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Case Studies

Lekgophung Tourism Lodge, South Africa

5. Financial Returns and SMME Linkages

The table below sets out the anticipated economic returns to the Lekgophung community from the development of the Lekgophung lodge. It indicates that the project will bring very significant returns to a disadvantaged sector of the local rural economy.

ANNUAL LOCAL BENEFIT: LEKGOPHUNG LODGE
EMPLOYMENT BENEFITS
Employees (Total) 32
Average wage (local) 31,500
Lowest wage 25,000
Employees (Local)
29
Percentage of total staff 90.6%
Employees (Female) 20
Percentage of total 62.5%
Annual bonuses/ Over time 62,000
Annual gratuities 90,000
Total annual employment benefits to local employees 1,132,000
   
SECONDARY ENTERPRISE  
Contracts
275,000
Number employed 14
Curio sales 52,000
Number employed 4
Total secondary enterprise benefits to local residents 327,000
   
CONCESSION FEES  
Operating fees to local 432,000
Total local employed 50
Total local benefit 1,891,000
Local benefit/commercial bed 78,800

In year one, the project should generate construction contracts of approximately R1.3 million for residents of Lekgophung. At maturity, it should deliver approximately R2-million per annum in various forms of sustainable income to rural households in the acutely impoverished Lekgophung region.

The Madikwe Initiative has launched a skills training and business support programme in Lekgophung in association with the Balete ba Lekgophung Development Trust, the Lekgophung RDP Forum and local government (Central District Council). This programme provides the basis for a high level of integration between the lodge business and the local economy, thereby maximising returns to the people of Lekgophung. For example, a construction unit and a brick making business have already been established at Lekgophung. Members have received training from various service providers and are certified within nationally recognised frameworks. These businesses will be used during the construction phase and for ongoing maintenance of the lodge. A Local Business Service Centre has been established and a manager trained by the Centre for Opportunity Development (COD) to provide support to the various enterprises linked to the lodge. COD will also provide an aftercare service to support the LBSC during its early years. Ultimately, it is predicted that almost a quarter of the turnover generated by the lodge enterprise will flow into the Lekgophung village economy.

These levels of benefit retention represent a significant achievement that will make a real contribution to poverty alleviation and economic development in Lekgophung. They will also establish the venture as a model public/private/community partnership in the conservation/tourism sector.


 
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Summary
Introduction
Methodology
Structure & Funding
Financial Returns & SMME
Employment Opportunities
Skills & Institutions
Lodge governance
Development Co-ordination
Conclusion



 

 

 

 

 

 

 

 

 

 

 

 



 

 
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