Kruger Concession Income Halves
JOHANNESBURG– South African National Parks’ commercialisation strategy, which has seen the establishment of about a dozen private concessions, mainly lodges, at parks around the country, is not proving the conservation money-spinner it was hoped it might be.
In its annual report for the 2004/05 financial year, tabled at Parliament, SANParks notes there has been “a considerable drop in (lodge) concession fees”.
According to its financial statements, the fees collected have dropped by almost half- from R15.9m in 2003/04, to R8.6m last year.
The report attributes this to “financial constraints experienced by the concessionaires”, which led to a change to their contracts and the cancellation of certain fixed concession fee commitments.
“A relief mechanism was implemented during the year. The fixed concession fees were dropped to provide flexibility to the concessionaires, enabling them to adapt to fluctuating market conditions.
“While this has led to a considerable drop in the income for 2005, it is anticipated that the benefits for SANParks in the long term will surpass the initial decline in concession fees,” the report states.
When concessions were first granted to private operators, allowing them to build and operate tourism facilities within national parks, SANParks’ stated intention was to generate additional revenue for conservation.
According to the report, it appears the private lodges now brought in less last year than did SANParks’ trails and game drives, which contributed R12.6m and R14.8m respectively towards turnover.
“Many challenges are still being faced with regards to the implementation of the commercialisation strategy,” the report states.
Most of the private lodges are located in the Kruger National Park.
Income from the rental of facilities in national parks to private business- including shop and restaurant operators- was R18.2m last year, slightly down on the previous year.
In its annual report for the 2004/05 financial year, tabled at Parliament, SANParks notes there has been “a considerable drop in (lodge) concession fees”.
According to its financial statements, the fees collected have dropped by almost half- from R15.9m in 2003/04, to R8.6m last year.
The report attributes this to “financial constraints experienced by the concessionaires”, which led to a change to their contracts and the cancellation of certain fixed concession fee commitments.
“A relief mechanism was implemented during the year. The fixed concession fees were dropped to provide flexibility to the concessionaires, enabling them to adapt to fluctuating market conditions.
“While this has led to a considerable drop in the income for 2005, it is anticipated that the benefits for SANParks in the long term will surpass the initial decline in concession fees,” the report states.
When concessions were first granted to private operators, allowing them to build and operate tourism facilities within national parks, SANParks’ stated intention was to generate additional revenue for conservation.
According to the report, it appears the private lodges now brought in less last year than did SANParks’ trails and game drives, which contributed R12.6m and R14.8m respectively towards turnover.
“Many challenges are still being faced with regards to the implementation of the commercialisation strategy,” the report states.
Most of the private lodges are located in the Kruger National Park.
Income from the rental of facilities in national parks to private business- including shop and restaurant operators- was R18.2m last year, slightly down on the previous year.
Labels: annual report, SANParks, statistics
posted by Kruger2Canyons.com at
Saturday, October 08, 2005
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