Environmental Engineering Reference
In-Depth Information
Monetary value
The Commercialization Strategy 2000 has, since 2002, yielded the net income
shown in Table 3.1 to SANParks for the funding of SANParks' operational
mandate.
Table 3.1 Income from commercialization to SANParks
Product
Total income
US$ Equivalent
(R7.50 = US$1)
Concessions
R54,954,278
$7,327,237
Other
R30,299,941
$4,039,992
Restaurant and retail facility rentals
R37,002,267
$4,933,636
Total
R122,256,506
$2,967,534
Commercialization expenses to date
-R15,254,346
$2,033,913
Net income commercialization
R110,002,160
$14,666,955
Note: Figures as at 31 March 2007.
Source: Adapted from SANParks' Annual Report 2006-7
The financial returns depicted in Table 3.1 represent a net benefit/profit to
SANParks constituting 11.63 per cent of total tourism revenue (before expendi-
ture).
Increased infrastructure and socioeconomic value
The Commercialization Strategy roll out has resulted in increased infrastructure
with the concessions to the value of R270 million (in 2001 terms: US$36 million)
with the assets ultimately reverting to SANParks. In addition, it has resulted in the
refurbishment of the ageing infrastructure of both the restaurant and retail facili-
ties, to the value of R15 million (
US$2 million).
The strategy resulted in broadening the participation of BEE partners in the
tourism industry, thereby contributing to the demographic restructuring of the
industry and poverty alleviation. Private Party agreements included the following
contractual commitments:
increased employment in the tourism industry with 620 new jobs excluding
construction;
BEE Equity in excess of the national Tourism BEE Charter and Scorecard
requirements;
a total of 79 per cent of employees recruited from HDI communities adjacent
to the Parks;
a guaranteed spend of R14 million (
US$1.6 million) per annum with local
community SMMEs;
considerable continuous skills transfer and training; and
the tourism multiplier effect to the broader economy.
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