barra resorts tourism concessions business sustainability dave law

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Dave Law Barra Resorts Traditionally we have been in Beach resorts One might ask now what are we doing in these concession areas We are Looking to broaden our portfolio Bush and beach is our next focus We believe we have identified a market that likes to pioneer and explore new areas We plan to establish a route of Bush Camps to provide this service We therefore would like to introduce this market to the wonders of rural Mozambique I hope this will be the catalyst to get tourism to these areas We have identified a number of sites not only in the National parks but in many other areas as well Our strategy is to develop these so we can get our foot in the door knowing this is a long term strategy Opportunities Mozambique is full of opportunities One simple reason: it is very difficult to operate in Mozambique Those who are prepared to persevere can reap the rewards in the long term Barra lodge is a good example, when we started we even had to build the roads to get there Today we are well established So my philosophy is to get in early and persevere Long term, the rewards of having been there first should pay off Would just like to make it clear , what ever we do it is to make a profit, we are not philanthropists, but we do have a social responsibility For any of these wonderful concessions to blossom it must make money for the operator or they will be gone. So I appeal to those concerned not to kill the goose that lays the golden egg. Have a strategy One should have a long term strategy 1. The Concessions are in a pitiful state at he moment. 2. So one must have long term view of the potential 3. I do expect that Private sector presence will be the catalyst to improving our parks. 4. Next you must have researched your target market thoroughly 5. Do not tempted to over capitalize unless you are 100% sure you have a winner 6. Use as much funding from external sources as possible 7. Following these strategies hopefully one should have a reasonable chance of success How to succeed Collaboration is the key to success Form alliances Work with the communities Work with NGO’s Joint marketing affiliations Work with the media Use every opportunity to collaborate with all allied establishments Marketing I have not heard to much about marketing at this seminar Marketing is the be all and end all of making these projects work. Without tourism you are dead before you have started. I cant emphasise how important this is, unfortunately the governments budget it pitiful, if this not rectified all your hard work will go down the drain

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This presentation by Dave Law was delivered at the 'Concessioning tourism opportunities in conservation areas and maximising rural development' workshop, held in Maputo between 19-22 March 2012 (Day 2, Session 6, Integrating sustainability)

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Page 1: Barra resorts tourism concessions business sustainability Dave Law

Dave Law

Barra Resorts

� Traditionally we have been in Beach resorts

� One might ask now what are we doing in these concession areas

� We are Looking to broaden our portfolio

� Bush and beach is our next focus

� We believe we have identified a market that likes to pioneer and explore new areas

� We plan to establish a route of Bush Camps to provide this service

� We therefore would like to introduce this market to the wonders of rural Mozambique

� I hope this will be the catalyst to get tourism to these areas

� We have identified a number of sites not only in the National parks but in many other areas as well

� Our strategy is to develop these so we can get our foot in the door knowing this is a long term strategy

Opportunities

� Mozambique is full of opportunities

� One simple reason: it is very difficult to operate in Mozambique

� Those who are prepared to persevere can reap the rewards in the long term

� Barra lodge is a good example, when we started we even had to build the roads to get there

� Today we are well established

� So my philosophy is to get in early and persevere

� Long term, the rewards of having been there first should pay off

� Would just like to make it clear , what ever we do it is to make a profit, we are not philanthropists, but we do have a social responsibility

� For any of these wonderful concessions to blossom it must make money for the operator or they will be gone.

� So I appeal to those concerned not to kill the goose that lays the golden egg.

Have a strategy

� One should have a long term strategy1. The Concessions are in a pitiful state at he moment.

2. So one must have long term view of the potential

3. I do expect that Private sector presence will be the catalyst to improving our parks.

4. Next you must have researched your target market thoroughly

5. Do not tempted to over capitalize unless you are 100% sure you have a winner

6. Use as much funding from external sources as possible

7. Following these strategies hopefully one should have a reasonable chance of success

How to succeed

� Collaboration is the key to success

� Form alliances

� Work with the communities

� Work with NGO’s

� Joint marketing affiliations

� Work with the media

� Use every opportunity to collaborate with

all allied establishments

Marketing

� I have not heard to much about marketing at this seminar

� Marketing is the be all and end all of making these projects work.

� Without tourism you are dead before you have started.

� I cant emphasise how important this is, unfortunately the governments budget it pitiful, if this not rectified all your hard work will go down the drain

Page 2: Barra resorts tourism concessions business sustainability Dave Law

KISS

� Keep it simple

� Logistically Mozambique is difficult

� Don’t complicate your operation, you can always expand later

� Make sure you can manage without over extending

� Construction must be quick and simple

� Be self reliant in as much as possible, try not to depend on others.

� Make your buildings aesthetically pleasing and functional

� Keep all agreements as simple as possible

� Don’t make promises you can’t keep

� Offer a little and but deliver more

Our strategy

� Our market research identified an adventure market that likes to explore with their 4X4’s

� I like to believe this market will be the forerunner for greater tourism

� To meet this demand we looked at setting up a chain of destinations that are approximately a 4 hr driving distance apart

� Obviously the parks are our primary target

� The destinations we are looking at must either be � Strategically situated

� Have a unique feature

� Offer activities that make it a desirable destination

� Offer simple yet comfortable accommodation and necessary facilities

Barra Bush Camp Route Map

Covane - Lake Masingir

Banhine Lake Banamana

Page 3: Barra resorts tourism concessions business sustainability Dave Law

ZinaveGovuro

Inharime Dobela - Maputo Elephant Reserve

G

Gorongosa

Gorongosa

Page 4: Barra resorts tourism concessions business sustainability Dave Law

The process

� First Identify a site that suites your plan

� You will need to have a viable concept

� Prepare a bankable business plan

� My advice is to link up with a proactive NGO or community broker

� Make sure you can motivate the project to comply with all the criteria required

� Then you need to shop this around to all the authorities concerned and also the communities that will be affected

� Persevere

Obstacles

� Dealing with bureaucracy is a major obstacle

� Patience will be a key factor to success

� If one is an entrepreneur you can make a decision in 1 minute

� If you are an official this process can take months or have heard years

� I have heard of these time lines, but it is simple to make a query and then start delaying forever.

� As you can imagine this is very frustrating and the cause of many people walking away

� I don’t have the answer but be careful you don’t kill that goose that lays the golden egg

Pit falls

� One has to be exceptionally cautious in not contravening a multitude of laws and regulations GOOD advice is essential

� Red Tape and Labour laws do not encourage investors

� My salvation has been working through NGO’s who have the patience and understanding with all the ins and out’s

� Unfortunately there seems to be a culture of targeting tourism operations for a multitude of fees and fines

� Many departments depend on fines and a multitude of fees to survive, so this is a reality.

� Dealing with Labour contracts and regulations is a minefield, one will need a qualified expert to help

The Way forward

� In My opinion, authorities must realize that the only way poverty will ever be conquered is through small business and entrepreneurs creating jobs

� Tourism is sustainable and not a flash in the pan project, all around the world it has had a significant effect on GDP

� It has been claimed that for every one job created 20 more people are supported

� Developing tourism in rural areas will go a long way to stimulating growth

Community participation

� We have had past experience in working with Communities

� In nearly all cases in Mozambique you will be involved with communities

� Its important to remember that whatever one does you will be dependant on the community one way or another

� It is vital to have a good relationship with the community

� The benefits of a good relationship will be numerous

Working with Communities

� Key to establishing a long term relationship is for communities to perceive a benefit from tourism

� How we have been successful has been to share some of our infrastructure, like water supplies, assistance with clinics and schools.

� Our strategy has been to encourage tourist to assist in any way possible, school materials, cloths etc.

� Many companies have donated funds to projects

� I believe there is a future in community tourism projects

Page 5: Barra resorts tourism concessions business sustainability Dave Law

Working with Communities

� Don’t create too much expectation, it is better not to promise too much but rather deliver more than expected

� Most of all ask what the community needs, not what you think they need

� We have had amazing relationships with some of our local communities by having close ties

� Not only do they look after your assets, they also actively police your operation against any harm

In Closing

� Choose good sites. Location is critical

� Have a long term view

� Get good advice

� Work with the community

� Have a good marketing Strategy

� Keep it simple

� Don’t over capitalize.

Thank You

Dave Law