Public–Private Partnerships in South African National Parks: The Rationale, Benefits and Lessons Learned - Responsible Tourism: Critical Issues for Conservation and Development - page 52

Environmental value
As a conservation body, stringent Environmental Impact Assessment (EIA)
requirements are required before any tourism project is embarked upon. Expert
consultants are sourced for tourism development processes to conduct EIAs and
the process can take a few months, thus ensuring environmental aspects are
covered thoroughly. As a state conservation body, SANParks has also developed
benchmarks that are often more stringent than the requirements of the EIA and
other government specifications. The environmental regulations that apply to
commercial operators are in many instances superior, creating a benchmark in
SANParks own nature-based tourism operations and, over time, SANParks will
be obliged to comply with these standards. This can only be to the long-term
benefit of South Africa's national parks.
Risk transfer
The Strategy has resulted in significant commercial risk transfer to the private
sector, including construction risk, availability risk, insolvency risk, market
demand or volume risk and operating risk. However, SANParks is still exposed to
the risks experienced by the private party and hence effective contract manage-
ment is essential.
Lessons learnt from the Commercialization
Strategy 2000
As such projects typically yield high returns, and thus associated high risks are
expected, the need for SANParks to effectively learn and adapt from all the
lessons learnt is of the utmost importance.
Fundamental shift towards 'Responsible Tourism and Commercialization'
The Commercialization Strategy 2000 was developed during a period when
SANParks was particularly short of cash and experiencing financial challenges
and constraints. The Strategy was hence developed as a commercial alternative to
state funding in order to ensure survival.The emphasis was placed on the need for
SANParks to become financially self-sufficient or self-supporting. However,
SANParks subsequently underwent a fundamental shift in its thinking to a more
responsible approach to tourism and commercialization.
In developed countries the cost of managing protected areas is mostly borne
in full by the state, whereas in developing countries such as South Africa, there is
a mix of donor-dependency and heavy reliance on tourism development.
SANParks generates approximately 80 per cent of its operational revenue from
tourism and commercialization contributes to 12 per cent of tourism revenue.
However, there are limitations to tourism performance, particularly if the biodi-
versity mandate is not to be compromised.
At SANParks the phenomenal national park expansion of 140,000 hectares
since 1994 has not been matched by an increase in the state operational grant.