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8.2 Impact on rural livelihoods The direct use values of the Okavango Delta are overwhelmingly dominated by the use of natural wetland assets for tourism activities in the central zone. The tourism activities generate income (value added) which accrues to earners of salaries and wages, investors and government. The next section examines the allocation of income resulting from use of the delta in the broader economic context. But it is interesting to measure the impact that these activities have directly on local livelihoods. That component of value added by use of the resources of the Ramsar site and the wetland, which accrues directly to local low-income households, is estimated in Table 8.3 and Figure 8-1. In the Ramsar site as a whole, local communities earn significant amount in profits from direct use of natural resources. Significant amounts are profits in-kind (consumed directly) while in the case of livestock, and in particular cattle post livestock, important cash profits are also earned from sales. Local lowincome households earn comparable amounts through salaries and wages earned in the direct use of the delta’s resource for tourism activities. Low income communities also derive income collectively through rentals and royalties from CBNRM joint ventures in the tourism sector. Table 8-3 Estimated direct contribution of the Okavango Delta Ramsar site and wetland to the livelihoods of low income rural households in Ngamiland (P’000, 2005) RAMSAR SITE Profits in-kind Profits cash Salaries & wages Rentals & royalties Non-consumptive tourism services 0 0 72 800 18 990 Hunting tourism services 0 0 13 410 5 650 Tourism linked activities 0 0 5 080 0 Additional CBNRM income 0 3 180 1 320 0 Subtotal Tourism 0 3 180 92 620 24 640 Crop production 5 330 1 060 1 150 0 Livestock production 17 560 43 610 7 820 0 Subtotal Agriculture 22 890 44 670 8 980 0 Natural Resource Use 21 070 7 340 150 0 TOTAL LIVELIHOOD CONTRIBUTION 43 950 55 190 101 750 24 640 WETLAND Profits in-kind Profits cash Salaries & wages Rentals & royalties Non-consumptive tourism services 0 0 68 830 18 060 Hunting tourism services 0 0 9 520 4 320 Tourism linked activities 0 0 4 610 0 Additional CBNRM income 0 2 710 1 120 0 Subtotal Tourism 0 2 710 84 080 22 380 Crop production 850 100 140 0 Livestock production 810 390 310 0 Subtotal Agriculture 1 660 490 450 0 Natural Resource Use 9 840 5 110 150 0 TOTAL LIVELIHOOD CONTRIBUTION 11 500 8 300 84 680 22 380 72
Ramsar site Wetland Rentals & royalties 11% Profits inkind 19% Rentals & royalties 18% Profits inkind 9% Profits cash 7% Salaries & Profits cash 24% wages 46% Salaries & wages 66% Figure 8-1. Relative contribution of different sources of natural resource-related income to poor households Since much of the agricultural and natural resource harvesting/processing pursuits carried out by local households takes place in upland parts of the Ramsar site, outside of the actual wetland, the contribution of the wetland to household livelihoods is overwhelmingly dominated by tourism salaries, wages and rentals/royalties. 8.3 Macroeconomic impact Using our Ramsar site SAM model and the mathematical model described in Appendix 5, the impact of economic activities in the Okavango Delta on the national economy was calculated for two scenarios: one associated with the entire Ramsar site and one restricted to the wetlands only, as explained above. Table 8.4 shows the total impact of Okavango Delta activities on the Botswana’s national income as measured by the Central Statistics Office (2006): the direct contribution to GNP is P475 million for the entire Ramsar site and P380 million for the wetlands alone, roughly 1.04% and 0.84% of national GNP in 2005. But the total contribution to GNP is much higher: total income generated ranged was P1 182 million and P964 million, respectively, or 2.6% and 2.1% of national GNP. The GNP multiplier - the indirect stimulus from Delta activities to the rest of the economy - is roughly 2.5 (slightly higher for the wetlands). That means, for every P1.00 of income generated from direct services provided to tourists or agriculture, an additional P1.50 of income will be generated because of the demand for products to produce those services, and the products households buy with their additional income. The GNP multipliers for household agricultural and natural resource harvesting/processing activities are 2.03 for the Ramsar site and 1.64 for the wetland. These are lower than those for tourism, because the household activities are mainly subsistence-based, with relatively small inputs from other sectors of the economy. The total income shown in Table 8.4 is paid out to different ‘factors of production,’ that are necessary for production. These factors include skilled and unskilled labour, returns to capital invested in a business (gross operating surplus - GOS), rents for the use of traditional lands for tourism, taxes on production activities (including royalties to government agencies for use of government land) and taxes on products sold. 10 The distribution of income by factors is the first step toward understanding 10 The taxes paid on production and products do not include income taxes, property taxes, or business profit taxes. These taxes are represented in another part of the model, as part of the expenditures of households and businesses. This is explained in Appendix 5. 73
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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
Page 37 and 38: A total of 430 households from 12 v
Page 39 and 40: Income and Expenditure Survey, a ne
Page 41 and 42: WMAs pay a lease to the local gover
Page 43 and 44: Table 4-3 Estimated direct gross ou
Page 45 and 46: Table 5-3 Average numbers of dwelli
Page 47 and 48: Table 5-6. Average number and produ
Page 49 and 50: 5.3.2 Cropping Some 75% of househol
Page 51 and 52: N W SW SE C Table 5-15. Average val
Page 53 and 54: general consensus was that pottery
Page 55 and 56: Reed mats are used by a few househo
Page 57 and 58: price, and the resource generates s
Page 59 and 60: large quantities. This is a very im
Page 61 and 62: N W SW SE C Table 5-34. Estimated h
Page 63 and 64: Table 5-39 Relative proportion of d
Page 65 and 66: Mosepele (2005) recorded a fairly c
Page 67 and 68: The regulation of hunting stripped
Page 69 and 70: 5.5 The contribution of delta resou
Page 71 and 72: 6 INDIRECT USE VALUE 6.1 Indirect u
Page 73 and 74: 6.3 Indirect use values in the Okav
Page 75 and 76: estimate the net carbon sink of Aus
Page 77 and 78: Valuable migratory wildlife species
Page 79 and 80: External wildlife uses In order to
Page 81 and 82: Sanitary facilities are poorer. Alm
Page 83 and 84: Service Table 6-12. Summary of esti
Page 85 and 86: 8 THE VALUE OF THE OKAVANGO DELTA I
Page 87: Table 8-2 Summary of the direct eco
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 and 138: The sum of this column is the total
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generation and household expenditur
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