REPORT TO THE PORTFOLIO COMMITTEE ON THE ANNUAL REPORT OF THE GREATER ST LUCIA WETLAND

PARK FOR THE FINANCIAL YEAR ENDING MARCH 2005

11 OCTOBER 2005

Vision and Mission of the Authority“To protect, conserve and present the Wetland Park and its World Heritage Values for current and future generations in line with the standards laid down by UNESCO

and the World Heritage Act, and to deliver benefits to communities living in and adjacent to the Park by facilitating optimal tourism and related development.”

R1.3 billion capital investment for Wetland Park Creation of 1700 new direct permanent jobs in tourism

Transformation of the local tourism industry through community ownership and broader BEE

Strategy of the Authority(FY2010)

SEED (Socio- economic & environmental development)

• Tourism skills development – 330 direct jobs created in tourism and

related industries– BE Ownership (see tourism development

slides)– Phase I 60 learners (chefs and guiding)– Total value of programme being rolled out

R5m• CBNRM

– 7 agricultural gardens established– Annual May “rooted in wetlands” ncema

harvesting (4500 people)– 5 working subsistence harvesting

committees– Additional R8 million secured for CBNRM

implementation (30 additional gardens)• Infrastructure

– 117000 person days created• BEE Scorecard

– Tourism charter adapted to include community participation

SEED cont.• Craft programme – (520 women)

– Participation at SARCDAA (sales maintained at prior year level in declining market – R150 000)

– agreement with large national retailer to sell craft produced locally though the Authority’s craft programme

– Business and product development support for 26 smmes– Additional funding secured for new financial year

• Cultural programme – 2 smmes– Drama developed into a training tool for broader community and park

employees– 4 community based cultural festivals

• Heritage – Agreement reached on location and process for development of Bhangazi Heritage Site– Film about heritage of Bhangazi people – Concept for Kosi Bay (David Webster) developed

Tourism Development

• Investment– Thonga beach lodge (74%

community owned)– Mabibi camp site (50%

community owned)– Rocktail Bay and

Manzengwenya facilities negotiated (20% community owned)

– Activity revenue increased 230%

– 4 more contracts ready for signature

– Capacity building programme for 7 communities to participate as mandatory partners in investments

• Branding and Marketing– Branding team appointed– Brand architecture

complete– Communication strategy

implemented

Park Management & Conservation• Land incorporation

– Aim – inclusion of key ecological areas representing the 6 ecosystems

– 20 000ha of SQ land – ongoing implementation of agreement

– uMkhuze Gorge inclusion approved– 1 community conservation area (Khula)

concluded– 4 community conservation areas under

negotiation– Other underway include

• Munyuwana (17000ha critical for rhino expansion),

• False Bay, • Makakatana

• Game reintroduction– Game introduction and management

plans in place– Approx 700 units trans-located

(warthog, oribi, giraffe, white & black rhino, buffalo, wild dog)

– Indicator and valuable species monitoring

Park Management & Conservation• Land care and

rehabilitation– Annual alien clearing plan

implemented on time and to budget

– 100% local employment– Additional funding

sourced to rehabilitate land formerly managed by SAFCOL

– Doubled budget for new financial year

– SAFCOL land • retraction 6000ha of

plantations complete (eastern shores)

• 8900ha plantations in process of being removed (western shores)

Park Management & Conservation

• Infrastructure– R17.9m spent on park

redevelopment (fencing, roads etc)

• Disaster Management– Drought and mouth

management ongoing– Preliminary reserve

determination study with DWAF complete

Lubombo TFCA

• Malaria – 94% decrease in malaria – 500 000 homesteads sprayed in Mozambique

• Chair Lubombo TFCA Commission• Kosi / Ponta TFCA

– Concepts approved by Tri-lateral ministers– In principle agreement for extension of World

Heritage Site into Mozambique– Initiation of Lubombo tourism route

Research

• 90 research projects underway• Partnership with University of KZN• Coelacanth programme and 1st use of

ROVs• CBNRM programme • Workshops in Park included:

– Peatlands– SAWAG– Swedish PLATINA

Regulatory and other• Unauthorised developments

– Management system developed with EKZN Wildlife– Protected Areas Regulations awaited

• Land claims– Active participation in task team with DEAT / DLA to

formulate MOA outlining responsibilities – 40% of park still under claim – Commercial and other rights of land claimants

entrenched in new investment deals

• Protected Areas – Contributed to drafting of Regulations

Regulatory and other cont• IMP & SEA

– Redrafted; awaiting promulgation of Regulations to Protected Areas Act

– Capacity building programme for park staff completed• Regulatory Compliance

– Park compliance committee established– MLRF – marine management– PFMA – quarterly reports– Board – quarterly meetings and reporting– Internal audit– External audit– Annual report– UNESCO World Heritage Committee reporting

Audit• Audit Committee reported on –

– Effectiveness of internal control• Internal Auditors were Deloitte; KPMG appointed for

new year – Monthly reports

• Nothing of significance reported– Evaluation of Financial Statements

• AC review Annual Financial Statements and find it in order

• Reviewed AG’s management letter and management

• Opinion of the External Auditors– No qualification– No matters of emphasis

Summary of Financial Performance

• Total revenue increased 43% largely as result of increase in commercial revenue

• Operating costs increased 29% due to additional responsibilities flowing from management agreement with EKZNW and changes to regulatory environment

• Overall deficit reduced to a third of previous year (R0,991:R2,983)

Abridged Income Statement2005 2004 2005 2004

R R R RRevenue 24,854,287 18,126,135 27,536,291 19,223,979

Interest Income 836,023 766,072 906,660 570,175 25,690,310 18,892,207 28,442,951 19,794,154

Operating costs 26,681,766 21,875,844 29,434,407 22,777,791 Project Costs 10,539,919 9,050,381 12,639,487 10,519,420 Personnel Costs 5,162,298 4,653,307 5,166,497 4,653,307 Depreciation 7,068,303 6,192,279 7,173,511 6,276,434 Training 10,554 2,350 517,500 2,350 Legal and professional fees 2,070,418 1,209,380 2,171,801 1,209,380 Loss on disposal of fixed assets 871 3,994 871 3,994 Loss on foreign exchange 5,486 0 5,486 0 Other operating costs 1,823,917 764,153 1,759,254 112,906

Net loss (991,456) (2,983,637) (991,456) (2,983,637)

Authority Group

Employment Equity

• 30 of 46 posts filled • 72% of staff black people• Active three year programme to ensure gender

and racial representivity in organisation• 16 posts currently being filled for 1st time

(majority of posts top and middle management)• Key recruitment criterion promotion of equity