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16 APPENDIX 4. THE SAFARI HUNTING ENTERPRISE
MODEL
DELTA STUDY
FINANCIAL/ECONOMIC MODEL - HIGH QUALITY AREA SAFARI HUNTING - NGAMILAND 2006 - BASE CASE
ASSUMPTIONS*
Production System: 8 bed, up-market lodge offering all inclusive, guided, wildlife hunts.
Site:
High quality, unfenced area with riparian, wetland and woodland setting and mixed population of
Okavango delta species on quota.
Game Density: 100% 6.41 LSU Equivalents/Sq. Km. or, 16 Hectares per LSU Equivalent
Carrying Capacity: 100% 0.010 Tourist Beds/Sq. Km. or, 10000 Ha. per Tourist Bed
Concession Size: 80000 Hectares or, 800 Square Kilometres (Share of larger area)
Tourist Category: Overseas 95% Regional 5% Resident 0% Citizen 0%
Average Group Size: 1.5 Hunters 1 Observers 0.5
Occupancy Rate: Overall 18% No. of 12 to 21 Day Hunts = 16 Total = 241 Hunter Days
Daily Tariffs (N$): 100% Overseas 8736 Regional 8736 Resident 8736 Citizen 8736
Observer's Tariff as Percent of Full Price: 50%
Capital Item Prices: 100% (Variation from Normal for Sensitivity Analysis)
Capital Sources: 100% Loan = 25% Equity = 75% and: 100% Foreign 25% Domestic 75%
Interest Rates: Rate for Capital Loans: 10% Rate for Working Capital Loans: 15%
Working Capital as Proportion of Annual Operating Costs: 20%
Park Entry Fees: 100% Fee per Tourist Night/Day: N$ 0.00
Land Rental and Resource Royalty (N$): 100% Rental: 2.75 per Ha. 100% Royalty: 4% of Turnover
Personpower Needs: 100% Managers 3 Skilled Labour 4 Unskilled Labour 5
100% Management: Foreign 50% Citizen 50%
Shadow Wage Adjustment: 100% Managers 1.00 Skilled Labour 1.00 100% Unskilled Labour 0.50
Foreign Exchange Premium: 100% 6% Adjustment Factor = 1.06
Tax Adjustments: 100% General Sales Tax: 11% Import Taxes: from SACU: 0% to SACU: n/a
Discount Rates: 100% Financial Discount Rate: 8% Economic Discount Rate: 8%
Static models depict enterprise at full production. Static financial model includes interest, amortisation
government fees, royalties and land rentals. Static economic model takes foreign
inflows and outflows into account, excludes other interest and transfers and values
enterprise in economic prices before land and government costs
Dynamic models presented over 5 and 10 years, to measure IRR and NPV. Financial dynamic model, at constant
prices, excludes interest and depreciation, and includes asset residual values.
Economic model includes foreign inflows and outflows, and measures value of enterpise
in economic prices before inclusion of land costs and public expenditures.
* Shaded cells indicate degree of conformity with base case values. Underlined shaded cells can be changed
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