The Wild Coast Conservation and Sustainable Development Project is now complete and the final documents can be downloaded from this site:
www.wildernessfoundation.org

Please see the Wild Coast Conservation section and the following pages for Wild Coast planning documents and background information:

Heavy Minerals Mining

Xolobeni Mining
Xolobeni Tourism Cost Benefit Analysis

Cost-Benefit Analysis of Tourism Investments at Xolobeni, Wild Coast
Presented to the Wilderness Foundation July 2005 by Grant Thornton

>> NB ! download the final draft here .

Executive Summary
Grant Thornton has been commissioned by the Wild Coast Project to conduct a consolidated financial and socio-economic assessment of proposed tourism investment in the Xolobeni area in order to be able to compare the benefits from the proposed tourism investment with the proposed mining operations.

The consolidated financial and socio-economic assessment has been compiled for a period of 22 years in order to be compared to the lifetime of the mining operations. It should, however, be kept in mind that the tourism investments will remain after the 22 year forecast period to continue to provide benefits to the local communities in the study area.

Three scenarios have also been developed for the consolidated financial and socio- economic assessment with a base case, low road or pessimistic scenario and high road or optimistic scenario.

The results for the base case consolidated financial and socio-economic assessment shows that:

• The proposed tourism investment will directly contribute R28 million in the first year of operation, increasing to R50 million in year 22;
• The proposed tourism investment will directly employ 241 people in its first year of operation;
• The proposed tourism investment will indirectly contribute to a further 89 employment opportunities in the first year of operation;
• The proposed tourism investments will directly contribute R303 million to the GDP of the study area during the construction of the tourism investment and related infrastructure;
• The proposed tourism investment will contribute a further R110 million in indirect and induced expenditure during the construction of the tourism investment and related infrastructure;
• The proposed tourism investment will contribute R11 million in indirect and induced expenditure during the first year of operation of the tourism investment, increasing to R20 million in year 22.

The proposed tourism investment will also have various unquantifiable socio- economic benefits such as:

• Fostering of understanding between various people and cultures as touristscome in contact with local communities in the study area. The impact is not only that the tourists understand the local communities and their culture, but also that the local communities understand and get to know a variety of international cultures;
• Prevention of migratory labour with the creation of job opportunities within the rural areas that the communities live i.e. local communities can now work within the area that they live and does not have to migrate to other areas for employment;
• Facilities developed for tourism can benefit local communities with the improvement of infrastructure being a prime example;
• Preservation of local culture and traditions, with local communities repeatedly presenting their culture and traditions to tourists through performance, arts ancrafts;
• Raising environmental awareness and protection, with local communities seeing the financial return in preserving the natural environment;
• Simulation of other entrepreneurial activity, through learning from the market and enterprise operations in the area; and
• Individual and community empowerment through skills development and hands-on business experience, as well as through participating in local economic development.

In conclusion it can be stated that the proposed tourism investments will have significant financial, economic and socio-economic benefits for the study area that will remain long after the 22-year lifespan of the mining operation.

THE WILDERNESS FOUNDATION

www.wildernessfoundation.org

Introduction
“Our mission is the protection and sustainability of African wilderness and wild lands through integrated conservation, experiential education and social programmes, the benefits of which support cultural, biodiversity, scientific, socio-economic and spiritual values.”

Wilderness Philosophy
Wild areas relate to our people’s sense of humanity – and its loss in overcrowded living spaces, to our knowing of the natural web of life – or our desensitisation to it, and to our sense of place in the world beyond degraded townships and urban areas.

Posted on May 17th, 2007
Filed under: Current Issues, Related Info