunics, animal skins and skeletons adorning walls and tucked into recesses. Fantastical sculptures and cryptic messages can be spotted in every nook and cranny, while mechanically animated pirate, skeleton and spider models surprise and scare visitors at every turn. Stories of buried pirate treasure have always fuelled the imaginations of Seychellois, and Antonio's creation taps into this fascination. Actual evidence of discovering great treasures is rare, but the stories make interesting reading. One tale is told of a discovery of a huge treasure trove in a mountain cave on north Mahe. The British governor at the time wanted to take the treasure to Britain secretly and came up with a plan to involve the British Navy, who happened to be in port at the time. He circulated a story that a smallpox epidemic had broken out in the area where the treasure was located and had the whole region quarantined. The Navy then went into the cave and brought back the treasure in coffins − supposedly the people who had died from smallpox. The treasure was then loaded onto the ship and safely sent back to Britain. As with all treasure stories, this tale should be taken with a pinch of salt! (Pirate story recited with acknowledgment to Green Palm Self Catering Apartments − www.greenpalm.sc).

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Antonio has been building on the property ever since he purchased it in 1992. The pirate museum took three years to build, and a lot longer to decorate, while his private residence took two and a half years to complete.Antonio's home is just as fascinating as the museum and reflects the artists creative flair and passion for mystery and esoteric art. The front door is a work of art in itself. Inscribed in Latin is a verse alluding to Antonio's arrival from the Alps to the rocky islands of "unanimous nature", and living "at the time of the act" in his futuristic fortress.Every detail in his home has been hand-crafted, from the gloss varnished strip-panel flooring to the creative lighting that draws attention to a spectacular central water feature. Carved pillars and objet d'art are evident throughout the spacious open-plan interior.The master bedroom bears testimony to the mans' egoism − the philosophical theory that one’s self is, or should be, the motivation and the goal of one’s own action. His hand-sculpted bed, bearing the Latin inscription 'cogito ergo sum' (I think, therefore I am) is adorned with astrological signs of the Zodiac, and illuminated with flashing diode bulbs. Above the bed hangs an automated ceiling fan clad in shiny blue suede material with gold tassels to match the bed-spread. On the left-hand side of the bed, Antonio touches a section of the natural rock wall, which swings out to reveal an ingenious natural shower, where water flows over a protruding rock slab set beneath an open sky-light.

Having concluded the tour, I offer a 100 Rand bank note in consideration of the sign posted on the spider-web entrance gate, which clearly states 100 Seychellois rupees for the tour. Antonio declines, but when I show him the portrait of Nelson Mandela emblazoned on the bank note, he eagerly accepts. I won't be surprised to see this bank note incorporated into a piece of art when next I visit.Before walking back to the hotel, my Kempinski Resort guides and I enjoyed a cool refreshment on the wrap-around balcony of Maria's Rock Cafe, which forms part of the extensive building. I had a brief glance through the menu and noticed the restaurants speciality − fresh meat, fish and vegetables served raw on wooden platters along with bowls of sauces and a flame heated granite stone slab, allowing patrons to cook their own meal at their table. On the wall I noticed a 2014 Certificate of Excellence from TripAdvisor (. Glancing through some of the reviews while writing this editorial, opinions vary but what does come across is the overall praise for amenity creativity and high rating of patron satisfaction. In conclusion, Seychelles is more than a 'melting pot of cultures' − it's a bohemian rhapsody with a distinctive style of creativity just waiting to be explored and savoured. I've listed a few Seychellois artists overleaf and can't wait to explore these hidden gems on my next visit to paradise.

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Artists and Art Studiosin Seychelles:Adelaide Studio

Gee is a successful watercolour artist. He came to Seychelles in 1993 as a fashion and textile instructor at the School of Art & Design.

Baie Lazare, Mahé. Tel: +248 257 4853.

Andrew Gee

Baie Lazare, Mahé. Tel: +248 436 1649.Email: seygee@gmail.com

Donald Adelaide has been a professional artist for some 20 years. He works with watercolours and sells both original and print paintings.

Antonio Filippin Sculpture Studio

Baie Lazare, Mahé. Tel: +248 251 0977. Email: arc@seychelles.sc

Filippin was born in Italy and started his career in Germany as a sculptor-philosopher. He moved with his family to Seychelles in 1992.

Barbara Jenson Studio

Anse Reunion, La Digue. Tel: +248 4 23 44 06. Email: jenson@seychelles.net Website: www.barbarajensonstudio.com

Barbara works in any medium that enables her to express her artistic talent and love of the islands.

Colbert Nourrice Studio

Au Cap, Mahé. Tel: +248 251 9640.Email: colbertnourrice@seychelles.scWebsite: www.colbertnourrice.sc

Colbert Nourrice is one of the most promising and aspiring young artists currently on the contemporary art scene in Seychelles.

Egbert Marday - Kreasyon

La Misère, Mahé. Tel: +248 437 8456. Email: emarday@seychelles.netWebsite: www.egbertmarday.sc

Marday is well known for his work as an artist, painter, sculptor and model-maker.

George Camille Art Gallery - Kaz Zanana

Victoria, Mahé. Tel: +248 432 4150. Email: info@sunstrokeseychelles.com Website: www.georgecamille.sc

Kaz Zanana is a beautiful wooden Creole style gallery and café showcasing the work of local artist, George Camille.

La Comet Art Works

Maldive, Mahé. Tel: +248 271 6507. Email: lacometart@seychelles.sc

Seychellois artist, Allen Gervais Comettant works as a graphic artist and sells original abstract paintings from his home.

Michael Adams Studio

Anse aux Poules Bleues, Mahé. Tel: +248 436 1006. Email: adams@seychelles.net Website: www.michaeladamsart.com

Adams style is hieroglyphic realism focusing on people in landscape and using eclectic sigils in the details.

Nigel Henri Acrylic Paintings

Beau Vallon, Mahé. Tel: +248 251 2049. Email: nnigdesigncon@aol.com

Henri produces original acrylic paintings on canvas which depict cultural life in Seychelles as well as underwater scenes.

Tom Bower's Sculptures Studio

Anse à la Mouche, Mahé. Tel: +248 437 1518. Email: artworks@seychelles.net

Bowers' bronze sculptures depict the beauty and serenity of island life and can be found in private collections worldwide.

Zsaklin Miklós

Email: zsaklin.miklos@gmail.com

Born in Hungary, Miklós grew up in contact with the colours of Budapest and moved to Seychelles in 2010.

ATTRACTIONS

Antonio Filippin's creative flair is evident in his home, from the moment one steps through the front door.

AUGUST 2014 15Tourism Tattler Trade Journal

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BUSINESS

The information below was extracted from data available as at 29 July 2014. By Martin Jansen van Vuuren of Grant Thornton.

ARRIVALSThe latest available data from Statistics South Africa is for January 2014:

Current period Change over same period last year

UK 43 077 25.3%

Germany 27 972 32.6%

USA 24 744 16.0%

India 8 820 6.7%

China 15 425 28.6%

Overseas Arrivals (excl same day visitors) 243 176 20.1%

African Arrivals 740 675 18.5%

Total Foreign Arrivals 740 675 18.5%

NB: African Arrivals plus Overseas Arrivals do not add up to Total Foreign Arrivals due to the exclusion of unspecified arrivals, which cannot be allocated to either African or Overseas.

HOTEL STATSThe latest available data from STR Global is for January to May 2014:

Current period Average Room Average Room Revenue Per Available Occupancy (ARO) Rate (ARR) Room (RevPAR)

All Hotels in SA 61.9% R 1 033 R 640

All 5-star hotels in SA 63.4% R 1 849 R 1 173

All 4-star hotels in SA 61.2% R 977 R 598

All 3-star hotels in SA 62.1% R 811 R 503

Change over same period last year

All Hotels in SA 0.1% 8.5% 8.6%

All 5-star hotels in SA 2.5% 7.9% 10.6%

All 4-star hotels in SA -1.5% 6.7% 5.1%

All 3-star hotels in SA 2.2% 6.9% 9.3%

ACSA DATAThe latest available data from ACSA is for January to April 2014:

Change over same period last year Passengers arriving on Passengers arriving on Passengers arriving on International Flights Regional Flights Domestic Flights

OR Tambo International 1.9% 6.4% -1.1%

Cape Town International 6.0% 8.0% 1.3%

King Shaka International 16.3% N/A -3.8%

BUSINESS & FINANCE

Market Intelligence Report

WHAT THIS MEANS FOR MY BUSINESSThe data from Statistics South Africa indicate that there was an 18% increase in total tourist arrivals to South Africa in January 2014 compared to January 2013. An analysis of the port of entry of these tourists indicate that Cape Town International Airport experienced a 68% increase in total number of tourists, with King Shaka and OR Tambo experiencing a 61% and 7% increase respectively. The data from ACSA shows that the number of arrivals on international flights at Cape Town International Airport in January 2014 increased by 4% over January 2014, while King Shaka and OR Tambo experienced a 16% and 5% increase respectively. Taking into account that the ACSA data includes both foreign nationals and South Africa residents in their data for arrivals on an international flight, the question can still be raised as to why the discrepancy in growth is so big? The number of South African residents arriving on international flights to Cape Town would need be significant in order to reduce the growth from 68% to 4%. However, the available data does not support this. The difference between the number of foreign tourists entering at a particular airport as indicated by Stats SA (January 2014) against the arrivals on international flights as indicated by ACSA (January 2014) is shown in the table below.

For more information contact Martin at Grant Thornton on +27 (0)21 417 8838 or visit: http://www.gt.co.za

January 2014 Cape Town King Shaka OR Tambo Source Arrivals on international flights 84 635 14 723 384 731 ACSATotal Number of Tourists 63 795 2 592 220 587 Stats SA

The number can also not be explained by arrivals of foreign tourists on domestic flights as they do not enter through passport control on domestic flights in order to be included in the Stats SA data.

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AUGUST 2014 17Tourism Tattler Trade Journal

AUGUST 201418 Tourism Tattler Trade Journal

Q2 Tourism Business Performance

The report shows a score of 94.7 across April, May and June, indicating performance just below normal, and almost 18 points below January to March’s 112.4 index reading. The industry had already shown an expectation of a dip with a projected 103 performance, but actual performance was somewhat worse than expected at 94.7. Expectations for quarter 3 are at about the same level at 98. A score of 100 is regarded as the normal trading climate. The lower reading emanated mainly from the ‘Other Tourism’ business segment (excluding accommodation), which includes travel agents, transport operators and conference centres. ‘Other Tourism’ businesses achieved a score of 86.2 points only.Meanwhile the accommodation sector still performed better than normal achieving an index of 105,8; although it is down from the 116.1 score which was registered in the first quarter, but slightly ahead of the forecast performance index of 103.The numbers come off the back of the TBCSA’s Annual General Meeting in June, where the newly appointed Minister of Tourism, Derek Hanekom met with the travel and tourism trade. In this meeting he lauded the private sector’s contribution to the growth of the industry over the years but stressed the need to ensure that the growth was inclusive and contributed towards addressing the challenges of inequality and poverty in the country.The Tourism Business Council (TBCSA) says whilst it welcomed the Minister’s views, it remained concerned about various factors which continue to bar sustainable growth. “The biggest challenge facing many tourism businesses remains the rising cost of doing business which can also be attributed to government legislation, regulations and input costs as 44% of TBI respondents cited. Insufficient domestic and international leisure demand, especially from South Africa’s key source markets also featured heavily as constraints on performance” says TBCSA CEO Mmatšatši Ramawela.Businesses, which fall under the ‘Other Tourism’ segment, are also affected by threats of a struggling economy.

South Africa’s tourism business performance dipped in the second quarter of this year, according to the latest

TBCSA FNB Tourism Business Index (TBI).By Kagiso Mosue.

BUSINESS & FINANCE

On the positive side, employment level expectation for the next quarter is an encouraging balance at +2,8% and +8,6% for accommodation and 'other' tourism business respectively, indicating some very modest growth in employment. The Minister’s AGM address identified job creation in the industry as a key priority.Head of Advisory Services at Grant Thornton, Gillian Saunders, said: “This is especially welcomed after the accommodation sector’s - 49,7% negative outlook on balance for employment growth in the second quarter. It indicates a re-stabilization of employment levels after what appears to have been major restructuring. Going forward no doubt the industry will continue to grow employment as it maintains reasonable overall performance levels”.Overall both the accommodation sector and other tourism businesses have a positive outlook of on balance +5.1% and +20% respectively when considering the year ahead. In comparison, the RMB/BER Index, which represents general business confidence, has continued to remain low, recording 41 index points for both quarter 1 and quarter 2 of 2014. Tourism businesses remain slightly ahead of this in performance, still indicating more buoyancy than the economy generally. More encouraging is that tourism businesses are hoping to beat the negative curve across the rest of the year.“Essentially, the tourism business index is telling us that the improved trading conditions in the tourism sector have receded somewhat and that challenges remain, but the fundamentals for tourism are still good,” Ramawela concluded.The full report can be downloaded at: www.tbcsa.travel/downloads/tbi-report-q2 2014

+27 (0)28 384 1774 | bookings@whitesharkprojects.co.za | www.whitesharkprojects.co.za

South Africa

Down on Q1

AUGUST 2014 19Tourism Tattler Trade Journal

Following the success of the previous three conferences, this year's conference. taking place on the 29th & 30th October 2014 at the ICC Durban, KwaZulu-Natal, is aimed at celebrating the successes and achievements of the sports and events tourism industry over the past 20 years.The focus has also been expanded to include Arts, Culture and Lifestyle events with sport events as part of the Events tourism sector.

Conference Fee: R3500.00 excl VAT

REGISTRATION IS NOW OPEN

AUGUST 201420 Tourism Tattler Trade Journal

AUGUST 2014 21Tourism Tattler Trade Journal

AUGUST 201422 Tourism Tattler Trade Journal

When an entrepreneur speaks of the problems of access to finance, it is often perceived as the “magic bullet” in the success of any small tourism business. This is despite the fact that numerous studies place this issue below other factors of success in rating of importance. Other factors include access to information, business support, skills development and access to markets. Nevertheless, it is a vital component and one with which many businesses battle. Often small businesses are required to provide some sort of surety or percentage contribution for an equity loan from a traditional finance institution. Surety is often a major problem for historically disadvantaged individuals, as home ownership (being one of the most common forms of surety) is often not an option. In addition, for an entrepreneur to be able to provide a large proportion of the financing required can be an impossible ask. Banks also tend to raise the interest rate to “mitigate the risk” of small businesses, given their high failure rate. It is also virtually impossible to obtain operating capital as this is considered even riskier from the banks’ point of view. This is often the greatest stumbling block in the development or expansion as a small tourism business, given that the “bricks and mortar” are only part of the total offering to its customers. In order to address this problem, the Tourism Enterprise Partnership (TEP) has introduced the iKwezi Tourism Facility (ITF).TEP has partnered with the Small Enterprise Finance Agency (sefa) to develop an assistance facility which will provide financial support specifically tailored to the small tourism business. A fund of some R50 million has been specifically ring-fenced for the ITF, and will

Entrepreneurs need access to finance, but they also need access to other factors that contribute to business success,

such as training, mentorship and market access. By Paula Bester.

be managed by a dedicated team at TEP. Loans ranging from a minimum of R10 000 to a maximum of R5 million will be available to qualifying enterprises. The iKwezi Tourism Facility is only available to TEP-registered clients and each application will be individually assessed on its own merits. The key qualifying criteria are as follows:• Registered tourism SMMEs must be controlled by a majority of

South African Citizens with valid South African Identity Documents;• The facility is open to all races with specific emphasis on women

and rural/peri-urban areas;• Applicants must be registered clients who have paid their

annual administration fee of R600 (plus VAT) and/or any other commitment fees where applicable;

• All tourism business operations, including but not limited to projects, programmes or enterprises, must be operated within South Africa; and

• The enterprise must be compliant with generally acccepted corporate governance practices appropriate to the client's legal status.

• Applicants are considered on merit and potential profitability of the business.

For more information visit: www.ikwezifacility.co.zaBut as pointed out by TEP Chief Executive, Dr Salifou Siddo; “Access to finance is only one of the factors affecting the success of a business. This has long been the missing link in our endeavours to provide a holistic solution to small tourism development in South Africa.

The TEP is now the only tourism SMME development organisation in the country which, in additional to normal business development support such as training, mentorship and market access, is now also able to provide access to finance.”As access to finance is only one of the barriers to success, TEP insists on each applicant being registered with the organisation as a way to ensure that the financial beneficiaries are receiving all the other support required to allow the business to flourish. Finance alone will not guarantee to such.In order to do such, TEP has created an Intervention and Support Model which can accurately identify and measure the needs of individual clients in terms of their current position.

For more information visit: www.tep.co.za

Access to Financea critical factor in SMME development

BUSINESS & FINANCE

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AUGUST 2014 23Tourism Tattler Trade Journal

AUGUST 201424 Tourism Tattler Trade Journal

What isTax Season?

Typically the term 'tax season' refers to the period in which individual tax returns need to be submitted, as all individuals have a tax year ending on the last day of February every year. Companies and Close Corporations however can have a tax year end at the end of any month of the year.

Without going too much into the detail, we’ll quickly outline the requirements for the different types of tax payer.

Individuals and Sole Proprietors

As mentioned, the tax year end is 28 February. You thus need to complete your tax return and post or drop off at SARS by 26 September 2014, if you are using the paper returns. If you want to do it electronically at a SARS branch then 21 November 2014 is your deadline. Many people however now file their tax returns on e-filing. If you use e-filing and are a non -provisional tax payer then make sure you submit by 21 November 2014 and if you use e-filing and are a provisional tax payer then you have until 30 January 2015.

So who needs to submit a tax return and who is a provisional tax payer? If ALL of the following apply to you, you may not have to submit an Income Tax Return:

1. Your total employment income is not more than R250,000 for the year;

2. You only received employment income from 1 employer during the year;

3. You don’t have any allowable tax deductions to claim e.g. medical; retirement etc.

4. You have no car allowance or any other form of income e.g. interest, rent etc.

One often hears the term 'tax season' bandied about, which sends shivers down the spines of many. But are

there circumstances in which a sole proprietor does not have to submit a tax return at all?

By Kevin Watson.

BUSINESS & FINANCE

A provisional tax payer generally is any person who derives income in a form other than remuneration so typically includes sole traders, partners, members’ of a CC or directors of a company.

Rental on an investment property and interest on investments are examples of non- remuneration income. It is up to you to determine whether you are a provisional tax payer and failure to submit a provisional tax return will incur penalties and in most cases interest. Provisional tax returns are due on 31 August and 28 February every year.

Companies & Close Corporations

A company or Close Corporation can have their year- end at the end of any month in the calendar year. Every registered taxpayer is required to submit an annual tax return within twelve months after the end of the financial year of such taxpayer.

In addition to annual returns, every business is required to submit provisional tax returns. These returns are required to be submitted six months prior to the year end and at year end and must contain estimated figures of tax for that period. Any payment must accompany the return.

Smaller companies may also select to be on either Turnover Tax, where the annual turnover of the business in below R1 million and Small Business Corporation Tax for businesses with Turnovers less than R20 million per annum. Obviously terms and conditions apply.

There is never as good a time as the present to sit with your tax advisor and really understand your tax obligations and opportunities.

For more information visit: www.sproutconsulting.co.za

AUGUST 2014 25Tourism Tattler Trade Journal

are no hidden monthly fees. iKhokha also offers a 24 month rental option for merchants looking to avoid an upfront cost.

The Edge card reader is available in four colours– black, white, yellow and pink– and both the Edge and iKhokha mobile app are compatible with iPhone 4 upwards and most Android mobile devices.

iKhokha will continue to expand its mobile service offering using the Edge device as the secure foundation on which to provide further innovation for all South African businesses.

For more information visit www.iKhokha.com

Facebook: www.facebook.com/ikhokha

Twitter: @ikhokhasa

Instagram: @ikhokhasa

YouTube: www.youtube.com/ikhokha

To enter this competition, simply find the answer to the following question (the answer can be found in the text below) and visit the Tourism Tattler website at: www.tourismtattler.com/?p=13134

“What does the iKhokha Edge do for a mobile phone?”

The first five correct entries drawn after the closing date of 28 August 2014 will each win one iKhokha Edge Chip & PIN card reader, complete with mobile application software download, with the compliments of Emerge Mobile (T&C's apply - refer link).

The Edge, a secure Chip & PIN card reader that plugs into a smartphone, and coupled with the iKhokha mobile app, transforms the phone into a secure mobile Point of Sale (mPOS) terminal, thus enabling merchants to process bank card payments – anywhere in South Africa.

Using the Edge, a wide range of South African businesses are also able to tender cash, card and mobile transactions, sell value-added services (such as airtime) and monitor and track sales performance and transactional history through the slick and easy to use Mobile App.

Simplicity, service and security are the three pillars on which the iKhokha ethos has been built. The proudly South African developed and manufactured solution has been through an incredibly rigorous international testing process with regulatory bodies and card schemes to ensure world class security.

To “Get the Edge”, business owners simply apply via the website at www.ikhokha.com and then download the iKhokha app from the relevant app store (subject to FICA regulations). The proprietary iKhokha online portal removes much of the hassle that SMMEs would normally face when signing up with their bank through traditional channels. Once paid for and approved, the Edge is delivered to the merchant. The solution is available to all businesses irrespective of their bank.

Merchants pay a once-off cost of R989.00 (incl VAT) for the Edge Chip & PIN card reader and thereafter a flat 2.75% per transaction − there

Note: THERE ARE NO WINNERS FROM JULY AS THIS COMPETITION HAS BEEN CARRIED OVER INTO AUGUST. Editor.

WIN

C O M P E T I T I O N

1 of 5 iKhokha EdgemPOS Card Readers

Note: Read the Terms and Conditions of this competition at: www.tourismtattler.com/wp-content/images/Competition-Aug2014-TermsConditions.pdf

Watch this demo Video

www.youtube.com/watch?v=lCXc-QGBYuk

AUGUST 201426 Tourism Tattler Trade Journal

CONSERVATION

Rhino Horn TradeStatement by the

Department of Environmental

Affairs

The South African government is well aware of the worldwide assault on wildlife, particularly rare and endangered species. South Africa, as home to more than 80% of the world’s rhino population, has been facing an onslaught from rhino poaching syndicates since 2008.Our initiatives to address rhino poaching have incorporated not only increasing the number of rangers protecting our wildlife, but also improving regional and international collaboration with range and consumer states. It has also included introducing legislation and policy measures to support the tasks of those working to ensure rhino and other wildlife threatened by poachers and crime syndicates are protected and will not become extinct.While the Department of Environmental Affairs was authorised by Cabinet last year to explore the possible legalisation of trade in rhino horn with CITES at the 17th Conference of Parties in 2016, no final proposal has been compiled, or decision made, regarding the future legal trade in rhino horn as an additional intervention to reduce the levels of poaching.This means no final proposal has been compiled regarding the future legal trade in rhino horn as an additional intervention to reduce the levels of poaching.As international anti-trade campaigns gather momentum, it is of critical importance to emphasise that South Africa’s position regarding the trade in rhino horn is being distorted by the anti-trade lobby and the media.

A Panel of Experts, under the chairmanship of the Deputy Director General: Biodiversity and Conservation in the Department of Environmental Affairs, Mr Fundisile Mketeni, has been appointed to assist the Inter-Ministerial Committee appointed by Cabinet to deliberate on the matters relating to a possible trade in rhino horn.The Panel of Experts has started its work and will, in the coming months, listen to all sides of the trade debate before submitting a set of recommendations to the Inter-Ministerial Committee. No proposal to CITES will be finalised until all the questions related to the trade in rhino horn have been comprehensively debated and investigated.The proposal to be tabled to CITES in 2016 will be based on sound research, take into consideration the terms of the recent London Declaration. It will not be influenced by any individual wanting to “line their pockets” or any group opposed to South Africa’s sustainable utilisation policies. The proposal is part of a set of holistic interventions introduced by government, SANParks and conservation institutions to stem the tide of rhino poaching.Poaching remains the biggest threat to South Africa’s rhino and our successful conservation track record. South Africa believes that the decision to table a proposal at the next CITES CoP is timeous, and may be a step towards addressing a scourge that is decimating one of our iconic Big Five species. South Africa is however not in any way insinuating that the possible trade in rhino horns would be a panacea to the problem of poaching.

Issued by Albi Modise, Chief Director: Communications at the Department of Environmental Affairs - 06 June 2014.

While the government’s decision on whether to table a proposal at the CITES CoP17 or not will be based on the outcome of the Inter-Ministerial process, South Africa believes that legalising the trade in rhino horn will in no way contribute

to increased poaching.

EXCERPT

"

"

Rhino Poaching Deaths vs Poacher Arrests - Stats for South Africa by Province

KNP = Kruger National Park, MNP = Mpumalanga National Park. Statistics released by the DEA as at 10 July 2014. Source: www.wessa.org.za

Year 2010 2011 2012 2013 2014Deaths vs Arrests Deaths Arrests Deaths Arrests Deaths Arrests Deaths Arrests Deaths ArrestsKNP 146 67 252 82 425 73 606 133 351 67 MNP 00 00 06 00 03 00 03 00 00 00Gauteng 15 10 03 16 01 26 08 10 03 10Limpopo 52 36 80 34 59 43 114 34 80 16Mpumalanga 17 16 31 73 28 66 92 00 24 07North West 57 02 31 21 77 32 87 70 37 36Eastern Cape 04 07 11 02 07 00 05 26 10 02Free State 03 00 04 00 00 06 04 07 04 00KwaZulu-Natal 38 25 34 04 66 20 85 63 48 25Western Cape 00 02 06 00 02 00 00 00 01 02Northern Cape 01 00 00 00 00 01 00 00 00 00TOTAL 333 165 448 232 668 267 1004 343 558 165

The latest statistics shown in the table below (as at 10 July 2014) reflect the reality of rhino deaths from horn poaching compared to poacher arrests. A total of 3,011 dead rhinos compared to 1,172 arrests over just four and a half years! Editor.

Incidents of poaching can be reported to the anonymous tip-off lines 0800 205 005, 08600 10111 or Crime-Line on 32211.

AUGUST 2014 27Tourism Tattler Trade Journal

CONSERVATION

The ongoing rhino poaching crisis in Southern Africa is the catalyst that prompted Outraged South African Citizens Against Poaching (OSCAP) to stage an international conference in Pretoria in April this year. This article reviews the conference, which culminated in an 86-page journal of

arguments presented by the participants. By Susan Barrett.

Rhino Horn TradeAssessingthe Risks

AUGUST 201428 Tourism Tattler Trade Journal

The OSCAP conference theme 'Assessing the Risks of Rhino Horn Trade' brought together respected conservationists from many countries and areas of expertise to address the issue of whether legal trade in rhino horn will bring an end to the poaching epidemic in South Africa. Kruger National Park on the Mozambique border is in the eye of the storm, and to date over 550 rhino have been killed across the country in both state-owned and private game reserves.

After a reportedly wide-ranging consultation process in 2013, legal trade in rhino horn was officially added to the agenda as one of the options in the Department of Environmental Affairs’ (DEA) strategy to control poaching. Minister Edna Molewa’s department is committed to further investigating a legal trade scenario, based on the premise that ‘flooding the market’ with a ready supply of legally available horn will make poaching unprofitable. A year on and the DEA continue to deliberate, with the aim of deciding whether to bring forward a formal proposal to legalise trade in rhino horn at the next Convention on International Trade in Endangered Species (CITES) Conference of the Parties (CoP) in Cape Town in 2016.

It is against this backdrop that OSCAP’s conference took place, laid-bare the many flaws in the pro-trade rhetoric, and gave rise to the 'International Rhino Coalition'. Their journal is a compilation of the anti-trade arguments that were delivered and debated by the economists, conservationists, researchers, and delegates who attended. This diverse group of experts included Will Travers, co-founder of Born Free Foundation 30 years ago, who has attended every CITES meeting since 1989; Mary Rice, Director of the Environmental Investigation Agency (EIA); and Dr Paula Kahumbu Director of WildlifeDirect in Kenya, who was awarded a prestigious Whitley Fund for Nature award in London, as well as many others.

Dex Kotze opened the conference by addressing the issue of the unmeasured size of an unpredictable market for rhino horn, which is influenced by increasing wealth and population growth in China and other consuming countries, in a well-researched and factual presentation titled 'Asian demographics, the cult of the luxury goods industry and its aftermath for endangered wildlife'. In his 'rhino consumption scenario' he estimates that there would be a staggering shortfall of horn over the years if unrestricted trade were

to go ahead; for example, if one percent of Asian consumers used one gram of horn per year, the 18-ton government stockpile would be all but wiped out in a year.

As the economic model for trade is at the crux of the debate, Maastricht University economist Francisco Aguayo gave his analysis of legal trade proposals: “(This) proposal is based on the premise that a legal supply of rhino horn can make illegal trade economically unviable and thereby reduce poaching to a significant degree.” Francisco presented a robust argument against legal trade and concluded, “Under many market configurations, legalization can be expected to preserve and reinforce illegal trade and poaching.” Emphasising the shortcomings in rhino economics, he added “Another flaw is the ignorance of the social, economic and institutional context in which trade would take place. Economic decisions involve much more than simple reaction to prices.”

Suzy Watts of Humane Society International agrees, and elaborates, “South Africa’s plan to sell rhino horn legally at a lower price, in order to undercut the illegal market, will backfire badly. There is no incentive for the East Asian traders to keep prices low at the retail end.” They both presented evidence to dismiss the dangerous and unreliable presumption that established criminal networks would stop poaching rhino in order to buy cheaper and more easily available legal horn.

Wildlife Trafficking Consultant Justin Gosling discussed one of the most contentious issues surrounding legal trade: that it could readily create two parallel markets – legal and illegal, that would operate alongside one another, as is the case with ivory, tigers, reptile skins and other wildlife ‘products’. Justin added that wildlife crime enforcement must generate a deterrent to prevent harm from occurring at the outset, and that most nations lack this enforcement capacity. There is no way to guarantee, or even reassure, a skeptical conservation community that government departments could reliably manage the economic, political, and ethical complexities of legal trade, when lack of transparency and non-compliance have been issues in the past. Yet these same departments would be entrusted with the task of regulating and rigidly enforcing lucrative legal trade.

There is little motive in CITES for allowing legal ‘commerce’ in rhino

CONSERVATION

AUGUST 2014 29Tourism Tattler Trade Journal

horn, and South Africa has already begun to isolate itself from international conservation circles because of its indecision over this issue. Rather than risk submitting a proposal to CITES that will almost certainly fail, South Africa should demonstrate robust political will and commit itself to other anti-poaching initiatives such as tightening legislation to bring criminal networks to justice, including “khaki collar” criminals who delay court proceedings time and again, and supporting demand reduction by sending a clear, consistent anti-trade message to consumers. “Now is not the time to confuse the Vietnamese”, is the warning from Duong Viet Hong of the Wildlife Conservation Society in Vietnam, referring to the progress they are making toward changing peoples’ attitudes in her country.

After the conference, presenter Mary Rice observed, “It felt as if the conference was the first opportunity for a gathering of groups and individuals who do not subscribe to the view that trade in rhino horn represents the salvation of the species. I was struck by how isolated many of the participants felt and how relieved they were to discover that their experiences were not unique, and to be able to articulate these without feeling intimidated or treacherous.”

Environmental journalist Ian Michler summed up his presentation and

the sentiments of participants at the conference with this statement: “The burden of proof rests with those advocating change – not those defending the current CITES position. And they must prove beyond reasonable doubt that trade will significantly enhance the survival of the species and stop the poaching.” Thus far, the DEA, private rhino owners, and the rhino economists have failed to do so.

For more information or to download the OSCAP International Rhino Coalition Journal (4.1MB) visit: www.oscap.co.za

About the Author: Susan Barrett has a B.A. degree in Communications from Oberlin College in the USA. She lived in South Africa for ten years, and during that time co-produced audio-visuals for the former Natal Parks Board, Pilanesburg National Park, and the Wilderness Leadership School for Dr Ian Player. She is committed to the cause of saving rhino in the wild in Africa.

Watch this videoThis video, initially uploaded by Jim Turnbull on Vimeo, features a Nick Chevallier production for the Conservation Action Trust and OSCAP, that illustrates the folly of legalising the trade in Rhino Horn, and the dire effects that this could have on the survival of the species.

Special thanks are due to the Environmental Investigation Agency for allowing the use of archive footage, and to WildAid for permission to include Jackie Chan in "Tools of the Trade" as aired on primetime Network TV and screened in many public places throughout China, and soon to be available for broadcast in Vietnam. Thanks also go to the following for their contributions - Born Free Foundation, Humane Society International, IFAW, Lawrence Anthony Earth Organization, Saving Private Rhino.

Video link: http://youtu.be/ixp7EMxUC2c

CONSERVATION

This opinion piece by Brian Sandberg was originally submitted to Business Day in response to an article by Michael Eustace (Rhino poaching: what is the solution? www.businessday.co.za/articles/Content.aspx?id=162979).

As it was not published in Business Day, Tourism Tattler is publishing it – as submitted – given the rising debate in South Africa over rhino horn trade. Brian was an avid campaigner for wildlife conservation in Africa and his articulate and

insightful blog posts will be missed. Editor.

Rhino Horn TradeA Litmus Test for Environmental

Governance

AUGUST 201430 Tourism Tattler Trade Journal

There’s a growing voice to lift the global ban on rhino horn trade and for me, as a concerned citizen – and conscious of our national species’ custodial obligations – five key issues arise.

1. Precautionary PrincipleFirstly, I believe it’s critical to define the globally-accepted litmus test for any national, environmental decisions.In a landmark 2007 Constitutional Court ruling (known as the Fuel Retailers case), Ngcobo J was clear that the National Environmental Management Act of 1998 “requires ‘a risk averse and cautious approach’ [that] entails taking into account the limitation on present knowledge about the consequences of an environmental decision”. Internationally, this tenet is called the “precautionary principle”.Our former Chief Justice explained it as being “applicable where, due to unavailable scientific knowledge, there is uncertainty as to the future impact of the proposed development”. He stated that “authorities [need] to balance environmental needs and environmental concerns [as this] is the principle of sustainable development”.Given such legal precedence, methinks Eustace (and others) should present a more comprehensive scenario that includes risk and threat analyses to counter their upside, commercial revenue projections.

2. Trade Ban A ‘Miserable Failure’Secondly, Eustace is highly critical of CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora). Their 175 member states regulate global affairs and defined rhino trade from 1977. Of their trade embargo, he states that “while well intentioned, the ban has been a miserable failure”.Southern white rhino research in 1999 by two internationally respected scientists, Emslie and Brooks, noted “it is currently the most abundant subspecies of all rhinoceros taxa and its recovery has been recognised as one of the world’s greatest international conservation successes”.From 2000 to 2007, on average, 15 rhino were lost to poaching annually, 30 times less that the gut-wrenching, bloody stats of 2013*. A CITES report records SA’s population in 2009 at about 18 000 rhino (roughly 200 times more than when the ban began) as a result of a decade’s annual growth average of 6,6% p.a.Personally, I struggle to find a “miserable failure” in a 30-year triumph.

In analysing mitigating factors of current poaching properly, independent researchers should study, inter alia, ‘pseudo-hunting’ (from 2003, via ‘rogue’ hunters), poor law enforcement and weak permit management (locally and internationally), the rapid growth of Far Eastern regional trade, investment and foreign employment, high growth in improved transit routes and telecommunications, and local corruption allegations.

3. Other Species’ ExamplesThe third issue is that SA holds almost 90% of Africa’s rhino population. Given abnormal premium pricing for horn, objective comparisons with other species facing similar threats must be undertaken, scientifically. For me, two similar examples are caviar (sturgeon) and ivory (elephants).The Caspian Sea is home to about 90% of global sturgeon. Despite united and concerted efforts by regional law enforcement agencies of the 5-nation sea-neighbours to stop illegal poaching over the last 3 years – mainly driven by large criminal syndicates – this species’ future is now threatened. Russia’s called for a 10-year moratorium on all fishing and Iran recently gazetted a 5-year ban.‘Raw’ ivory is altogether different, since global trade is banned. From 2003, increased poaching and illegal trade led to certain states, including SA, being allowed to sell ivory in 2008 to China and Japan, via auctions, to counter strong, pent-up demand. However, 2009’s 16 tonne interceptions of large illegal shipments (i.e. those over 800kgs) was trumped by an all-time record of over 23 tonnes in 2011.These two premium-priced species’ examples highlight genuine global management efforts to meet consumer demand being undermined by sophisticated criminal activity. Other examples exist. International conservator role-players now mistrust managed supplies for any demand of premium-priced, threatened wildlife.

4. Traditional Chinese MedicineFourthly, legalizing rhino horn trade is promoted for its status to meet traditional Chinese medicine (TCM) demand. However, this is somewhat fallacious, given China legislated a rhino horn ban in 1993. Vietnam and many other key south-east Asia countries later followed suit. Rhino horn was officially removed from TCM’s pharmacopeia. Substantial international NGO and multilateral agency funding for China and other TCM markets has promoted more responsible and ecologically sustainable use of wildlife for over a decade.

* Refer table ' Rhino Poaching Deaths vs Poacher Arrests - Stats for South Africa by Province' on page 22. Editor.

CONSERVATION

AUGUST 2014 31Tourism Tattler Trade Journal

About the Author: Brian Sandberg passed away at his home in Durban on April 15 2014. Born in Zimbabwe in 1953, Brian moved to South Africa 35 years ago, and made a key contribution to the Proudly South African campaign through his own NGO Bayathenga 2000 (all the people are buying). Through his blog Viva Afrika, Brian engaged in a range of campaigns, especially those linked to preserving the environment and wildlife for future generations. He argued passionately against hunting rhinos and elephants, and he was an active member of the Save the Rhino campaign. A moving tribute to Brian’s life can be viewed at www.dispatchlive.co.za/opinion/passing-of-a-transcender/

No evidence exists that promoters of legal horn trade have formally approached China, or other states, for opinion as to their positions on amendments to laws permitting horn trade. It would be quite laughable if, for example, SA decided to legalize marijuana (dagga) and built a business model around exporting it to meet pent-up medicinal demand in, say, the USA (where it’s currently outlawed) without bilateral discussions first. My analogy isn’t different from the principle of supplying TCM demand where rhino horn has been illegal regionally for almost 20 years.Furthermore, hundreds of wildlife species’ ingredients are banned in TCM. There’s no known precedent whatsoever for the re-introduction of a premium ingredient (such as horn) in TCM compounds after lengthy trade embargoes. Questions arise when assessing collateral damage for other banned species that might be publicly misconceived to be similarly now ‘unbanned’. Thus, related trade officials must apply the “precautionary principle” in their decision reviews, given an absence of knowledge for future, consequential damage.

5. International Eco-TourismFifthly, SA Tourism recorded approximately 1,5m non-African arrivals, Jan-Sept 2011. A fair assumption would be 2m annual visitors. At current levels, the average inter-continental visitor spends roughly ZAR 11 000 (about US$ 1500) per visit.With SA’s growing international media exposure for poor environmental governance over poaching, coupled with increasing criticism in social media over calls to legalize horn trade, plus government’s drive to grow eco-tourism, there’s clearly a risk that poor, sensitive decisions will impact on future overseas arrivals.If arrivals drop by, say, 1%, then 20 000 annual overseas tourists are lost – i.e. R220m in revenue losses, at current pricings – each year. One therefore must evaluate expensive global marketing of a Big 5 experience, which would include viewing dehorned rhino, plus any associated costs for additionally marketing such explanations.

SADC RHINO MANAGEMENT GROUP Eustace wrote that the SADC Rhino Management Group asked the Department of Environmental Affairs (DEA) to motivate a CITES trade ban lifting in 2013. Dr. Mike Knight, the group chairman, refuted such a claim in the Saturday Star on 3 December 2011 after Pelham Jones, chairman of the Private Rhino Owners Association, was quoted making a similar claim.Jones also claimed the DEA and TRAFFIC – the international monitoring group for wildlife trade – supported trade. Subsequently, both parties refuted his claims.To conclude, I believe it’s vital for rhino security that objective dialogue continues, to find smarter, optimized solutions. I’m not opposed to trade, if there is compelling, scientific justification. All I seek is a ‘risk averse, cautious approach’.Ngcobo J’s wise counsel rings in my ears again when he recounted the Global Judges Symposium’s Johannesburg Principle where delegates affirmed they’d “spare no effort to free all…from the threat of living on a planet irredeemably spoilt by human activities”.

AUGUST 201432 Tourism Tattler Trade Journal

HOSPITALITY

Tourism Tattler correspondent, Renate de Villiers visited Entabeni Safari Conservancy in South Africa's Limpopo province to discover what developments have taken place under the portfolio management of Legend Lodges, Hotels

and Resorts.

Property Review

A Legend(ary) Cultural Conglomeration

All over the world different cultures have different names, different accents and different sentiments, which means they attach different meanings to certain things. Despite the differences, there are still things that appear to spur the same emotions and Entabeni is one of them. Entabeni stimulates the sensation of tranquillity amid the bushveld prairie, the awareness of a bush-country breeze whispering secrets to the trees and the understanding of a unique custom – that of the Legend culture.

Entabeni Safari Conservancy and Legend Golf & Safari Resort have taken on the Legend culture in many ways. Entabeni, which means 'Place of the Mountain', is an unusual rock block situated on a 22 000 hectare piece of land near Naboomspruit. Its golden grass and umbrella trees are a similitude of a true bush empire. The Conservancy started off at the foot of Entabeni Mountain where one of the six lodges, Ravineside, is situated today. From there it developed into a conglomeration of lodges carefully positioned all over this fabulously located property, including the Wildside Safari Camp, Hanglip Mountain Lodge, Ravineside Lodge, Kingfisher Lodge, Lakeside Lodge and Southern Sky Camp. In addition to this, the Legend Golf & Safari Resort was also developed, with two unique golf courses and numerous venues ideal for group excursions and events.

With a niche market that almost has no borders in terms of culture

and lifestyle, the Legend Golf & Safari Resort and Entabeni Lodges cater for top global golfers, international and domestic tourists, timeshare holders, corporate groups and families. A drive of less than three hours from Pretoria welcomes you into a world of open air, forthcoming staff and enjoyable activities. Between two game drives per day, inimitable 10-hole Tribute Course, the 18-Hole Signature Course and the one of a kind Extreme 19th Hole (which is independent of both courses and can be played on it’s own), a newly developed putt-putt course, an array of arranged water activities, helicopter flights, numerous party and function venues, the Signature Clubhouse (currently under construction) and various restaurant and spa options, there are not enough hours in a day.

Accommodation (The Big 6)Six lodges form part of the Entabeni Safari Conservancy, and each offers different experiences that are unique to its specific location. From the Wildside Safari Camp, and Southern Sky Safari Camp, to Ravineside Lodge’s log cabins overlooking the gorge, Hanglip Mountain Lodge’s carefully prepared deluxe rooms (looking out onto a swimming pool often enjoyed by hippos), Kingfisher Lodge’s perfect location, Lakeside Lodge’s WiFi, and Southern Sky Camp, which is being refurbished and will open in October 2014.

Ruby coloured throws and cushions create an interesting contrast to the bushveld’s bland winter tints in the spacious room at Legend Golf & Safari Resort. In some instances more modern and better equipped than the deluxe Kingfisher Lodge, the attention to detail (and guest preference) is evident. This includes a hand shower in the bath, a safe in the cupboard and a flat screen television.

Encounter the Big Five with qualified rangers at Entabeni Safari Conservancy.

The unique Hanglip Mountain peak. © Renate de Villiers.

Wildside Tented Camp. © Renate de Villiers

AUGUST 2014 33Tourism Tattler Trade Journal

HOSPITALITY

Kingfisher Lodge, situated on a lake on the upper escarpment, has a rustic, yet romantic feel to it. Wintertime here is not your typical thaw-your-back-in-the-winter-sun climate. Still, in spite of the cold, the view, the in-room fireplace and electric blankets make up for frozen knees and knuckles. The not so modern, yet practical furniture fits in well with the room’s rural character. Meals with a view over the lake are a definite selling point – whether it is indoors or outside; morning, noon or night. The a la carte dinner and colourful breakfasts are full of freshness and flavour, and hearing hippos as you head to bed is a remarkable experience.

New ClubhouseThe new Signature Clubhouse, due to be launched in September, is situated at the resort’s exclusive 18-hole golf course, with each of the course’s holes designed by a different professional golfer. After its launch this clubhouse will accommodate numerous types of functions and guests will be able to enjoy drinks on the upper deck while indulging in the view of Entabeni.

According to General Manager, Andy Young, there are a couple of new wine lists and restaurant developments in the pipeline which only adds to the wide array of entertainment and dining options. Other venues that resemble shebeens and tree houses allow event organisers to let the creativity flow. Traditional conference venues, some even with all-round projection, are also available, allowing for conferences and formal gala events of up to 400 guests. The tented conference rooms are airconditioned.

On both the lower and upper escarpment, guests can catch a glimpse

of the unique Hanglip Mountain peak at various picnic spots and outside venues, creating lasting memories with romantic dinners, picnics and sundowners. These include Waterberry and Yellow Wood picnic spots and two Wild Fig picnic spots – one right next to the resort’s landing strip and the other on the upper escarpment. Many groups combine their stay with an informative cultural tour through the on-site Pedi village, an educational botanical walk or a historical tour through the museum and then end it off with a buffet dinner at one of the venues.

Yellowwood RoadBuilt by four women and two men over a period of five years – carries shuttles and game vehicles between the lower and the upper escarpments. This bushveld highway was given its name due to the Yellowwood Trees growing on either side of it and rangers’ driving and navigation skills need to be outstanding, to say the least, in order to take on this challenging one-way road. Transporting up to 140 people at a time, with qualified rangers and game vehicle shuttles on permanent standby, guests have no need to worry about that extra glass of wine.

In addition to road safety, groups are also assured of their safety with numerous signs for assembly points. A health and safety officer normally informs guests of the procedures to follow in the case of an emergency. The multi- purpose amphitheatre is used as meeting point for these information sessions. Fire extinguishers are not so aesthetically, but strategically placed all around the resort, venues and picnic spots and every lodge has a permanent ranger allocated to its premises.

Responsible TourismBeing part of the Legend culture means that you share sentiments and experiences with others as well. It’s also about contributing to the local community and the immediate environment. Legend Golf and Safari Resort and Entabeni Lodges’ support to a local school, which was founded by the Legend group, doesn’t go unnoticed. With Marimba concerts, choir performances and gumboot dances these kids have an opportunity to share their talents with the world and add an exciting experience to the cultural aspects of the group’s legend. This invests (emotionally and financially) in the children’s

Legend Golf & Safari Resort is home to the Extreme 19th Hole - the world’s longest par three at 361 metres to the green situated 400 metres below the tee.

Lookout Spa's barge © Renate de Villiers.

AUGUST 201434 Tourism Tattler Trade Journal

education and social wellbeing. In addition to this the on-site Rhino Orphanage is also something the group not only founded, but largely contributes to. When it comes to supporting the local economy, suppliers from the area are recruited as far as possible - especially when it comes to agricultural products. According to Young they are also in process of developing a recycling system on the premises.

With the golf resort, which has 235 rooms (excluding its rental pool) and the five Entabeni lodges that add another 90 rooms, it’s impossible not to create a unique Legend culture. Over time, similar to a few small villages, they have developed a distinctive way of living on this multi-hectare land. It is evident in the way its rangers communicate, the way guests are welcomed and the manner in which strangers become friends.

Getting to know this Legend(ary) culture is a privilege and to an outsider a memorable cultural experience.

The Legend group did not only succeed in creating its own culture, but also its own language…

About the Author: Tourism Tattler correspondent Renate de Villiers is a young entrepreneur who recently started her own company, Travelling Mystery Guest, assisting travel destinations to walk the talk. Offering customer journey evaluations, workshops and social media marketing training, Renate is sure to become part of many travel destination families in South Africa. www.travellingmystery.co.za

Did you know?• Due to the odd shape of its horns, the Rooi Hartebees is known

as the Harley Davidson of the Bushveld. • The Blesbuck is also referred to as a Dombok in Afrikaans, which

can be translated as a silly buck.• The Impala, with the “M” on its buttock, is also known here as

the M-buck or McDonalds Buck. • The Turtle Dove’s call can be translated as: “Work-har-der, work-

har-der”.• The Loerie is now also known as a “Go-away bird”.• ALT is an acronym for Animal Looking Thing and is usually used

when you spot a rock and think it’s an animal.• Traffic in the bushveld happens when the elephants block the

road.• Elephants are also referred to as Ndovu by Legend’s rangers – the

typical name for these big footed mammals in Northern Africa.

Tips for your stay:• Rooms have plugged in hair dryers, so you can leave yours at

home. • Pack a two point plug.• Pack loads of warm clothes for the game drives, as well as a buff

or a scarf if you want to avoid the dust.• The only venue with WiFi is Lakeside, situated at the furthest end

on the upper escarpment, so you might want to consider bringing along some alternatives.

• Confirm your dietary requirements on arrival as there is the possibility of confusion.

• Confirm if your room has a safe if you plan on taking valuables along. Better safe than sorry. (No pun intended).

• Spend some money at the curio shops (almost each lodge has one) – it goes toward the Rhino Orphanage Fund.

For more information visit: www.legend-lodges.co.za

HOSPITALITY

Yellow Wood Picnic Spot. © Renate de Villiers.

Kingfisher Breakfast with a view over the lake. © Renate de Villiers.

Ravineside Lodge Room. © Renate de Villiers.

Advertisement sponsored courtesy of Ogilvy & Mather / Tourism Tattler as a service to the travel trade. AUGUST 2014 35Tourism Tattler Trade Journal

AUGUST 201436 Tourism Tattler Trade Journal

LEGAL

When you are asked to address the concept of risk, how do you approach the topic and what do you deem to be ‘risk’? I was asked to do that and thought it would be easier if I categorise risk into the following five categories and then deal with the risk profile of each, i.e. broadly speaking the areas of risk that any business is exposed to can been allocated under these five categories:

1. PEOPLE

2. MONEY

3. LAW

4. SERVICE

5. ECOLOGY

All businesses should be aware of these risks, take the necessary steps to identify the extent to which it manifests itself in his or her business and take the necessary steps to minimise, contain or eliminate the risk. This process is called risk management and the successful implementation of such a process will not only make your business more risk averse but will also lead to a decrease, not only in the incidence of high risk events, but also to your insurance premiums. If you do so successfully over a period of time, you even be in a position to qualify for higher excesses and thus lower premiums (subject to your risk and claims profile), and if you are REALLY successful, you can start looking at self-insurance and even an off-shore captive – now we are talking!

1. PEOPLE

People may be at the heart of any business but what do I mean by people? Let’s make things simple and say for the sake of this discussion there are four categories, namely:

• Staff (whether full time employees or independent contractors – who incidentally are not employees and don’t fall within the jurisdiction of the CCMA.

Disclaimer: This article is intended to provide a brief overview of legal matters pertaining to the travel and tourism industry and is not intended as legal advice. © Adv Louis Nel, 'Louis The Lawyer', August 2014.

• Third party service providers (‘TPSP’).

• Business associates; be they partners, shareholders, directors, members or trustees (Bear in mind that in terms of the Consumer Protection Act (CPA), all of these business associates, including associations and body corporates, are deemed to be legal personae, which is unusual).

• Customers (note that in terms of the CPA – even a potential customer is a customer for the purposes of the Act!).

Each category brings different challenges to the table and if you don’t realise this, have proper contracts, systems and strategies in place, you may well be ‘caught with your pants around your ankles’ and embarrassment will be the least of your worries!

– PART 1 –

THE CONCEPT OF RISK

RISKIN TOURISM

Part 1 of this new series on Risk in Tourism looks at the first two of five risk categories from a legal perspective.

“A ship is always safe at the shore - but that is NOT what it is built for.” Albert Einstein.

The Fine Print

READ MORE ON RISK IN TOURISM ON PAGE 38.

This article looks at the fine print of insurance policies - aka policy wording.

By André du Toit.

Managing Risk − PART 2 −

AUGUST 2014 37Tourism Tattler Trade Journal

Understanding

Many photographic enthusiasts have discovered the value of reviewing the histogram whilst working in the field. The histogram is the graph of the tonal range which one can make

visible when reviewing your photographs on the camera.By Peter Wickham.

TheCamera

Histogram

PHOTOGRAPHY

The first step is to know how to see the historgram graph next to the photo being reviewed in the viewfinder. To do this, select a photo stored on your camera's flash drive and view it in the LCD monitor. Next, find a button marked 'INFO' or 'DISPLAY'. If your camera does not have one of these buttons then you may need to refer to your camera's instruction manual to ascertain how to display your histogram on the LCD screen when reviewing photos. In this article, we will be working with the black and white histogram and not those represented in red, green and blue.Next, you need to know what the Histogram actually does. The histogram displays the tonal range of the shot being reviewed in graphical terms. The tonal range is between the numerical values of 0 to 255 with zero being black (absence of any light) and 255 being pure white (full recordable amount of white). One will note that the values towards the left of the graph represent the the darker tones, whilst those towards the right, represent the lighter tones. The tonal range recorded between these two sectors represents the mid tones.Generally, a photograph will have tones across the spectrum, however if the scene being photographed has no black or white components, then we would expect a gap on the either the right of the graph (absence of white) or on the left (absence of black). The absence of black occurs more frequently than does the absence of white, and therefore one should be concerned if a gap exists on the right of the graph, indicating that the image is under exposed (image needs more light to be allowed into the camera). Whist it may occur that there are gaps on either side of the histogram, these instances are rare, and if the gap is on the left, it usually means that the image is over-exposed (too much light being allowed into the camera).

About the AuthorPeter Wickham is a professional photographer with over thirty years of experience. When not on assignment for hospitality and travel projects, Peter teaches photography on a one-on-one basis or to small groups.

Tel: +27 (0)79 670 7356Email: info@proimpact.co.zaWebsite: www.proimpact.co.zaFacebook: Pro impact productions

Remember that you are in control of exposure settings, and within parameters, can either lengthen or shorten the time that the shutter stays open (shutter speed), open or close the lens aperture (lower

number = wider aperture, higher number = smaller aperture), or increase or decrease the sensitivity of the sensor with the ISO setting, with due consideration that higher ISO settings result in graininess to a greater or lesser extent in your photograph.Contrary to popular belief, nobody can tell you what the 'ideal' or 'perfect' histogram should look like, as each scene will determine a different tonal range. It is up to the photographer to determine that if the scene is generally bright, that the histogram will reflect this as being heavy on the right side of the graph and the opposite if the scene is largely dark.One should only accept “cliff face” drops on the left or right of the histogram if one intends to clip the blacks or whites in the image (clipping means that the tonal range is unable to determine the extent of blacks or whites in the image and will then clip any further tonal range which might be available, to the tonal range reflected in the graph i.e. 0 – 255). If clipping does occur, then generally that detail in the clipped sectors is lost and will show on the image as pure white or pure black.In closing, the only way to get used to the histogram is through trial and error. Practice makes perfect as they say.Should you have any questions feel free to send me an email or simply post a comment beneath any one of my articles on the Tourism Tattler website.

AUGUST 201438 Tourism Tattler Trade Journal

Have you ever read through your insurance policy wording with complete understanding? Lack of complete understanding is in itself a huge exposure and unless you consult a specialist insurance broker you may be left none the wiser.

Much of the Fine Print is hidden in policy wording under headings such as Terms and Conditions or Exclusions and Limitations – even Excess Structure can have some hidden surprises unless highlighted by your broker! The insurer’s policy wording contains all that is important and can either be delivered to you “as is” or negotiated upfront by a broker with niche market experience and sufficient business volume to warrant the insurer adjusting the policy wording.

Below are some policy wording adjustments that make all the difference to your cover.

Terms and Conditions (T&C’s) – are the most well-known as they follow every advertisement and make up the fine print in many contracts, your insurance schedules included. The potential gap here lies more in your understanding of the terms and conditions of the contract of insurance you have taken out.

Examples would include:• Condition’s of cancelation of the policy. 30 days notice.• Condition’s of claim reporting.• Condition’s around misrepresentation and non-disclosure.

Exclusions and Limitations are in a similar bracket – they are inserted into all policies to manage the level of risk that insurers take on. These can create gaps in insurance cover, which you assumed were there, and which can cause a claim to be rejected or not paid in full. It is imperative that you understand the fine print in your insurance policies.

Example of Exclusion: Contractual Liability. The contracts you sign with booking agents must be scrutinised to ensure that they do not slip in a clause that indemnifies them for everything and anything that may go wrong regarding guests while in your care. It can however be accepted if it includes “where you are seen to be negligent” which is deemed reasonable. Should you sign such a contract it may nullify your insurance because you cannot bind your insurer to a third party contract.

Example of Limitation. Legal defence cost – you’ll find most defense costs are capped at around R50K. No prizes for those who guess how much time that buys you in a court room! The fact is, the capped amount is likely to be grossly insufficient, and cases of litigation in this industry are not simple considering the possibility of an international guest being involved.

Excess structures (first amount payable) can be used as an effective means of taking on a portion of the risk i.e. higher excesses result your premiums being reduced. Be sure they are fully disclosed, as often the saving in premium is highlighted rather not the hefty excess. Example:. 5% of claim, minimum R15,000, sounds great when applied to a lightning excess, but 5% of a R10 million building

The Fine PrintIn Part 1 of this three part series, I wrote about the importance of building a culture of ownership and looked at the 'Big 5' preventative measures in managing risk. This article will deal with the fine print of insurance policies - aka policy wording.

By André du Toit.

is R500K – that’s your excess! The lesson here is being fully aware of the structures at play, and your capacity to absorb the knock. The excess can be increased, decreased, flat, a percentage and even capped. Discuss consequences openly.

There are three sections worth highlighting, as these are common requirements for most businesses and each may leave you exposed if not clearly understood and applied.

1. Liabilities. Liability policies are those that will indemnify the insured should they be found legally liable / negligent for damage or injury to third party property or person.

Unlike a vehicle or a building that you can attach a value to, it is very difficult to quantify a potential liability exposure. A few things are worth considering:• Within the tourism and hospitality sector, you are often dealing

with high net worth individuals and foreigners. • When calculating an award, legal costs, pain and suffering, future

loss of earnings (factoring in annual inflationary increases and potential promotions) – for the rest of the injured individuals anticipated working career – medical costs, etc. are all considered. This combined with the current rate of exchange; potential awards can run into hundreds of millions of Rands, Dollars or Pounds.

• Liabilities are therefore arguably the single biggest exposure that any Company is faced with, particularly within our very specialised industry, which it becoming more and more litigious.

It is therefore crucial that Companies carry sufficient liability cover and that the sum insured is sufficient in Rand currency terms to indemnify the Insured for potential International award in Euro’s for example. Each client therefore needs to factor in who their target market is in terms of age, net worth and nationality when determining their indemnity limit (sum insured). In addition the liability exposure to the tourism and hospitality sector is unique and therefore requires a specialised product. A few covers that should be considered:-• Legal Defense Costs – Is this cover included / has the limit been

capped? • European Community (EC) Directive – critical should you do a

lot of business with international booking agents. • Jurisdiction – In which courts in the world will your policy

respond? • Territorial Limits – In which Countries are you / your

subcontractors permitted to operate in?• Sub-contractors – Are you covered for the actions of your

subcontractors? Most operators make use of sub-contractors for certain services e.g. transfers, day trips, activities, specialist skills etc. If you receive monies and bookings on behalf of these entities then you are potentially liable. It is vital that these individuals or companies have their own covers in place and that you check this up front.

2. Assets. This would extend to property and its contents as well as motor vehicles or any other tangible assets. The most important consideration when insuring your assets is ensuring that your sums insured are sufficient. More often than not people will insure for the purchase price. This is wrong!

Property. Property is more often than not an appreciating asset. If a lodge / hotel were to burn down (for example):• The debris would have to be removed before any reconstruction

can take place – there’s a cost involved.• Professionals then need to be consulted to draw up plans for the

new structure – there’s a cost involved.• Often lodges are situated in remote areas and building materials

are not easily available and have to be transported a great distances (or even imported in some instances) – additional cost involved.

Managing Risk − PART 2 −

AUGUST 2014 39Tourism Tattler Trade Journal

RISK

About the Author: Andre du Toit is the Sales and Marketing Director at SATIB Insurance Brokers, a registered financial services provider with offices throughout South Africa and in Botswana, Mozambique, Namibia, Zambia and Zimbabwe.

For more information, email andre@satib.co.za or visit www.satib.com

• The cost of building materials has escalated excessively in recent years, so if you were to buy building materials today for a property purchased three or four years ago, it would be significantly more expensive – another unforeseen cost!

• Many clients also forget to include VAT.

The fact that you had it built for half the price does not matter.

There is an extensive list of considerations – but essentially all of the above have a cost / value attached to them.

Vehicles. Vehicles are usually depreciating assets and most Insurers will only compensate you for the retail / market value. It is therefore important that sums insured be depreciated each year failing which you could be paying more than you should. Extras such as roof racks, fridges and winches must be declared and valued separately. Many standard market policies also exclude vehicles that are used for the transportation of fare paying passengers.

3. Loss of Income / Business Interruption. Most tourism and hospitality businesses sell a service / experience, for which they are remunerated. Should your establishment burn down, you stand to lose your bookings and the potential revenue that you would have earned had you been operational. This area in particular is often not looked at closely enough; and many Insured’s find themselves underinsured. The following should always be considered:• Worst case scenario – should you have a total loss; how long will

it take you to get back up and running? This is not limited to the rebuilding of the lodge but must take into account loss of market share, as invariably guests will find an alternative holiday venue invariably with the competition.

• Basis of cover. Various options exist here and it is important to talk to your advisor to properly understand the difference:• Revenue Basis – this is often recommendation to the tourism

and hospitality due to it being a service driven industry.• Gross Profit Basis – can be used in some instances – where

there is stock / goods sold.• Rental. • Increased Costs only.

• Business Interruption policies need to be catered for each individual depending on their specific requirements. There are many extensions and optional extras that can be purchased and it is important that you are aware of what these are so that you are able to make an informed decision as to whether or not you would like to purchase insurance to protect yourself. One such example is prevention of access – e.g. if there is damage to a road/bridge not on the insured premises that prevents guests accessing the premises.

So in terms of fine print it is important to consider the following:1. Engage in a specialist broker to ensure the product you buy is

comprehensive and caters for your specific needs2. Spend time understanding your options and how they can be

applied3. Ensure full detail is discussed with you so you are comfortable

that the T&C’s, Exclusions and Limitations, Excess structures and cover limits are in fact going to adequately cover you in the event of a claim.