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Guidelines  on  Concessioning  &  Sustainable  Tourism  Investment  in  TFCAs  in  SADC  

Dr  Anna  Spenceley            annaspenceley@gmail.com;  www.anna.spenceley.co.uk  Garden  Court  OR  Tambo,  Johannesburg,  2-­‐3  September  2014  

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TECHNICAL WORKSHOP ON CONCESSIONING AND INVESTMENT IN TFCAs IN SADC

THE PROCESS OF PACKAGING PROJECTS

Presented by: Michael WrightConsulting Engineers y Project Managers y Environmental Consultants y Town and Regional Planners

A PROFESSIONAL TEAM DELIVERING CREATIVE PROJECT SOLUTIONS

1TFCAs: The Process of Packaging Projects

E: michaelw@sivest.co.za T: +27 31 581 1573 C: +27 83 670 1436 W: www.sivest.co.za

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Insert client logo

1INSERT PROJECT NAME 1Insert client logo

TECHNICAL WORKSHOP ON CONCESSIONING AND INVESTMENT IN TFCAs IN SADC

THE PROCESS OF PACKAGING PROJECTS

Presented by: Michael WrightConsulting Engineers y Project Managers y Environmental Consultants y Town and Regional Planners

A PROFESSIONAL TEAM DELIVERING CREATIVE PROJECT SOLUTIONS

1TFCAs: The Process of Packaging Projects

E: michaelw@sivest.co.za T: +27 31 581 1573 C: +27 83 670 1436 W: www.sivest.co.za

Tourism  concessions  in    SADC  TFCAs  

Guidelines

Scoping

Situational  analysis

Conference

Process  

Guidelines

Scoping

Situational  analysis

Conference

Step  1

Step  2

Step  3

PracKcal  process  guidance  to  support  decision  making    

Namibia

TorraTorra Conservancy & Conservancy &DamaralandDamaraland Camp Camp

Author: Anna Spenceley.

Photographs: Dana Alan, Wilderness Safaris

Align  conservaKon  &  investment  goals  

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of which almost 39,000 were non-residents. We estimate that approximately 35,000 tourists attempt to climb

others have estimated 40,000 climbers per year in 2007/08.

Tracing the tourist dollar on Mount Kilimanjaro

To climb the Mountain, tourists must use a TANAPA registered guide. Almost all climbers book their climb as a package, which means that a local tour operator organises the climbing staff (guides, porters and cooks), park fees, food and equipment. Some tourists buy their package directly from a Tanzania in-bound tour operator, but most book their climb with a tour operator in their home country and the international tour operator then sub-contracts a local operator.

A typical climb package is sold by local tour operators for an average of US$1,205 for a seven day tour itinerary. This is an all-inclusive arrangement and includes five days on the mountain with a night in a hotel before and after the climb (normally in the neighbouring towns of Moshi or Arusha). In addition to this package cost, interviews with tourists revealed an average of US$171 of out-of-pocket or discretionary spending is made during the climb – a total in-country spend of US$1,376 per tourist.

Figure 2 illustrates the breakdown of total (package and discretionary) climber expenditure, based on information obtained from tour operators, accommodation provider and tourist surveys.

The largest single item of tourist expenditure is National Park fees at 47% of the total cost. Each climber pays an average of US$649 in National Park fees as part of their tour operator package.

The second largest item of expenditure is payments for climbing staff, which amounts 18% of total spending when wages from tour operators and tips from tourists are combined.

average annual income (including both wages and tips) of US$1,830 for guides, US$842 for porters, and US$771 for cooks.

Porters wages vary significantly between different tour operators and routes. Using

widespread abuses of porters working conditions and day rates that vary from US$3.50 to $10.60 per day.

Figure 2: Cost components of a typical Mountain-climbing holiday (US$1,376 in-country)

4%3%6%

6%

18%

16%

47%Park fees

Tour operator margins

Wages & Tips

Accommodation

Food & Beverages

Transport

Cultural goods & services

Mount Kilimanjaro tour operators marketThere are many tour operators in

climbing packages. There are half a dozen long-established operators that each sell about 3,000 packages per year, and the other half of the market comprises of packages that are sold by smaller, niche and less-established operators. There is a steady increase in the number of packages sold by emerging tour operators – often established by former tourist guides. Emerging operators typically sell about 300 climbing packages a year.

Examples  of  good  pracKce  &  Kps  

Planning & development issues:Planning & development issues:DamaralandDamaraland Institutional ArrangementsInstitutional Arrangements

Torra ConservancyLessor / partner

10% revenue.

£300 p/a rent

15-yr BOT

arrangement

Damaraland CampWilderness Safaris

Lessee, Developer and Operator

• Damaraland is a Build Operate Transferpartnership with the community (withWilderness Safaris) (a hybrid rental agreement)

• WS and INDRC organised community into Trustand organised rental/transfer agreement

• 15 year agreement between WS and the Torraconservancy for ~10 hectares (separate fromhunting concession area)

• 10% of the net accommodation fees from eachguest's stay are allocated directly to thecommunity

• For the last 5 years of the agreement wouldhave transferred 20% ownership of assets tothe conservancy and decrease payments of %turnover by 20% each year.

• By year 15 conservancy would have owned andmanage the lodge, and WS would continue tomarket it.

• Books presented to Trust 4x p/a• Joint management committee of WS and

community to discuss lodge development andwider area

StateLand owner

Permission to Occupy

Brian Jones, Jones and Ashley (2001), Bruce Simpson, Chris Roche

Clear  Simple  Short  

Guidelines

Scoping

Situational  analysis

Conference

Policies,  strategies,  legislaKon  

Namibia: -­‐‑  Concession  

policy   -­‐‑  Draft  Parks  and  

Wildlife  management  Bill

-­‐‑  Tourism  policy

South  Africa: -­‐‑  Public  Finance  

Management  Act  –  Treasury  regulation  16

-­‐‑  Municipal  Finance  Management  Act

Malawi: -­‐‑  PPP  Policy  

framework -­‐‑  National  

Tourism  Policy

SADC:  Protocol    on  the  Development  of  Tourism;  Protocol  on  Wildlife  Conservation  and  Law  Enforcement  

Policies,  strategies,  legislaKon  

Botswana: -­‐‑  Tourism  policy -­‐‑  National  Ecotourism  

Strategy -­‐‑  Draft  Tourism  Policy -­‐‑  National  Licensing  

Act

Tanzania: -­‐‑  National  Tourism  

Policy -­‐‑  Wildlife  Policy  of  

Tanzania -­‐‑  National  Policies  

for  National  Parks  in  Tanzania

Plans:  Tourism  Masterplans  (country);  Integrated  Development  Plans  (TFCA;  outside  Protected  Areas);  Protected  Area  Management  Plans

Concession  models  

• Awelani,  South  Africa   Management

• Witsieshoek,  Maloti-­‐‑Drakensberg  TFCA Lease

• Singita  Lebombo,  GLTFCA • Chemucane,  Lubombo  TFCA

Concession  /  PPP

 (BOT,  ROT)

Best  Practice:  Use  of  the  model  and  duration  that  is  most  appropriate  to  the  level  of  investment  and  product  type

Concession  processes  

• Botswana,  Malawi,  Mozambique,  Namibia,  South  Africa,  Tanzania,  Zambia,  Zimbabwe

Competitive  bid  (Tender)

• Angola,  Mozambique Unsolicited

• Mozambique,  Namibia Direct  award  (communities)

Best  Practice:  Competitive  bidding  -­‐‑Most  competitive  and  transparent.    

Transboundary  products    -­‐  AccommodaKon  &  tours  

TransfronKer  Park  DesKnaKons:  Kgalagadi  TFCA,  GLTFCA,  MaloK-­‐

Drakensberg  TFCA    

Wilderness  Safaris:    GLTFCA,  KAZA,  Ponta  do  Oura-­‐Kosi  

Bay  Marine  TFCA      

Transboundary  products    -­‐  Events  

Tourism  investment  guidelines    SOUTHERN AFRICATOUR ISM INVESTMENTHANDBOOK

First Edition

SOUTHERN AFRICAN TOURISM INVESTMENT HANDBOOK DEVELOPED BY RETOSA

The Regional Tourism Organisation of Southern Africa (RETOSA) is a

Southern African Development Community (SADC) institution responsible

for tourism growth and development. In part, the aims of RETOSA are to

increase tourist arrivals to the region through sustainable development

initiatives, 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. The organisation

works together with Member States’ Tourism Ministries, Tourism Boards

and private sector partners.

Designed by Indigo Marketing www.indigo.co.za

Tel: +27 11 315 2420/1

Fax: +27 11 315 2422

Website: www.retosa.co.za

E-mail: marketing @retosa.co.za

research@retosa.co.za

•  Lesotho:    Tourism  Investment  Guide  Toolkit •  Mozambique:    Mozambique  Investment  Climate  Library;  Tourism  concession  

manuals  (public  &  private  sector) •  South  Africa:  PPP  Manual  –  National  Treasury •  Tanzania:  Investment  Guide  To  Tanzania  (UNCTAD);  Guidelines  for  Coastal  Tourism  

Development  in  Tanzania;  Tanzania  Investors  Guide;    TANAPA  Development  Action  Lease  Procedures

•  Zambia:  Zambia  Investor  Guide  Handbook  

Guidelines

Scoping

Situational  analysis

Conference

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

Next  steps: •  Proceedings  of  meeting

•  Revise  guidelines  (vs  2) •  Review  period  (email;  SADC  portal)

•  Final  revision  of  guidelines  (Nov)

•  Dissemination

Thank  you!

Dr  Anna  Spenceley       Email:  annaspenceley@gmail.com  

PresentaKons:  www.slideshare.net/AnnaSpenceley  Website:  www.anna.spenceley.co.uk