Day 1 operating in tfc as_the voice of experience_tfpd_glynn o'leary

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


Where we operate


Kgalagadi TFP: !Xaus Lodge 2007


!Xaus Lodge – Today


!Xaus Lodge-Quality furbishings


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


Maloti D’berg: Witsieshoek Dec 2009


Witsieshoek today


Rooms with THE view


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


GLTP: African Ivory Route 2011 6 of 10 camps


African Ivory Route today


GLTP: Awelani built 2010;opens 2014


GLTP: Machampane 2006


Machampane today


GLTP: So near, and yet so far


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


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%


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


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


Challenges facing us in TFCAs • Marketing properties in unknown areas

– Support for destination marketing

• Client perceptions around – Political stability

– Poaching

– Corruption


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


Key: Community Beneficiation


All that hassle…Why bother?


Contact Details • Glynn O’Leary

• Transfrontier Parks Destinations (TFPD)

• [email protected]

• 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

mailto:[email protected]

http://www.tfpd.co.za/

http://www.xauslodge.co.za/

http://www.dolimpopo.com/

http://www.witsieshoek.co.za/

http://www.africanivoryroute.co.za/

Day 1 operating in tfc as_the voice of experience_tfpd_glynn o'leary

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