Dollar to Rand hit R$13.00 to $1 USDtoday.

Keep that in mind when negotiating hunting costs in RSA and Namibia...

Yeeeaha

Wow!

The USD is very strong right now - the same applies to hunts in Canada and Australia.

Hell, it may get to 15 Rand by the show season.

Do the RSA citizens expenses go up as a percentage of their income due to their decreased buying power? For Fuel, food, electricity?

quote:

Do the RSA citizens expenses go up as a percentage of their income due to their decreased buying power? For Fuel, food, electricity?

In some instances, yes. As the Rand weakens, the cost of goods from outside RSA increases, i.e. oil/petrol. Particularly those commodities (petrol, electricity) price controlled by the government, aka the ANC.

With the cost of a U. S. dollar at over 13ZAR, I wonder how many outfitters, marketing folks, and PHs will travel to either North America or Europe for the upcoming show season. Just my $.02

Don

Gas prices have been dropping in RSA and Namibia for the past year. Have not really noticed food as being any more expensive this past year.

Yeah, it looks like their inflation is running about +5% as of now.

It appears that diesel has dropped back to about what it was at the first of the year when the were setting the 2015 safari prices, while petrol still seems to be about +20% above the first of the year prices if they are using that at all. I imagine the PH's will all be looking for something more to cover their expenses as well.

Auction prices of game all seem to be up in the last year from a little bit to crazy amounts, and of course all the landowners follow those prices very closely.

I wonder if they will have anything left to cut out of this years 10% exchange rate increase.

Good point about the cost of travel to the US! SAA prices have been fairly reasonable recently, for us at least, they don't seem to give their own locals much in the way of deals though.

13.2 Rand to 1 US dollar today! 15 to 1 is now feasible by the time of the hunting shows. Of course, none of us may have any discretional spending money left if the stock market doesn't correct back by then.

quote:

Gas prices have been dropping in RSA and Namibia for the past year.

Hate to disagree with the above, but in Feb petrol was R9.94 per liter. Last week when I filled the tank it was R13.03. Even with my poor math skills that is a 30% increase.

Fortunately, my income is dollar based and today's exchange rate is R 13.00+/- to the U. S. dollar.

Don

quote:

Originally posted by GunsCore:
13.2 Rand to 1 US dollar today! 15 to 1 is now feasible by the time of the hunting shows. Of course, none of us may have any discretional spending money left if the stock market doesn't correct back by then.

I'm waiting for the signed contract from my outfitter for next April's hunt in KZN so I can wire the money. He should be happy with the exchange rate.

quote:

Originally posted by Nevadan:

quote:

Gas prices have been dropping in RSA and Namibia for the past year.

Hate to disagree with the above, but in Feb petrol was R9.94 per liter. Last week when I filled the tank it was R13.03. Even with my poor math skills that is a 30% increase.

Fortunately, my income is dollar based and today's exchange rate is R 13.00+/- to the U. S. dollar.

Don

Not sure where you were purchasing petrol but I've been paying between R$11.50 to R$13.00. There was a price drop at the first of the year, but if you look at year over year, prices really have not risen.

All pays the same and if you guys in Africa make more on exchange, good for you.
Market is what drives everything so hope you make it.
We need you guys out there to stay in business

They are thinking gas will get below $2.00 here in the states. China slowing down and stock market woes. We will see.

Isn't the Namibian Dollar pegged to the Rand?

quote:

Originally posted by robncolorado:
Isn't the Namibian Dollar pegged to the Rand?

Yes, but if I was the Namibian government I would start to rethink that policy.

If outfitter's price list is in US dollars then the exchange rate helps them. In 2014 when it came time to settle the bill there was an unexpected 10% discount and the reason given was the favorable exchange rate.

quote:

Originally posted by CharlesL:
If outfitter's price list is in US dollars then the exchange rate helps them. In 2014 when it came time to settle the bill there was an unexpected 10% discount and the reason given was the favorable exchange rate.

You should certainly give out their names. This is quite unusual behavior.

OTOH if the rate went the wrong way, I'd still expect the same bill in dollars.

quote:

Originally posted by CharlesL:
If outfitter's price list is in US dollars then the exchange rate helps them. In 2014 when it came time to settle the bill there was an unexpected 10% discount and the reason given was the favorable exchange rate.

My congratulations on your choice of Hunting Outfiter, an honest and straight-dealing man! I agree with Gatogordo, you should name him, either here, and risk hijacking the thread, or in a hunt report!

An outfitter who rebated based on a favorable exchange rate - what is this world coming to?

Not sure I would name him in public, he might not live long if that got out...

Dollar to Rand back up to R$13.97 to $1 USD as of today.

With Yellen announcing a rate hike most likely in December, watch for a strengthening dollar. Should make Africa that much more enticing...

quote:

Originally posted by Opus1:
An outfitter who rebated based on a favorable exchange rate - what is this world coming to?

Not sure I would name him in public, he might not live long if that got out...

I almost named him because I think he should get credit, but then I thought better because I could cause him grief. He knows who he is and is welcome to take credit if he wishes.

quote:

Originally posted by Opus1:
Dollar to Rand back up 1:13.97 as of today.

With Yellen announcing a rate hike most likely in December, watch for a strengthening dollar. Should make Africa that much more enticing...

I was feeling good about my 13.3535 that I got with TransferWise until now. Oh well, I never planned to make a living off of currency speculation.

Incredible. I've never hunted in South Africa, but have hunted in Namibia years ago. The Namibian dollar was tied to the Rand back then -- it may still be for all I know. If I recall it was 1:7 back then.

I have several friends in SA that are seriously considering emigrating because of the political situation--which is of course the reason for the exchange situation.

quote:

Originally posted by Gatogordo:

quote:

Originally posted by CharlesL:
If outfitter's price list is in US dollars then the exchange rate helps them. In 2014 when it came time to settle the bill there was an unexpected 10% discount and the reason given was the favorable exchange rate.

You should certainly give out their names. This is quite unusual behavior.

OTOH if the rate went the wrong way, I'd still expect the same bill in dollars.

Damn right it's unusual! Standard operating procedure is for outfitters to plead poverty no matter which way the exchange rate moves. For example, "Oh the rand is strong, so it takes more of your dollars to buy the same rand as before therefore I have to raise prices" or "Oh, the rand is weak and all my imported supplies just got more expensive... therefore I have to raise prices". LOL!

quote:

Originally posted by CharlesL:
If outfitter's price list is in US dollars then the exchange rate helps them. In 2014 when it came time to settle the bill there was an unexpected 10% discount and the reason given was the favorable exchange rate.

I wonder if this went the other way round, and you got an additional 10% to pay??

How would you feel??

The Rand was 10:1 back in 2002, and bounced back. Possibly largely because of the World Cup development. I fail to see how one of the world's largest gold, diamond and platinum-producing nations, with nuclear capability and one of the world's most strategic naval routes can implode its economy so efficiently. Well, actually I don't...

quote:

Originally posted by Saeed:

quote:

Originally posted by CharlesL:
If outfitter's price list is in US dollars then the exchange rate helps them. In 2014 when it came time to settle the bill there was an unexpected 10% discount and the reason given was the favorable exchange rate.

I wonder if this went the other way round, and you got an additional 10% to pay??

How would you feel??

quote:

Originally posted by Saeed:

quote:

Originally posted by CharlesL:
If outfitter's price list is in US dollars then the exchange rate helps them. In 2014 when it came time to settle the bill there was an unexpected 10% discount and the reason given was the favorable exchange rate.

I wonder if this went the other way round, and you got an additional 10% to pay??

How would you feel??

The price list we agreed to was in dollars so I don't see how that would work.

quote:

Originally posted by Saeed:

quote:

Originally posted by CharlesL:
If outfitter's price list is in US dollars then the exchange rate helps them. In 2014 when it came time to settle the bill there was an unexpected 10% discount and the reason given was the favorable exchange rate.

I wonder if this went the other way round, and you got an additional 10% to pay??

How would you feel??

Well, that's the excuse that has been used since the early 1990's. Costs are going up, gas is expensive, equipment is expensive, land owners are charging more, etc etc. We've had all the excuses for the steady rise in hunting costs in Africa. Funny how costs don't decline when the Rand sinks and the Dollar rises. One thing I know is, my dollar is going a lot farther in Southern Africa today than it was last year or the year before. Interesting how hunting costs are not going the same way...

The fact that most outfitters negotiate contracts based on US dollars (or in a few cases Euros) says a lot.

The point is, you sign a contract agreeing on a specific price in Dollars.

Why would you expect any change from that either way??

Would anyone accept a contract that specifically takes into consideration that the price will go up - or down - on the exchange rate??

[/QUOTE]

Well, that's the excuse that has been used since the early 1990's. Cost are going up, gas is expensive, equipment is expensive, land owners are charging more, etc etc. We've had all the excuses for the steady rise in hunting costs in Africa. Funny how costs don't decline when the Rand sinks and the Dollar rises. One thing I know is, my dollar is going a lot farther in Southern Africa today than it was last year or the year before. Interesting how hunting costs are not going the same way...[/QUOTE]


Maybe the real problem is who you are hunting with? I know where I hunt the prices have gone down steadily with the exchange rates. Obviously not dollar for dollar
- for all those above reasons you seem to feel are bogus.

I'll bet that any outfitter will give you a great deal if you are willing to pay TODAY for a hunt 6,12, or 18 months in the future.

Meanwhile, as our benefactor points out above, if you want to play the exchange rate game you must be prepared for a negative outcome as well as a positive one.

Les

Hunting prices of late have become far more flexible than in the past largely due to less demand and fewer high end bookings.

The point I was making is, the historic excuse for higher rates has been the rising costs of the operator. For the past few years the dollar to rand has risen much faster than costs. So the usual excuse of rising costs is not in play at the moment.

All this to say, the hunter is in a buyers market at the moment and has a lot more buying power if they are aware of that opportunity. Or you could just take the first number thrown out and go from there.

Guys, I am a Outfitter And yes the weak Rand has helped allot and I by no means pleads poverty, however we are also selling less hunts than 5 years ago due to the world economy and I don't think the last couple months news coverage will helped business either so it does cut booth ways market cost goes up for us allot because of the strong$$. I for one always negotiate a safari with a client but my hunts did not become cheaper because of the strong$$.

Hell give us a break ... our business is seasonal with at best 7 months to hunt in...

Bottom line is that all the Safaris I have seen are quoted in dollars. If the dollar is stronger, good for the Outfitter. It surely would not make a difference to me. I signed the contract and I would expect both of the parties to honor it.

The time to worry and consider the costs is BEFORE the contract is signed. Once it is signed, there is no need to worry about the costs!

I believe that most of the Outfitters on AR are trying to make an honest living. They have enough issues (Political) to worry about. The last thing they need are hunters expecting a discount, after an agreement has been made!

Guys the exchange used to be R1 bought you $1.15. Now R1 buys you 7 or 8 cents US. It's mostly about inflation. A Mercedes Benz 280SE cost R4000 back in the day. Now the equivalent vehicle probably costs close to a million. That is because the government of RSA debased the currency, effectively confiscating savings and increasing effective tax rates because just about everyone ended up in the top bracket.

The Zim situation we all know. Just a more extreme version. Nobody is/was saying, well a buffalo hunt should be $100 this year because the Zim dollar is at 400,000 to 1 or whatever.

Would you prefer that hunts be priced in Kruger Rands?

There is a lesson in this for our Central Bank. Those of us that are fortunate to have our savings denominated in USD would do well to diversify. The writing is on the wall.

Actually, it's not that bad, but prices have certainly increased in southern Africa for the past decade. However, the strength of the dollar has far outpaced the rise in inflation.

Rand to Dollar hit R$14.15 to $1 USD if anyone was interested...

I just checked my computer's currency converter and found the rand selling at 14.166 to $1.00 U.S. today.

More surprisingly, the euro and the dollar are at near parity with one euro costing us only $1.074 U.S.

Bill Quimby

My point is that the contract price is the contract price, currency fluctuations notwithstanding.