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Correction Demanded From Safari Company Agencia de Informacao de Mocambique (Maputo) May 23, 2005 Posted to the web May 23, 2005 Maputo The Mozambican government will demand that a safari company running hunting trips into the western province of Tete removes false information from its advertising, Tourism minister Fernando Sumbana told AIM on Monday. The Harare-based comany, Safaris de Mocambique Lda, run by a South African named Peter Hougaard, has published price lists, which include a "16 per cent government export tax on trophies". But there is no such tax. Sumbana told AIM the Tourism Ministry does not impose a 16 per cent tax, and he had checked with the customs service, who confirmed that they too levy no such tax. "We will demand a correction from the company", he told AIM. "The company can charge whatever fees it likes - but not in the name of the government". The fees Safaris de Mocambique charges its clients are already very high, and bear no relation to Mozambique's genuine hunting charges. Thus the fee charged by the government for shooting a lion is ten million meticais (416 US dollars at current exchange rates). But Safaris de Mocambique charges its clients 3,500 dollars for a line - when the fictitious 16 per cent tax is added, the sum becomes 4,060 dollars. 416 dollars of that is for the government - the rest is pocketed by the company. Similar calculations can be made for every other animal on the list. If a tourist shoots a crocodile, the government will only charge him 3.5 million meticais (147 dollars) - but the total fee charged by Safaris de Mocambique is more than ten times as much (1,740 dollars). On top of this are the daily fees ranging from 585 to 1,000 dollars a day (depending on the length of the hunt, and the animals hunted), 400 dollars for a hunting licence, 110 dollars for a gun licence, and transport and documentation fees ranging from 250 dollars for a seven day trip to 950 dollars for 28 days. A very lucrative business: especially as a Mozambican hunting licence only costs 772,800 meticais (32 dollars). The only thing remotely resembling an export tax which the Mozambican government charges is the cost of the export authorisation form - 10 dollars, in the case of protected animals on the CITES (Convention for Trade in Endangered Species) list, and five dollars for animals not on the CITES list. The maximum that a tourist should pay for these forms is thus 15 dollars. Charging non-existent taxes is not the only problem with Safaris de Mocambique. Sumbana told AIM that the company is in litigation with local communities in Tete. The basic agreement with such hunting companies is that they enter into contractual arrangements with local communities, so that the communities derive some benefit from this form of tourism. Such benefits are crucial to persuade local peasants that wild life is worth preserving. But communities in the Bawa area in southern Tete say that Safaris de Mocambique has broken its agreement with them, and they are trying to take the company to court. Sumbana said the goverment is working through the Tete provincial attorney's office to ensure that the communities have the necessary legal assistance. Meanwhile, the government is launching a tender for concessions on three hunting areas in central Mozambique, two in Manica province and one in Sofala. Sumbana said that, in principle, contracts for such concessions last for five years - however, the government is under pressure from operators to extend them to ten years or even longer. The Tourism Ministry's contacts with other countries in the SADC (Southern African Development Community) region indicate that five years is the norm. The argument that operators need more time to recoup their investment is shaky - a hunting camp in the Mozambican bush cannot be compared to a five star hotel. And as the prices from Safaris de Mocambique indicate, the companies seem to operate with enormous profit margins. On the other hand, Sumbana admits that Mozambique's basic transport and communications infrastructure is worse than in other SADC safari destinations, and this could be used to argue in favour of a ten year concession. Kathi kathi@wildtravel.net 708-425-3552 "The world is a book, and those who do not travel read only one page." | ||
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Another terrific update on the changing faces of Africa. I wonder if it is ever possible to bypass these businesses and purchase directly from the peoples living in any given area? Perhaps travelling to their homes as a sidetrip and delivering the equivalent of gratuities to them directly? I believe someone on this site did something similar with school supplies a year or so ago. Thank you, Frank | |||
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Interesting......so is there a 17% VAT in Mozambique or not? xxxxxxxxxx When considering US based operations of guides/outfitters, check and see if they are NRA members. If not, why support someone who doesn't support us? Consider spending your money elsewhere. NEVER, EVER book a hunt with BLAIR WORLDWIDE HUNTING or JEFF BLAIR. I have come to understand that in hunting, the goal is not the goal but the process. | |||
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Here we go again ... this is such a clear cut case of libel, it is simply amazing. I have a very good idea about how to address the ridiculous accusations of this sensationalistic article, but I want to have clear and accurate information. I am going to speak to Piet ... again ... before posting any response to this. In the end, I can see what will happen. Instead of charging the 16% fee, he can just charge the government 17% VAT on the daily rates to his clients and everyone will wind up paying more. Once again, the liberal media has righted one of the great inequities of society by bringing these issues to light. | |||
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The fee charged by the government for shooting: Lion is $416 (US), Safaris de Mocambique charges $3,500 - when the 16 % is added the sum becomes $4,060. Crocodile, the government charges $147, the fee charged by Safaris de Mocambique is $1,740. 1,000% markup on costs. Mozambican hunting licence costs $32, the fee charged by Safaris de Mocambique is $400. That's not bad, only 900% mark up here. This may be one of the most reasonably priced operators in Africa and from what I have heard a very good company and PH. It makes you wonder about the rest of the companies who charge even more for the same services. Whatever the market will bear, I guess. Frank "I don't know what there is about buffalo that frightens me so.....He looks like he hates you personally. He looks like you owe him money." - Robert Ruark, Horn of the Hunter, 1953 NRA Life, SAF Life, CRPA Life, DRSS lite | |||
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Frank, you just nailed it! Whatever the market will bear. Lets puts aside all of the issues around taxes/export fees or whatever the hell you want to call it. This boils down to simple valuation and determination of fair market value(something I work with on a daily basis). We have three approaches to valuation: (1) Income, (2) Market, and (3) Cost. Different approaches have applicability in different situations. Clearly we cannot develop a cash flow model/dcf of a single safari to determine its value, in like manner the cost approach is not applicable as we are not dealing with valuing a capital intensive entity. Thus the only applicable methodolgy is the market approach. One must look at "comparables" to determine fair market value. Plain and simple. Who gives a damn what the lion costs? $3,500 is incredible. We have seen ASTRONOMICAL prices floated around here for lion recently. Compare daily rates and all "other" expenses with other outfitters offers and then compare. Lets be careful when casting stones, prices and fees are all over the map, hell one of our esteemed posters here charges $600/day for PLAINS GAME (helps pay for the Ferrari I imaagine  ). You are going to pay a hell of a lot more to hunt with the likes of Johan Calitz, John Sharp, and I dare to say Mark Sullivan (forgive me for mentioning in the same sentence with Johan and John). They can charge more because that is what the market will bear, nothing more, nothing less.Lastly, and this has been mentioned before. I hope that all of us are astute enough to take the information from the media (print or television) with a HUGE grain of salt! My thoughts on the media: OFTEN WRONG BUT NEVER IN DOUBT!!!!!! | |||
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VAT - Value Added Tax was implemented in Mozambique on 1 June 1999. VAT is applicable on the transaction of goods and services within the national territory, as well as on imports of goods to the country. The VAT rate is 17%. From "Setting up and operating a business in Mozambique" - Mozambique Investment Policy | |||
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The first mistake you have made in your evaluation is NOT LOOKING AT THE BROADER PICTURE. Typically, outfitters recoup the following costs from trophy fees which is why they charge a "premium" on top of the "cost price" (Gov fee): 1- Cutting of bush hunting roads 2- Anti-poaching activities ALL YEAR ROUND!!!! 3- Community development activities such as schools, medical supplies, etc 4- any other infrastructure work done within the concession (too many to list!) If one thinks that there are huge profit margins in this business simply from the above calculations, here are a few "cost factors" to consider: 1- The duration of the hunting season is never more than 4-6 months in a year. You generate income for this period but you have costs for 12 months! 2- The myriad of unforseen "Gov related expenses" and I am ot talking about the "official" expenses such as taxes, levies, royalties, etc. 3- The "political" favors (obligations) - all of which end up costing lot of money - dumped on you as the outfitter. 4- The relative high cost of even the most basic raw material because it is not available locally. An example (from Tz): a light bulb from a hardware will cost $1. this will invariably be made in china/Taiwan and is guaranteed to pop within a coupple of weeks. add to it the cost of getting it to camp 2 days drive from your office. Part of the reason why few, if any, outfitters/ph's drive a ferrari "...Them, they were Giants!" J.A. Hunter describing the early explorers and settlers of East Africa hunting is not about the killing but about the chase of the hunt.... Ortega Y Gasset | |||
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Still end up with a lot for my money. Imagine what would happen to compnaies like Nike, making shoes for $2 a pair in some sweat shop in the Far East, then charging $200 for it in the shop. And the young are lining up to buy them. I cannot remember ever reading about a PH who is a millionaire, but the shoe makers are rolling in billions. Go figure! | |||
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1- The duration of the hunting season is never more than 4-6 months in a year. You generate income for this period but you have costs for 12 months! 12 months/4-6 months = 2 to 3 times Lion = $832 to $1248 Even at six times Lion its only $2496 Uhhgh!!! Lion pays all year! Lion no drive ferrari PH no drive ferrari Black Rhino hunter, hmmmmm, Him drive ferrai Me Minkman, Like money much, but money flow like river away from Minkman  | |||
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Wendell, every couple months somebody around here is selected to be the "BOHICA pivot man", and guess what; it's you and Pete's turn. Several other people have had their turn in the barrel. Usually this sort of thing takes place on the Political section but things were getting a little boring around here. So some of the keyboard crusaders pointed their cursors at you two. Don't worry, it's starting to lose entertainment value and remember...."this too, shall pass" But please, keep us posted on the outcome of Pete's wrath. I bet it's something to see when that former Selous Scout starts moving people around! | |||
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Matt, Thanks. Any of these "accusations" could be written about any safari company in Mozambique, Zimbabwe, or Tanzania. This is just one man's agenda against a well respected and successful operators in Mozambique. It is asinine.
I believe it is a requirement for all Zimbabwe ph's to play rugby before they can apply to be an apprentice ph. I bet Piet was a good rugby player. I know I dang sure would not want to be on the receiving end of Piets fist. This article is such trash and so slanted it makes me sick. I have not been able to contact Piet yet this morning, (wonderful cell network they have there.) but I can bet he is going to be hot when he hears this one. First off, this reporter makes it look like Piet is pocketing all the money between the government license fee and the trophy fees he charges. They fail to point out that the area is fashioned after the Zimbabwe CAMPFIRE model where the trophy fees go to the local villages. Is there some mark up of profit? Probably. Guys in Zim, and Tanzania have been doing it for years. They fail to acknowledge the benefits of the hunting program. Piet bought 4 maize grinding mills for the local villages at a cost of $40,000. I saw them, I can vouch. We delivered meat to villages all day one day after I was done with my hunt. The villagers expected it. Nobody said thank you, they just looked at us like "Is this it?" After dumping an entire load of Buffalo meat. Didn't see that in the article did you? | |||
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Apparently your explanation wasn't as well received by the Moz govt as it was by some of the readers here. | |||
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This is information off Wendells site about Piet Hougaards Mozambique buff hunt. 7-Day Buffalo Pkg Price 1x1 hunt package $6950 2x1 hunt package $6150 10-Day Buffalo Pkg Price 1x1 hunt package $9075 2x1 hunt package $8000 This Package includes Buffalo trophy fee Daily rate for 7 or 10 full days of hunting All accommodations for duration of hunt Hunting license Export tax on Buffalo Transportation and documentation fee of trophies to shipping agent Gun permit for one gun Package does not include Dipping and packing Trophy fees on other animals above the included Buffalo Round trip transportation from Harare to camp (Road transfer $500/vehicle - or - air charter - $1500 single engine; $1900 Twin engine Regardless of what you call the costs of this hunt, the bottom line total is attractive. I have contracts on the way from Wendell for this hunt. This is my first African hunt and I have relied on this site and calls to references supplied to gain confidence in the integrity of Wendell and Piet. Am I missing something? I don't think so. | |||
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xgrunt, Yours is the best of the retorts to this thread.  BTW, what do you pay for drink at the hotels?  Just a little mark up there, huh!  You gotta pay to have fun.  Roger QSL | |||
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So much ado about nothing. Call it an export tax, VAT, or increased daily rate or trophy fee, the end is the same. If you want to play, you have to pay. If I was shopping for this type of hunt, the bottom line is what would matter to me, not what some bureaucrat or so called journalist has to say. "There always seems to be a big market for making the clear, complex." | |||
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The response of the Mozamibican government to this trumped up nonsense is predictable and would be funny if it weren't so pathetic. Forty percent of the entire state budget of Moz is funded by donations from foreign governments and NGOs that are made directly into the state's coffers. Small wonder they're a little sensitive about "tax" questions.  I'm not sure exactly how many meticais make up 40% of the Moz annual budget, but I'm pretty sure it's a lot, probably several trillion meticais, given the 24,000 to 1 exchange rate between them and dollars. And that's decades after the communists seized all private property in a once thriving nation.  Mike Wilderness is my cathedral, and hunting is my prayer. | |||
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