Public–Private Partnerships in South African National Parks: The Rationale, Benefits and Lessons Learned - Responsible Tourism: Critical Issues for Conservation and Development - page 50

existing lodge facilities or built new ones. The contractual mechanism is in the
form of a concession contract, which enables the concessionaire to use a defined
area of land, plus any buildings that may already exist on that land, over a specific
time period in return for the payment of concession fees. Against these rights of
occupation and commercial use of facilities, there is a set of obligations on the
part of the concessionaire regarding financial terms, environmental management,
social objectives, empowerment and other factors. Infringement of these require-
ments carries specified penalties, underpinned by performance bonds, and finally
termination of the contract, with the assets reverting to SANParks. In addition to
the accommodation concessions, the Commercialization Strategy 2000 also
resulted in the awarding of 21 shops and 17 restaurants across all national parks to
private operators. Facilities were upgraded at the operator's expense whilst
SANParks receives a guaranteed monthly annuity income from these operators.
Tender processes in PPP processes are as prescribed by Regulation 16 of the
Public Finance Management Act of South Africa. Once bids are received, they are
evaluated for their technical, empowerment and financial credentials. The techni-
cal specifications are usually developed with the assistance of industry experts for
the specific product being put out to tender. Empowerment (or Black Economic
Empowerment, BEE), is a combination of Equity (or ownership), SMME devel-
opment, and Training and Affirmative Action. BEE requirements are guided by
the Tourism Charter (a code of good practice developed for the tourism industry
that is currently in the process of being legislated). The financial bid would allow
an evaluation of quantifiable investments and a percentage of turnover as commit-
ted by the bidder.
Benefits of the Commercialization Strategy 2000
The Commercialization Strategy 2000 yielded benefits to SANParks in terms of
strategic value, monetary value, increased infrastructure and socioeconomic
value, environmental value and risk transfer.
Strategic value
Implementation of the Commercialization Strategy 2000 has resulted in increased
market segmentation and product and price differentiation with 380 additional
guest beds in the five-star segment, resulting in increased economic activity and
the generation of foreign exchange. SANParks did not previously operate any
facilities in the five-star market, as its existing beds and camp sites were in the
budget two- to three-star market. In addition, implementation of the Strategy has
resulted in improved efficiencies in restaurant and retail facilities, contributing to
an enhanced visitor experience for the guests of SANParks.
The Strategy has also resulted in an increased contribution to the broader
economy through the tourism multiplier effect and SANParks' image has
improved as it is more widely perceived that the national parks are being put to
responsible and sustainable use for the economic development of the country.