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income from various kinds of taxes and transfers from ROW, which include development assistance; like the other institutions, government uses its income for purchases of goods and services, transfers, and saving. Capital account. The capital account consists of Savings across the row and expenditures for Investment down the column. Rest of the World account. The economy’s interactions with ROW are represented in the last row and column. ROW obtains income from sales of imports (of goods, services and factors) to the domestic economy; ROW spends income in the domestic economy from its purchase of Botswana’s exports, the use of Botswana factors of production (labour and capital), transfers and foreign net borrowing/lending, which constitutes the balance of payments. Data sources for the SAM The data sources, adjustments and assumptions used to construct the Basic SAM are described in (Thurlow 2006). Here, the data used for the expansion of the Basic SAM into the Ramsar site SAM are described. The Ramsar site SAM required additional data about Agricultural activities and Tourism activities. Most of this information was collected by surveys described earlier in the report. The Basic SAM included only one type of accommodation, which was combined with Restaurants, in the single product/activity category, Hotels & restaurants. This industry, Hotels & restaurants, was split by estimating the input structures for each component based on analysis done for a similar Namibian study. Then input structures for the remaining categories of tourism-related activities were estimated partly from surveys conducted in the Delta and partly based on more detailed information collected in an earlier Namibian survey by Anton Cartwright for a study of Community-Based Natural Resources Management. The input structures provided information on intermediate consumption of goods and services, as well as labour inputs, operating surplus, and rents/royalties paid to communities for use of land in communal areas. SAM Multiplier Model for Tourism The SAM itself is simply a database that provides a ‘snapshot’ of the economy at a point in time. To use this database for analysis, the SAM must be transformed into a model. SAMs are used in many types of economic models, but the two most common approaches to SAM-based modelling are multiplier analysis and computable general equilibrium (CGE) modelling. Multiplier analysis is used either to analyse the present economy to gain a better understand of the linkages, or for impact analysis of the effect of policy change under the assumption that prices, consumption and trade coefficients remain constant. For analysis of changes or estimates of policy impacts, multiplier analysis can also be useful, although CGE models are often used because they are better able to estimate the behavioural response of different groups to changes. For this study, the contribution of Okavango Delta activities to the Botswana economy in 2005, multiplier analysis is appropriate. The multiplier analysis used accounting multipliers (Pyatt & Round 1985): (1) x = Ax + y −1 (2) x = ( I − A) y Where x is a vector of outputs for every component of the SAM y is a vector of exogenous demands for goods and services. Enterprises, government, investment and exports are treated as exogenous sectors. I is an identity matrix, a square matrix with 1’s along the diagonal and 0’s everywhere else A is a matrix of coefficients for the endogenous sectors. Coefficients are calculated by dividing each entry in a given SAM column, j, by the sum for that column, (x j ). This matrix includes all income 122
generation and household expenditure, so the induced effects of incomes can be included in the multiplier analysis. Equation 1 says that output, x, for each sector is the sum of all goods needed to satisfy endogenous demands (Ax) plus exogenous demand (y). Equation 2 is used to calculate the impacts of exogenous demand, y. In this case, the level of Ramsar site Expenditures for Tourism and Agricultural production is treated as an exogenous expenditure. This allows one to calculate all the impacts of Ramsar site Expenditures independently from any other exogenous expenditure in the economy. 123
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Economic value of the Cover Okavang
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ACKNOWLEDGEMENTS This project was f
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# # # # # # # # # # typically quite
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household demographics, the relativ
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are harvested annually in the study
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3. Wise use, based on Ramsar planni
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5.4.5 Palms........................
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1 INTRODUCTION 1.1 Background The O
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• inform economically efficient p
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2 STUDY AREA 2.1 Location and exten
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Maunachira-Khwai) and thence into n
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2.2.5 Soils The soils of the delta
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Figure 2-3 Land use categories for
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# # # # # # # # # # Shakawe # # # #
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3 VALUATION FRAMEWORK AND METHODOLO
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other variable relevant for policy)
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3.3.2.1 Focus group discussions and
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A total of 430 households from 12 v
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Income and Expenditure Survey, a ne
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WMAs pay a lease to the local gover
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Table 4-3 Estimated direct gross ou
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Table 5-3 Average numbers of dwelli
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Table 5-6. Average number and produ
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5.3.2 Cropping Some 75% of househol
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N W SW SE C Table 5-15. Average val
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general consensus was that pottery
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Reed mats are used by a few househo
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price, and the resource generates s
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large quantities. This is a very im
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N W SW SE C Table 5-34. Estimated h
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Table 5-39 Relative proportion of d
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Mosepele (2005) recorded a fairly c
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The regulation of hunting stripped
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5.5 The contribution of delta resou
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6 INDIRECT USE VALUE 6.1 Indirect u
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6.3 Indirect use values in the Okav
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estimate the net carbon sink of Aus
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Valuable migratory wildlife species
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External wildlife uses In order to
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Sanitary facilities are poorer. Alm
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Service Table 6-12. Summary of esti
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8 THE VALUE OF THE OKAVANGO DELTA I
Page 87 and 88: Table 8-2 Summary of the direct eco
Page 89 and 90: Ramsar site Wetland Rentals & royal
Page 91 and 92: The SAM can also provide an indicat
Page 93 and 94: 9.3 Description of selected scenari
Page 95 and 96: 9.3.4 Scenario 4. Wise use plus ups
Page 97 and 98: 9.4 Parameters under different scen
Page 99 and 100: 10 CONCLUSIONS AND RECOMMENDATIONS
Page 101 and 102: 11 REFERENCES Abril, A & Bucher, E.
Page 103 and 104: Mbaiwa, J.E. 2002. The socio-econom
Page 105 and 106: 12 GLOSSARY Abstraction - pumping w
Page 107 and 108: Profit - the difference between 'gr
Page 109 and 110: 14 APPENDIX 2. TOURISM OPERATIONS I
Page 111 and 112: 69 Wilderness Dawning 70 Wilmot Saf
Page 113 and 114: FINANCIAL/ECONOMIC MODEL - HIGH QUA
Page 123 and 124: 16 APPENDIX 4. THE SAFARI HUNTING E
Page 135 and 136: Table A5.1 Structure of a Social Ac
Page 137: The sum of this column is the total
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