SKUKUZA CONFERENCE LODGE DEVELOPMENT FACT SHEET
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1 SKUKUZA CONFERENCE LODGE DEVELOPMENT FACT SHEET 1. STRATEGIC DECISION PROCESS The vision and mission of SANParks stems from the mandate given by the Government of the Republic of South Africa to the Board of South African National Parks. It reads as follows: It is vitally important to understand that the mandate extends to a SYSTEM of National Parks, 21 to be precise. Of these protected areas, only 5 are able to generate a surplus which is then used to fund the remaining Parks. The biodiversity value and threat of loss thereof in other parks particularly in the Cape Floral and Succulent Karoo regions is far greater than that of some of the other biomes, eg. Savannah as found in the Kruger National Park. Over the last 15 years the land under National Parks status has grown by over 1 Million Hectares and with this comes a significant of costs. Government has funded the purchase on this land. It is now up to SANParks to find sustainable methods to fund the operations and protection of the entire National Parks system and hence SANParks views Responsible Tourism as a Conservation Strategy. We also have a mandate to ensure that we are able to offer equitable access to the citizens of this country. This dictates how we set our fees. In order to make the Parks more accessible the following has been done: Page 1 of 10
2 1.1 SANParks changed the Conservation fee structure to take into account that residents of this country pay taxes and part of that tax is provided to SANParks as a conservation & roads grant. This allocation from the fiscus covers about 20% of the SANParks operational costs the remaining 80% is funded through Responsible Tourism activities. 1.2 SANParks also introduced the Wild Card in order to provide regular visitor to the various parks with a more affordable option. 1.3 To provide access for poorer communities SANParks introduced SANParks week. 1.4 In terms of product offering SANParks also offers a very broad spectrum of accommodation types. This provides visitors with a choice of accommodation types that suit their desired experiences as well as their pockets. (From Camping through to five star full service lodges.) The challenge that we now face is that we have been very successful and our occupancies are far higher than industry averages. Even during this difficult economic period we have performed very well when compared to the broader tourism industry. *See table below. We also have to ensure that we understand the demands of the emerging domestic market so that we can grow this market for future support and therefore sustainability. Accommodation StatsSA SANParks Period (Apr-Dec) Growth Growth Occupancy 50.9% 48.1% -2.8% 76.9% 72.7% -4.2% Average Rate R R % R R % RevPAR R R % R R % Camping Period (Apr-Dec) 2009 StatsSA 2010 Growth 2009 SANParks 2010 Growth Occupancy 10.1% 11.4% 1.3% 50.8% 49.9% -0.9% Average Rate R R % R R % RevPAR R R % R R % Page 2 of 10
3 So what are the options? As we only have limited scope to grow occupancies should we practice ruthless yield management which would result in much higher prices? This strategy may provide a short term solution but we may also then turn away a large portion of both our current and emerging markets, which may result in a smaller support base for conservation in the future? Or Do we diversify our product offering in a responsible manner to attract new markets such as the MICE (Meetings, Incentives, Conferences and exhibition) market? We believe that the second option is the most prudent. 2. SKUKUZA CONFERENCE LODGE Being the headquarters of the Kruger National Park, Skukuza often hosts international conference relating to conservation and related scientific topics and this resulted in the decision to develop a top quality conference centre there. Skukuza accommodation was developed over the years for the typical domestic rest camp guest and currently comprises of the following type of units: Description Category Number of Units % of total Beds % of total Furnished Tents Budget % % Bungalows Economy % % Chalets/ Guest Houses Semi-luxury % % Total % % SA Tourism has identified business tourism as an opportunity to promote South Africa as a destination and this was identified by SANParks as a means to attract new markets to visit national parks. In order to ensure sustainability of the national park system in South Africa for generations to come, SANParks needs to diversify the product offering. By establishing the conference centre at Skukuza and by further providing for accommodation and services that meet the expectations of the MICE (Meetings, Incentives, Conferences & Events) market, SANParks will be realising it s objective of Page 3 of 10
4 diversifying its product range and attracting new markets. The MICE market essentially requires a different design and layout of facilities and services and the additional 120 rooms aims to provide that. This market further requires services such as access to internet, room service and communication, all of which cannot be provided from the existing accommodation offering. 3. LOCATION The proposed conference lodge is located within the existing Skukuza Rest Camp next to the conference centre with the intention of extending itself to the conference delegates. Some existing staff accommodation (11 units) and (6 chalets) will be removed to accommodate the new facility. Skukuza Camp showing new conference facility and location of planned additional accommodation Page 4 of 10
5 4. SHORTAGE OF ACCOMODATION IN SKUKUZA The Kruger National park enjoys a high level of occupancy Annual occupancy levels are 79,4% (2009/10 financial year). The Skukuza camp can currently accommodate 676 guests in 240 units and enjoys an annual room occupancy of 84,9% (2009/10 financial year). With the new conference facility with a capacity of 500 delegates in the main conference hall (plus 128 in two breakaway rooms), there is a need to have additional accommodation facilities. In addition, conference delegates expect a different type of accommodation and our current self-catering chalets do not meet this requirement they will require modern amenities like better internet connections and need to have appropriate facilities in close proximity to the conference facility. Given the high occupancies enjoyed by the Skukuza camp, the conference accommodation facility will allow for existing SANParks clients to stay in them. 5. ESTIMATED COST OF PROJECT The current estimates given by our architects is R164m (Including replacement of staff accommodation, additional bulk services capacity and Universal Access unit). Page 5 of 10
6 6. MARKETING The Kruger National Park typically caters for two key markets, viz 6.1 Domestic Market This comprises 79,4% (2009/10) of the market and is made up of the traditional White market 70,7% /10) and growing Black market (29,3% /10). This market has a strong and loyal component that visit the Park and others regularly and make up the bulk of the Wild Card member database. 6.2 International Market The International market comprises 20,6% (2009/10) of the total KNP market and the top 5 are as follows (2009/10): Germany United Kingdom France Holland United States 24,8% of total international guests 14,3% of total international guests 11,6% of total international guests 7,4% of total international guests 6,3% of total international guests SANParks wishes to maintain and grow the existing markets and place focus on growing the Black market to national parks, to, amongst others, ensure that national parks are enjoyed by and have support of the broad South African population. The target market for the Skukuza Conference Lodge is the MICE market aiming to attract both Government business as well as corporate business. It has been a useful mechanism to broaden the leisure market by attracting (first time) business guests through the MICE business and these guests then bring their families to then become loyal leisure guests. The facility will be designed to cater for the upper 3 star or 4 star market. Page 6 of 10
7 7. SCOPE OF DEVELOPMENT 7.1 Business model The business model is currently under consideration and the two most likely options are that it will either be: -Operated in house by SANParks, or -Operated under a management agreement by an operator that specialises in this business. 7.2 Number of Beds The plans are to provide 120 rooms with a total of 250 beds 7.3 Bookings Reservations are most likely to be made through existing SANParks system. A mechanism will be introduced whereby bookings for general public will be allowed but closer to arrival date than the normal accommodation range. 7.4 Visual Impact As per normal SANParks developments standards, the design will be to blend in with the environment, remain below the tree canopy, using materials such as thatch in the typical bush style used in the Kruger Park, much alike to the new conference centre. Page 7 of 10
8 Cross section showing proposed design of rooms 7.5 Environmental considerations The lodge will be developed within the existing camp footprint in an area that is already highly affected by development. It is a well treed area and particular emphasis will be placed on protecting those that occurred their naturally as well as the vegetation and baobab trees on the south western border of the camp that remain from the old warden house that previously stood nearby. Design of conference lodge is designed in a H-shape with reception and food & beverage in the middle and rooms looking inwards so that there is minimal impact on other camp guests. There will also be a buffer zone between existing facilities and this development. Using some of the latest environmentally designs, technology and practices, eg rain water capture, solar energy, grey water system, etc. Page 8 of 10
9 8. CURRENT STATUS We are still in early planning stages. Once the plans are finalized and feasibilities are completed, financial institutions will be approached for funding purposes, after which the development will take place. New Conference Centre that can accommodate up to 628 delegates Page 9 of 10
10 Conceptual layout of the Skukuza Conference Lodge Page 10 of 10
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