Zimbabwe: Safari Operators Feel Global Recession Pinch
Kudzai Kuwaza
25 June 2009

From The Zimbabwe Independent


SAFARI tour operators have been hit hard by the low number of clients for this year's hunting season owing to the global recession.

Safari Operators Association of Zimbabwe chairman, Jacob Mudenda told businessdigest on Wednesday that the liquidity crunch which has resulted in the closure of several major business operations and thousands of job losses worldwide, had resulted in many of their traditional clients not affording to participate this season.

"There has been a poor response from hunters coming for the hunting season," said Mudenda. "The main reason is the international credit crunch. "This means that most of them are trying to nest what they have for the essentials of life, they are just trickling in."

Mudenda said they were now working on an aggressive marketing strategy to increase the number of hunters for next season with their main focus being the Safari Club International Convention which will be held in the United States in January.

Mudenda said they will also contact their various agents around the world to revamp the marketing of the country which has been in economic decline for more than a decade.

He however warned that all marketing strategies will be futile if there was no improvement in the global financial status.

"We have contacted our various agents around the globe to revamp the marketing of Zimbabwe but all will hinge on the international credit crunch. If that does not improve, then no matter what marketing strategy we put in place, they will not work," Mudenda said.

Mudenda said the plight of safari operators was worsened by the lack of working capital since the economy was dollarised in January.

"There is no working capital because there is no money in the system after the economy was dollarised," Mudenda said. "As long as we do not get lines of credit, our operations will continue to be affected."

He said the association had resolved at their annual general meeting earlier this year that their membership should devise ways to continue operations despite the difficulties faced in carrying out their activities.


It was in this vein, Mudenda said, that safari operators will be scouting for strategic partners at the investor summit to be held in Harare later this year.

He said the summit which is being held by South African- based African Investor in conjunction with the Zimbabwe National Chamber of Commerce and the Ministry of Tourism and Hospitality, will provide a platform for safari operators to present their project proposals to potential investors.

Mudenda said the formation of the inclusive government should help increase the number of clients who come for the hunting season and boost efforts to market the country as a safe destination.

The hunting season is held annually between May and December with most hunters coming from Europe and the US.

Thanks I appreciate the read...

I think for Zim it goes beyond global economy. They also need to look at their internal politics and stability. I know hunter that won't go there because they don't want one red cent of their money going to Mugabe's regime.

Well, Gee, maybe they will lower their prices!
Peter.

Peter, difficult. Minimum prices are legislated. Will take at least two years for a draft law to get through parks, the atourney general's offfice and then parliment....

Prices cannot come down much!

quote:

Originally posted by CharlesL:
I think for Zim it goes beyond global economy. They also need to look at their internal politics and stability. I know hunter that won't go there because they don't want one red cent of their money going to Mugabe's regime.

i agree completely. also the gentlemen quoted states that the international credit crunch is to blame. that's bullshit. i know of VERY few hunters that go on safari with borrowed money. it is disposable income that drives the hunting industry and in hard times that disposable income is shifted to necessities and away from luxuries. i don't have to hunt but i do have to eat and pay my mortgage. the so called unity government is a joke- witness the thread a few weeks ago about the new land seizures going to prominent Zanu-PF members. the only complaint the MDC made was that they didn't get their share!!! hell, i would go to Vegas and gamble with my money before i would invest it in Zim. at least the house odds at a craps table are less than 2%. i truly feel sorry for the operators there and i wouldn't hesitate to hunt there( in spite of knowing at least some of the money ends up in the wrong hands)- but invest there? forget it.

"also the gentlemen quoted states that the international credit crunch is to blame. that's bullshit. i know of VERY few hunters that go on safari with borrowed money. it is disposable income that drives the hunting industry and in hard times that disposable income is shifted to necessities and away from luxuries......jdollar"

quote:

Originally posted by CharlesL:
I think for Zim it goes beyond global economy. They also need to look at their internal politics and stability. I know hunter that won't go there because they don't want one red cent of their money going to Mugabe's regime.

quote:

i agree completely. also the gentlemen quoted states that the international credit crunch is to blame. that's bullshit. i know of VERY few hunters that go on safari with borrowed money. it is disposable income that drives the hunting industry and in hard times that disposable income is shifted to necessities and away from luxuries. i don't have to hunt but i do have to eat and pay my mortgage. the so called unity government is a joke- witness the thread a few weeks ago about the new land seizures going to prominent Zanu-PF members. the only complaint the MDC made was that they didn't get their share!!! hell, i would go to Vegas and gamble with my money before i would invest it in Zim. at least the house odds at a craps table are less than 2%. i truly feel sorry for the operators there and i wouldn't hesitate to hunt there( in spite of knowing at least some of the money ends up in the wrong hands)- but invest there? forget it.

jd

Essentially you are correct in that the UNITY GOV "LOL" is like (re-aranging the deck chairs on the titanic) the ship will sink UNLESS the DONER community pumps in your tax money or printed money to keep the wheels turning. Of course Morgan the PM and his team mean well but the same story has been repeated in Africa (where I was born 60+ years ago) for as long as I can remember. The governments come and go, often by coup, intimidating force, or outright fraud.

Zim's will recover to a degree BUT the outside world has to pay up, UNFORTUNATELY there is no other easy solution.

The way the world is going with most governments (ripping us all off) and printing money like a sausage factory, it seems that we should talk seriously to ourselves and say LIVE NOW & PAY LATER ... dont worry about the grandkids tooooo much, they will have to solve the world they will live in, just as we are trying to for ourselves. WE DONT seem to learn from the past so why worry, spend and enjoy as best you can.

Finally Dubai World conglomorate have not taken the cautious approach, they have invested in the vast Bubye River Conservancy, so as Donald Trump says, the bad times are the best times to invest and many are doing that even in Zimbabwe

Cheers, Peter

I agree with Peter. The word "Price" never appeared in the discussion. Whether it takes two years or not to approve legislation, is just an excuse in my opinion. If they wanted to address the pricing issue, they would find a way. Two years from now prices aren't going to be lower, because everyone sucking at the teat of this industry doesn't want prices to crack.

I think there is a lot of money "out there" waiting to be spent on hunting, including mine, if prices start making sense. Year-over-year increases for no other reason than trying to squeeze more blood from a turnip is a clear indication that greed is the only price driver.

It's not gone unnoticed that cancelled hunts that used to go for half price, because that much had already been paid-down, now go on SALE from $15,000, down to $13,999, with the seller screaming about the "once-in-a-lifetime deal".

kensco

top end lion and elephant hunts were sold out last year...and no cacelations yet. buffalo, leopard and pac ele are the unsold hunts. couple of my mates would gladly come down a grand if allowed to, others would rather not shoot animals than hunt at break evan prices. in the long run a decrease in hunting will be good for the game - quotas have been too high for too long in most areas...

Zimbabwe has more problems than just the economy. Too many reports of not enough basics like food and gas for the safari operations. Then there's the whole matter of actually getting your trophies back home.
I wished I could say I thought of Mugabe first as my reason not to hunt there. But, I want to know that I can eat and get around while there and get back what I worked and paid for.
Mugabe's time will come - like all of Africa's crap 'dictators'.

Sometimes breaking even is better than losing money. I understand the points of view on this topic and there is no quick answer.

Ganyana

I think you are spot-on.

quote:

Originally posted by Ganyana:
Peter, difficult. Minimum prices are legislated. Will take at least two years for a draft law to get through parks, the atourney general's offfice and then parliment....

Prices cannot come down much!

are these fixed minimum prices only applicable on government concessions and tribal lands? i assumed places like Save were privately owned and as such, free to set their own price schedule. am i wrong( sure wouldn't be the first time)?

quote:

Originally posted by jdollar:
are these fixed minimum prices only applicable on government concessions and tribal lands? i assumed places like Save were privately owned and as such, free to set their own price schedule. am i wrong( sure wouldn't be the first time)?

No, Minimum prices apply accross the country and are the same for all types of land.

The difference is- where the trophy fees go. On parks land, they go to parks (which is now a private organisation with only the Director General remaining a civil servant), On communal land, they go to the tribal council (actually usually 40% of the total cost of the hunt daily rates and trophy fees combined goes to the council) and on private land- the land owner.

The legislation was introduced in 1990 to stop operators 'giving away' free hunts and 'under selling' Zimbabwe.

I used it to force up the sable trophy fee in 1993..until then many operators were selling sable at $600. many thought we should get more but it was hard for the m,ajority to put their prices up whilst a few on private land kept their prices down....no problem, bought the minimum trophy fee for sable up to the equivalent of US$2000 (we still worked in Zim $ back then!) - few wails and predictions of dire consiquences, but no actual drop in sales...

The current problem faced by operators on parks land has been the dual exchange rate that applied for the last 9 years. Parks were being paid at the official rate and loosing badly, and the operators tollerated parks pushing up the trophy fees (in US$) by up to 100%. As the gap between official and real exchange rates was getting wider, there wasn't too much resistance. NOW...they have to pay parks in US$!! not the zim $ equivalent (which was never equivalent!) The effect is that an operator is now paying parks over US$14,000 for a bull elephant! The market will not withstand that price...so you 'hide' part of it in the daily rates.

All I can say, is I am glad I don't have to deal with my ex colegues in Parks any more! Economic understanding = 0. None of the senior offices have even the slightest understanding and don't earn enough to be allowed personal bank accounts...Mayday, mayday....

If the governments in Africa do not grasp the economic situation and price hunts at a rate the hunters from the US and Europe will take advantage of; then they will see the numbers continue to shrink, as well as watch the influx of American dollars slow to a trickle and then stop.

Rich
DRSS

I for one would not spend a dime that might help Mugabe. The man is a thief and a murderer. I would love to hunt Zim. but won't as long the government says the same.

Tom