1. Conservancy presentation to government
Proposed land rentals
5/4/2019

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
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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
5/4/2019

4. Progress to date 31 registered conservancies 95 000 people benefiting
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
5/4/2019

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
5/4/2019

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
5/4/2019

7. Impact on conservancies
Conservancy – Current Situation
Expenditure N$ per year
Salaries ,000
Admin Costs ,000
Vehicle ,000
Maintenance ,000
Meeting Allowance 10,000
Total Expenditure N$160,000
5/4/2019

8. Impact on conservancies
N$ per year _________________________________________
Income gross nett income to conservancy
Campsite , , ,000 (50%)
Trophy
Hunting , , ,000 (100%)
JV Lodge 2,500, ,875, ,500 (10% lease fees)
(25% deductions)
- Commission
- Bookings, etc.
Total Income N$317,500
Profit N$157,500
5/4/2019

9. Impact on conservancies
Conservancy – Land Boards take 8% of gross income
Expenditure N$ per year
Salaries ,000
Admin Costs ,000
Vehicle ,000
Maintenance ,000
Meeting Allowance ,000
Total Expenditure N$160,000
5/4/2019

10. Impact on conservancies
N$ per year
Income
Gross
Net
leasehold needed
Income to
land board
(60,000 x 8%)
income to conservancy
(30,000 – 4,800)
Campsite
60,000
Yes
4,800
25,200
Trophy
100,000 No -
(2,5mill x 8%)
JV Lodge
2,500,000
1,875,000
(25% deductions Commission Bookings, etc)
200,000
0 (200,000 exceeds ,500 due as lease fees)
Total Income
Loss .
N$125,200
N$34,800
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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
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12. conclusion
5/4/2019