The perspectives of a transborder tourism operator Presentation by Glynn O Leary CEO Transfrontier Parks Destinations on 7 May 2015 to the 4 th Annual Conference of the Sustainable Tourism Certification Alliance
Who we are Transfrontier Parks Destinations: TFPD Tourism Management and Marketing Company operating: Lodges Camps and Bush camping Wilderness Trails 4x4 Trails In TFCAs or en-route to TFCAs Specialise in Commercialising Community Tourism Assets
Where we operate
Responsible Tourism Awards 2015, African Responsible Tourism Awards: Gold: TFPD: Best for Poverty Reduction Silver: TFPD Foundation: People & Culture Long-listed: African Ivory Route : Blouberg Camp
Economic value generated In 2006: Tented camp in the GLTP: 1 Beds: 10 Full time local jobs: 5 By end of 2015: Rural lodges and camps: 16 Beds: 300 Full-time local (rural) jobs: 170 Local salary bill: R9,0m pa Asset enhancement for communities R100-million to date R150-million in next 36-months
Kgalagadi TFP:!Xaus Lodge 2007
!Xaus Lodge Today
!Xaus Lodge-Quality furbishings
Achievements at!xaus Lodge Asset enhancement & growth Operational stability Managing distance & climate Service standards (Trip Advisor reviews) Product awareness International and regional Staff development Management includes local Head Chef and Head Guide All but 2 staff members from surrounding communities Accreditations, awards & conference invitations Fair Trade in Tourism Accredited 2010 Imvelo Award for Best Practice Economic Impact 4* Grading with TGSA Included in Africa s Finest Various academic case studies and presentations at Business Schools and Responsible Tourism seminars
8-year economic value created Sub total Section Total Percentage Community Owners Rent & assets 1 633 323 Salaries 5 232 207 Crafter sales 757 067 7 622 597 37,3% Local area Procurement 9 927 412 9 927 412 48,6% SANParks Rental 428 954 Conservation 2 462 516 2 891 470 14,1% TOTALS R 20 441 479 100%
Maloti D berg: Witsieshoek Dec 2009
Witsieshoek today
Rooms with THE view
Witsieshoek: Work in Progress Extended Public Works Program to renovate Positives Lodge remained operational securing full-time employment End product will be 4* Tour operator contracts; local & international visitors Challenges/Lessons learnt Inordinate delays; overspent/under-delivered
GLTP: African Ivory Route 2011 6 of 10 camps
African Ivory Route today
GLTP-Awelani: built 2010-opened 2014
GLTP: Machampane 2006
Machampane today
GLTP: So near, and yet so far
GLTP: Not seamless (2014) Accommodation @ Machampane (R1960ppn) (2 people 3 nights incl. meals and activities) R 11 760 60% Car Hire R 2 800 14% Access costs: Car hire co. Cross Border permit R 2 200 Mozambique Visa (2 people) R 1 500 Kruger Daily Fee (arrival 2 people) R 496 LNP Park Fee (2 people) R 280 LNP vehicle fee R 140 Kruger Daily Fee (departure 2 people) R 496 Access cost - total R 5 112 26% TOTAL COST (2 people for 3 nights) R 19 672 =R3279 pppn
TFCA Access Cost Comparison (2014) Based on a three night stay for two people at Machampane (GLTP) vs!xaus Lodge (Kgalagadi TFP): GLTP Accommodation cost Access cost R11760 R5112 Access cost vs Accommodation 43,5% Kgalagadi Accommodation cost Access cost R19800 R1488 Access cost vs Accommodation 7,5%
Challenges facing us in TFCAs Community challenges: Deal with unrealistic expectations (sometimes not only limited to Communities) Often fail to see link between revenue and expenditure & assume if occupancy increases huge profits being made Disputes between Communities and Authorities and amongst members of Communities themselves impact on business Governance between tribal authorities, state bureaucracy & commercial operators: Legal structures Responsibility for establishing Who bears the cost Who ensures appropriate governance procedures are followed
Challenges facing us in TFCAs Funding: Traditional banks difficult other than for Asset Finance e.g. vehicles IDC Funding model not ideal for Community type investment No land and building assets to provide security Donors Bureaucratic processes often too rigid, time delaying and expensive Operational logistics: Cross border processes Guiding Customs duties Client visas Work visas and employment regulations
Challenges facing us in TFCAs Marketing properties in unknown areas: Support for destination marketing lacking Client perceptions around: Political stability Poaching Corruption
Addressing the challenges Governments should define expectations from the concession process & align what each Government is hoping to achieve through this collaboration Be committed to ensuring success by recognising need for: Co-operation at all levels of Trans-boundary Government Providing ease of, and good standard of, tourist access Limiting/eliminating red-tape Sensitivity to costs such as Visas, double Park-entry fees, custom duties etc. Cross-border movement of suitably qualified operational personnel and removing/easing work permit constraints Cross-border movement of supplies where necessary
Addressing the challenges Important that Government/Park Authority concerned: Recognises it is a Partner not an Adversary of the concessionaire Is committed to providing support appreciating that success is mutually beneficial Understands and appreciates the value of the impact of intangible benefits accruing from Tourism to the area e.g. sales and other taxes, reducing social grants, increased economic activity etc. Has realistic expectations from the Concession
Addressing the challenges Community beneficiation is a very emotive issue with expectations varying significantly. Misinformed belief often is that Operators are making millions to the detriment of the Community the minute there are bums in the beds. A Community leader said recently that jobs created are not a benefit but a right his interpretation of benefit was how much money he and his committee was receiving!! Identifying who the relevant Community is and defining what determines Community benefits is critical and needs to be clearly understood & disseminated
Addressing the challenges Operators need to appreciate and understand the importance of: Doing business in a Fair manner Consulting with Community structures Information Sessions/Training Expectations of Government and Communities need to be work-shopped and a platform provided where Government officials and Communities get to understand their role and the role of the Operator. It is counter-productive for Individuals, Governments or Organisations to create false expectations.
Addressing the challenges Facilitation Centre/Desk Government should, through its Department of Tourism, consider a one-stop help-desk that can be consulted by Concessionaires for advice and assistance on issues such as work-permits, import duties etc. so that the counterproductive activities of rogue elements amongst officials in local government (such as traffic and labour) can be highlighted and prevented from destabilising tourism activities Collaborative Marketing and Operating Support Government/Tourism Department/Park concerned needs to recognise that it is their responsibility to market the Destination and the operator s responsibility to market the operation and this requires a collaborative marketing effort and a sharing of costs
Positives to build on Community infrastructure support from NDT and DEA Funding to enhance Community s tourism assets Marketing and Institutional support LEDET & Limpopo Tourism Agency; NCEDT & Northern Cape Tourism Agency: educational & media groups, route development and trade shows Improving support from Parque Nacional do Limpopo SANParks support to concessionaires 20% of website traffic comes from SANParks pages Online reservations!xaus & maybe Machampane in Moz. Steady incremental growth: No quick route to profit e.g.!xaus Operational break-even only achieved after 7 years 24-beds contributed R20,4m to local economy in 8 years
Key: Community Beneficiation
Kalahari people growth
Blouberg-community interaction
Baleni Harvesting of Sacred Salt
From the Klein Letaba to the World
All that hassle Why bother?
Contact Details Glynn O Leary Transfrontier Parks Destinations (TFPD) glynn@tfpd.co.za www.tfpd.co.za Ph: +27 (0)21 701 7860 Cell: +27 (0)82 56 56 56 9!Xaus Lodge www.xauslodge.co.za Machampane: www.dolimpopo.com Witsieshoek www.witsieshoek.co.za African Ivory Route www.africanivoryroute.co.za