2018/19 Annual Performance Plan Portfolio and Select Committees 2018/19 Annual Performance Plan March 2018

Presentation Outline Background Mandate Vision Mission High level structure Strategic plan Programme structure Budget Estimates

Background to iSimangaliso South Africa became a signatory to the World Heritage Convention in 1997 iSimangaliso was the first South African site to be listed; it was listed in December 1999 It was listed for 3 World Heritage Values:

iSimangaliso’s Legislative Framework The World Heritage Convention was brought into South African law in 2000 when the World Heritage Convention Act was promulgated The iSimangaliso Wetland Park was established under the World Heritage Convention Act regulations consolidating 16 different parcels of land under one proclamation in November 2000 The iSimangaliso Wetland Park Authority was established to manage the Park under the World Heritage Convention Regulations in November 2000

Mandate: (The World Heritage Convention Act and Regulations) to protect, conserve and present the Park; to empower historically disadvantaged adjacent communities; to promote and facilitate optimal tourism and related development in Park.

Vision: to create Africa’s greatest conservation-based tourism destination driven by community empowerment Mission: To protect, conserve and present the Wetland Park and its World Heritage Values for current and future generations in line with the standards laid down by UNESCO and the World Heritage Act, and to deliver benefits to communities living in and adjacent to the Park by facilitating optimal tourism and related development

High-Level Structure Minister Board Chief Executive Officer Park Operations Director Business Research, Policy & Planning Senior Manager CFO

Programme Structure Park Operations: To ensure the regulation and management of the World Heritage Values in a manner that facilitates sustainable economic growth and development Transformation (Social and Economic Development) : To improve access to job and income generation opportunities for previously disadvantaged individuals and communities Commercialisation: To position the Park as a premiere tourism destination Governance and Administration: To improve the framework for policy making in iSimangaliso, promote innovative research that supports management objectives, and develop, implement, and maintain cost-efficient and effective systems that support the execution of business processes

Programme 1: Park Operations STRATEGIC OBJECTIVE: PERFORMANCE INDICATOR: BASELINE: TARGET: Effective conservation of World Heritage Values Number of park management meetings attended with day-to-day conservation manager 6 Number of new environmental audits completed Number of follow-up environmental audits completed Number of environmental monitors deployed in iSimangaliso 28 120 Number of hectares of invasive alien plants treated 27795 45000 Number of kilometres of accessible coastline cleaned 320

Programme 1: Park Operations STRATEGIC OBJECTIVE: PERFORMANCE INDICATOR: BASELINE: TARGET: Number of hectares burnt in controlled burning programme 1035 2500 Percentage applications processed in respect of developments in the buffer zone 100 80 Percentage of identified unauthorised developments/activities actioned legally Percentage completion of annual infrastructure maintenance programme

Programme 1: Park Operations STRATEGIC OBJECTIVE: PERFORMANCE INDICATOR: BASELINE: TARGET: Effective partnerships and stakeholder relations Number of annual stakeholder engagements conducted including Park Forums 60 Communication strategy developed and implemented New indicator 5-year strategy approved Number of community based communication events 2

Programme 2: Transformation STRATEGIC OBJECTIVE: PERFORMANCE INDICATOR: BASELINE: TARGET: To optimise socio-economic benefits to local communities Number of full-time equivalent jobs 517 550 Number of training days 4785 4800 Number of SMMES participating in and skills development programmes 371 100 Number of bursaries awarded 36 37 BEE spend on majority black-owned suppliers as a percentage of qualifying expenditure 50 60

Programme 3: Commercialisation STRATEGIC OBJECTIVE: PERFORMANCE INDICATOR: BASELINE: TARGET: Improved financial sustainability of the Park Revenue to the Park from commercial sources (rand million) 17.4 20.7 Number of paid visitor entries 196932 250000 Number of non-paying local neighbour entries 130400 135000 Percentage implementation of commercial development plan 60 80

Programme 3: Commercialisation STRATEGIC OBJECTIVE: PERFORMANCE INDICATOR: BASELINE: TARGET: Enhanced promotion and marketing of the Park Number of annual marketing events implemented 5 4 Percentage implementation of annual marketing and PR programme 100 Appropriate tourism and conservation infrastructure Percentage implementation of annual infrastructure programme 90

Programme 4: Finance and Administration STRATEGIC OBJECTIVE: PERFORMANCE INDICATOR: BASELINE: TARGET: Effective knowledge management systems Percentage of new independent research proposals approved that relate to management 50 Park monitoring programme implemented Monitoring of impacts of implementation on the ecological health of Lake St Lucia Number of visitor market surveys 2 Equitable access for schools for environmental education and awareness Number of learners visiting the Park 4500 5000

Programme 4: Finance and Administration STRATEGIC OBJECTIVE: PERFORMANCE INDICATOR: BASELINE: TARGET: To develop plans, policies and strategies for Percentage implementation of plans to mitigate impact of identified threats to rare and endangered species and ecosystems Initiation of implementation 100 Percentage completion of plans requested/required within the financial year 80 To maintain good governance and a sound control environment Unqualified external audit opinion Unqualified opinion To staff the organisation with appropriately skilled people in order to deliver against it mandate and business plan Percentage retention of skills 90

Programme 4: Finance and Administration STRATEGIC OBJECTIVE: PERFORMANCE INDICATOR: BASELINE: TARGET: Sound plans, policies and strategies for protected area management Number of plans completed 2 Number of plans implemented Sound corporate governance Unqualified external audit opinion Unqualified opinion Adequate, appropriately skilled and diverse workforce Percentage retention of skills 90 Effective and efficient Information and Communication Technology Systems Number of business system improvements implemented New baseline

Strategic risks RISK: RISK CONSEQUENCE: MITIGATION PLANS Dynamic VUCA (volatility, uncertainty, complexity, ambiguity) Operating Environment Loss of World Heritage Status Damage to reputation and brand, agency becomes irrelevant and fails to raise funding and attract investment Inability to meet set delivery targets Heightened pressure on natural resources, including unauthorised/illegal activities in the Park Increased cost of operation Increased pressure from stakeholders Assess ways in which work can be done so that it meets requirements of multiple pieces of legislation in the interests of efficiency and cost effectiveness. Establishment of partnerships with other implementing agencies rolling out programmes that are compatible with the Park objectives Open and regular communication Poor service delivery from contracted business partners Loss of World Heritage status Stretch on limited internal resources (financial, human resource etc.) Dissatisfaction of primary stakeholders Loss of revenue Monthly assessment of service levels. Penalties in contracts Standard setting and monitoring  

Strategic risks cont. RISK: RISK CONSEQUENCE: MITIGATION PLANS: Shortage of key scarce and critical skills   Possible disruption to service delivery Loss of institutional memory Continued vulnerability on key, scarce and critical skills High dependence on key and scarce critical skills Salary premium consequences Extensive skills development and internships to grow the talent pool in the area. Housing stock to rent to staff at market-related rentals Proposal to National Treasury supported by DEA to secure additional budget for personnel costs. Shortages of funding Negative impact on conservation and tourism experience and the inability to raise funds from third parties. Inability of the park to drive research agenda for management function and other requirements. Implementation of community conservation levy fund, the proceeds of which are applied to development programmes. Forming partnerships with research agencies that have funding for research. Preparing and submitting proposals for funding for research to donors

Strategic risks cont. RISK: RISK CONSEQUENCE: MITIGATION PLANS: Vulnerability to fluctuations in the domestic and international tourism market Tourism demand is affected by exogenous shocks, policy etc which negatively affects visitor numbers and revenues Market diversification Outsourcing of tourism operations with a guaranteed base PPP or licence fee thus reducing number of revenue sources affected by fluctuations in visitor numbers Vulnerability to fluctuations in financial markets Ability for private sector to raise finance for tourism projects in the Park Sourcing of donor funding for community-owned tourism plant Structuring PPP arrangements in such a manner that the contracts are bankable but still transfer risk to the private party

Medium-term expenditure Budget Estimates   Medium-term expenditure estimate R thousand 2018/19 Park Operations 81,786 Transformation 3,956 Commercial 16,397 Governance and administration Policy, Planning and Research 4,099 Finance & administration 57,970 Total expenses 164,208

Medium-term expenditure Budget Estimates cont.   Medium-term expenditure estimate Of which: R thousand % Salaries 25,026 15 Repairs & Maintenance 21,461 13 Training & skills development (communities) 5,624 3 Infrastructure 68,461 42 Land rehabilitation 21,121 Other operations 22,515 14 Total expenses 164,208 100

SIYABONGA – THANK YOU from Africa’s greatest conservation-based tourism destination driven by community empowerment