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Conservancy presentation to government

This presentation to the government highlights the background and objectives of the conservancy programme, discusses the post-independence situation, and explores the implications of the proposed land rentals. The potential impact on tourism establishments, conservancies, government, and conservation efforts are also examined.

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Conservancy presentation to government

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  1. Conservancy presentation to government Proposed land rentals

  2. background • Amendment to the conservancy policy – appreciation • Objectives of the conservancy programme • Pre-independence situation • Locals had negative attitude towards wildlife = poaching • Involvement in conservation – marginal • No legislation • Post-independence situation • Increase in wildlife • Increase in conservancy income • Increase in employment • Change of attitudes

  3. Background (continued) Post-independence situation • socio-ecological surveys • 1992 Policy on establishment of conservancies • 1995 policy on wildlife management utilization and tourism in communal areas • 1996 Nature Conservation Amendment Act

  4. Progress to date • 31 registered conservancies • 95 000 people benefiting • 74 000 km² of land covered by conservancies • Increase in wildlife population • Co-existence of people and wildlife • Increase in financial and non-financial benefits from n$0 in 1994 to n$14 mill in 2003

  5. Core issue • Cabinet’s decision of 22nd june 2004 Interpretation: An 8% levy on gross income will be charged on all lodges, hotels and campsites on communal land. If this is charged on the investor’s turnover, community might end up getting nothing as investor may not be willing to pay double • Implications • Impact on tourism establishment • Impact on conservancies • Impact on the government • Threat to potential investors • Impact on conservation efforts

  6. Impact on tourism establishments Impact on operations • The lodge will have to up its prices by 8%; this will make it uncompetitive • JVs will be rendered unviable • Investors will prefer to invest in private land

  7. Impact on conservancies Conservancy – Current Situation • Expenditure N$ per year • Salaries 90,000 • Admin Costs 10,000 • Vehicle 25,000 • Maintenance 25,000 • Meeting Allowance 10,000 • Total Expenditure N$160,000

  8. Impact on conservancies • N$ per year _________________________________________ Income gross nett income to conservancy Campsite 60,000 60,000 30,000 (50%) Trophy Hunting 100,000 100,000 100,000 (100%) JV Lodge 2,500,000 1,875,000 187,500 (10% lease fees) • (25% deductions) • - Commission - Bookings, etc. Total IncomeN$317,500 ProfitN$157,500

  9. Impact on conservancies • Conservancy – Land Boards take 8% of gross income • Expenditure N$ per year • Salaries 90,000 • Admin Costs 10,000 • Vehicle 25,000 • Maintenance 25,000 • Meeting Allowance 10,000 Total Expenditure N$160,000

  10. Impact on conservancies

  11. Proposed options • Do away with 8% and stick to current pto fees, while waiting to come up with a higher pto fees as per regulation 14 of the communal land reform act. The fees to be charged should not be based on income levels

  12. conclusion

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