Conservancy presentation to government

1
Conservancy presentation to government

• Proposed land rentals

2
background

• Amendment to the conservancy policy
  appreciation
• Objectives of the conservancy programme
• Pre-independence situation
• Locals had negative attitude towards wildlife
  poaching
• Involvement in conservation marginal
• No legislation
• Post-independence situation
• Increase in wildlife
• Increase in conservancy income
• Increase in employment
• Change of attitudes

3
Background (continued)

• Post-independence situation
• socio-ecological surveys
• 1992 Policy on establishment of conservancies
• 1995 policy on wildlife management utilization
  and tourism in communal areas
• 1996 Nature Conservation Amendment Act

4
Progress to date

• 31 registered conservancies
• 95 000 people benefiting
• 74 000 km² of land covered by conservancies
• Increase in wildlife population
• Co-existence of people and wildlife
• Increase in financial and non-financial benefits
  from n0 in 1994 to n14 mill in 2003

5
Core issue

• Cabinets decision of 22nd june 2004
• Interpretation
• An 8 levy on gross income will be charged on
  all lodges, hotels and campsites on communal
  land. If this is charged on the investors
  turnover, community might end up getting nothing
  as investor may not be willing to pay double
• Implications
• Impact on tourism establishment
• Impact on conservancies
• Impact on the government
• Threat to potential investors
• Impact on conservation efforts

6
Impact on tourism establishments

• Impact on operations
• The lodge will have to up its prices by 8 this
  will make it uncompetitive
• JVs will be rendered unviable
• Investors will prefer to invest in private land

7
Impact on conservancies

• Conservancy Current Situation
• Expenditure N per year
• Salaries 90,000
• Admin Costs 10,000
• Vehicle 25,000
• Maintenance 25,000
• Meeting Allowance 10,000
• Total Expenditure N160,000

8
Impact on conservancies

• N per year ___________________
  ______________________
• Income gross nett income to
  conservancy
• Campsite 60,000 60,000 30,000 (50)
• Trophy
• Hunting 100,000 100,000 100,000 (100)
• JV Lodge 2,500,000 1,875,000
  187,500 (10 lease fees)
• (25 deductions)
• - Commission
• - Bookings, etc.
• Total Income N317,500
• Profit N157,500

9
Impact on conservancies

• Conservancy Land Boards take 8 of gross income
• Expenditure N per year
• Salaries 90,000
• Admin Costs 10,000
• Vehicle 25,000
• Maintenance 25,000
• Meeting Allowance 10,000
• Total Expenditure N160,000

10
Impact on conservancies
N per year
Income Gross Net leasehold needed Income to land board (60,000 x 8) income to conservancy (30,000 4,800)
Campsite 60,000 60,000 Yes 4,800 25,200
Trophy 100,000 60,000 No - 100,000
(2,5mill x 8)
JV Lodge 2,500,000 1,875,000 (25 deductions Commission Bookings, etc) Yes 200,000 0 (200,000 exceeds 187,500 due as lease fees)
Total Income Loss . N125,200 N34,800
11
Proposed options

• Do away with 8 and stick to current pto fees,
  while waiting to come up with a higher pto fees
  as per regulation 14 of the communal land reform
  act. The fees to be charged should not be based
  on income levels

12
conclusion