I just looked at the rand exchange rate its
1US = 7.8 ZAR.

When I was there in 2004 it was 1 = 6.5.

Anyone know what is going on to cause the increase?

Also of interest..will the safari rates that went up a couple of years ago due(Supposedly) to the exchange rate moving one way now come down due to a move in the other direction?

Are you kidding? When have the safari rates gone down, because the exchange rate has gone the other direction? That's the whole oxymoron to this entire Safari business and process. Go figure that one out, and when you can adequately and reasonably explain it, then let's hear it. I have seen Safari rates only go one direction. . . .no matter what the exchange rate.

Thursday, October 5, 2006

1 US Dollar = 7.91333 South African Rand

I dont believe Safari rates or any rates in Africa for that matter will come down, I think we are like the rest of the world, for some reason nothing seems to favour us peaseants anymore. Prices keep going up and so does inflation and nothing seems to really matter on exchange rates

Exchanges rates are generally only USED by government to manipulate the people and to use as various excuses for their inept performances

In Zambia the actual exchange rate improved to the US dollar when ALL THEIR DEBT was paid off or deleted from the books by the World Bank/IMF so it goes to show how governments and monetory institutions can manipulate the worlds currencies at will

Thursday, October 5, 2006

1 US Dollar = 4,074.10 Zambian Kwacha

Zimbabwe ...Thursday, October 5, 2006

1 US Dollar = 259.590 Zimbabwe New Dollar

Cheers, Peter

stubbleduck47,

Here,speaking only on behalf of myself: For every cent the exchange rate changes, so does the cost of a hunt with Andrew McLaren Safaris.

This is so because I quote all costs in Rands. The industry norm is to quote in us $. This is fine for American clients, but hunters from most other nationalities have to convert US $ into the currency with which they are familiar. Andrew McLaren Safaris quotes costs in Rand as all my costs are paid in Rand, and I make my profit in Rand. I am in the Hunting Outfitter business, not a speculant in the FOREX market!

So, all Americans should hope for a significant weakening of our Rand, as then a safari with Andrew McLaren Safaris will really become a bargain!

In good hunting.

Andrew McLaren

Andrew,

That is the best way to do it
We live in RSA and spend and use Rands only anyway. We pay PH's in rand and the animals in rand. Why take a risk and book a hunt for next year at a rate of R8.5 to the dollar when next year when you are suppose to receive the difference the rate is 6 to 1.

The downside is that if the Dollar weakens the safaris become more expensive. But then again with our currency swining up and down like that the chances are that sometime before the hunt the rest can be paid when the rand weakened.

Just a tip that I picked up from working with financial instutitions when I still worked IT the rand drops everytime we have a interest rate hike. That is basically quaraanteed.

I fully agree with Andrew.

I also calculate my prices in Rands and I state the exchange rate that I used to concert to $ Euros or whatever. I also state that if there is a change in the exchange rate the pricing will be adjusted accordingly.

The Rand did trade at too strong levels for quite some time, it was mostly due to high comodity prices and the high oil prices.Gold has dropped significantly in the last couple of months. The bigger deficit on our balance of payments as well as the lower confidence in the emerging markets played a big role in the decline of the Rand.

All this makes it a lot cheaper for Americans and Europeans to hunt in RSA.

The previous higher value of the Rand vs. Dollar or Euro was due to speculation that gold prices would keep increasing, the Rand being the currency most closely associated with gold. The fall in the Rand is due to a reversal of speculation on gold prices.

While some hunting companies do price their services in local currencies, most do not. This is understandable in that hunting is one of the imporant economic activities that brings "hard currencies" like Dollars and Euros to African countries. Therefore, fluctuations in exchange rates typically have little effect on hunting costs (the exception being those operators who use rising local currencies as an excuse to raise prices, and ignore falling local currencies which should lower prices.)

One way to take advantage of a stronger dollar or euro is to exchange for local currencies to use as tips and for local purchases. In this way, you'll get the enhanced value of your "hard" currency in terms of more purchasing power.

A few years back when the rand traded at 10+ to the USD you outfitters were in hog heaven but still cried croc tears. Also the hunters pay a hugh share of your taxes via the VAT and the income taxes you pay are nill and the government could care less how much you cheat on them.

Not complaining too much but fair should be fair.

Die: I am with you in your sentiments. I too hunted when it was almost 11 to 1 (USD v. Rand), but things do not seem to go down. When times are tough there then they want their payment in USD cash,, and when times are good they want it converted to Rand. In any event, the prices NEVER DROP. The problem can best be summed up by ONE WORD: GREED. Once they're used to getting that price they're not going to lower it. In the future, I plan on hunting with those that adjust their prices accordingly and can make rhyme and reason out of the price changes and structures. We are not all filthy rich Americans that can pay whatever people believe that the market can and will bear.
Stonecreek: Those "Operators" that you talk about are in the majority over there, not in the minority.

I also noticed when it was 10 or 12:1, everyone with a truck and a Jack Russell became a PH driving ranch to ranch paying the Landowners alot for their game. It seems the Landowners do not care about the exchange rate and want their money. And as long as us hunters keep paying the prices they will keep raising. Simple Supply and Demand.

Just a suggestion, why don't all countries that offer hunting charge according to their own currency ? Once a hunt is booked the exchange rate is pegged and once payment is made if there is a change in the exchange rate, the difference can be re negoitated.

quote:

Originally posted by Mike Capricorn:
Just a suggestion, why don't all countries that offer hunting charge according to their own currency ? Once a hunt is booked the exchange rate is pegged and once payment is made if there is a change in the exchange rate, the difference can be re negoitated.

Mike I truly think you (would buy big trouble) doing that.

AS you will know better than most (with you living over there) the biggest problem with MOST of the Southern African Hunting Countries is their exchange rates fluctuate too much, and in the main their (economies are rather unstable) hence that effects their exchange rates too much. And then to try and negotiate following exchange rate changes will open a whole NEW can of worms and create new disputes.

I truly believe by using a (relatively stable) and more importantly a (worldwide tradible currency) being the US Dollar is still the best way to price the hunts and effect payment with the least amount of problems and disputes.

All major Southern Africa International hotels and other tourist facilities ALSO use the US Dollar for payment and pricing to a large degree, so that must surely indicate the preferance and ease of transaction.

I cant see any down side to using the US Dollar as at least (all parties) know exactly where they stand.

At the end of the day the savy consumer purchasing the product (hunting safari or other) will decide if the price is too high and switch suppliers if he chooses, why complicate something that works well and that is in effect not broken

Just my thoughts anyhow, I could be wrong.

Cheers, Peter

Should I convert some Dollars to Rands now? Or wait until next May before I go?

Interesting theories here. As an American who owns a safari company in SA, I maintain a specific profit margin based on expenses which are, of course, affected by the rate of exchange. I simply speculate on the rate for the following season and buy a hedge which covers me if the rate fluctuates below what I've speculated. It's cheap financial insurance which locks in a rate for me regardless. Again, I make the same money and the client signs a contract which guarantees his rate. I don't know of any American client that would book a hunt on a sliding scale. I certainly would not. I can imagine the backlash which would have occurred two years ago when the rate suddenly fell to 4.5 from 6 with clients who were already booked. But, if they are happy to book it that way, it certainly helps the outfitter who, in the end, is doing this work because it's satisfying more than profitable.

Ken Moody