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Operating in the TFCAs The voice of experience
Presentation by Glynn O’Leary CEO: Transfrontier Parks Destinations
September 2014 to the
Workshop on Concessioning and Tourism Investment in TFCAs
Transfrontier Parks Destinations | www.tfpd.co.za
Who we are
Transfrontier Parks Destinations: TFPD • Tourism Management and Marketing Company
operating:
– Lodges
– Camps and Bush camping
– Wilderness Trails
– 4x4 Trails
• In TFCAs – or en-route to TFCAs
• Specialise in Commercialising Community Tourism Assets
Transfrontier Parks Destinations | www.tfpd.co.za
Where we operate
Transfrontier Parks Destinations | www.tfpd.co.za
Kgalagadi TFP: !Xaus Lodge 2007
Transfrontier Parks Destinations | www.tfpd.co.za
!Xaus Lodge – Today
Transfrontier Parks Destinations | www.tfpd.co.za
!Xaus Lodge-Quality furbishings
Transfrontier Parks Destinations | www.tfpd.co.za
Achievements at !Xaus Lodge • Asset enhancement & growth
• Operational stability – Managing distance & climate
– Service standards (Trip Advisor reviews)
• Product awareness
• Staff development – Management includes local Head Chef and Head Guide
– All but 2 staff members from surrounding communities
• Accreditations, awards & conference invitations – Fair Trade in Tourism Accredited
– 2010 Imvelo Award for Best Practice Economic Impact
– 4* Grading with TGSA
– Included in ‘Africa’s Finest’
– Various academic case studies and presentations at Business Schools and Responsible Tourism seminars
Transfrontier Parks Destinations | www.tfpd.co.za
Maloti D’berg: Witsieshoek Dec 2009
Transfrontier Parks Destinations | www.tfpd.co.za
Witsieshoek today
Transfrontier Parks Destinations | www.tfpd.co.za
Rooms with THE view
Transfrontier Parks Destinations | www.tfpd.co.za
Witsieshoek: Work in Progress • Extended Public Works Program to renovate
• Positives
– Lodge remained operational securing full-time employment
– End product will be 4*
– Tour operator contracts; local & international visitors
• Challenges/Lessons learnt
– Inordinate delays; overspent/under-delivered
Transfrontier Parks Destinations | www.tfpd.co.za
GLTP: African Ivory Route 2011 6 of 10 camps
Transfrontier Parks Destinations | www.tfpd.co.za
African Ivory Route today
Transfrontier Parks Destinations | www.tfpd.co.za
GLTP: Awelani built 2010;opens 2014
Transfrontier Parks Destinations | www.tfpd.co.za
GLTP: Machampane 2006
Transfrontier Parks Destinations | www.tfpd.co.za
Machampane today
Transfrontier Parks Destinations | www.tfpd.co.za
GLTP: So near, and yet so far
Transfrontier Parks Destinations | www.tfpd.co.za
GLTP: Not seamless
Accommodation @ Machampane (2 people 3 nights incl. meals and activities) R 11 760 60%
Car Hire R 2 800 14%
Access costs: Car hire co. Cross Border permit R 2 200
Mozambique Visa (2 people) R 1 500
Kruger Daily Fee (arrival – 2 people) R 496
LNP Park Fee (2 people) R 280
LNP vehicle fee R 140
Kruger Daily Fee (departure – 2 people) R 496
Access cost - total R 5 112 26%
TOTAL COST (2 people for 3 nights) R 19 672 =R3279 pppn
Transfrontier Parks Destinations | www.tfpd.co.za
TFCA Access Cost Comparison • Based on a three night stay for two people at
Machampane (GLTP) vs !Xaus Lodge (Kgalagadi TFP):
– GLTP
• Accommodation cost R11760
• Access cost R5112
• Access cost vs Accommodation 43,5%
– Kgalagadi
• Accommodation cost R19800
• Access cost R1488
• Access cost vs Accommodation 7,5%
Transfrontier Parks Destinations | www.tfpd.co.za
Challenges facing us in TFCAs • Community challenges
– Deal with unrealistic expectations (sometimes not only limited to Communities)
– Often fail to see link between revenue and expenditure & assume if occupancy increases huge profits being made
– Disputes between Communities and Authorities impact on business
• Governance between tribal authorities, state bureaucracy & commercial operators – Legal structures
• Responsibility for establishing
• Who bears the cost
• Who ensures appropriate governance procedures are followed
Transfrontier Parks Destinations | www.tfpd.co.za
Challenges facing us in TFCAs • Funding
– Traditional banks difficult other than for Asset Finance e.g. vehicles
– IDC • Funding model not ideal for Community type investment
• No land and building assets to provide security
– Donors • Bureaucratic processes often too rigid, time delaying and
expensive
• Operational logistics – Cross border processes
• Guiding
• Customs duties
• Client visas
• Work visas and employment regulations
Transfrontier Parks Destinations | www.tfpd.co.za
Challenges facing us in TFCAs • Marketing properties in unknown areas
– Support for destination marketing
• Client perceptions around – Political stability
– Poaching
– Corruption
Transfrontier Parks Destinations | www.tfpd.co.za
Positives to build on • Community infrastructure support from NDT and DEA
– Funding to enhance Community’s tourism assets
• Marketing and Institutional support
– LEDET & Limpopo Tourism Agency; NCEDT & Northern Cape Tourism Agency: educational & media groups, route development and trade shows
– Improving support from Parque Nacional do Limpopo
• SANParks support to concessionaires
– 20% of website traffic comes from SANParks pages
– Online reservations !Xaus & maybe Machampane in Moz.
• Steady incremental growth: No quick route to profit
– !Xaus Lodge - First year of operational break-even achieved 7 years after opening.
– Has contributed R17.0m to local economy from 24-beds
Transfrontier Parks Destinations | www.tfpd.co.za
Key: Community Beneficiation
Transfrontier Parks Destinations | www.tfpd.co.za
All that hassle…Why bother?
Transfrontier Parks Destinations | www.tfpd.co.za
Contact Details • Glynn O’Leary
• Transfrontier Parks Destinations (TFPD)
• www.tfpd.co.za
• Ph: +27 (0)21 701 7860
• Cell: +27 (0)82 56 56 56 9
• !Xaus Lodge www.XausLodge.co.za
• Machampane: www.DoLimpopo.com
• Witsieshoek www.Witsieshoek.co.za
• African Ivory Route www.AfricanIvoryRoute.co.za