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Ramsar site<br />
Wetland<br />
Rentals &<br />
royalties<br />
11%<br />
Profits inkind<br />
19%<br />
Rentals &<br />
royalties<br />
18%<br />
Profits inkind<br />
9% Profits cash<br />
7%<br />
Salaries &<br />
Profits cash<br />
24%<br />
wages<br />
46%<br />
Salaries &<br />
wages<br />
66%<br />
Figure 8-1. Relative contribution of different sources of natural resource-related income to poor households<br />
Since much of the agricultural and natural resource harvesting/processing pursuits carried out by local<br />
households takes place in upland parts of the Ramsar site, outside of the actual wetland, the<br />
contribution of the wetland to household livelihoods is overwhelmingly dominated by tourism salaries,<br />
wages and rentals/royalties.<br />
8.3 Macroeconomic impact<br />
Using our Ramsar site SAM model and the mathematical model described in Appendix 5, the impact<br />
of economic activities in the Okavango Delta on the national economy was calculated for two<br />
scenarios: one associated with the entire Ramsar site and one restricted to the wetlands only, as<br />
explained above.<br />
Table 8.4 shows the total impact of Okavango Delta activities on the Botswana’s national income as<br />
measured by the Central Statistics Office (2006): the direct contribution to GNP is P475 million for the<br />
entire Ramsar site and P380 million for the wetlands alone, roughly 1.04% and 0.84% of national<br />
GNP in 2005. But the total contribution to GNP is much higher: total income generated ranged was<br />
P1 182 million and P964 million, respectively, or 2.6% and 2.1% of national GNP. The GNP multiplier<br />
- the indirect stimulus from Delta activities to the rest of the economy - is roughly 2.5 (slightly higher<br />
for the wetlands). That means, for every P1.00 of income generated from direct services provided to<br />
tourists or agriculture, an additional P1.50 of income will be generated because of the demand for<br />
products to produce those services, and the products households buy with their additional income.<br />
The GNP multipliers for household agricultural and natural resource harvesting/processing activities<br />
are 2.03 for the Ramsar site and 1.64 for the wetland. These are lower than those for tourism,<br />
because the household activities are mainly subsistence-based, with relatively small inputs from other<br />
sectors of the economy.<br />
The total income shown in Table 8.4 is paid out to different ‘factors of production,’ that are necessary<br />
for production. These factors include skilled and unskilled labour, returns to capital invested in a<br />
business (gross operating surplus - GOS), rents for the use of traditional lands for tourism, taxes on<br />
production activities (including royalties to government agencies for use of government land) and<br />
taxes on products sold. 10 The distribution of income by factors is the first step toward understanding<br />
10 The taxes paid on production and products do not include income taxes, property taxes, or business profit<br />
taxes. These taxes are represented in another part of the model, as part of the expenditures of households and<br />
businesses. This is explained in Appendix 5.<br />
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