Tourism Master Plan for Kwaximba Tribal Area

Tourism Master Plan for KwaXimba Tribal Area

Report NO. 09/02 July 2009

Report Prepared by:

Report No. 08/02 Draft 02

Draft Date Author Checked Status Approved 1 31 July GMA GAM Final

KEYWORDS: KwaXimba, tourism, Isithumba 2

Contents

Section 1 ...... 4 Problem Statement and Primary Objective ...... 4 Vision for KwaXimba ...... 7 Section 2 ...... 8 Product Strategy – General Strategies ...... 8 Section 2.1 - General Tourism Product Strategies ...... 9 1. Secure Community Buy-in and involvement ...... 10 2. Ensure better support for the Thousand Hills Route ...... 13 3. Develop linkages with other Tourist Routes ...... 14 4. Provide greater accommodation options in KwaXimba ...... 15 5. Village Tours ...... 17 6. Promote Adventure Attractions ...... 21 7. Ensure a High Level of Conservation in the Area ...... 25 8. Crackdown on illegal sand mining ...... 26 9. Improve Roads and Signage ...... 27 10. Define Tourism Nodes...... 28 Section 2.2...... 30 Catalytic Project 1 – Reviving and Extending Isithumba Adventure Centre (Business Plan) ...... 30 Project Description...... 30 Rationale for Isithumba Revival ...... 31 New Vision and Positioning of the Adventure Centre ...... 32 Comments from Tour Operators with past associations with Isithumba ...... 33 Ownership and Management ...... 35 Financial Model ...... 36 Competitors and Pricing ...... 40 Model Assumptions ...... 43 Operating Expenses ...... 44 Financial Model Results – Net Cash Flows ...... 46 Return on Investment ...... 46 3

Conclusion ...... 47 Catalytic Project Two – Development of Nature or Hunting Reserve ...... 48 Nature Reserve ...... 50 Hunting Reserve ...... 53 Incorporation in Green Corridor project ...... 55 Section 3 ...... 56 Marketing Tourism in KwaXimba ...... 56 1. Brand Image ...... 56 2. Marketing KwaXimba as part of Established as Well as Potential Tourist Routes ...... 58 3. Creation of Dedicated Website or at the least a Web Link...... 59 4. Promote Events ...... 59 Summary ...... 60 Section 4 ...... 61 Conclusion ...... 61 Reference List ...... 62

Appendix A ...... 63

Appendix B ...... 64

Section 1 Problem Statement and Primary Objective

Developing tourism in KwaXimba requires that the tourism strengths of the area are built on, the weaknesses circumnavigated, the opportunities exploited and the threats avoided. The development of tourism in KwaXimba must recognise both the potential and the limitations of the area. KwaXimba’s proximity to Durban, the most popular tourist destination in the province, provides the area’s tourism attractions with a competitive advantage over similar tourist attractions in more isolated regions of the province. These attractions must, however, be adequately developed and marketed so as to secure both foreign and domestic interest in the area. At present the low development of tourist attractions in KwaXimba prevents the area from tapping into the potential of the vast foreign and domestic market visiting Durban each year. While significant potential for tourism development in KwaXimba exists, this potential will be lost unless KwaXimba situates itself in the broader tourism context of the Thousand Hills Tourism Route and other tourist routes in eThekwini. KwaXimba has neither the type of attractions nor the capacity to become a self sustaining tourism destination that can function in isolation. As such the following guiding principle should be adopted for tourism development in KwaXimba:

To utilize the location specific attractions of KwaXimba in such a way as to develop high quality tourism products which appeal to market segments that offer significant benefit to the local community. These tourism products should be relevant to the area’s geography, culture and heritage and should be marketed as part of broader tourism routes within the eThekwini Municipality.

In achieving the maximum benefit from tourism in KwaXimba, the following strategies are identified.

Strategy 1. Increase the footfall of tourists in KwaXimba Strategy 2.Target the cultural segment of the foreign tourist market and the adventure segment of the domestic tourist market Strategy 3. Provide greater spending options for tourists in KwaXimba. Strategy 4. Prevent the leakage of spending out of the area and ensure community involvement in tourism projects

Strategy 1. Increase footfall of tourists in KwaXimba

Presently KwaXimba’s main hindrance to growth in tourism is almost inexistent tourist footfall. KwaXimba lies on the periphery of the Thousand Hills Route and together with a lack of popular, well marketed attractions, KwaXimba’s location, provides little reason for tourist to visit the area. Whereas other areas which have not been developed for tourism purposes may nonetheless experience a large amount of passing tourist footfall due to their location, KwaXimba is not located on any well worn tourist paths. Tourism in KwaXimba must be brought in from the periphery of tourism attractions in eThekwini. This can be done, firstly, by developing and marketing the tourist attractions in KwaXimba, but also, crucially, by positioning KwaXimba as a middle (as opposed to an end of line on the Thousand Hills Route) stop on the Western Tourism Route or on an Off-the Beaten-Track Route.

Strategy 2. Target Foreign Cultural Tourists and Domestic Adventure Tourists

Studies by Tourism KwaZulu-Natal have shown that foreign tourists spend up to ten times a day more than domestic tourists. Foreign tourists are also more likely than domestic tourists to be visiting an area for holiday purposes, partaking in a greater range of activities to satisfy their hunger for new experiences. Similarly while domestic tourists may have little interest in visiting a rural community, simply due to familiarity with these types of communities and settlements, foreign visitors have a fairly inelastic demand for cultural attractions, an example of which is the village tour offered at Isithumba. Isithumba has the potential to satisfy the demand of foreign tourists for cultural experiences, and has the competitive advantage of being one of the closest rural villages to the City of Durban. For these reasons it is felt that tourism initiatives in KwaXimba should target the cultural segment of the foreign market.

Adventure tourism in KwaXimba is not thought to have much potential in the foreign market but may have highly significant potential for domestic tourists. Foreign tourists are unlikely to visit KwaXimba for the sole purposes of rock climbing, hiking or mountain biking, because there are simply much better places in South Africa where these activities can be undertaken. However, the convenience of KwaXimba’s proximity to Durban, may make it a popular location for domestic tourists to engage in adventure activities, particularly rock climbing. In addition there is already substantial precedent for encouraging domestic adventure tourism in the area. Rock Climbing and abseiling at Monteseel attracts 6

climbers from all over the country. Specifying target markets enables tourism development in KwaXimba to be sensitive to tourism demand patterns, enabling the specialisation of skills and ensuring that the best use is made of the competitive advantages enjoyed by the area.

Strategy 3. Provide Greater Spending Opportunities for Tourists to KwaXimba

Assuming that greater tourist footfall is secured for the KwaXimba area, it is essential that tourists passing through the area or specifically visiting the area are provided with the opportunity to spend. Foreign tourists to KwaZulu-Natal spend in the order of R800 a day. At present a tourist to KwaXimba would be hard pressed to find the opportunity to spend that amount of money within KwaXimba. This is simply because there are not enough spending options in the area. Providing greater spending options would, necessarily, require the proper development of tourist attractions, but would also include clustering the type of tourist support infrastructure that would capture significant portions of daily spend. Support infrastructure includes providing greater accommodation options, providing eating options as well as opportunities for tourists to purchase goods or curios.

Strategy 4. Prevent Leakage of Spending

This strategy is similar to strategy three, but specifies not merely a spatial dimension to tourism spending but also a demographic dimension. The purpose of developing tourism in KwaXimba is, in no small part, to uplift the quality of living for its residents. It is not sufficient for tourists to simply be spending within KwaXimba if all of that spend is accruing to non-residents of KwaXimba. The Dusi Canoe Marathon, for example, while generating significant revenue for the province, has little direct benefit for the local community. The leakage of tourism spending and revenue to concerns outside the KwaXimba area, must as far as possible be minimised. This necessitates the involvement of the community, in some form or other, in tourism initiatives in KwaXimba. Tourism development in KwaXimba must ensure that the local community have a stake in, and stand to benefit from the growth of tourism in the region. In this respect local entrepreneurs should be encouraged and, where specialist labour from outside the area is not needed, labour for the development of tourism initiatives should be sourced from the local community.

Vision for KwaXimba

Although KwaXimba has limited tourism raw material and as such will never be a major destination in the country, it has the potential to develop into an essential part of any tourist route in eThekwini. Specifically Isithumba could become a popular attraction for foreign tourists wanting to experience ‘Rural African Living’. The combination of cultural experiences at Isithumba and natural experiences in the conserved area below Craiglea, may form an attractive mix for foreign day visitors from Durban. In addition Old Baldy has the potential to become one of the best granite rock climbs in KwaZulu-Natal. This vision is expressed more succinctly below:

For KwaXimba to establish itself as a popular destination for foreign tourists seeking genuine cultural and wildlife experiences, and for domestic adventure tourists seeking thrilling experiences.

In this respect the route into KwaXimba off the Thousand Hills Tourist Route could become known as the African Experience and Adventure Route as opposed to its current non-descript T4 title. The aim of designating the KwaXimba route as an ‘African Experience and Adventure Route’ is to position KwaXimba in such a way as to target foreign tourists visiting for the 2010 Soccer World Cup and other future events hosted in Durban. Achieving the vision of establishing KwaXimba as a premier destination for foreign tourists visiting Durban, necessitates the specification of a detailed strategy and list of interventions. The rest of this reported is divided into product strategy, marketing strategy and financing strategy sections. The product strategy section includes general strategies and interventions aimed at improving tourism in the municipality as a whole as well as feasibility analyses of specific catalytic projects and business plans of projects deemed feasible. The marketing strategy section includes the branding strategy for tourism in KwaXimba, promotion and advertising strategy and the required marketing infrastructure (tourism offices and websites). Finally the financing strategy looks at ways of raising funds and ensuring financial sustainability.

Section 2 Product Strategy – General Strategies

The tourism product offered by a destination may be pre‐existing or may need to be created. KwaXimba’s tourism product has been partially developed in the past but is virtually non-existent at present. . The aim of an effective product strategy for KwaXimba is to identify and package a unified tourism product. Identifying KwaXimba’s tourism ‘product’ must come out of the analysis of KwaXimba’s strengths and weaknesses in relation to targeted tourism market segments, its comparative advantages and targeted market research into opportunities to be pursued. In taking into consideration these factors, recommendations in this report draw heavily on the research underpinning the Situational Analysis Report.

KwaXimba has a relatively narrow range of potential tourism attractions. It is, however, the recommendation of this report that KwaXimba specialises in those attractions for which it has a competitive advantage rather than trying to create tourist attractions which have no precedent in the area. For example, KwaXimba has a significant expanse of relatively well conserved wilderness areas. The situational analysis of tourism in KwaXimba revealed a potential gap in the tourist market for the development of these areas. The creation of nature or hunting reserves therefore presents a good opportunity for attracting more tourists to the area. The situational analysis also identified gaps in the tourist market which could be filled by the development of cultural experiences and adventure activities in KwaXimba. Thus the type of tourist attractions KwaXimba should focus on and invest in, are natural/wildlife; adventure and cultural attractions. The strategies identified in table 2.1.1 list a number of general strategies which should be pursued in the area in order to ensure that maximum advantage can be taken of KwaXimba’s natural, adventure and cultural attractions. These strategies set the foundations on which specific tourism initiatives can be built upon. Specific tourism initiatives will be detailed more extensively in the following section 2.2.

Section 2.1 - General Tourism Product Strategies

Table 2.1.1 List of General Product Strategies

Strategy Description Priority Level 1. Secure Community Buy- Employ members of the community High in and involvement Keep open lines of communication 2. Ensure better support Renewed promotion of Thousand Hills High for Thousand Hills Route Financial support for Association 3. Develop linkages with Incorporate KwaXimba in off the beaten Medium/high other tourist routes track routes Actively promote Western Route 4. Provide more Extend accommodation at Isithumba Medium/high accommodation Cluster accommodation at Craiglea Diversify accommodation 5. Develop and package Train local guides Medium/high village tours Encourage home visits Provide ‘experiences’ for tourists 6. Promote adventure Ensure the accessibility of rock climbs High attractions Develop hiking and mountain biking trails 7. Ensure a high level of Keep river clean Medium/high conservation in the area Regulate unlawful hunting with dogs Remove invasive plants 8. Crackdown on illegal Identify illegal sand mining operations High sand mining Put preventive and monitoring measures in place Bring legal action against illegal miners 9. Improve roads and Fill potholes High signage Ensure regular and efficient signage 10. Define tourism nodes Specify areas in which tourism is Medium priority, namely: Isithumba and Craiglea

1. Secure Community Buy-in and involvement

Securing community buy-in and involvement is listed as a high priority product strategy as tourism in the area is largely dependent on the good will of the community. The community must feel that they stand to benefit from tourist developments or these developments will stand the risk of complete failure.

Employment KwaXimba lies in a Traditional Authority Area on the outskirts of urban development and service delivery. The community is largely poor and suffers from high rates of unemployment. Tourism, which is labour intensive, however, could provide the community with a number of gainful employment opportunities. Tourism development in KwaXimba should, at all times, look to employ local labour resources. Some of the possible employment opportunities that tourism development in KwaXimba could create are as follows:

 Guides for Isithumba village tours  Climbing instructors at Old Baldy  Contracting individuals to maintain rock climbs at Old Baldy (this would include frequent vegetation clearance, the development of paths, the maintenance of bolts)  Construction work (building of Old Baldy parking area, revamp and additions to Isithumba Adventure Centre, development of a possible Craiglea nature or hunting reserve*)  The municipality’s environmental department’s poverty relief programme employing members of the community to remove alien vegetation, create paths and develop campsites in wilderness areas, with the aim of creating a reserve at Craiglea.  Game rangers for Craiglea reserve  General administrative staff at Craiglea reserve and Isithumba Adventure Centre.  Stallholders at Dusi Canoe Marathon overnight stop  Bed and Breakfast and other accommodation owners.

* This refers to the undeveloped area immediately below the cliffs of Craiglea (below Harrison Flats) stretching toward the Umgeni river in the north-east and bordered by Isithumba mountain on the one side and Msunduzi village on the opposite side. 11

The above list reflects some of the employment opportunities that tourism development in KwaXimba could provide. While a number of jobs may be created in the development or construction phase, the emphasis should be on sustainable jobs. Where possible, continuity should be maintained between community members employed in the development of a tourism initiative and those who run the initiative. For instance community members employed in the environmental poverty relief programme, developing paths and removing invasive plant species in the Craiglea wilderness area, should be retained as rangers and park wardens when the reserve is operational. While not sustainable, employment opportunities attached to the Dusi Canoe Marathon should be created for the KwaXimba community. This would, at the least, provide the community with some tangible benefit of hosting the Dusi. In this respect, then, an agreement should be reached with the Dusi Canoe Marathon Organisers allowing for the location of local stallholders at the first overnight stop.

It is anticipated that initially, the Rural ABM and the city in general will provide, or at least set the platform, for most of the jobs associated with tourism in the area. However, once the initial investment is in place and tourism becomes popular in KwaXimba, private and independently developed tourism initiatives should provide greater employment opportunities.

Community ownership and tourism revenue

Employment in tourism businesses and initiatives provides the community with a stake in tourism development in the area. However, in order to promote transformation and convey the true benefits of tourism community ownership of tourism assets should be encouraged. In particular, community ownership of private tourism-oriented businesses should be supported, where possible. Similarly some tourism developments require partnerships between the community and other parties. This is the case with Isithumba Adventure Centre and the Craiglea Reserve, the latter of which would need to be a partnership between the municipality, the local Inkosi and private landowners. Community ownership (even if in part) combined with private management, would ensure that tourist attractions are effectively and efficiently run, while a large portion of the revenue generated by the attraction would accrue to the community. In encouraging community ownership one must, however, be careful not to replicate the mistakes of the past which saw the gradual decline and eventual abandonment of the Isithumba Adventure Centre. For this reason this report recommends that the community seeks partnerships with well-established private sector tourism service providers, thereby utilizing specific expertise in the efficient operation of tourism developments. The use of specialist skills is essential 12

because, as the situational analysis has shown, the levels of education in the local community are low. To expect non-qualified, poorly educated community members to run specialized tourist operations, without adequate and rigorous training, is fraught with potential pitfalls.

Establishing Open Lines of Communication between tourists, tour operators and the community

Isithumba Adventure Centre arose out of the desire of the community to regulate and to reap the rewards of an increasing number of visitors to Isithumba Village. One prominent community member, Binki Mkhize, related to the project team how, prior to the building of the centre, foreign tourists would wander into the village, un-guided and un-announced. The safety of these tourists could not be guaranteed, nor could their visits be regulated so that they did not intrude on the privacy of the community members. The Isithumba Adventure Centre represented a way of regulating tourism in Isithumba. Tourist visits became more regular and predictable but were, at the same time, held in acceptable parameters by the local community. Thus the centre acted not merely as a tourist attraction but also as a way of regulating tourism and providing acceptable parameters for tourism interaction with the local community. Without the centre, there is currently no means of ensuring that tourism at Isithumba Village remains beneficial rather than harmful to the local community. Mr. Mkize provides an example of the increasing regularity of the occurrence of the latter case. Off-road motor bikers use Isithumba and the surrounding areas as practice routes. These bikers arrive un-announced, make substantial noise and “drive in peoples’ gardens”. The community has thus become resentful of motor- biking in the valley. This is a key example of why it is important to keep open lines of communication between visitors to the area and the community. If tourists wish to visit and explore the area, it is considered polite to ask permission. In this regard the re-establishment of Isithumba Adventure Centre is crucial. This report, however, would recommend that communication lines could be more greatly furthered by the creation of a Community Tourism Organisation (CTO), which would operate out of Isithumba. The CTO would be the body through which all visits to the Isithumba Village are coordinated, it would also regulate tourist activities at Old Baldy, and Craiglea. In order for the CTO to function effectively it would require substantial financial assistance from the Rural ABM and assistance in the form of marketing and expertise from the Valley of a Thousand Hills Association.

2. Ensure better support for the Thousand Hills Route

The Thousand Hills Tourism Route is a well established tourist route, traditionally popular with Durban residents and with people from other provinces who are brought to the area by friends and relatives that they are visiting in Durban. Peculiarly the Thousand Hills Route has not taken off as a foreign tourist route, and is often ignored by foreign tourists in favour of the Midland Meander. The lack of foreign footfall on the Thousand Hills Route may be attributed to poor marketing and support from the eThekwini Municipality. Indeed conversations with the chairman of the Valley of a Thousand Hills Association, Bob Connell, reveal that the Thousand Hills Route is experiencing decline. A decline, which Connell would put down to lessening support of the Thousand Hills Route by the city. Connell (2009) reports that a number of tourism-related businesses have recently had to close down because of a decline in visitor numbers to the area. While the Midlands Meander enjoys significant coverage and promotion as a tourist attraction in the province, the Thousand Hills Route, with very similar appeal, is marketed predominantly as merely a recreational area for Durban’s residents.

Increased support for the Thousand Hills Route is crucial for tourism development in KwaXimba. The Thousand Hills Route is the primary vehicle of entry for visitors to the Valley of a Thousand Hills Area. Currently the Thousand Hill Route is the only route marketing the KwaXimba area, and while this should change with the establishment of new routes, discussed below, it is anticipated that the Thousand Hills Route will remain KwaXimba’s principal promotional tool. As such support and promotion of the Thousand Hills Route and the Valley of a Thousand Hills Association is inextricably linked to the success of tourism development in KwaXimba. Increased support for and promotion of the Valley of a Thousand Hills as a tourist destination, foreign as well as domestic, is of high priority for the successful development of the tourism capacity of KwaXimba.

3. Develop linkages with other Tourist Routes

While the Thousand Hills Route is, and is likely to remain, the primary tourist route bringing visitors into the KwaXimba area, it is important to extend KwaXimba’s reach to other markets and make it accessible to other tourist routes. In this respect the ‘Western Route’ as identified by the Rural ABM’s Rural Tourism Strategy, situates KwaXimba in a wider regional context including such attractions as Tala Game Reserve, and Shongweni Dam. The immediate benefit of the Western Route, aside from increased publicity for KwaXimba, is that it locates KwaXimba at the beginning of a tourist route as opposed to at the end of a route as is the case of the Thousand Hills Route.

In extending both the cultural and adventure appeal of KwaXimba, an off the beaten track route could be packaged which incorporates KwaXimba. Off the beaten track routes could be developed which link Durban to Richard’s Bay and to Pietermaritzburg but avoids main roads and already established tourism routes. The aim of these routes would be to bring, particularly foreign, visitors face to face with largely untouched landscapes and genuine examples of rural living on the edge of an urban environment. KwaXimba could be incorporated in a route which links Durban to Pietermaritzburg. This route would go though KwaMashu and Inanda and would follow the length of Inanda Dam, until crossing the Umgeni River, north of the dam. The route would then wind its way through KwaNuyswas, Isithumba and Msunduzi villages, weaving its way past Nagle Dam and entering Pietermaritzburg from the south. The attractions which would be incorporated in this route are numerous and highly diverse. They would include historical attractions such as the Gandhi settlement and Ohlange Institute in Inanda, the Catholic Mission Station outside Nagle Dam, cultural attractions such as township tourism in KwaMashu, the eBhuleni Shembe Village on the shore of Inanda Dam and the Isithumba Village in KwaXimba. In addition the route would boast a number of natural attractions, such as Inanda and Nagle Dams, the Umgeni and Msunduzi Rivers, Isithumba and Table mountains and a possible wildlife reserve at Craiglea. For a rough approximation of the route, see figure 2.1.1. The route is largely drivable at present, though some improvements to road infrastructure will need to be undertaken in order for the route to completely avoid busy main roads such as the R103. Improvements could include improving the linkages between KwaNyuswa and Inanda dam, as well as providing tarred road access between KwaNyuswa and Isithumba. These improvements would also alleviate the level of disruption to the local communities in the Valley of a Thousand Hills when the R103 is closed during the marathons.

Figure 2.1.1 – Rough route for ‘Off the Beaten Track”

4. Provide greater accommodation options in KwaXimba

Accommodation is one of the primary areas of tourism spend within the country. The current bed capacity of KwaXimba (within the valley only and not including Inchanga hotel and establishments at Monteseel) is 36. Of these 36 beds, 16 at Isithumba Adventure Centre are not currently available due to the closure of the centre. Another 16 beds at Indigo Skate Park may no longer be available as the existence of the Skate Park is reportedly under threat. The remaining four beds are at Craiglea which is not strictly speaking in the valley. As such, at present there is no accommodation available within the valley itself. The lack of accommodation in the valley limits the ability of tourism to benefit the local KwaXimba community. Lack of accommodation implies that tourists will, in general, spend only a day or part thereof in KwaXimba, this severely reduces the potential spend of tourists within KwaXimba. While it is important not to over supply accommodation in KwaXimba, until tourist demand is proven, there is substantial scope for the extension of accommodation options. The following list presents some of the most viable accommodation development options in KwaXimba.

 Re-opening Isithumba, and possibly expanding bed capacity 16

 Encouraging the clustering of accommodation at Craiglea  Promoting ‘village stays’; ‘cultural immersions’

KwaXimba does not have the density of tourist attractions that would currently necessitate the development of extensive accommodation in the area. As such accommodation should be clustered in certain areas in KwaXimba. Clustering is important as it leads to the designation of specialized ‘tourism nodes’ which ensures the safety of tourists. Clustering also takes advantage of certain ‘tourism economies of scale’ whereby accommodation, attractions, and support infrastructure interact to create a holistic tourism product. In this regard, then, it is recommended that accommodation in KwaXimba, be initially focused at Isithumba village. The Adventure Centre’s accommodation facilities should be revamped and re-opened. Plans should also be laid out for the future expansion of accommodation at the centre. As an alternative supplement to accommodation at the Adventure Centre, ‘village stays’ by foreign tourists at Isithumba, would represent a low-capital intensive way of increasing accommodation options in KwaXimba. ‘Village stays’ would involve local families in Isithumba hosting foreign tourists in their homesteads. Foreigners will get a chance to live like locals in local conditions. In this form of tourism, also known as cultural immersion, accommodation itself becomes the attraction, as opposed to being a means of getting to, or accessing an attraction in the area. The potential benefits of such accommodation for the local community are very high, but depend crucially on a number of factors:

 The supervision of a regulatory and organizing body (this could be performed by a KwaXimba CTO). This would include a central booking office.  The clear demarcation of boundaries between personal and public space.  Adequate marketing of ‘village stays’.  The identification of reliable, trustworthy families, and ensuring that certain standards are met by these families in hosting visitors.

In addition to accommodation at Isithumba, there is presently an opportunity to encourage accommodation development at Craiglea. Two private landowners, Bhowani Game Lodge and Barend (of TNT Projects), are currently involved in constructing accommodation facilities on their properties. The combined accommodation capacity of these two neighbours properties, on the completion of their projects, is between 35-40 beds. Accommodation development at Craiglea has arisen out of the desire to take advantage of the stunning views enjoyed from the cliffs of Craiglea. If, however, a 17

nature/hunting reserve were developed below the cliffs of Craiglea, these properties would provide essential support infrastructure to the reserve. There is thus a significant opportunity for the municipality to provide the type of support and encouragement of these privately-funded initiatives that would contribute to creating a tourism cluster at Craiglea and in the valley immediately below. Support in this regard could include the upgrading of roads and signage; assistance in marketing; and the inclusion of these landowners in any future developments in the wilderness area immediately below their properties.

Figure 2.1.2 – Accommodation at Craiglea

5. Village Tours

The cultural tourism market is a significant one in South Africa and in KwaZulu-Natal, especially, because of the province’s rich Zulu heritage. Cultural tourism involves tourists visiting human attractions. “Cultural tourists often want to consume themselves in the contemporary way of life of the destination they are visiting”. (TKZN, 2009:2) The aim of cultural tourists is to experience a way of life that is uniquely foreign to the way of life which they are accustomed to. As such cultural tourists are most typically foreign tourists as the culture of the destination which they are visiting differs most markedly with their home countries. Statistics (TKZN, 2009) reveal the popularity of cultural experiences for foreign tourists, 60% of KZN’s air departure market undertook some form of cultural activity in the province during their stay. The statistics also reveal the relative unpopularity of cultural activities for South Africa’s domestic tourist market, only 10.7% of KZN’s domestic tourist market reported visiting an African township or cultural village during their stay in the province. 18

It is essential that KwaXimba looks to capture a portion of the foreign cultural tourist market. Targeting the foreign market, in particular has the following advantages:

 Foreign tourists spend in the order of eight times more per day than domestic tourists  Foreign tourists are substantially more likely to undertake a cultural tour or participate in a cultural activity  The demand of foreign tourists for cultural attractions is relatively inelastic. In desiring a unique cultural experience, foreign tourists are less concerned about the price than what other tourists are. This is because there are fewer substitutes in their own countries, for these sort of cultural experiences. Tourists may only visit a country once and thus may put a high premium on participating in a unique cultural experience which they may never get the chance to do again.

While KwaXimba should target the foreign cultural tourist market, one must be cogniscant of the fact that tourists expect a high degree of quality from a cultural experience. For these tourists, quality is measured both by the efficiency of service and the genuineness of the experience. In this latter regard tourists often express disappointment at ‘artificial cultural attractions and experiences’. Cultural villages, which aim to replicate traditional ways of living within the boundaries of well defined tourist areas, are prolific in South Africa. Some of KwaZulu-Natal’s top tourist attractions are cultural villages. Shakaland and Simunye in Uthungulu District and PheZulu, only a few kilometers from KwaXimba, are some of the more well known of these cultural villages. While cultural villages certainly cater for a specific type of cultural tourist, they can at times disappoint those tourists which seek a rawer, rougher yet more genuine cultural experience. On the tourism site Tripadvisor (2009), where people write of their experiences at accommodation facilities in a number of countries, a person from the United Kingdom, on his/her visit to one of KwaZulu-Natal’s cultural villages referred to the village as a “fake rural Zulu village” and the staff as “replica Zulus”. Although this sentiment is certainly not representative of all foreign tourists experiences, and cultural villages definitely have their place, there is a significant demand by foreign tourists for ‘real’ experiences with Zulu culture.

Isithumba Village is a quaint traditional Zulu village, perched on the side of the imposing granite rock face of Isithumba Mountain. The homesteads in the villages are all designed in the traditional beehive shape, and the people live their lives in the unhurried manner of a time bygone. The tourism appeal of Isithumba village is reflected in the fact that Isithumba Adventure Centre was established as a means of 19

controlling tourists who visited the village. While the revamp of the Adventure Centre will reposition it to take better advantage of the adventure options in the area, the primary appeal of the Centre for foreign tourists is likely to be the cultural appeal of Isithumba Village. The Centre should act as a coordinating body for visits by tourists to the village and the start point of all village tours. Village Tours should aim to maximize the genuine cultural experience of the tourist. A similar example of this type of cultural tour is Jimmy’s Face to Face tours which originated in Soweto, with the aim of bringing tourists face to face with the culture, lifestyle and personality of Soweto, subsequently expanding into other areas in the country. Some of the features of an Isithumba village tour should be as follows:

Features of an Isithumba Village Tour

1. Home Visits Tourists are hosted for an hour or two by a local family who will explain their way of life and daily activities. 2. Day to Day activities Tourists will get involved in daily activities such as fetching firewood and water, farming, home building etc. 3. Sports and Tourists will be invited to play with local children at a game of soccer. Recreation 4. Cultural and religious Tourists are invited to attend cleansing ceremonies, bull slaughters, practices and events church services, Zionist and Shembe meetings. 5. Visiting a sangoma Tourists visit the local sangoma or traditional healer’s house. 6. Visiting a school, Tourists spend the morning at a local school or orphanage, being orphanage encouraged to share stories about their home countries with the children through a translator. 7. Socialising at a Tourists will relax at a local shebeen or tavern, sampling local brews Shebeen and foods. 8. Home Stays Tourists will stay overnight (or for a few nights) at selected community members’ houses.

For village tours at Isithumba to become popular and to have tangible benefit to the local community the following guidelines should be followed: 20

 Tour guides should be sourced from the local community and trained by professional tour operators. Guides should be able to converse well in English and should be friendly and enthusiastic, displaying a sound knowledge of the village and the Zulu way of life.  Community approval and support needs to be secured.  Village tours should be coordinated and run by a central office, for example, the Isithumba Adventure Centre, this office should have direct linkages to the offices of various Tourist Routes.  The safety of tourists should be high priority and it must be ensured that tourists never find themselves isolated and alone in the village.  The focus should always be on offering tourists a genuine ‘Rural African Experience’, one which they would recommend to their fellow countrymen.

Isithumba Village, as a tourist destination has the greatest potential, of all KwaXimba’s as yet undeveloped tourism resources, for attracting foreign tourists to KwaXimba. The village offers a product which is markedly different from some of the polished but nevertheless ‘inauthentic’ cultural village attractions in KwaZulu-Natal. Isithumba’s scenic beauty, preserved way of living and proximity to Durban give it a competitive advantage over similar rural villages in other areas in KwaZulu-Natal. In exploiting the potential of Isithumba, the Isithumba Adventure Centre will play a critical role. The Centre will act as the marketing, organizing and regulating vehicle for village tours in Isithumba. The Centre will also provide the accommodation base for tourists visiting the area, making the most of its scenic positioning on the banks of the Umgeni River and in the shadow of the imposing Isithumba Mountain.

6. Promote Adventure Attractions

Adventure Tourism, like cultural tourism, is a growing market in KwaZulu-Natal. The province provides a diverse variety of adventure experiences for the thrill seeking tourist. The sweeping KwaZulu-Natal coastline provides surfing, diving and snorkeling options, while the rugged terrain of KwaZulu-Natal’s interior, rising majestically to the heights of the Drakensberg, is renowned for excellent rock climbing, abseiling and climbing. Some destinations within the province can offer visitors the opportunity to experience all of these adventure attractions. KwaXimba has the potential to offer visitors the opportunity to participate in rock climbing, abseiling, hiking, mountain biking and paddling. Located just half an hour’s drive from the beach, visitors to KwaXimba can also enjoy a swim or surf in the warm Indian Ocean.

Tourism KZN (2009) finds that, in 2006, 17% of foreign air departure tourists participated in at least one adventure activity during their stay in the province. On the domestic front, hiking and mountain climbing is listed by 9.1% of domestic tourists as an activity they undertook during trips to the province. Domestic tourists also list having participated in mountain biking and other cycling (2.8%), horse riding (3.9%), a water sport (14.6%) and a sports event (14.6%). These figures confirm that there is a substantial demand from both international and domestic tourists for adventure experiences in KwaZulu-Natal. It is felt however, that KwaXimba, should focus on utilizing its adventure attractions to draw, specifically, domestic tourists to the region. KwaXimba does not hold a competitive advantage, internationally, when it comes to adventure tourism, but domestic tourists eager to experience new adventure attractions may see KwaXimba as one more ‘must-do’ destination. This said adventure experiences should be offered to foreign tourists, but as part of a broader Isithumba package, which would have cultural experiences including village tours and home stays as its primary foreign tourist attraction. Domestic tourists, on the other hand, are less likely to be drawn to KwaXimba by the cultural attraction of Isithumba Village. For the domestic market adventure tourism (and to a lesser degree wildlife tourism) should be seen as the primary means of attracting visitors from around the country and within KwaZulu-Natal itself.

Two broad types of adventure activities should be extensively developed and promoted in KwaXimba. These activities are, namely, rock climbing and mountaineering; and mountain biking. Each one of these activities is dealt with separately below. 22

Rock Climbing and Mountaineering

The Situational Analysis of the state of tourism in Kwaximba identified rock climbing and other associated activities as having significant precedent within the study area. The Situational Analysis noted the popularity of Monteseel among rock climbers, and noted the potential of Old Baldy (or Isithumba Mountain) for development as a popular rock climbing destination. The type of climbing that Old Baldy offers, sport climbing, is increasing in popularity and when combined with the unique nature of its 200m high granite rock face, positions Old Baldy as a potential landmark climb in KwaZulu-Natal. Extensive consultation with mountaineering groups, all yielded similar responses. The hindrances to Old Baldy being better used are as follows:

 Overgrown vegetation, and lack of clear paths to rock face  Lack of safe and reliable parking area  Concerns around safety, particularly concerning belongings  Climbing bolts which are badly worn

Geoff Gould from Peak High Mountaineering commented that it was a relatively difficult climb to guide as an instructor, and that not every climbing instructor was adequately qualified to lead this sort of climb. – As such it is of utmost importance that rock climbing offered at Old Baldy be overseen by a thoroughly trained, and experienced climbing instructor.

Figure 2.1.3 – Old Baldy Rock Face

The strategic interventions that the project team believes would help establish Old Baldy as a popular climbing destination are listed below: 1. Develop well maintained paths to the rock face. This initiative could employ local children, who would ensure these paths don’t become overgrown with vegetation. 2. Develop a consistent and reliable parking area where climbers can leave their cars. 3. Replace the old worn out bolts with new ones 4. Utilise Isithumba Adventure Centre as a rock climbing base in the Valley 5. Train local community members to become rock climbing instructors

In tackling some of the hindering factors mentioned earlier, there are a number of very practical strategic interventions that can be followed. These are listed in points 1 to 3. The parking area mentioned in strategy 2 need not be built at the rock face itself. If Isithumba Adventure Centre acted as a rock climbing base, then climbers could leave their cars at the Centre and walk to the rock face. Alternatively a staff member at the centre could drop climbers off at the rock face. Additional benefits of Isithumba acting as the base for climbing Old Baldy is that the Centre could regularly monitor the state of the paths and the bolts. While rock climbing is relatively popular within KwaXimba, particularly at Monteseel, and occasionally at Old Baldy, very little of the revenue generated from rock climbing in the area trickles down to the local community. Most rock climbs are run by adventure companies from outside the KwaXimba area. In order for the KwaXimba community to properly benefit from climbing tourism, residents from villages like Isithumba and Msunduzi need to be trained as climbing instructors.

Mountain Biking The undeveloped, challenging terrain of the Valley of Thousand Hills makes it an ideal area for mountain biking. There presently exist numerous, motor biking routes in the area but relatively little designated cycling routes. The KwaXimba community has expressed anger at the way motorcyclists take little heed of private property or the noise their vehicles make. Community members accuse motorcyclists of arriving in the area unannounced and riding through people’s gardens and homesteads. Mountain biking, however, is a less intrusive and more sensitive adventure sport which can be promoted in the area. A telephonic interview was conducted with Amy Mundy from Detours, who is involved in mountain biking in the region. Mundy said that mountain biking attracted people from around the country as well as internationally. Indeed, recently the mountain biking world cup was held in 24

Pietermaritzburg. Giba Gorge at Stockville quarry, about 15km from KwaXimba is a well established mountain bike park in the area. Mundy, however, said that bikers were always looking for new areas to cycle. Mountain biking ‘trails’, in particular were becoming popular. Trail cycling involves riding on tracks to and through specific destinations, as opposed to riding on circuits in biking parks. Mundy believes the development of biking trails in KwaXimba could lead to a rapid increase in the popularity of cycling in the region. In addition to the development of these trails, Mundy thinks that a central organizing authority for adventure tourism in the area would go a long way toward ensuring rider safety on trails and the proper upkeep of these trails. Trails could be developed which link KwaNysuswas (where trail cycling is already taking place), Isithumba and Table mountains and Nagle Dam.

Additional adventure activities which could be pursued in KwaXimba include; hiking, paddling and paragliding. However, all of these activities, together with the two mentioned above require a high degree of organisation and constant maintenance. To this end the project team proposes that Isithumba Adventure Centre embraces its name and acts as a central adventure hub within the KwaXimba area of the valley of a thousand hills. The exact role of the Isithumba Centre in offering both cultural and adventure experiences will be examined separately in Section 2. For now it is important to acknowledge the importance of having a central community based institution which will oversee both adventure and cultural tourism activities within the study area, such that the maximum benefit is derived for the local communities.

7. Ensure a High Level of Conservation in the Area

Tourism in Rural Areas, typically takes advantage of its cultural appeal and/or its scenic environment and wildlife. In this latter respect, KwaXimba has a number of potential environmental attractions, namely, the Msunduzi and Umgeni Rivers; Isithumba mountain; numerous spectacular jagged cliffs; and large swathes of green wilderness areas. It is thus essential that KwaXimba establishes and maintains a high standard of conservation in the area. A key to ensuring that the area is kept in pristine condition is educating the local community about the detrimental impact of littering and the careless pollution of the environment. The high value placed by tourists on the aesthetic appeal of natural attractions, means that the area must be kept as clean and un-spoilt as possible if it is to attract wildlife tourists. Three immediate and practical priorities for conservation in KwaXimba are elaborated on below.

1. Keep rivers clean: The Umgeni and Msunduzi Rivers are two of the defining features of KwaXimba. They are the lifeblood of the region, been made famous by the Dusi Canoe Marathon. The rivers are known, however, to often contain a high level of pollution. The presence of high levels of ecoli from pollutants in the rivers, presents a threat to Dusi participants as well as to anyone wanting to engage in recreational activities on the rivers or simply wanting to wade across the rivers. Improving the quality of the water will necessitate constant monitoring and testing of the water, but more specifically, the discouraging of dumping in the river as well as the washing of clothes in the river. 2. Removal of invasive plant species. The harsh shrubbery in the valley of KwaXimba, presents a marked contrast to the leafy suburbs of Hillcrest and Kloof. This is because KwaXimba has largely preserved its indigenous vegetation. The indigenous vegetation in KwaXimba is a tourism asset as it reflects the natural ecology of the area, in much the same form as early settlers would have found it. It is thus important that alien invasive plant species be prevented from spreading in the area. Preserving the authentic natural identity of Kwaximba may entail the employment or recruitment of community members in the uprooting and removal of alien, and especially weed growth which typically occurs along the rivers. 3. Regulate hunting with dogs. Hunting with dogs in the valley has almost certainly led to the disappearance of wildlife in the wilderness areas of KwaXimba. Restrictions need to be placed on dog hunting, such that what wild animals are remaining are preserved, and those animals introduced into the area in the event of the establishment of a reserve are protected. 26

8. Crackdown on illegal sand mining

One of the most noticeable features of KwaXimba that the project team observed on a number of visits to the area was the number of sand mining operations taking place. A high proportion of these operations are illegal and are seriously damaging to the environment. Sand mining creates a high degree of soil erosion, leads to the destruction of a number of indigenous plants and introduces heavy duty truck traffic in the area. While these operations are generally restricted to the rivers, some of them have crept inland into the wilderness areas, leaving open ‘scars’ on the landscape. Figure 2.1.4 below shows the penetration of sand mining into the area proposed as a nature/hunting reserve. The environmental division of the municipality informed the project team that it was in the process of bringing legal action against this particular group of miners. Such is the environmental severity of sand mining in KwaXimba, that the ‘crackdown on illegal sand mining’ has been separated from other conservation interventions and been listed as of high priority. The prevention of illegal sand mining, requires that illegal miners are identified and reported to the municipality, and that legal action is brought against the miners. The current virulence of the problem is not on account of insurmountable obstacles in preventing illegal miners or bringing them to book but should be perceived more as a case of a lack of will on the part of the local community and a lack of prioritization on the part of the relevant authorities. Sand mining does bring some revenue into the local community as miners may pay community members for the use of part of their property. As such community members may not actively discourage sand mining in the area. If community members are given a stake in tourism they are less likely to tolerate the presences of these miners. On the part of the authorities, the severity of the sand mining problem needs to be appreciated and addressed as a matter of high priority. Figure 2.1.4 – Example of illegal sand mining in wilderness area

9. Improve Roads and Signage

Adequate road infrastructure is essential for the development of tourism. This is especially the case for tourism development in KwaXimba, as the area would look to attract the type of foreign tourists who typically arrive in large tour buses. As such the roads to KwaXimba must be of a standard that would cater for big tour buses and for smaller private vehicles. Poor quality roads are a significant deterrent to tourists looking to explore new areas. Improvements in road infrastructure may serve as a stimulus to tourism in KwaXimba by crowding in private sector developments and increasing the footfall of tourists into the region. Similarly, clear and comprehensive road signage is a key ingredient for tourism development in KwaXimba. Tourists travelling privately need the re-assurances, not to mention the directions, that good signage provides. Road signage fulfills three important roles: it provides motorists with directions to destinations which may otherwise be difficult to reach; it acts as a signal of the quality of the tourism product in an area; and, finally, good signage can function as a very effective form of advertising, passing on information about a destination to passing motorists. Key strategic interventions for both road improvements and signage are listed below.

Roads  A tarred road should link KwaNuyswas, Isithumba and Inanda dam. This would promote off the beaten track routes and may alleviate some of the pressure on the R103  The road to the cliffs at Craiglea should be tarred, this would improve access to Bhowani Game Lodge and Barend’s property, and may encourage further accommodation development in the area.  A driveway should be constructed which rock climbers can use to access Old Baldy  Potholes that heavy duty sand mining vehicles have created need to be filled. This is especially pertinent to the road descending into the valley from the R103, which has dangerously large stretches of damaged, potholed road. See figure 2.1.5

Signage

 The sign at the turnoff from the R103, down to Isithumba, needs to be upgraded to be more appealing, listing the attractions which one can find on the current T4 route. These signs should also include branding for the KwaXimba area. 28

 New Western Route and Off the Beaten Track route signage should be posted at the turnoff from the R103  Signage needs to be provided along the route to the Isithumba Adventure Centre, and possible nature reserve at Craiglea. These signs could function as information boards providing basic facts about the area and approximate distances to specific attractions.  Signs should notify motorists of accommodation at Craiglea. These signs could be positioned at the corner of the R103 and the road leading to Harrison Flats.

Fig 2.1.5 – Example of incorrect usage of the road leading to Isithumba

10. Define Tourism Nodes

KwaXimba has significant tourism potential, but tourism is just one of many competing interests in the study area, and should be recognized as such. The area supports not only large residential populations but also substantial industrial operations in and around Cato Ridge. For this reason it is impractical and perhaps even counter-productive to promote the whole of the KwaXimba area as a singular tourist destination. This said, there are specific areas in KwaXimba in which tourism should be considered a priority. These areas or nodes should focus their energies and effort on tourism development. The designation of tourism nodes acknowledges the difficulty of constituting a large area (with a diversity of 29

activity) as a singular tourism destination. The identification and classification of tourism nodes ensures that tourism is made the focus in smaller but more manageable areas which have relative competitive advantages with regards to tourism opportunities. Nodal tourism development prevents the, at times, fruitless efforts to find tourism attractions in areas which have little scope for tourism. Instead nodal development looks to promote specialization in areas in which actual potential exists. The most clearly identifiable potential tourism node in KwaXimba is that which lies at the foot of Old Baldy and includes the Isithumba Village, the Adventure Centre and a segment of the Umgeni River. Some of the obvious tourism advantages of this particular area are that the residential density is lower than in other areas within KwaXimba, the area enjoys an undisturbed, serene atmosphere, and the area is aesthetically very appealing. In addition the Isithumba node would contain the Adventure Centre, Old Baldy Mountain, an attractive traditional village and a, albeit under-used, Skate Park. Little business takes place in this part of the valley and much of the economic activity revolves around subsistence farming. Tourism could thus fill a significant gap for sustainable income generating activity in the area.

While a potential tourism node at Isithumba is relatively easy to identify, it is within the interests of KwaXimba to market two tourism nodes. This will give KwaXimba’s tourism product greater weight and diversity. The second major tourism node in KwaXimba could incorporate the wilderness area east of Old Baldy and including the accommodation on the Cliffs of Craiglea. The centerpiece of this node would be a reserve (either hunting or nature) established in the wilderness area. As such the node would focus on promoting wildlife tourism. This node could be combined with the Isithumba node to constitute a combined Old Baldy Node. It is felt, however, that it is constructive to market two tourism destinations (nodes) within KwaXimba. This would help to negate the feeling that KwaXimba is the final (dead end) stop on the Thousand Hills Route. Strong links should, however, be formed between the two KwaXimba tourism nodes.

Nodal tourism development in KwaXimba should embrace the following principles:  Tourism should be considered a priority economic activity in tourism nodes  The area must be managed in a way that is conducive to tourism development  Clustering of tourism attractions, accommodation and infrastructure should take place within the tourism node  The area should be highly accessible to tourists  The tourism nodes should be marketed as holistic destinations 30

Section 2.2

Catalytic Project 1 – Reviving and Extending Isithumba Adventure Centre (Business Plan)

Project Description

Isitumba Adventure Centre is a community owned project under the directorship of a section 21 company. The Isithumba Adventure Centre was built to take advantage of, and regulate, the growing interest of tourists in the local Isithumba village. During its years of operation the Centre provided comfortable accommodation in attractive rondavels for up to 16 people as well as conferencing facilities for up to 60 delegates. The Centre has at various stages, been a popular stop on day tours of the Valley of a Thousand Hills, offering visitors a glimpse of traditional rural living in an exceptionally scenic setting. Despite its name Isithumba Adventure Centre offered little in the way of conventional adventure activities and focused its energies on acting as a base for guided tours of the village and conferencing. At its peak the Adventure Centre was hosting an average of at least two tour groups a week. Constant visitor flow was ensured through the use of partnerships with tour groups such as Tekweni Eco Tours. Prior to the Centre’s closure with the passing of the manager, Ernest Duma, in August 2008, the Centre was already in significant decline as a tourist attraction. The decline in the number of visitors to Isithumba can largely be attributed to the pull out of tour operators from the area, citing mismanagement and a lack of professionalism among their reasons. These allegations were, to some extent, confirmed, by the total collapse of the Centre following Mr. Duma’s death. The Centre has subsequently been extensively vandalized, despite being securely fenced, and has been left to fall into a state of disrepair. The centre presently sits under lock and key, abandoned and in decay, and treated with a great deal of suspicion by the local community.

The aim of this project is to revive the Isithumba Adventure Centre and to reconstitute it in such a way that it appeals to a wider tourist market. Reviving Isithumba entails not merely restoring the Centre to its former condition but improving it such that tourism in the region is aided by both the Centre’s reliability and sustainability as a tourist attraction. Achieving this aim involves undertaking serious repairs at the Centre, as well as any necessary physical upgrades. These upgrades will need to take cogniscanse of the fact that, in order to capture a wider more reliable segment of the tourist market, the 31

Adventure Centre would need to provide a better developed, more varied tourism product. This would entail the promotion of adventure activities alongside an enhanced cultural experience for tourists visiting the Centre. In addition to undertaking a physical makeover the Centre will also need to revise the operational structures which led to its decline as a tourist attraction.

Rationale for Isithumba Revival

Conversations held with tour operators in the Valley of a Thousand Hills revealed the popularity of this destination at stages during its operation. One tour operator recounted taking 200 Irish tourists to Isithumba Adventure Centre. Most tour operators approached agreed that they would add Isithumba to their itineraries once again if the Centre were re-opened and efficiently run. Isithumba Adventure Centre can potentially fill a gap in the cultural tourist market in and around Durban, as it provides tourists with the opportunity to experience genuine traditional rural living. Isithumba is not a conventional Cultural Village like Shakaland (near Eshowe) or PheZulu (just up the road from Isithumba). This works to Isithumba’s advantage however as it is able to exploit that segment of the cultural market which demand ‘real-life’ experiences, for which there is much less competition. The Isithumba Adventure Centre is also well positioned (within eThekwini Municipality), to take advantage of large numbers of foreign tourists entering into the municipal area for big events such as the 2010 Soccer World Cup and various conferences held at the International Convention Centre in Durban.

Assessing whether a business operation is viable, requires that one evaluates the demand conditions in which the operation exists and the supply conditions which would make the operation possible. On the demand side one looks at the number of tourists which are likely to visit the Centre, on the supply side we look at the availability of land, physical capital and sufficiently skilled labour. The former two supply aspects are already available as the Centre is an, until recently, existing operation, albeit needing considerable repair and revamping. With regard to sufficiently skilled labour, tour operators had complained about the quality of the service offered at Isithumba and attributed this largely to inadequate training. Since the Centre has closed down, however, a number of community members have completed training as qualified tour guides. These individuals have subsequently not been able to use their newly acquired skills, as the Adventure Centre has been closed since August 2008. The group responsible for the training of community members is Wild Ways Adventures, the training centre of 32

which is located in Monteseel. The following is a list of the individuals living in Isithumba who have completed training as Tour Guides.

 Blessing Mlaba  Bongumusa Duma  Khozeni Hlengwe  Nkosingiphile Hlengwe  Nomthandazo Sibisi  Patricia Gwala  Zani Shange

 Geoffrey Bhuthelezi  Scebi Zondi

(Source: Wild Ways Adventure, 2009)

The latter two individuals completed their training with a practical component at the Adventure Centre while it was still open. The closure of the Adventure Centre has meant that the skills that these nine community members have acquired are lying dormant and if not used these skills are likely to be lost. The re-opening of the Adventure Centre could draw extensively on these individuals and the Centre would only have to provide limited training.

Reviving the adventure Centre is not akin to a new development requiring the building of large structures and the training of individuals from scratch but rather involves using the currently idle capacity of the Centre, and the existing skills in the local community.

New Vision and Positioning of the Adventure Centre

The Isithumba Adventure Centre previously operated as a shadow of its true potential. The Centre in its resurrected form will look to be a catalyst for tourism development in KwaXimba. As such the Centre should position itself as a central tourism hub in KwaXimba. This would involve monitoring and overseeing the various tourist activities in and around the Isithumba village. Perhaps the greatest 33

change in the role of the Isithumba Adventure Centre is to reposition itself as not merely a cultural centre, but also as a genuine ‘adventure centre’. The reconstituted role of Centre should be as follows:

1. To be an adventure base within KwaXimba. This involves offering climbing, paddling, hiking and mountain biking from the Centre. The Centre itself need not always run these activities (they can be subcontracted to an established Adventure Group), but should at least facilitate these activities. 2. To act as a booking office for adventure activities in the area. In this way misunderstandings between visitors and the community can be avoided. 3. To be responsible for ensuring that Old Baldy becomes, and remains, accessible to rock climbers and that the paths and bolts are maintained. 4. To be the base from which village tours are run, as well as the intermediary facilitating home stays by tourists in trustworthy community members’ homes. 5. To be an events centre, with a focus on attracting events which would bring tourists to the area. These events may include musical or cultural events. 6. To establish links and lines of communication with other attractions within KwaXimba. 7. To provide as genuine a cultural experience as possible, enhancing the appeal of this experience with the natural beauty of the area.

8. To act as the base for a KwaXimba Community Tourism Organisation to operate from.

This last point is not an essential role for the Adventure Centre, but is something that the project team believes would be highly beneficial to tourism in KwaXimba as a whole.

Comments from Tour Operators with past associations with Isithumba

Tour Operators’ experiences of the Isithumba Adventure Centre are varied. Some tour operators such as Tekweni Eco Tours say that they would not be interested in renewing a partnership with the Adventure Centre. Garson Expeditions, Dankiza Tours and Africa Tours, have all said that they would be interested in adding Isithumba to their itineraries once more. This is conditional on a number of concerns about Isithumba being addressed. These concerns are:

 Removal of the barb wire fence around Isithumba: Tour operators have indicated that they will not take tourists to Isithumba as long as the fence remains around d the property. The reason for this is that the fence detracts from the quality of the cultural experience and polarizes tourist interactions with community members.  Safety: While most people recognize that the KwaXimba area has become a lot safer over the last five years or so, security is still a prominent concern of tour operators. With the removal of the barb wire fence around Isithumba, security personnel may need to be employed by the Centre. The security provided should be as in-obtrusive as possible and could take the form of ‘genuine’ Zulu warriors.  Reliable lines of communication: Some tour operators have described how it could, at times be impossible, to contact the Centre as the phone lines were frequently down. Conversations with people with better knowledge of the Centre revealed that non-payment of telephone bills resulted in phone lines frequently being down.  Better management and greater transparency: This point has come out a number of times, and would seem to be the foremost reason for the decline of Isithumba. Tour operators complained of the lack of professionalism experienced at the centre, particularly with regard to the punctuality of tour guides. In addition some tour operators were unsure about whom to hand over the money to, as there was some degree of confusion regarding payment. The concern about mismanagement will be addressed in the following section.  Lack of capacity in kitchen, poor catering service: One tour operator reports that the kitchen could at times not handle large groups of visitors to the centre and could appear overwhelmed. This seemed not so much to be a problem of insufficient kitchen facilities as it was a result of poorly trained and inefficient kitchen staff.

These concerns are addressed in the sections immediately below which outline the proposed management structure and physical upgrade to Isithumba.

Ownership and Management

Prior to its closure Isithumba Adventure Centre was owned and managed by members of the local community. While this situation certainly has the greatest potential for maximising community benefit, the project team believes that, in practice, community management of a ‘revived’ Isithumba Adventure centre is not desirable. The decline and eventual closure of the Centre can be partly attributed to mismanagement by certain community members involved in the Centre’s operations. The situational analysis of tourism in KwaXimba, shows that education levels in the local community are very low, and that the probability of extended duration of unemployment for community members is high. This indicates that the community may presently not have the requisite skills to run a high profile tourism operation.

It is thus the recommendation of the project team that highly competent and experienced private tourism operators be sought to manage and run the ‘revived’ Isithumba Adventure Centre. Private tourism operators should have the requisite business skills (something identified as lacking under the previous management) and the industry experience to make the Adventure Centre a successful business operation as compared to a struggling community project. The Adventure Centre would thus become a privately run tourism enterprise, which pays a lease to the community for use of the land and the facilities. In addition to receiving the benefit of rental income, a privately and professionally run Centre could potentially expand its operations and employ more community members, as well as provide entrepreneurial opportunities for the community arising out of increased visitor numbers to the area.

The promotion of some of the adventure activities that the Centre would look to offer would require specialist adventure operators. This is especially the case with regard to rock climbing at Old Baldy. While river rafting, mountain biking and hiking can be offered by the Adventure Centre, the lack of skilled climbing instructors in the community would require that, at least in the interim, climbing activity is outsourced to a local adventure firm. The managers of the Adventure Centre could partner with an adventure firm as a permanent arrangement or as a temporary measure until such time as the Adventure Centre has the capacity and human resources to operate climbs at Old Baldy on its own.

Table 2.2.1 - Potential Private Sector Partners

Establishment Location Contact Stewarts Farm KwaBhekitunga, near Eshowe Sonja Newlands uThungulu District 083 303 8373 Shakaland – Protea Hotels Nkwalini, near Eshowe Dave Wylie uThungulu District 035-460 0912 Spirit of Adventure Shongweni, eThekwini Rudy Clark Municipality 031-769 1981 Wild Ways Adventure Monteseel, eThekwini Andrew Friedman Municipality 031-767 2160

Financial Model

Capital Expenditure on Physical Upgrade Since its closure in August 2008, Isithumba Adventure Centre has been extensively vandalised. The severity of this vandalism and destruction of property, is such that substantial repair works need to be done at the Centre. With regard to accommodation, full room overhauls are required and this is reflected in the expenditure requirements of the Centre. Table 2.2.2 presents expenditure on the base case scenario and on additions to that base case. The base case scenario is one in which the Isithumba facility is revamped and able to function as it did two years ago, with slight improvements elevating it to three star facility status. The ‘additions’ are features that GMA predicts would enhance the service provided by the facility, and thus make the venture far more successful.

In terms of base case expenditure, the above figures are derived from standards based on a three star hotel. Having visited the site a couple of times, it is evident that while there is still running water, all other installations such as electricity would have to be reinstalled. One task, included, under landscaping & external works would be the removal of the current perimeter fence, which ruins the aesthetic appeal of the place, and currently prevents at least one tour guide from bringing tourists to the facility. The rest of the base case expenses are self-explanatory, basically revamping and restocking the facility from essentially nothing, due to the level of degradation and vandalism. Operational supplies 37

& equipment expenses are bundled into a per-room rate which has been totaled and presented in the table. The total base case scenario expense is R 2 698 311.39.

To add to the natural and already existing appeal of the facility, GMA believes that, although not essential to the running of the facility, a few key additions are needed to make Isithumba a more attractive destination for tourists. The installation of a boma and braai area with a splash pool on the front lawn would provide a more appealing recreational area than the four sets of table and chairs that are currently there. A pathway and thatched sundeck with braai facilities next to the river would provide overnight guests with a unique setting in which they could enjoy a relaxing evening meal and/or drink. Thatching the office building would greatly add to the aesthetic, as it is the only building with a non-thatch roof. In addition if the current barb-wire perimeter fence is to be taken down, this could be replaced by fencing in the same wooden, rustic style as exists immediately around the facility. Installing a secure paved parking area would be beneficial to the facility, especially for rock climbers seeking secure parking, whilst still ‘fitting in’ stylistically, as it would have a cobbled stone effect. Lastly providing mountain biking as an activity would allow tourists a chance to roam the village, and could be a profitable venture if run properly. The total cost of the above additions is R 606 250.00. Therefore the total cost of revamping the facility, with the base case and additions, would be R 3 304 561.39.

Figure 2.2.1 – Isithumba’s Current State

Table 2.2.2 - FINANCIALS: Isithumba Adventure Centre Base Case Scenario Rands

Specialist installations to resort (electricity, etc.) R 203 325.66 Landscaping & external works R 97 470.00 Refurbishing 8 guest rooms R 387 312.46 Refurbishing public areas (60 persons) Lounge, bar R 195 537.40 Breakfast/Buffet Restaurant R 108 043.87 Conference room R 294 842.93 Reception & lobby area R 152 817.06 Terrace R 74 472.25 Kitchen and catering equipment R 156 800.00 Interior design R 103 380.00 Procurement and installation: R 96 500.00

Operational supplies & equipment (OS&E) See bundled rate:

Cutlery Crockery Glassware General equipment Stationery Guest supplies Uniforms Rooms and room service linen Table linen Office equipment and computers Office and back of house furniture Audio- visual and presentation equipment Software OS&E bundled rate: R 499 318.73 Pre-opening expenses R 200 000.00 Sub-total R 2 569 820.37 Contingency R 128 491.02 TOTAL R 2 698 311.39

ADDITIONS Boma R 10 000.00 Braai Facilities (x2) R 20 000.00 Themed Perimeter Fencing† R 150 000.00

† A cheaper quote was obtained by Natal fencing, R62,000 39

Parking Area R 210 000.00 Thatch Office Roof R 80 000.00 Thatched Sundeck at River R 72 250.00 Splash Pool R 46 000.00 Mountain Bikes (6 @ R3000 each) R 18 000.00

TOTAL R 606 250.00

TOTAL R 3 304 561.39

Competitors and Pricing

Table 2.2.3 – Pricing of Accommodation at Cultural Attractions

Name Location Prices Isithumba Adventure Centre KwaXimba, eThekwini R150 p.p.n (Bed only) (2007 prices) Municipality R200 p.p.n (B & B) R250 (D.B.B) Shakaland Nkwalini, uThungulu District R895 (D.B.B) Stewarts Farm KwaBhekitunga, uThungulu R450 p.p sharing (D.B.B) District R620 p.p single Simunye Lodge Melmoth, uThungulu District R1087 p.p sharing (Full Board)

Table 2.2.3 compares the price of accommodation at Isithumba Adventure Centre with the price of accommodation at other cultural attractions in the province. From the table it is evident to see that Isithumba is under-priced. This is partly because the prices for Isithumba have not been updated since 2007. However, even when these prices are adjusted for inflation, and increased by 16% (assuming an average rate of inflation of 8% for the last two years), Isithumba’s accommodation seems under-priced. While Shakaland and Simunye are hotels, and are thus naturally far more expensive, Stewart’s Farm, which provides relatively basic hutted accommodation, charges R160 more for dinner bed and breakfast than the (inflation adjusted rate) for Isithumba. Despite this price discrepancy Stewarts Farm remains popular, which suggests that Isithumba could raise the price that it charges. Specifically the markup on the provision of breakfast or dinner, bed and breakfast by Isithumba is too small.

With the upgrades, mentioned in the previous section taking place, which will include the building of a boma, splash pool, sundeck and upgrading to 3 star quality rooms, there is substantial scope for the Isithumba Adventure Centre to charge more for accommodation. All prices should include at least one village tour (or other cultural activity) and one other activity (paddling, mountain biking, hiking). Table 2.2.4 shows a preferred pricing structure for Isithumba.

Table 2.2.4 - Accommodation Pricing Structure

Conditions Price (prices inclusive of activities and for single rooms) Bed Only‡ R310 Bed and Breakfast R380 Dinner, Bed and Breakfast R465 Full Package (drinks, lunch etc.) R550

The pricing structure displayed in table 2.2.4, is based on Isithumba Adventure Centre offering a similar but less sophisticated product as compared to Stewart’s farm. The price of R465 was worked out by assuming that Isithumba’s product has 75% of the value of Stewarts Farm. The corresponding prices for Isithumba’s accommodation packages are worked out by assuming an acceptable markup for meals. These prices are not rigid, however, and there should be flexibility to allow for pricing changes subject to seasonality and preferential prices for certain groups of people (children under the age of 12 etc.)

Table 2.2.5 –Competitor Pricing of Non-Accommodation Activities

Name Type of Tour Prices Isithumba Adventure Centre Village Day Tour R210 per day (food, beverages, (driving and walking) entertainment) R180 (food and beverages only) R120 (tour only) Shakaland Day Tour of Shakaland village R265 (including lunch) and cultural performances (walking) Stewarts Farm Cultural Show R180 (lunch) 1 ½ hour village tour (walking) R180 (lunch) Tekweni Ecotours Day tour in Valley of a Thousand R425 (lunch and drinks) Hills (Driving, Walking) PheZulu Safari Park Cultural Show and Village Tour R60 (no inclusions) (walking)

At first glance Isithumba’s day tours would appear to be relatively well priced. However the R210 package is quoted not as the price of touring from the Adventure Centre, but rather as the price of being

‡ Due to lack of self catering facilities this options should not be extensively promoted 42

picked up from respective hotels and taken down to the Centre from where a village tour would begin. As such one cannot compare Isithumba prices with Shakaland, Stewarts Farm or PheZulu. A more accurate comparison is that done with Tekweni Eco Tours. This comparison reveals that Isithumba is again under-priced. While the price of the Isithumba Tour from hotel pickup should certainly be increased, it is in the interest of this business plan to simply estimate how much Isithumba would be earning from these tours, not the profit margin of the tour operator. As such the price of a tour undertaken from the Adventure Centre needs to be brought in line with the likes of Stewarts Farm, Shakaland and PheZulu. The Isithumba village tours, would be longer than the tours offered at PheZulu (1 hour) and Stewarts Farm (1 ½ hours), and would be more similar to that offered by Shakaland. However, the quality and visitor demand would be somewhat lower. Thus the recommended prices of village tours would be as shown in table 2.2.6.

Table 2.2.6 – Village Tour Pricing Structure

Conditions Price Village Tour Only (2 hours) R150 Village Tour and food and beverages (3 hours) R200 Full Village Tour Package (4 hours) R250

Conferencing

Isithumba has a conference facility which can comfortably accommodate 60 people. The previous package rate of R150 per person however is very outdated and is duly adjusted, below.

Conferencing package (includes refreshments, R250 per person lunch and hire of audio visual equipment)

The pricing structure in this section is by no means definitive or final and serves merely as a guide for the Adventure Centre and as an analytic tool for use in the financial model.

Model Assumptions

Demand Assumptions

Estimating the tourist demand for accommodation or activities at the Isithumba Adventure Centre is a very complex exercise and by no means an exact science. It is virtually impossible to accurately estimate the number of visitors likely to be attracted to the Adventure Centre. For this reason extensive use is made of various demand-level assumptions concerning both pricing and visitor numbers. General assumptions regarding visitor numbers and price are given below:

 The average number of tourists on a tour bus is 20  Rates used are assumed to be average rates for the year and are based on the a pricing structure (introduced in the previous section) which brings Isithumba’s rates in line with those used at similar attractions in the province  10% of day tour visitors take the village tour only, 30% take the village tour and food and 60% take the full village tour package  10% of overnight stays are on the bed and breakfast option, 60% on the dinner bed and breakfast option, 30% on the full package, and none on the bed only.  An average of 20 delegates per conference  Mountain bike hire is R100 for the day and 20% of overnight tourists hire bikes

Utilising these general assumptions three demand scenarios can be specified. These are shown below.

Table 2.2.7 – Demand Scenarios

Scenarios No. of Visitors

1. 1 tour bus a week + 10% room occupancy 80 day visitors per month for overnight stays. 2 conferences a 48 overnight stays per month month 40 conference delegates 10 bike hires per month 2. Operating at 29% of the accommodation 95 day visitors per month capacity of Stewarts Farm with the same 126 overnight stays per month number of day trips. 2 conferences a 40 conference delegates 44

month. 25 bike hires per month 3. Four tour groups per week and 30% room 320 visitors per month occupancy for overnight stays. Four 144 overnight stays per month conferences a month 80 conference delegates 29 bike hires per month

Scenario 2 may need some explanation. Stewarts farm is considered to be the most similar facility to Isithumba Adventure Centre for those facilities for which visitor statistics are available. Isithumba Adventure Centre has 29% (16 as compared to 55 beds) of the accommodation capacity of Stewarts Farm. Thus 29% of the average number of overnight stays per month at Stewarts Farm, are used to estimate demand for accommodation at Isithumba. The number of day trips at Isithumba is assumed to be the same as the average for Stewarts Farm. This assumption may be somewhat unrealistic, however, as Isithumba’s proximity to Durban should result in significantly more day trips to the Centre.

Operating Expenses

Operating Expenses Assumptions

Operating costs refer to the re-current costs associated with running the Isithumba Adventure Centre. These costs are estimated independently of ownership. The figures displayed in table 2.2.8 are annual amounts and are reported from the year of maturity.

Table 2.2.8 – Operating Expenses (Expressed in Rands)

Maintenance (3% of total building) 99,137 Cleaning materials 5,000 Replacement of equipment (10% depreciation of 70,000 equipment) Water and Electricity 24,000 Catering (R60 per person per conference, average Varies with of R40 for breakfast, lunch or supper, R60 village visitor 45

tours with lunch and refreshment, ) numbers Marketing (3000 per month) 36,000 Telephone 12,000 Stationery 2,400 Periodic training (4000 per month) 48,000 Internet and TV (800 per month) 9,600 Insurance (R500 building+ 1% equipment value) 12,741 Equipment rental 30,000 Miscellaneous Expenses (R6000 per month) 72,000

Table 2.2.9 - Employment and Salaries

Type of position No. of positions Annual Salary per position (Rands)

Full Time Staff Manager 1 144,000 Admin assistant 1 96,000 Entertainment manager 1 60,000 Security 2 48,000 Kitchen Staff 2 48,000 Cleaning Staff 2 48,000 Gardener 2 24,000 Subcontracted Staff Tour Guides (flexible) R350 per tour conducted

Table 2.2.9 shows the anticipated employment at the Adventure Centre. The purpose of this table is to present a base case scenario for employment at the Centre. It may, indeed, be in the interests of the Centre to increase employment if the Centre’s popularity starts increasing, but for the purposes of this analysis these employment numbers are assumed. Of the 11 people employed at the Centre at least 70% of the staff should be employed from the local community. This would benefit the local community 46

by providing sustainable income to households. Employment at the Centre will also ensure that the community is supportive of the Centre’s operations.

Tour guides are subcontracted by the centre. This was the previous practice of the Centre, and is deemed to be the most efficient for the first few years of the Centre’s reopening, when visitor numbers may be slow to take off.

Financial Model Results – Net Cash Flows

Table 2.2.10 – Net Cash Flows from Three Scenarios

20 Year Average Net Cash Flow (excluding Capital expenditure)

Scenario 1 -R684,494 Scenario 2 -R323,990 Scenario 3 R141,514

The results from the financial model for the Isithumba Adventure Centre are very insightful. Under both scenarios 1 and 2, the Adventure Centre makes a significant Net Loss each year. However, in Scenario 3, which is the most optimistic of the three scenarios, a Net Profit of R141,514 per year is shown. It would appear that the breakeven point for the Isithumba Adventure Centre is for it to achieve room occupancy of 25% per month and at least three day tour busses a week.

Return on Investment

Table 2.2.11 – Internal Rates of Return on Scenario 2

10 Year IRR 20 Year IRR 30 Year IRR

Scenario 3 -13.04% -1.43% 2%

The return on capital investment is calculated for Scenario 3 as this is the only scenario in which the Centre records an operating profit. The Adventure Centre does not offer a return on the capital invested in the re-opening of the centre in the first 20 years of operation. However after 30 years the financial model yields a 2% return on investment.

Conclusion

From a strictly financial point of view, investment in the re-opening of the Adventure Centre is not a lucrative one, especially in the short term. This said, however, the impact of capital spending on the re- opening of the Centre, will be very significant for the local Isithumba community. The Centre will provide employment for community members, as well as opportunities for local entrepreneurship. The Centre will also be a catalyst for tourism in the region, and as such will have farther reaching positive impacts than those simply reflected in a restricted financial model.

It is the recommendation of the project team, that Isithumba Adventure Centre be re-opened and revamped as a matter of priority, as the Centre is believed to be essential in catalysing tourism development within KwaXimba. If effectively run, the Centre could become a profitable enterprise (as shown by Scenario 3) with the ability to transform the lives of a number of members of the Isithumba and wider KwaXimba community. The Centre also has the potential to perform even better than the financial model would suggest, as the model takes a conservative approach to what could be done at Isithumba. Listed below are some additional possibilities for expansion of the operations of the Centre:

 Provide camping accommodation, alongside the Umgeni River  Build traditional Zulu Huts as further accommodation and promote a more traditional cultural experience. The Centre can increase the per person marginal profit derived on accommodation, by providing more accommodation.  Convert the semi-detached rondavels (two separate rooms sleeping two each) into single luxury units, sleeping two.  Develop a parking area at the foot of Old Baldy for better rock climbing access

Catalytic Project Two – Development of Nature or Hunting Reserve

Project Description

The aim of this project is to take advantage of one of KwaXimba’s green, wilderness spaces, by developing a nature or hunting reserve. KwaXimba has a number of relatively un-spoilt wilderness areas, although both legal and illegal sand mining severely threaten the ‘green’ status of these areas. The areas are currently un-zoned and, from a conservation perspective, unprotected, and if left as are, population growth in the surrounding communities threatens the very existence of these areas. Tangible environmental development would act as a safeguard for what is a valuable natural resource. From a tourism perspective, the development of a reserve in KwaXimba, would take advantage of the scenic and natural beauty of the area, and exploit the highly lucrative wildlife segment of the tourism market. The development would fill a gap in the market for day-wildlife destinations in eThekwini Local Municipality. The establishment of a developed natural attraction in KwaXimba would also provide variety to the tourism product offered at the Isithumba Node.

Location

The best place to develop a nature or hunting reserve in Kwaximba is indicated in the map below. The area, which is lush and densely vegetated with indigenous valley thicket, drops down from the imposing Cliffs at Craiglea toward the Umgeni River. The area is also un-inhabited although it is bordered by fairly large communities. By providing sustainable income generating opportunities for community members the community should respect the boundaries and restrictions of the reserve. Another appealing factor for the reserve’s location in this area is its proximity to accommodation currently being developed at Craiglea. Landowners at Craiglea have indicated that they would want to have their land incorporated into a possible nature reserve, as this would greatly add to the appeal of their facilities.

As shown by the map, the reserve would be bordered by Harrison Flats and Craiglea in the South, Msunduzi to the North East and the Umgeni River to the North West. The Western flank of the reserve would include the uninhabited slopes of Old Baldy. The topography of the area is, in places, very steep. The cliffs at Craiglea, in particular, form a formidable barrier against the entrance of people into, or the escape of animals out of the reserve. The area has a number of flatter plateaus, however, and becomes relatively level around a small tributary of the Umgeni River. This tributary, along with other streams 49

that have been identified in the area, would provide a water source for animals stocked in the reserve. It is anticipated that the main entrance (highlighted in red) to reserve would be located where the tributary and, unfortunately the sand mining operations, enter the area from the main KwaXimba road. An alternative, perhaps private, entrance into the reserve could be developed from the two accommodation facilities at Craiglea.

Figure 2.2.2 – Map showing location of proposed reserve

The two options (Nature or Hunting Reserve) for this piece of land are discussed below. These options are discussed descriptively as opposed to quantitatively as was done with the Isithumba Adventure Centre, for the simple reason that it is difficult to capture the true benefits of a nature or hunting reserve (but particularly the former). Nature reserves are typically not financially viable in and of themselves, but this is not to say that they do not have an overall net benefit for the local community. Natural attractions stimulate visitor numbers to the area, having positive spin-offs in the form of tourists spending money on food, accommodation and possibly curios in the local economy. A more accurate way of estimating the benefits of a nature reserve is to conduct an impact study, but this is hampered, in this case by a lack of similar studies and by the need for an expression of interest to be submitted to KZN Wildlife before they can evaluate the land’s suitability. 50

Nature Reserve

If the land below Craiglea were to be developed into a nature reserve it would constitute the second largest nature reserve in eThekwini Municipality. At an estimated 800ha, the Craiglea Reserve would be second to Shongweni Nature Reserve (1200ha) in size but significantly bigger than the Krantzkloof Nature Reserve (530ha). Though relatively big for a reserve in a metropolitan area, the nature reserve would not be big enough, nor would it have the appropriate terrain, to accommodate game drives by the general public. Rather a number of foot paths, of varying intensity should be developed, whereby visitors can submerge themselves in the natural wonder of the Valley of a Thousand Hills. These paths could run along the stream or wind their way up the valley. In addition a number of mountain biking trails could be developed in the reserve. These trails would be appealing in that they would provide greater safety for riders and would be regularly maintained. Mountain biking events could also be held in the reserve.

The area would have to be restocked with animals as it is unlikely that many wild animals still exist in the area due to extensive dog hunting. In consultation with eThekwini’s environmental department and KZN Wildlife the following list of animals for re-introduction into the reserve have been suggested:

 Warthog  Bush pig  Duikers (red, blue etc.)  Nyala  Bushbuck  Waterbuck  Kudu  Wildebeest  Zebra  Giraffe

This list of animals is only suggestive and takes into consideration the compatibility of these mammals with the area’s ecosystem. To establish whether all these animals would be suitable for the area would require a full study by KZN Wildlife.

The ownership/management structure of the reserve would have to be in the form of a partnership between up to four parties. The major partners would be the Municipality and the local community. The Municipality owns about 200ha of unused land just below the cliffs at Craiglea, while the community, under the Ngonyama Trust, own the rest (600ha) of the land that would be allocated to the reserve. Smaller partners in the development of the reserve would be the landowners at Craiglea, who, combined, would contribute about 50ha of land to the reserve, and KZN Wildlife who would be involved in overseeing the development and operations of the reserve. Development of the reserve could benefit from a municipality funded environmental poverty alleviation programme which seeks to employ poverty stricken community members in cleaning up and preserving conservation areas. Establishing the Craiglea Reserve would provide a secure and sustainable investment for a poverty relief programme aimed at conserving the natural quality of the area. These programmes are often conducted in areas where conservation management is unsustainable beyond the programme’s expiry date, however, if an area’s land use is ‘locked’ into a formalized nature reserve, then the poverty relief programme would be beneficial in the long-run as well.

Physical Requirements of a Nature Reserve at Craiglea

1. Fencing – If the reserve is only to contain small, non-predatory mammals then it may be most cost-effective not to fence the reserve. Fencing should not be considered to be an effective measure for keeping poachers out of the reserve as they can simply cut holes in the fence. Rather the community must be brought to understand the economic benefits of having a reserve in their region. In this way both poaching and crime can be minimized. If big mammals are kept in the reserve, however, then fencing may be needed to protect the local community from wild animals. Fencing the entire reserve would prove very expensive as its perimeter length is nearly 15km, but certain savings can be made due to the topography of the reserve. For instance fences would probably not need to be erected below the cliffs at Craiglea or for much of the reserve’s western flank bordering Old Baldy. 2. Access Roads – A road, even if only a dirt road, should link the nature reserve with the main KwaXimba Road. In addition roads to picnic sites may need to be developed as well as general maintenance roads in the reserve. 3. Entry Gate – This would control access into the reserve and be the point at which visitors pay their entrance fee. 52

4. Parking – The parking area should be able to accommodate normal vehicles and large tour busses and should be completely secure. 5. Hiking paths and mountain biking trails – The development of these paths and trails could be incorporated as part of a poverty alleviation programme for the local community. 6. Picnic spots and Campsites – Various scenic picnic sites could be located along the paths. Basic campsites could offer visitors the option of camping overnight. This would require the necessary infrastructure. 7. Water, electricity and waste water installations 8. Visitor Centre – A centre which provides visitors information regarding the area and the ecology and wildlife of the reserve. The centre could also function as a learning or conference centre. 9. Maintenance and additional buildings

Advantages of developing the land as a Nature Reserve

1. The reserve would not be exclusive and would attract a range of visitors 2. The reserve would offer visitors a genuine experience of a largely unchanged, indigenous landscape 3. The reserve would catalyse tourist accommodation at Craiglea 4. The municipality can protect a valuable natural resource and shut out sand mining operations that are currently degrading the area 5. The reserve could form part of the northern edge of the Durban Green Corridor (discussed below)

Disadvantages

1. The direct income generating ability of a nature reserve is relatively small. This is primarily because entry prices are generally low (+/-R25) 2. There are a large number of nature reserves in KwaZulu-Natal and some of these are in close proximity to the proposed Craiglea Reserve, as such, there is significant competition among these reserves for wildlife tourists 53

3. The lack of large iconic mammals, such as rhino, elephant or any of the large predators, will limit the reserve’s international appeal. 4. The reserve’s topography may make hiking challenging for older individuals.

Hunting Reserve

From a self-contained business point of view, a hunting reserve is more appealing than a nature reserve. Hunting reserves have less competition, especially in urban areas, and offer a relatively high value product with international appeal. This said hunting reserves require substantially more capital investment, and incur higher maintenance costs. For example a hunting reserve would require a perimeter fence, refrigeration facilities and extensive numbers of popular hunting game. This section looks specifically at some of the advantages and disadvantages of developing a hunting reserve. For further information, the appendix at the end of this paper provides a useful list contacts.

Advantages

1. Hunting is a high value activity. Individuals are charged thousands of Rand to shoot an antelope. 2. Hunting reserves are most typically run as private business enterprise, thus attesting to the proven profitability of a hunting operation. 3. There is less competition for hunting in the local area than there is for nature reserves. 4. Hunting is an established and highly popular sport/activity. Tourists are often prepared to pay very high prices for the experience of hunting in ‘Africa’ 5. Hunting is very popular among the international aristocracy. Recently a Spanish prince was reported to be hunting in a reserve in Limpopo. 6. Hunters will typically stay overnight at a destination.

Disadvantages

1. Capital intensive– potentially high start-up costs: o Construction of internal infrastructure (dams, boreholes, reception entrance, armoury, refrigeration, basic camp site) o Biological assessment of the appropriate species and carrying capacity 54

o Initial Animal Stock (Potentially 60 Large Stock Units) 2. Long-term time delay– herd may require 5 to 10 years to reach maturity for harvesting depending on initial size. 3. Small reserve size a major hindrance, as population of larger mammals is limited. 4. Management of hunting reserve would require skilled expertise/outsourcing of management. 5. Requires effective negotiation between local municipality and local chiefs who share ownership of the land. 6. Theft from local community / wild hunting dogs.

The most pertinent disadvantage of developing the Craiglea wilderness area as a hunting reserve is the size of the area. From a hunting perspective the Craiglea area would be considered to be somewhat small. Hunting benefits from economies of scale, whereby, big reserves reap relatively greater rewards. This said, if successful, even a small hunting reserve, can tap into a more lucrative tourist market than a nature reserve can. The other major impediment to developing a hunting reserve is the amount of time it takes for the game stock to mature and multiply. The normal minimal period is considered to be 5 years. If the land is not put to other productive uses during this time then the return on investment in these first five years is naught. One option to compensate for the amount of time taken for a hunting reserve to reach maturity is for the reserve to initially be open to the public as a nature reserve. In this way income will be generated in the first five years of development, while the reserve develops its hunting capacity.

The most feasible use of the land, considering some of the hindrances to establishing a hunting reserve, is to develop the land exclusively as a nature reserve or to develop a hunting reserve which, will for the first five to ten years of its lifespan, function as a nature reserve. Irrespective of whether the land is developed as a hunting or nature reserve, the community needs to be extensively consulted regarding acceptable boundaries for the reserve. The basic perimeter outlined in Figure 2.2.2 should not be viewed as prescriptive, and may need to be modified in order to take into account traditional cattle grazing grounds and areas in which regulated dog hunting occurs. It is essential to achieve a balance between the traditional practices and interests of the community and those of developing tourism within KwaXimba.

Figure 2.2.3 – Overlooking the proposed nature reserve from the cliffs at Cariglea

Incorporation in Green Corridor project

The municipality has proposed to develop a ‘green corridor’ along the Umgeni River, running from Inanda Dam to Blue lagoon. The project aim is described as follows:

To establish permanently maintained, serviced and secure multi use nature trails linking the beachfront via the uMngeni Estuary with the Inanda Dam, Kranzkloof Nature Reserve and other locations such as the Shembe Village and the uMzinyathi Gorge. It would be supported by complementary activities such as food gardens, environmental rehabilitation, community education and enforcement of conservation regulations. The establishment, maintenance and supply of support services should also provide economic opportunities for local residents.

(Department of Water Affairs, 2009:1)

This development will include cleaning up the river, removing invasive plant species, and providing recreational facilities for the city’s residents. These facilities will include parking areas, picnic areas, running and biking routes. While it may be somewhat ambitious to, at this stage in the Green Corridor Project, suggest that the ‘corridor’ be extended up past Inanda Dam through to KwaXimba, the project team do believe that it would be in the interest of tourism development in KwaXimba for the scope of some of the project’s strategies to incorporate KwaXimba. The development of the Craiglea Nature Reserve in very close proximity to the Umgeni River would certainly provide possibilities for extending 56

the environmental aspect of the Green Corridor Project to the entire stretch of the municipality’s segment of the Umgeni River. In this respect cleaning the Umgeni River, removing invasive plant species and preserving the river’s natural biodiversity complements the general tourism strategies of this tourism plan and would be mutually beneficial from both an environmental and tourism perspective. Practically, it would be very difficult to keep the river below Inanda Dam clean if the upper section of the river, above Inanda Dam but below Nagle Dam is left unmanaged.

Section 3 Marketing Tourism in KwaXimba

In an industry in which the market is brought to the product, as is the case with the tourism industry, a coherent and effective marketing strategy achieving deep penetration in high potential target markets is essential. An effective marketing strategy would seek to emphasise a ‘sense of place’ at the tourist destination as well as to create a brand and then to promote awareness of the brand through media and by word of mouth. An important element of any marketing strategy, is countering negative perceptions regarding the specified tourist destination. Growing tourism in KwaXimba is hindered by a range of negative perceptions. These include concerns about safety and a perception that the area has little to offer tourists. A key role, therefore, of the marketing strategy is to create a tourism brand image for KwaXimba which would transform negative public perceptions into curious, positive interest in the area. The marketing strategy would look to distinguish KwaXimba from the rest of the Valley of a Thousand Hills, by promoting it as an essential stop for any tourist visiting Durban. This marketing strategy adopts four broad strategies to marketing tourism in KwaXimba. These strategies are: Creating a Tourism Brand Image, Marketing KwaXimba as Part of Established as well as Potential Tourism Routes, Creating a KwaXimba Destination Website or Web Link and, finally, Encouraging Events in KwaXimba.

1. Brand Image Tourism KZN describes ‘branding’ as follows, “In its purest sense it is used to denote ownership and identity of the product, and should easily be associated with the underlying imagery of the product, and its delivery or experience.” (TKZN, 2008:3) Branding is used as a tool to differentiate between various products. In the case of tourism development in KwaXimba a brand image should be created which is 57

consistent with the larger over-arching brand of the Zulu Kingdom, but which at the same time, differentiates KwaXimba from other competing tourism destination sub-brands. The brand image should convey ‘a sense of place’ for KwaXimba and would derive from KwaXimba’s competitive tourism advantages. The brand image should also reflect the tourism experience/attractions that KwaXimba has to offer.

Creation of a brand image must necessarily take into careful consideration the target market that the area wishes to attract. The two primary target markets identified earlier in this tourism plan are; the foreign tourist market and the domestic adventure tourist market. One must then ask the question, ‘How can KwaXimba distinguish itself as a destination for foreign cultural tourists and domestic adventure tourists?’ In answering this question one must be aware of the product the area offers. KwaXimba offers foreign tourists ‘face to face tours’ and an opportunity to experience the way of living of a ‘real’ rural African community. As such the brand image for KwaXimba should focus on highlighting the genuineness of the cultural product it offers, as well as the un-spoilt, untamed natural landscape. At the same time this brand image must be balanced by consideration of the adventure activities on offer in KwaXimba. A holistic brand image will incorporate both these aspects.

The recommended brand image for KwaXimba should reflect the authentic, riveting experiences that can be participated in. The essence of a brand image is captured in its name. The project team proposes two potential brand names for the KwaXimba tourism product:

Real Africa Authentic Africa

Both names immediately capture people’s attention, and convey the type of tourism product on offer in this part of the Valley of a Thousand Hills. A tourism product, which, has not be tamed or manufactured but is real and living, thrilling and riveting. The pyramid diagram below fleshes out the key brand values in more detail.

Figure 3.1 – Brand Pyramid

Brand Identity Live Africa! Genuineness, hospitality, Brand values intimacy, wild

Raw, honest, exhilarating, Brand Personality friendly, unashamed

Experience the real Africa, feel the Culture, meet the people, live the life Emotional Benefits

Close to Durban, easy escape from the city, gives an Rational Benefits honest outlook, experience traditional ways of living

Enjoy the hospitality of Isithumba Village, kayak on the world famous Umgeni River, scale the heights of granite Attributes domes, walk among wildlife in un-spoilt natural areas

2. Marketing KwaXimba as part of Established as Well as Potential Tourist Routes

The rationale behind this marketing strategy is explained earlier in this document and so will not be reiterated again. The method by which KwaXimba is marketed through these routes is described in bullet form below.  Attractions in KwaXimba, at the Isithumba and Craiglea nodes should be highlighted on route maps.  KwaXimba should be promoted as a (possible AuthenticAfrica) off-shoot from main tourism routes like the Thousand Hills or Western Route.  Route signage advertising KwaXimba attractions needs to be developed. This requires more substance than simple coded route names, (like T4), as this form of signage has no advertising power, being meaningless to individuals not doing the tourism route. 59

 Kwaximba’s attractions should be promoted by those working at tourism offices and people should not be dissuaded from venturing to destinations in KwaXimba.  New, Off-the-Beaten-Track routes should be established which incorporate KwaXimba as a middle of the line stop.

3. Creation of Dedicated Website or at the least a Web Link

Tourism KZN (2008:9) regard websites as “one of the key applications of the internet, invaluable for stimulating both consumer and trade awareness of a tourism destination brand…”. One option for internet advertising and promotion for KwaXimba as a tourist destination is via the TKZN website. A few pages could be devoted here to a descriptive write-up of the tourism appeal of area, a list of accommodation options as well as activities to do in the area. The option of merely providing a link off TKZN’s website is, however, a less direct and most likely a less effective one than creating a website devoted to tourism in KwaXimba. A specialised tourism website for KwaXimba could be used as a vehicle to popularize the KwaXimba brand, carrying its own brand identity and displaying all of KwaXimba’s tourism characteristics. The URL for such a website could be www.realafrica.org.za. The tag line, Live Africa could be a key theme, as the website displays the KwaXimba tourism product and advertises KwaXimba two tourism nodes. A KwaXimba destination website should be exciting and appealing to web browsers but also a useful tool in obtaining information and in contacting relevant tourism stakeholders in the area.

4. Promote Events

The hosting of events is a very effective way of promoting tourism within an area. Events draw people who may never have had a reason to visit the area before. Events may also enjoy large scale media coverage, which acts as a powerful advertising tool for the area. The Dusi Canoe Marathon, through its extensive media coverage, has placed KwaXimba in the public eye, and can be used to leverage interest in the region. The type of events that could be promoted in KwaXimba include mountain biking competitions, cultural shows and musical performances. Isithumba Adventure Centre, by providing accommodation and conference facilities has the potential to attract these sorts of events. 60

Summary

Offering a refined, quality tourism product with mass appeal is a necessary but insufficient condition determining the success of KwaXimba as a tourism destination. It is only when a quality tourism product and an effective marketing and branding strategy are combined that KwaXimba can achieve its full tourism potential. Advertising and promotion of KwaXimba as an essential tourism destination with its own unique personality is a vital component of a tourism development strategy for KwaXimba.

Section 4 Conclusion

Tourism development in KwaXimba faces a number of challenges, most notably securing the support of the local community and establishing KwaXimba (or rather KwaXimba’s tourism nodes) as an essential stop on tourist routes in and around eThekwini Municipality. This said, however, there is significant potential for KwaXimba to provide a tourism product, which in taking advantage of the natural beauty and rich cultural texture of the area, appeals to both the foreign and domestic tourists markets. Effectively utilizing this potential will require that the Isithumba Adventure Centre be reopened, as it is pivotal in bridging the gap between the local community and the tourist market. The Centre would harness the potential foreign, cultural appeal of the Isithumba village as well as promote and facilitate adventure activities in the area. The re-opening of the Adventure Centre should act as the catalyst for subsequent tourism development in the area. In addition to the development of the Adventure Centre product, a number of other general product interventions should be implemented immediately. In this regard ten immediate interventions which can be undertaken by the Municipality are listed in Appendix A. In addition to tourism product development, a marketing strategy which places an emphasis on route marketing, needs to be extensively developed, as a means of placing KwaXimba back on the tourism ‘map’. KwaXimba is unlikely to ever be a primary tourist destination within South Africa. However, with effective marketing and a well-defined tourism product KwaXimba could position itself as a popular destination for tourists visiting Durban, thereby reaping a share of the benefits of KwaZulu-Natal’s top tourism destination. 62

Reference List

TKZN, 2008, Statistics of Our Tourism Sector

TKZN, 2008, Towards an Effective Segmentation Framework for the KwaZulu-Natal International Market

TKZN, 2008, Cultural and Heritage Tourism – An Important Economic Development Tool

TKZN, 2008, The Role of a Destination Website in the process of Destination Branding

Department of Water Affairs, 2009, The Durban Green Corridor

Appendix A

List of Ten Immediate Recommended Interventions

1. Revamp and re-open Isithumba, centre must be completely operational by 2010. May need to conduct a cleansing ceremony (Pgs 28-45)

2. Fix potholes in roads, particularly down to Isithumba (Pgs 25-26)

3. Put up proper signage (Pgs 25-26)

4. Tar road to accommodation at Craiglea (Pgs 14-15)

5. Maintain paths to Old Baldy (Pgs 20-21)

6. Create safe parking arrangement for climbers at Old Baldy (Pgs 20-21)

7. Develop road to KwaNuyswas (Pg 12)

8. Develop mountain biking trails (Pg 21-22)

9. Market Isithumba as part of the Thousand Hills Route once more (Pg 11)

10. Appeal for KwaXimba section of the Umgeni River to be included in the environmental aspect of the Green Corridor Project (Pg 53)

List of Useful Contacts

Adventure Sports Rock climbing –  Gavin Raubenheimer 033-343 3168  Gavin Peckham 035-792 4543  Rudi Clark 031-769 1981 Adventure Companies  Wild Ways Adventure 031-767 2160  Spirit of Adventure 031-769 1981 Mountain Biking  Detour trails 031-564 3012

Tour Companies  Africa Tour 083 303 8373  Garsons Expeditions 072 497 5182

Cultural Villages  Shakaland 035-460 0824  PheZulu 031-777 1000  Stewart’s Farm 035-4600 644

Nature Reserve

 Richard Boon (Environmental Management Branch) 031-304 4934  Bongani Zondi 031-274 1150  Ray Naggaran (Msinsi Reserves) 082 854 3161

Hunting Reserve  KZN Hunters Association 031-709 3904

Appendix B

Procedure for Developing a Nature Reserve

The first step in the procedure for getting a piece of land proclaimed as a nature reserve is to interact with KZN Wildlife and enter into the Biodiversity Stewardship Programme. In this respect the person to contact is Kevin McCann, cell phone number: 083 447 0657; email address [email protected]. Once the landowner has been briefed about the process involved and the requirements of establishing a nature reserve, the landowner must submit signed consent to undertake the process. Thereafter the following procedures are observed:

STEP DESCRIPTION OF ACTION OUTCOME 1. Biodiversity Perform a biodiversity assessment, together Biodiversity assessment Assessment with EKZNW, in order to ensure the property information has the biodiversity value appropriate for a protected area 2. Declaration Negotiate contents, landowner signs Declaration Agreement signed by Agreement landowner Attach original SG diagram (with proposed NR boundary sketched on SG diagram, if a portion) 3. Management Plan Together with EKZNW, produce a management Completed Management Plan plan for the protected area (according to the Protected Areas Act) 4. Memo to MEC Draft Proclamation Proposal to MEC MEC signs Memo

Memo accompanying Proposal, requesting permission to proceed with PPP and consultation 5. Public participation Publish “Intention to Declare” notice in the Published notices (60 day Provincial Government Gazette comment period) – PA details and management authority Publish advert in 2 national newspapers 6. Consultation Draft letters to a standard list of stakeholders – Registered letters sent to nat. gov. depts, prov gov. depts, local stakeholders – 60 day comment municipality, neighbours, lawful occupiers period

Send registered mail 7. Comments Deal with any comments received Provide written responses on comments (copy to MEC) 8. Declaration Declaration Agreement (in the form of a Signed Declaration Agreement by notarial deed) is submitted to the MEC’s office, MEC, sent to Attorney to present together with “no objections” or objection to Notary response, and management plan Management Plan signed by MEC Approved SG diagram 9. Gazette notice Publish the “Declaration Notice” in the Proof of declaration Provincial Government Gazette 10. Notarial Deed DA and PAMA sent to Attorney to present to Notary signed Notarial Deed Notary

a) MEC sends notification to Deeds office (letter) Title deeds endorsed b) Notary submits Notarial Deed to Deeds office 11. PA database Include all relevant information of the PA information lodged in PA protected area in the PA register (via provincial register authority) (McCann: KZN Wildlife, 2009)