Presentation to Parliamentary Committee March 2010 Dr MD

Presentation to Parliamentary Committee March 2010 Dr MD Mabunda

Introduction • South Africans have a deep & ensuring love for their national parks • National Parks are places we treasure because they embody our highest ideals & values • National Parks tell our stories & speak of our identity as a people and a nation • In 1926 Parliament created the NPB (SANParks predecessor) to manage a growing collection of special places “unimpaired for the enjoyment of future generations” • The world has changed profoundly since that time & so has the national park idea, adapting to the needs of a changing society • At the core of the idea abides an ethic that embraces the preservation of nature & our shared heritage and promotes regard for their significance inside the parks and through our country.

Mandate v SANParks was established in terms of the National Environmental Management: Protected Areas Act 57 of 2003; v Mandate: Conserve; Protect; Control; and Manage National Parks System and other defined protected areas, including their biological diversity (Biodiversity); v Subject to Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), and listed as Schedule 3 Part A: 25 public entities; v Manages 22 National Parks countrywide.

Vision and Mission VISION National parks will be the pride and joy of all South Africans and of the world MISSION To develop and manage a system of national parks that represents the biodiversity, landscapes, and associated heritage assets of South Africa for the sustainable use and benefit of all TRANSFORMATION MISSION To ensure effective transformation both within SANParks and the broader society and economy through the implementation of broad-based black economic empowerment as espoused by the sector BEE scorecard 4

Core management areas:

South Africa, is a country rich in biodiversity: Arguably 3 rd highest in the world •

Objective Conservation Achievements 09/10 1. Improving state of üPark Expansion programme (9, 424 ha) the conservation estate üBioregional Landscape Linkages Programme (ABI, GRI & TFCA) üContractual/protected environments 2. Making acknowledged contribution to conservation nationally and globally üAlien and invasive management (29, 488 ha initial and 111, 386 ha follow-up species clearing; üConservation and Ecosystems Threats (six drivers of environ. change monitored) üBiodiversity Restoration (+792 crocodiles in KNP rivers counted & monitored) üRestored herbivory as ecological process in Tankwa Karoo üBest practice for reintroduction of large predators üBiodiversity Monitoring Framework completed üPublication of conservation achievements & challenges üPark Management Plans Targets 2010/13 Challenges Park Expansion Programme (20, 184 ha); • 2, 011 ha in Fynbos biome • 2, 380 ha in Thicket biome • 8, 793 ha in Succulent Karoo biome • 7, 000 ha in Nama Karoo biome Availability of land acquisition funds Treasury cutbacks affect programme, focus will be more on consolidations than expansion. Alien & invasive management; Þ 139, 385 ha initial clearing Þ 254, 454 ha follow-up clearing Ø Conservation efforts to control alien & invasive efforts are focused on follow up clearing, whilst additional funds will assist initial clearing and creating more jobs for social benefits of surrounding communities Ø In addition to pansteatitis, other diseases such as rabies amongst stray dogs, tuberculosis amongst lions and buffalo, an outbreak of canine distemper virus in lions & equine sarcoid pose serious risk management challenges to SANParks if not properly contained Identify key threats and establish TPC’s; • Namaqua NP • Mapungubwe NP • Tankwa-Karoo NP • Marakele NP Data register of annual monitoring of species, biodiversity, function and processes & threats, including rivers

Conservation Objective Achievements 09/10 Targets 2010/13 Challenges 3. Research Development & Continuous improvement of knowledge ü 258 registered research projects of which 74. 4% projects relevant to SANParks key issues (34. 5% are rated ‘essential’ and 39. 9% are ‘important’) üImplementation of adaptive management in ecosystem management üDocumentation of experiences and lessons learnt 80% of all registered research projects must be in “essential” & “important” categories ØExpand social & economic research to Cape & Garden Route regions ØImprove freshwater research & monitoring 4. Building strong constituencies for the management of a national park system ü 142, 163 learners participated in Environmental Education ü 495 new Junior Honorary Rangers have been enrolled üSeven flagship resource use projects; Thatching Reed, Thatching Grass, Commercial Timber Harvesting & Flower harvesting generated R 3, 836, 564 üEight flagship communitybased socio-economic projects generating R 1, 540, 395 ü 2, 000 people employed through EPWP – i. e. 296 Full Term Employment positions; R 15 m spent on 137 SMME's üCultural Heritage management Grow constituencies supportive of national parks; o 150, 000 learners o 10% increase on Junior Honorary Rangers o 11 resource use flagship projects o 11 socio-economic flagship projects ØIndustry transformation ØPromotion of BBBEE through Supply Chain Management Completion of Kruger NP interpretation Execution of Mapungubwe storyline and exhibition Repatriation of Mapungubwe artifacts

Conservation Objective Achievements 09/10 Targets 2010/13 Challenges 5. Resource Protection; Law enforcements & monitoring üCreation of additional Ranger posts üUpgraded radio communications üAcquisition of equipment (19 motorbikes, “night vision” cameras, ultra-light Bantam aircraft) üImplementation of Integrated Crime Investigative Intelligence System üRhino and abalone antipoaching strategies Improved safety of people and conservation assets Ø Illegal hunting and killing of rhino escalating throughout country being driven by highly organised crime syndicates smuggling as much rhino horn out of the country as is possible.

Tourism Objective Achievements 09/10 (08/09) Targets 2010/13 Challenges 13. 3% R 408. 74 (348. 16) R 71. 22 (57. 90) 76. 9% (76. 1%) 3, 338 million (3, 329) 2011 12% 2012/13 CPI linked 2011 14% 2012/13 CPI linked 2011 7% 2012/13 5% 2011/13 5% growth per annum 17% (13. 2%) 5. 38% 2011/13 10% per annum 2011/13 5% per annum • Economic/market conditions • Maintenance of Infrastructure backlog • Better yield management • Marketing budget • Product upgrading • New Wild Card technology required Business development. 4 Projects • Malelane • Thesen island • Singita • 2010 2011 to 2013 Two projects per year • Capacity • Operator failure risk increase due to economic climate and or poor forecasting and management Reservations and property management system Efficiency * 73. 5% 2011 74% 2012 76% 2013 80% • Telkom communication infrastructure • System enhancements Improve Customer service delivery and management New web based customer service management system implemented 2011/13 10% improvement on previous years performance per annum • SANParks Tourism Training academy implementation Monitoring of Tourism Standards Minimum Standards manual for House Keeping Implemented. • Minimum standards audits • Grading of all facilities % of Graded facilities 67% Minimum Standards of Front office, Reservations, admin and general management, caravan and camping, ablutions, public areas and Conferencing. 75% Tourism Performance % Revenue Growth* Revpar Accom* Revpar Camping* Occ%* Guests to Parks* %Black Visitor Growth * % Wild Card Growth • Budget constraints • Refurbishments underway

Operations: Parks Objective Achievements 09/10 Targets 2010/13 Challenges Resource protection and Law enforcement and monitoring Effective crackdown on abalone poaching in Addo and TMNP. Over 120 arrests in 2009 Reduction in abalone poaching incidents by 5% pa. Connections between abalone poachers and other elements of organised crime. Education & learning 71 000 at 9 months Internships Interpretive Services National Parks Week Kudu Awards Increase by 10% Cutback because of financial constraints Effecting cost recovery mechanisms No funds Grow tourism (Tourism Performance) Revenue from: Total visitors incr by 1% to 2, 181, 347 Black visitors grew by 14, 8% YOY Unit occupancies up by 0, 2% to 60, 8% 10% growth YOY to R 162 m at 9 months Total visitors to increase by 10% overall by 2010/13. Black visitors to increase by 10%pa. Impact of recession. World Cup will provide a boost. 3 flagship projects implemented Financing mechanisms to ensure sustainability Community flagship Mayibuye Ndlovu Trust projects launch of commercial compost project

Operations: Parks Objective Achievements 09/10 Targets 2010/13 Visitor management Monitoring tourism facilities Customer Services Front office/back office House-keeping Camp standards Staff/tourist interface 2011 12% growth 2012/13 CPI linked Challenges Developing turnaround strategies for marginal parks

Operations: Kruger Objective Achievements 09/10 Targets 2010/13 Challenges Improve State of Area Integrity Management 57 Additional Rangers employed. Additional equipment purchased. 29 Poachers arrested Increase in number of arrests per incident & 10% reduction in rhino poaching incidents Rhino poachers becoming more sophisticated Increase number of learners in environmental programmes 63, 325 70 interns 2010/11 = 70, 000 2011/12 = 80, 000 2012/13 = 95, 000 Very high demand from local schools Increase in visitor numbers Tot. visitors=1, 186, 875 Black visitors=25% Unit occupancy=84, 3% 2010/11 = 1, 50 m & 30% black visitors; 2011/12 = 1, 65 m & 35% black visitors; 2012/13 = 1, 80 m & 40% black visitors. Unit occupancy to increase by 2% annually till 2013 Environmental impacts Community flagship projects 1 community project: Mjejane Game Reserve 2 high impact projects None Grow revenue R 325 m 2010/11 = R 460 m 2011/12 = R 485 m 2012/13 = R 500 m Infrastructure upgrade & maintenance

Operations: Kruger Resource protection & Law enforcement & monitoring 57 Additional Rangers employed. Additional equipment purchased. 29 Poachers arrested Increase in number of Rhino poachers arrests per poaching becoming more incidents sophisticated Reduce rhino poaching Education and learning 63, 325 learners 70 interns Interpretive Services National Parks Week Kudu Awards 2010/11 = 70, 000 2011/12 = 80, 000 2012/13 = 95, 000 Very high demand from local schools Grow tourism (Tourism Performance) Grow revenue Customer Services Tot. visitors=1, 186, 875 Black visitors=25% Unit occupancy=84, 3% 2010/11 = 1, 50 m & 30% black visitors; 2011/12 = 1, 65 m & 35% black visitors; 2012/13 = 1, 80 m & 40% black visitors. Unit occupancy to increase by 2% annually till 2013 Environmental Impacts None Funding for additional training

Operations: Kruger Objective Achievements 09/10 Targets 2010/13 Challenges Community flagship projects 1 community project: Mjejane Game Reserve 2 high impact projects None Visitor management Monitoring tourism facilities Customer Services Front office/back office House-keeping Camp standards Staff/tourist interface 2011 10 -15% growth 2012/13 CPI linked Developing “turnaround strategies” for marginal parks Improve efficiencies Grow revenue R 325 m 2010/11 = R 460 m 2011/12 = R 485 m 2012/13 = R 500 m Infrastructure upgrade & maintenance

Finance Objective Achievements 09/10 Targets 2010/13 Challenges Effective Budget Management Savings R 30 million Breakeven Global economic downturn Improve Governance and Risk Management Unqualified audit report with “no other matters” Legislation changes (King 3 and New Accounting Standards) SCM Optimization Standardization of commodities National Contracts Demand management Leverage Technology as a Strategic Enabler Implementation of BPM (e. Sm@rt) progressing well. Most of development completed and expected implementation commencing May 2010 GIS Further implementation of BPM by automating selected high volume and impact processes Availability of skilled BPM resources

Budget 2010/11 Budget 2009/2010 Budget 2010/2011 Budget 2011/2012 A 001 - Conservation Fees (164, 163, 096) (179, 924, 427) A 005 - Concession Fees A 010 - Retail Gross Profit (61, 074, 650) (11, 700, 481) (67, 290, 188) (15, 570, 859) B 010 - Tourism income (384, 793, 482) (440, 052, 267) C 010 - Other income (28, 918, 550) (62, 978, 339) D 010 - Grant: Conservation - DWEA (114, 322, 807) (123, 207, 894) D 020 - Grant: Roads - DWEA (10, 526, 316) D 030 - Grant: Forestry - DAF Total Income Total Expenditure (29, 539, 287) (805, 038, 670) 825, 395, 656 (28, 912, 191) (928, 462, 481) 946, 232, 133 M 010 - Human resource costs 462, 646, 673 514, 746, 672 M 020 - Maintenance costs 54, 883, 507 M 030 - Depreciation Budget 2012/2013 (194, 318, 38 1) (208, 892 0) (72, 000, 5 (77, 01) 36) (16, 660, 819) (17, 827, 076) (484, 057, 49 4) (69, 276, 1 73) (130, 333, 33 3) (10, 526, 3 16) (532, 463 3) (76, 90) (136, 664 5) (10, 16) (29, 490, 4 (30, 35) 44) (1, 006, 663, 452) (1, 089, 697, 500) 1, 021, 930, 704 1, 103, 685, 160 67, 744, 092 555, 926, 4 06 73, 163, 6 19 600, 4 18 79 09 28, 146, 374 36, 836, 297 39, 783, 2 01 42 57 M 040 - Operating Costs NOI before Interest 279, 719, 103 20, 356, 986 326, 905, 072 17, 769, 652 M 050 - Interest Received (14, 999, 432) (15, 500, 000) M 055 - Finance Costs Net Operating Income 4, 334, 745 9, 692, 299 3, 397, 669 5, 667, 321 P 020 - Grant: Land Acquisition (55, 331, 579) (19, 527, 193) P 030 - Sales Fauna & Flora - LDV (16, 000, 001) (18, 000) P 060 - Donation Net Income Less Land Acquisition/Assets Net (Surplus)/Deficit (480, 0 (440, 000) (486, 097) 00) (62, 079, 281) (32, 345, 969) (20, 246, 608) (29, 516, 288) 62, 079, 281 32, 345, 969 20, 246, 608 29, 516, 288 - 353, 057, 4 381, 3 78 76 15, 267, 252 13, 987, 660 (14, 800, 0 00) (14, 00) 3, 650, 0 00 00 4, 117, 252 2, 987, 660 (6, 243, 8 60) (17, 640, 0 00) (13, 47) (18, 00)

EPWP projects Objective Achievements 09/10 Targets 2010/13 Challenges People employed Planned: 1, 776 Achieved: 2, 342 Average 4, 000 people/annum New project approvals Funding Person days Planned: 279, 800 Achieved: 243, 500, 000 pdays/ annum Expenditure Planned: R 70 mil Achieved: R 78 mil R 120 mil/ annum Planning approvals BEE Procurement 78% of all contracts to black owned companies 90% Exit strategies SMME’s Performance level Planned: 100% Achieved: 107% 100% Skilled staff Funding allocation Planned: R 71 mil Achieved: R 83 mil R 120 mil/annum Recession impact on funding allocation Social Impact study • Pilot – Agulhas • High significance • 20% of unemployed • No other job creation initiatives 12 Parks • New projects needed • Implementation period

Infrastructure Objective Achievements 09/10 Targets 2010/13 People employed 1, 290 people in 13 parks Average 1, 000/annum Person days worked 93, 253 200, 000/ annum Funding & Expenditure R 185 mil for 2009/10 99, 8% of targeted cash flow achieved to date Annual Historical backlog allocation = R 150 mil BEE Procurement 76% of contracts to black owned companies 90% Programme performance level 100% 93% • Skilled staff All projects completed by Jun implementation • Internal capacity of approved 10, except 2 – engineers projects • Performance of contractors Infrastructure New tourism units (12) Upgrade tourism units (261) New staff acc units (80) Upgrade staff acc units (79) Staff units upgrade & new = 70% Challenges Civil contracts • Huge need • Income generation

New Infrastructure: Agulhas National Park

Human Resources Objective Achievements 09/10 Targets 2010/13 Challenges KEY CRITICAL POSITIONS - 96% Retention Rate, from 32 positions occupied by 936 employees - Vacancy Rate 6% of 3482 staff complement. 80% Retention rate -Potential loss of staff in critical position to external employers within the sector. Employment Equity -Five Year EE Plan 2005 -2010. -Black people as a % of executive management is 66. 67% -Black people as a % of supervisory, junior and skilled employees is 71. 39% -Conducting an EE Audit and developing an EE plan with clear qualitative and quantitative targets. - Integrating EE and Diversity programmes. - Improving gender equity within the managerial ranks. -Employees with Disability target difficult to achieve Skills Development -3% expenditure of the wage bill spent on training. - 1% wage bill paid towards Skills Levy - 215 interns -The intake of learners and interns for the 2010/11 financial year is still underway. Potential funding for the Learnership and Internship Programmes.

Human Resources Objective Achievements 09/10 Targets 2010/13 Challenges Employee Wellness -Comprehensive Employee Wellness programme including 24 hr counselling programme for staff and families. -Community outreach programme, in partnership with community based organizations. - Heightening the Voluntary Counselling &Testing(VCT) Programme & intensify the fight HIV/Aids pandemic - Observe international health calendar. - Address problems identified through the 24 Hr Counselling Service. -Budgetary constraints are Occupational Health & Safety -The Disaster Management Plan is 90% complete & will be rolled-out to Parks in next fin yr -The Disabling Injury Frequency Rate (DIFR) figure in 2008/9 was 2. 98% compared the 2009/10 figure of 0. 67%, indicating an improvement. . -The Disabling Injury Severity Rate (DISR) during the 2008/9 financial year was 2. 2 average, & average for current financial year is 2. 71. -Creating a sustainable interface between the Wellness Programme and the OHS. -Annual OHS audits will continue and needs-based interventions devised e. g. introducing the integrated Safety, Health and Employment Quality ( SHEQ ) systems. Inculcating the culture of safety across SANParks Labour Relations Climate -100% of cases referred to CCMA in last fin yr were won. -6 cases referred to the Labour Court are still pending. -The labour relations climate has improved significantly, with most conflicts being resolved efficiently. - Minimising a number of grievances & disciplinary cases through training and capacity development of role players. Sustaining the Recognition Agreements between Management & Labour Unions. likely to impact on the programme.

Communications Objective Achievements 09/10 Develop and implement a proactive Communication Strategy with a focus on Media Relations and Crisis Communication Management. -Keeping public informed on deliverables: • Negative coverage 6% (target <10%) • Positive & Neutral coverage 25% & 69% (target 28% & 62%) -Neutralizing and turning around crisis: Targets 2010/13 -Negative coverage to be kept at <10% -Positive coverage increase by 10% -Neutral coverage to be kept stable -Improve on Crisis Communications planning. • All potential crisis matters -Improve applicable dealt with and kept at stable policies based on levels, e. g. rhino poaching, best practice. sale of rhinos, land claims, crime on TMNP & KNP, elephant management, fires on TMNP, racism allegations on TMNP and speeding in KNP Challenges -Adequate resources -Clandestine sources within the organisation -Ill discipline and disregard of applicable policies.

Communications Objective Achievements 09/10 Targets 2010/13 Challenges Manage stakeholder relations with stakeholders who have potential to harm or improve SANParks' reputation. -Establishing relations with opposition NGOs: -Active relations with all key stakeholders -20% increase on forum members -Misinformation of public by NGOs with extensive resources -Lack of interest by media on conservation related matters unless they are of sensational value. -20% increase in online bookings -Establish dot. Mobi and Online Bookings on dot. Mobi to attract cellphone users/black diamonds to the website and ultimately to the parks. -Growth in website usage by South Africans is essential for long term effectiveness locally. • • An amicable relationship with ARA Working relationship with Afriforum -Growing online stakeholder discussion groups: • Web forum membership at 17, 748 (23% from baseline of 14, 409) Developing a state of -Growth in revenue the art and globally generation on the website: • Since Online Bookings were competitive website, established in November which incorporates 2007 had collected the following key R 101, 258, 905. 15 at end of elements; e 3 rd quarter commerce, interactive • 2009/2010 YTD (3 rd social engagement, quarter) collected security and user R 33, 612, 907. 15 (79. 9% increase; target is 15% friendliness. increase)

Communications Objective Achievements 09/10 Targets 2010/13 Challenges Create awareness and visibility of SANParks through public events, public campaigns, social responsibility programs and literature. -SA National Parks Week -Establish a national - Adequate 2009 Conservation based Resources -Kudu Awards 2009 awareness campaign involving all conservation bodies -Kudu Green School Initiative -Corporate Social Investment Programme

South African National Parks On-line reservations www. sanparks. org Serving the Public Thank You