Dear CM clients,

As some of you will have read and heard through posts by HHK etc that National Parks have as of January 1st 2013 gazetted four changes to trophy fees.
These were Buffalo, lion, leopard and Elephant.

Lion, leopard and elephant increases were somewhat reasonable (except in timing of the announcement) and will all be covered by current prices so there will be no change for 2013.
Unfortunately though the buffalo trophy fees were increased by 300% to a cost price of $4550 .Our Communal Land (CAMPFIRE) fees are indexed to Parks prices therefore we have no choice but to increase the trophy fee on all Buffalo for 2013 from $3500 to $4550.00. Please understand that agreements between the various CAMPFIRE areas and their operators vary and what may be the case for us such as the above may not be the case for other CAMPFIRE areas.

As an industry we have all made numerous attempts to engage National Parks at the highest level to try and reverse this rise or at least negotiate a reasonable increase over the next few years. National Parks are 100% adamant they will not negotiate and these prices are now law. We have not given up the fight and should there be some compromise we will immediately reimburse you.

Myles and I feel terrible about this, however I can assure you it is totally out of our control and while it is a substantial financial burden on you it is a massive economical blow to us when you take into account the full quota! . We are 100% committed to each one of you individually and rest assured we will endeavor to help out where we can.

Buzz and Myles

All the very best for you guys up North.

Welcome to Tanzania ... I mean Zimbania.

This trend of price hiking has a domino effect - the TZ hunting dept. looked at and compared TZ prices to RSA and Botswana and made the appropriate hike (up to 400%) slap bang during the hunting season (with clients in the field). These were two totally different scenarios compared to TZ but minds had been made up. TZ outfitters however were still lucky enough to be able to reach a compromise in price reduction which is more than can be said about Zim.

What has happened in Zim is a complete replica and IMO it doesn't stop there - shall we wait and see what happens with prices in Zambia (if) in 2014? - Mozambique is reveling in too rosy a situation at the moment, probably a temporary marketing ploy to secure clients so keep an eye open on their pricing system as well.

You could look at it as the beginning of the end of a hunting era or one that will be out of reach to the majority (and the anti hunting crowd hasn't yet been invited to the party)!

Prices are still fair if one wants to contrast the cost of hunting the rarer species of sheep, goat and Ibex. Bigger money is being spent on Deer and Elk in prime locations.

quote:

Originally posted by fairgame:
Prices are still fair if one wants to contrast the cost of hunting the rarer species of sheep, goat and Ibex. Bigger money is being spent on Deer and Elk in prime locations.

Exactly what the parks departments of Africa are thinking.

quote:

Originally posted by tendrams:

quote:

Originally posted by fairgame:
Prices are still fair if one wants to contrast the cost of hunting the rarer species of sheep, goat and Ibex. Bigger money is being spent on Deer and Elk in prime locations.

Exactly what the parks departments of Africa are thinking.

Eh, that's giving way too much credit. They're probably just looking to their neighbors.

Yes FairGame BUT these increase risks loosing the "standard buff hunters" that Zim has always had the market for- and in all honesty that makes up the bulk of the hunting in Zim and is what Zim is know for- fair affordable buff hunting.

I even noticed this year the down trend in 10 day buff hunts BEFORE the increases- what will happen next year? I dont believe the bigger hunts- ele bull lion etc will be badly affected but the buff hunts that is the " bread and butter" of pretty much all operators will take a huge knock!

This is wrecking the chances of a fun safari for alot of us. I for one would rather hunt buffalo than anything else.

This sort of thing generally causes people to downgrade their hunts. As Buzz notes, the top end hunters do not really alter their plans but my guess is that the mid-range buff hunters tend to downshift to a cheaper plains game hunt (lower margin), move to a cheaper destination, or they scrap the whole plan. If the buff hunt numbers decline, I wonder if outfitters will try to make up the difference by bumping plains game or top end hunt prices. Honestly, while Africa has historically had the advantage of a variety of species for not a great deal of money, I was looking recently at some free range European stag hunts that were looking quite reasonable compared to even African plains game. However, if a guy has already taken most plains game and is looking to go for Buff, and that single species is now looking like 13-14K at the lower end of things (perhaps not even including airfare)...well suddenly something like Grizzly in Canada starts to look pretty good for a dangerous game hunt. God knows the travel is a whole lot easier for the average North American! Sad to say that this increase is gonna be tough on the industry in Zim because a lot of guys like me will suddenly start looking north to either Europe or Canada as an equally economical option.

quote:

Originally posted by Buzz:...these increase risks loosing the "standard buff hunters" that Zim has always had the market for- and in all honesty that makes up the bulk of the hunting in Zim and is what Zim is know for- fair affordable buff hunting...

I agree and think this will impact the one-and-done buffalo hunter, as well as the guys who hunt buffalo every year or two, and/or multiple buff on a single trip.

This is indeed going to have a big impact on the safari industry in Zim, which is already struggling for multiple reasons including a rise in poaching and the shrinking margins resulting from the Dollarization of the economy.

All this means less money to go around for anti-poaching, community development projects, salaries, etc. Does Parks seriously expect to get paid by all the operators? And there is a trickle-down effect too. If the goal is to "acquire" more concessions and run them themselves, we'll see how that works out...

To restate the obvious, a reasonable approach would have been to gradually increase the fees over an extended period of time, allowing the market and operators to "adjust" (if indeed this was possible). And having to buy all the fixed quota is just silly, especially if there are cancellations and any unsold quota.

I know if I was a hunter who just booked a buffalo hunt at DSC/SCI I'd be pretty pissed...and likewise it is not fair for the operators to have to forego the profit on the buffalo (and other game), as obviously this was factored into the business plan for forecasting.

Parks is making a HUGE mistake.

It certainly gives one pause to look at the way things are going on the African continent now. With countries closing, supply is constricted pushing prices upward as demand remains the same. Simple supply and demand theory at work and someone remind me what the definition of price elasticity is again?

I think Parks is not as backward as everyone assumes. As Buzz stated, there are far more buffalo hunts conducted in Zim than any other member of the Big 4. Therefore, if you want to maximize the revenue stream, buff hunts seem the logical place to them to increase prices by the largest percentage. The ultimate question is what will demand do under this scenario? Buff hunts that ran $12,000 all in with TF will now run $14,000 to $15,000. I feel for the Zim operators who are caught in the middle. Nothing like volatility of prices in a major commodity to turn a profitable season to a so-so one. Every businessman's dilemma!

I can see where $1000 or so on a trophy fee will keep some hunters away but I am betting most will just pare down their wish list for the upcoming safari. The big question is what will this do to the long term trend of safari hunting as the domino effect continues?

Unfortunately the Africans skipped "Economics 101". Remember the price/demand graph? At low prices, you have lots of buyers, as price increases, you have fewer buyers. Then you have the total revenue compared to price graph. As the price increases, after a certain point, you don't necessarily make more money.

Unfortunately, it will have a bigger effect than reduced revenue. It will effect anti-poaching as well. Which effects animal populations, which will effect demand (nobody wants to hunt a poached out area) which will effect total revenue, which will start the vicious circle all over again, until there is no more huntable game populations.

Congratulations Zimania on shooting yourself in the foot.

quote:

Originally posted by tendrams:...if a guy has already taken most plains game and is looking to go for Buff, and that single species is now looking like 13-14K at the lower end of things (perhaps not even including airfare)...

Expect to see 10-day buff hunts with a trophy fee that allows for some profit to hover around $18,000. Then add in the airfare, an overnight, taxes, MARS, ground transportation, tips and a warthog and one could easily be at $24K before shipping and taxidermy.

And some operators (the larger ones who via economics of scale have been better able to absorb the financial hits to date) might have 75+ buffalo to sell each year.

Thinking about this more...what are the guys going to do who donated buffalo hunts w/trophy fees at the DSC and SCI shows?

I agree Russell that what Parks is doing is perhaps “good business”, but their way of going about it is ALL wrong. Do this in your business and see what happens...I know what would happen to mine!

Six weeks is a long time for this information to be brought foward.

Jeff

When I was at SCI I was informed that the cost of the hunt that I rolled over from last year to this year was going up because the trophy fee for buffalo had been increased to $4,500. It didn't change my plans, but then, I already had most of the money already on deposit. It may very well impact my future bookings.

As an aspiring DG hunter, I hate to see this. With DG hunting in Tanzania, Zambia and Namibia out of the price range of the less than top end hunters like me, Zim was our last option. Plus, with only so many “Top End” hunters out there where cost is not an issue, that leaves the outfitters all chasing the same dollars. I can't see how this will benefit anyone. I have done two PG safaris and was hoping my third would be for tuskless or buff in Zim, but now I expect Buzz is right in that the end no longer justifies the means. Sure it’s only a couple thousand dollar increase, but you can do a lot of hunting and shooting of PG for that as opposed to one and done on tuskless or buff.

Good luck to all the Zim guys! I hope you can get this straightened out.

Thanks for letting me vent.

Adam

quote:

Originally posted by bwanamrm:
someone remind me what the definition of price elasticity is again?

Ep = % Change Quantity Demand/ % Change Price

And anyone who thinks the demand for Buffalo hunts in Zim is NOT price elastic...well, they need to have their head examined.

To be honest, I am personally out of the buffalo game even now with the exception of "end of season cancellations". In the future though, it seems this whole thing probably takes tomorrow's "cancellation" deal into the present day "regular price". Therefore, I am out of the game entirely. Really, in my mind, it's time to get creative. For about the price of a buffalo hunt in Zim now, I can basically hunt Dwarf Buff AND Roan in Burkina Faso. For the price of a Zim buff I can probably get a good Leopard in Namibia. For the price of a Zim buff, I can now chase Brown Bear in Romania. The "out of the norm" hunt deals are going to be my future.

[/QUOTE]
To be honest, I am personally out of the buffalo game even now with the exception of "end of season cancellations". In the future though, it seems this whole thing probably takes tomorrow's "cancellation" deal into the present day "regular price". Therefore, I am out of the game entirely. Really, in my mind, it's time to get creative. For about the price of a buffalo hunt in Zim now, I can basically hunt Dwarf Buff AND Roan in Burkina Faso. For the price of a Zim buff I can probably get a good Leopard in Namibia. For the price of a Zim buff, I can now chase Brown Bear in Romania. The "out of the norm" hunt deals are going to be my future.[/QUOTE]

That is exactly my situation and thinking, well said!

Daily rates in Zim have gone up from $900-$1000 to $1200 per day in last 3-4 years.

Trophy fees look like they are set to double.

Zim appears to losing it value proposition.

Add on top higher marginal income, capital gains and 3.8% obama care taxes on investment income in the US.

On a net after tax basis the all in cost of hunting a buffalo in Zim is not worth it to me.

I much rather go hunt or spend my after tax capital/income elsewhere.

I feel bad for all the operators/phs in Zim.

But National Park will realize that buffalo hunting is price elastic and not a necessity (for me).

I think Buzz is right. I am one of those middle class guys who likes to hunt Buff every year because I really like it and it is reasonably priced. That is gone now, I will have to get creative, hunt for African species I don't have (read PG), look at 7 day hunts (which I don't like) or start hunting Asia with the emphasis on adventure. Or listen more to my wife and see more of Europe.
I ruled out Tanzania and Botswana early on because of the price. It can happen to Zim too.

quote:

Originally posted by BEGNO:
I think Buzz is right. I am one of those middle class guys who likes to hunt Buff every year because I really like it and it is reasonably priced. That is gone now, I will have to get creative, hunt for African species I don't have (read PG), look at 7 day hunts (which I don't like) or start hunting Asia with the emphasis on adventure. Or listen more to my wife and see more of Europe.
I ruled out Tanzania and Botswana early on because of the price. It can happen to Zim too.

Hey Butch - screw Parks. We can do a Louisiana 2x1. Split the cost of one daily rate and one buff and then both shoot on the count of trois .... C'est bien?

Charles,

I have not lost all hope, you know what a shopper I am, I'll just have to be more vigilante and quicker.
Maybe the PHs will offer group hunts along the lines you suggested. We could all gang up on one buff and then go back and drink everything up for the rest of the week. That actually sounds like fun.

This gives us a little taste of what operators, and for that matter, anybody trying to do business in Zimbabwe and other African countries must face in day to day life. Words like "arbitrary" and "capricious" come to mind. Officials do exactly as they please, and are answerable to no one. It may also be giving us a taste of the shape of things to come on this side of the pond if we allow it.

At my stage of life, not knowing how many years of vitality I have left, I can't afford to put off my hunts. It may mean delaying retirement, again.

quote:

Originally posted by fairgame:
Prices are still fair if one wants to contrast the cost of hunting the rarer species of sheep, goat and Ibex. Bigger money is being spent on Deer and Elk in prime locations.

True enough Andrew until you factor in the airfare and hassle of a two day trip to get somewhere (as special as that somewhere is, Mate).

I'm beginning to feel as others have expressed, that perhaps we are at the homestretch for hunting in Africa for those with a modest income.

A shame really!! The game are the ones that will pay in the long run.

How close does this put a Zim buff hunt to a Tanz buff hunt now?

The trophy fees are higher but the daily rates are lower. How much if a difference depends on who you are going with.

quote:

I agree Russell that what Parks is doing is perhaps “good business”, but their way of going about it is ALL wrong. Do this in your business and see what happens...I know what would happen to mine!

Bill,
It is not "good business" but it does generate the greatest increase in revenues for Parks over the SHORT term. Longer term I think will trend toward what you, Wendell and Tendrams point out. That at a certain price, demand falls and supply remains the same therefore you get more per hunt but sell less of them. So the Operator/PH gets caught in the middle with unsold inventory... a losing proposition for their company.

Right now with the Zambia and Bots closure, supply is shrinking, so Parks mentality is stick it to 'em while you can and you have the product. When and if the closed countries open to buff hunting and the supply of buffalo hunts on the market increases the big question is, where will prices have to go to draw buyers?

Of course, if African countries do what they often do and play "monkey see, monkey do" and raise their buff prices... well, they will sell a hell of a lot fewer buffalo in the future as many buyers are squeezed out of that market! Not a smart move for their long-term viability and certainly not for their customers, the operator/PH community

quote:

Ep = % Change Quantity Demand/ % Change Price

And anyone who thinks the demand for Buffalo hunts in Zim is NOT price elastic...well, they need to have their head examined.

Amen.

quote:

Originally posted by BEGNO:
Charles,

I have not lost all hope, you know what a shopper I am, I'll just have to be more vigilante and quicker.
Maybe the PHs will offer group hunts along the lines you suggested. We could all gang up on one buff and then go back and drink everything up for the rest of the week. That actually sounds like fun.

No doubt. But as soon as that happens, they'll raise the trophy fee on Makers Mark ....

Does anyone have any hard data on the number of Tanzania hunts that were booked after there price increase a couple of years ago? Did the number of hunts booked definitely decline? Did the increased fees from those who still booked make up for the loss in the number of clients?

I had planned to eventually do a 10 day double buffalo hunt in Tanzania, but when the last round of price increases hit I just gave up on it.

I think we are already in a recession here in the US and inflation is definitely not being accurately calculated. Stagflation and Obamacare are going to drop everyones standard of living and it will reverberate around the world. I don't think going to hunt Africa is going to ever get any cheaper so my advice, as always, is if you want to go, make your best deal and go now.

Looks like Alaska or even Russia is beginning to call my name again. I've signed on for two more trips to Africa in the next year and a half. Beyond that, it may be time to break out the cold / wet weather hunting gear again.

There is some good buff hunting down under as well. Matt and I already have plans drawn up!

I understand and agree with most of what is being said here. However, the reality is that the increase is about $2,000 or less per buff as I see it. Buzz is increasing $1,050 in 2013. I would expect CMS will have to make a profit on these in 2014. I would expect more like $6,000 trophy fee in 2014.

Is that really enough to make people stop going to Zim for a buffalo hunt? Not me. There can be a bigger price differential than that between the companies.

I like to hunt and I like to hunt all over the world. Many of the alternative hunts will be more expensive than the Zim buff hunts as repriced. Let me give you some prices on some hunts that I am doing:

Australia- buff & banteng $21,000

Alaska- Dall sheep $18,000 plus licenses

Utah- Rocky MT Big Horn ( I expect around $60,000)

I will take a buff hunt in Zim even at the increased prices before i relegate myself to only hunting places other than Africa.

I am sorry all this happened but I don't see it as the end of the world as we know it.

Seems to me the real winners here are Mozambique and Tanzania. As prices continue to rise in Zim, my guess is that more and more people will be willing to pay more to have the Tanzania experience. If it were not for the situation in Botswana and Zambia I think this would be a real disaster for Zim operators. The way I look at the math, with this increase a 10-day single buffalo hunt, when you factor in airfare and shipping trophies, etc., is now a $20K-$20K+ hunt.

That said, I guess the call of Africa is simply too great for me. I would make concessions in other areas, e.g., trimming back on the trophies I hunted, abandoning taxidermy, waiting for late season opportunities, hunting every other or every third year, etc., before I would abandon Africa and look at Asia, Alaska and other places. I am sure those are great hunts and wonderful experiences but for me, the allure of Africa is simply too great. The hook is set too deep, just reel me in.

Even if the government was justified in what they did, which I am not conceding, the manner in which they did this was reprehensible. They could hardly have timed this worse to screw the outfitters. With effectively no notice, doing it during/after the shows, not incrementally increasing the fee over several years, it almost seems as if it was intended to be punitive. Africa wins again.

Larry,
Dont forget,that the majority of us dont have money like you do. It seems clear the increase does not effect you,but it sure effects me and many others.

Buzz, Thank you for informative posting.

It seems that we have a few things at play going on here. First, Zimbabwe is broke and out of money and the treasury needs to make money to pay their bills and hunting dollars is a place for them to look at, and they have. So what if Zimbabwe loses a few potential hunter clients with the trophy fee increase. That is no big deal as you will see. Today's price increases are higher than last year prices, however Zimbabwe will show a profit for the country at the end of the year. This is a win for Zimbabwe and there can be fewer hunters to make it all happen. That is not what anyone wants to hear. Plus any animals that are not taken in 2013 will have a chance to grow bigger and older for 2014. Those of you worried about the poaching should be concerned as, I do not believe that Zimbabwe thinks that they have a poaching issue.

When a business receives a product price increase, that business will pass that price increase to the client. From the sounds of things on here some potential clients are moaning and do not like the price increase. No if the Zimbabwe PH's want to stay in the business, they will have to pass the price increase along to their customers. They cannot give their services away for free.

From reading all the posts, it appears that some Potential clients like to P&M (Piss & Moan) when conditions change. Now if a person wants to take a Cape Buffalo safari, some additional planning will be requires by some. The potential safari goer may instead of looking at going on safari every year, may become an every other year safari goer. What some on here are moaning about is the price increase in the Cape Buffalo expense when they need to be looking at what the total Safari package cost is to determine if the percentage is greater than 10%. Most safari takers should have a built in a contingency line of somewhere between 5 and 10% of the total safari cost, to cover thing out of the ordinary.

While we a have been looking at other African countries that have raised their prices. Plus we have a few countries that have now closed their hunting for a year or more. That will push a pool of potential clients to the few countries that are open to hunting.

As one said prices will continue to increase, and if a person is pinched for money now it will only get worse in the future and maybe they will need to look at other venues to explore.

Joe:

What I am trying to say but probably did a poor job of is that the alternative hunts mentioned are often more expensive than a Zim buff hunt. Like Mike, Africa has got her hooks into me in a serious way. I find it hard too even think of staying away.

quote:

Originally posted by fairgame:
Prices are still fair if one wants to contrast the cost of hunting the rarer species of sheep, goat and Ibex. Bigger money is being spent on Deer and Elk in prime locations.

Perhaps, but a 350 elk is a lot more impressive than a 37 inch buffalo. Makes my leopard hunt in April look like a steal for 12k incl TF, and 14 days to boot.

Well, sad news.. I see this putting Africa out of the reach of some. I myself will return but will have to save. 15-20K for a buffalo hunt is almost over the top...$20,000 is alot of green$$$$ This sure makes alot of the South African and Moz offering look very attactive..I thought Africa was really getting better--and more affordable...now with airfare going thru the roof, and trophy fees, petrol, and other things going up...I fear the crowd in the hunting comunity might be fewer after all of this... Good luck guys!

Ed

With the closing of Zambia and Botswana, guess trophy fees go up. You want to hunt buf you will have to pay.

Mike

I agree that the African hunting community is going to shrink from this fiasco. Mike: I understand your comment, but that's exactly what's wrong with this whole mess. It's just going to push a lot of buffalo hunters out of the picture. Greed doesn't usually work in the long run, and I hope that this backfires big time.