Luxury Train Hotel on Kruger's Selati Bridge

[Richprins]

They have always admitted to getting funds from the trusts, it is the favours in return that are a mystery!

[Klipspringer]

They have always admitted to getting funds from the trusts, it is the favours in return that are a mystery!

Only harmless things, such as a SANParks Kudu Award for the best business partner of the year (Thebe Tourism got it for the excellent management of the Cape Point Concession)

[Alf]

Another joke.

Was wondering about the poor people staying at waterkant guesthouse but now they are converting that too

So SP wants rental and a % from the revenue......

[Richprins]

Tenders for a suitable project opened in 2016 and according to Barnes, the Thebe Tourism Group was interested from the start. “We realised the park’s need for income and felt that any further demise of the park would be far worse than a train on an already-existing bridge.

This is the crux of the huge lie that is being fed to the public and media by SANParks to justify the ongoing rampant commercialisation and developments.

It has nowhere been proven that Kruger is being thrown to the wolves by government financially and is desperately forced to make money hand over fist. (Incidentally, this has been a complaint since the 1980s, on a much smaller level, used to justify simple price increases and one or two luxury accommodations, and has simply been expanded into a mantra to cover all developments.)

Quite the opposite is in fact true, and government is perfectly aware of the economic significance of Kruger, and regularly provide large financial inputs should the need arise.

In the first place, SANParks shows a very healthy profit every year, and has numerous investments and also government guarantees, as a parastatal organisation or SOE. (If their books are to be taken at face value.) viewtopic.php?f=318&t=1283

Prices have increased annually at a rate well above inflation, with occupancy rates also generally at optimum levels compared to other wildlife destinations.

Overheads are also low, or should be, with Kruger not paying municipal taxes and often using its own water/sewage infrastructure, saving millions compared to private operations. SP also obviously saves a lot of money on maintenance, by not doing it.

Favourable deals with existing franchises, concessions and donor accommodations come at little risk with steady reward.

Examples of swift government intervention include disaster relief during the two sets of floods this century, to the tune of many billions of rands, while Kruger also had insurance policies that covered much of the infrastructure lost, thereby getting a "double compensation" in a sense, without having to pay back the disaster relief money.

Similarly the state (taxpayer) has funded multi-million rand infrastructure projects like the Skukuza hotel, conference center (partly) and very expensive solar power facilities, with all benefits accruing to the SANParks balance sheet.

In short, if SP are running out of money it is due to a bloated wage bill, poor and lax management, insufficient financial controls, and an unnecessary fixation on community and political projects that are outside their mandate.

Furthermore, it is entirely uncertain when, if ever, new projects will "break even" financially, especially as costs traditionally soar and deadlines come and go, sometimes with financial penalties. A good example is the Skukuza conference centre, which generates little money from private bookings compared to in-house government utilisation, which does not represent any profit.

100% private developments like this one are wildly beyond the financial reach of any but the wealthiest SA citizens, which is the only way for them to succeed regarding profit margins. Ironically, a similar setup outside the "cosy" Kruger environment would be far more beneficial to communities, as the operation would pay hefty rates and levies to the local municipality, also contributing to the local supply chain regarding things like security employees, fencebuilders, public transport operators etc. Those expenses fall away now, and become part of the pure profit that the company takes away after rent paid to Kruger.

What is for certain is that the straight SP profit generated by existing accommodation, which has long "broken even" regarding input costs, is immediately lost when taken over by the private operator. For example, let us say Waterkant passed fully into SP hands last year (which is why the project had to wait a bit) as the donor deal reached its cutoff date. That place makes many millions of rands in profit every year, which is now lost to SP until the Shalati bunch builds new accommodation to replace it. (It is impossible to replace this prime venue, to be honest.)

Another reason that is sometimes flung at naysayers to justify moneymaking is the costs related to rhino poaching. However there is now a rhino levy for all visitors, plus huge annual foreign and local donations for antipoaching.

Another reason also flung is the need for community upliftment. But there is a community levy for all visitors to cover that. (Not that it is a conservation area's job to do sociopolitical work that is already the sphere of other departments with gigantic budgets.) In any case, Kruger has provided an invaluable source of income for the entire Lowveld, and country, at various levels for many decades, and the communities and government are well aware of this also.

[Lisbeth]

A great overview, RP!

Just to do the Devil's lawyer......

SANParks has to cover the running costs of many of the other parks with part of the income from Kruger. They always have so it is not really an excuse for all the new developments. As far as I remember also the grants from the state have been massively reduced a few years ago.

Just to stress one of your points: The prices of accommodations in Kruger have more than doubled from less than10 years ago.

[Richprins]

In fact Table Mountain NP has greatly increased its share of providing the shortfall to other parks over the last decade, lessening the pressure on Kruger!

[Klipspringer]

an unnecessary fixation on community and political projects that are outside their mandate.

Exactly this is the new mandate: contributing to economic growth, job creation, supporting communities, BBBEE

A Nation Park has to serve the nation, and the nation needs jobs and income.

[Richprins]

No, a national park must conserve nature?

[Klipspringer]

That was the old mandate.

[Richprins]

It is interesting that SP and ANC made up the new mandate all on their lonesome!