1. Key southern African trends Safari Lodges & Rural Incomes Peter John Massyn 14 October 2004

2. Presentation Outline 1. Background 2. Employment linkages 3. Resource user fees 4. Hunting 5. Small business linkages & social investment 6. Other linkages

3. Background Strategic importance of ecotourism industry Potential driver of economic development Concentrated in remote settings including TFCAs But local linkages compromised by ‘leakage’ Limited integration with local economies Partly offset by land reform programmes Transfer of valued resource rights to local residents But devolution often partial and conditional And mostly limited to ‘communal areas’ Nevertheless significant expansion underway Paper explores key linkage trends

4. Spatial distribution Kgalagadi

5. Employment Major local linkage channel Key source of revenue for local residents Wage bill generally provides largest benefit flow But skilled outsiders capture disproportion of wage bill Resource ownership provides bargaining platform To structure optimal employment benefit But must be asserted effectively

6. Employment Major local linkage channel Wages provide direct injection into households With positive impacts on broader household welfare But women at double disadvantage (local & female) True even with local resource ownership Commercialisation in SA combine:  Affirmative procurement  Statutory minimum employment conditions  Collective bargaining rights But evidence of increased yields still limited Commercialisation may still erode employment conditions

7. Resource user fees Significant source of revenue for entitled communities Provides individual dividends & social investment Can yield optimal returns to local economy But requires:  Structured system of rights for local people  Competitive set of natural assets  Willing and capable private partner  Assertion of rights through effective bargaining Collective revenue often subject to struggle Leading to:  Risk averse hoarding  Elite interception  Patronage-based distribution Local tenure rights in public PAs – the “Madikwe model”

8. Hunting Consumptive use revenues important supplement Big generator of income for resource-owning communities Important features  More resistant to market fluctuation  Generates quick returns with little investment  Often only viable wildlife-based commercial activity But lower total economic yield than ‘photographic tourism’

9. Secondary linkages Social infrastructure delivery Lodge development sometimes boosts local infrastructure  Road upgrades  Bulk electricity  Water supply  Cellular networks People development impacts Devolution often accompanied by ‘capacity building’ Important to ensure  Successful bargaining exchanges  Improved external linkages  Internal institutional capacity

10. Other Small business linkages & local purchasing Limited purchasing of local goods & services Inherent asymmetry between local economy & lodge needs Heavily dependent on support programmes Social responsibility programmes Industry-linked social investment can be significant Often channels third party funds into local investment Philanthropic model dependent on goodwill & individual champions