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Wildlife Economics: a Study of Direct Use Values in Botswana's Wildlife

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Wildlife Economics: a Study of Direct Use Values in Botswana's Wildlife Wildlife economics: a study of direct use values iu Botswana’s wildlife sector by Jonathan Ian Bames A Thesis submitted to the University of London in partial fulfilment of the degree of Doctor of Philosophy 1998 Department of Economics University College London ProQuest Number: U642991 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. uest. ProQuest U642991 Published by ProQuest LLC(2015). Copyright of the Dissertation is held by the Author. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. Microform Edition © ProQuest LLC. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 To Beth Wildlife economics: a study of direct use values in Botswana’s wildlife sector by: Jonathan Ian Barnes Supervisor: Professor D.W. Pearce Abstract The wildlife resources in Botswana were studied to determine their direct use values. Cost- benefit analysis was applied to develop models for wildlife viewing, safari hunting, community-based wildlife use, game ranching, ostrich farming, crocodile farming and ranching, elephant utilisation and wildlife product processing. Various planning and policy options were analysed within the wildlife sector. Contingent valuation was used to estimate economic characteristics of demand for wildlife-viewing tourism. A linear programming model, which optimises the contribution of use activities to national income, within a framework of policy constraints, was developed for the whole sector. The findings confirm that wildlife in Botswana can contribute positively and sustainably to national income, and that this can happen without loss in biological diversity. Wildlife’s potential contribution will not likely exceed four percent of gross domestic product. The likely flow of positive use values from the wildlife sector justifies anticipated public expenditures in it. In expansion of wildlife use, emphasis should be placed on wildlife viewing, and, to a lesser extent, ostrich production, crocodile production, and community wildlife use in high value areas. Later, as capital, labour and management resources become more abundant, the sector should be diversified to develop all uses fully. A ban on consumptive uses of wildlife would result in 16 percent less gross value added from wildlife in the sector, and would involve use of 75 percent less land. Even with consumptive use, some 88 percent of the wildlife estate cannot generate any direct use value from wildlife in the medium term. The survival of wildlife in Botswana depends largely on its ability to generate economic value. This can happen through an array of uses yielding direct use values, within a framework of land use zoning which precludes loss of indirect use and non-use values, which should also be captured where possible. Acknowledgements 1 would like to thank my supervisor, Professor David Pearce, for his guidance, never-ending support and patience. The field work for this study was undertaken between 1989 and 1992, while I was employed within the Botswana Department of Wildlife and National Parks, Ministry of Commerce and Industry. Financial support was provided by the European Union (EU), the United States Agency for International Development (USAID), and the Botswana Government. The opinions expressed in this thesis are mine alone and do not necessarily reflect those of any of these agencies. Administrative and managerial support was provided by FGU-Kronberg, latterly FGU Consulting -I- Engineering, and also the Academy for Educational Development. Colleagues in these organisations provided support, advice and encouragement, including, Clive Spinage, Rudiger Huelsen, Harald Roth and Ray Kelley. My colleagues in the economics section of the Department of Wildlife and National Parks, Hisso Sebina, Richard Hartley, Charles Motshubi, the late Ishmael Mphela, and Khulekani Mphofu, assisted greatly in many ways, with the data collection and analysis. Other, part- time workers in the section assisted with enumeration and data analysis, including T.B. Molefhe, O N. Mpitse, J. Mtyutu and S. Kebakile. Many other members of staff in the Department of Wildlife and National Parks provided assistance, advice and support, including former directors, K.T. Ngwamotsoko, Tiro Seeletso, and Nigel Hunter, and others, David Lawson, Colin Craig, Charles Hamilton, Debbie Gibson, Mushanana Nchunga, Sedia Modise, Joe Matlhare, Mary Kalikawe, David Aniku, Keith Lindsay, K.M. Mogatle and George Calef. The former deputy permanent secretary, Edwin Matenge, and advisors in the Ministry of Commerce and Industry, Doug Hartle and Doug Love, all provided strong support for the work. My thanks are due to various others, who assisted in various ways: Tim Swanson of the Department of Economics at University College London (UCL); Julie Richardson formerly of the Department of Economics at UCL, and presently at School of African and Asian Studies, University of Sussex; Jeremy Tunnacliffe, formerly of the EU Delegation in Botswana; Bob McColaugh of the USAID Mission in Botswana; Ed Barbier and Joanne Burgess, formerly of the London Environmental Economics Centre, and presently at the Department of Environmental Economics and Environmental Management, University of York; Paul Forster, formerly of the Botswana National Development Bank; Janis Main, formerly of the Hotel and Tourism Association of Botswana; Jay Salkin, E. Odirile, D C. Evans, K.L. De Silva and Z. Lotshwao all (some formerly) of the Botswana Ministry of Finance and Development Planning; Richard Luxmoore of the World Conservation Monitoring Centre at Cambridge; Nick Winer, Spud Ludbrook, Stuart Marks, and (again) Richard Hartley of the Botswana Natural Resources Management Project; Chris Antrobus of Loxton, Venn and Associates in Johannesburg (for the initial modelling concepts); Glenn-Marie Lange of the Institute of Economic Analysis at New York University; and Janet Roddy of the Centre for Social and Economic Research on the Global Environment (CSERGE) in London. Carole Roberts provided vital editorial comments. Most importantly I wish to thank all of the wildlife users in Botswana; owners, managers, operators, community members and tourists readily gave of the vital information needed for the study. The thesis would not exist if it were not for the support and encouragement of both Beth Terry, my wife, and Denis Barnes, my father, who taught me to think scientifically and provided valuable comments. Several parts of the thesis have been published as papers in journals (Barnes, 1995c, 1996a, 1996b, 1996c); other extracts have been published in books and proceedings (Barnes, 1990a, 1991a, 1993, 1994a; Barnes et a l, 1992; Barnes and Kalikawe, 1994). Table of contents Page Abstract _________ 3 Acknowledgements 4 Table of contents 6 Preface _________ 16 Part I Background 17 C h a p t e r 1: Introduction ______ 19 1.1 Background 19 1.2 The resource base 21 The physical resources - - - - - - - 21 General features - - - - - - - 21 Vegetation 22 Wildlife ________ 24 The social and economic resources _____ 30 The hutnan population ------ - 30 Rural income and consumption - - - - - 31 Die economy ------- - 34 Development policy - -- -- -- 35 Commercial organisation and credit - - - - - 35 The tax system ------- - 36 Trade relations 36 Markets 37 Land tenure - -- -- -- - 38 Wildlife utilisation - -- -- -- 38 A description of land designated for wildlife - 41 National parks and game reserves - - - - - 41 Wildlife management areas 46 Chapter 2 Conceptual framework and general methodology - 51 2.1 Motivation for the study - - - - - - 51 2.2 Methods in the context of theory _____ 53 Total economic value - - - - - - - 53 Cost-benefit analysis _______ 55 Econometric analysis 62 Linear programming 62 Sustainability -------- 64 Chapter 3 Review of wildlife economics in Africa - - 69 3.1 Background ________ 69 3.2 Wildlife economics in Africa - - - - - - 71 Early basic work - - - - - - - 71 Economics of wildlife use on private land - 73 Economics of community-based wildlife use - 75 Economics of wildlife-based tourism and preservation 77 Economics of elephant and rhino management - - - - 80 Economics of marketing wildlife products - - - - 81 Wildlife in natural resource accounts - 82 3.3 Chapter conclusion _______ 82 Part II Specific wildlife uses _____ 85 Chapter 4 Wildlife-viewing tourism - 87 4.1 Introduction 87 4.2 The objective of protected area development - 87 4.3 The role of wildlife-based tourism in protected areas 88 4.4 Analysis of demand for wildlife-viewing tourism - - - 91 Demand for wildlife-viewing visits - - - - - 91 Demand for entry and use of parks - - - - 103 4.5 Supply characteristics of wildlife-based tourism - - - 112 Enterprise development - - - - - - 112 Protected area development - - - - - - 116 4.6 Chapter conclusion - - - - - - 118 Chapter 5 Safari-hunting tourism - - - - - 123 5.1 Introduction ________ 123 5.2 Technical and market considerations - - - - - 123 5.3 Financial and economic viability - - - - - 125 5.4 Chapter conclusion - - - - - - - 131 Chapter 6 Traditional and commercial wildlife cropping - 133 6.1 Introduction - - - - - - - - 133 Background - - - - - - - - 133 6.2 Technical and social considerations - - - - - 133 6.3 Financial analysis of wildlife
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