ANNUAL REPORT 2005/2006PRESENTATION TO PORTFOLIO COMMITTEE

PERFORMANCE AGAINST OBJECTIVES: CONSERVATION

TARGET ACHIEVEMENT

Park Expansion (26 265ha to be added)

27 328ha acquired

Remove alien invasive species in 112 000ha

Removed in 113 400ha

Implement TFCA programme

Delivery in line with project plan

Recommendation report on elephant management

Recommendation presented to Minister

PERFORMANCE AGAINST OBJECTIVES: CONSERVATION

TARGET ACHIEVEMENT

Develop State of Biodiversity Management Reporting System

System has been developed

Increase in the number of research projects conducted in national parks

Achieved 46% increase (155 new projects)

Implement provisions of PAA

Park Management Plans initiated

PERFORMANCE AGAINST OBJECTIVES: TOURISM

TARGET ACHIEVEMENT

To improve on % of black visitors to national parks

Improved from 11,5% to 18,8%

Improve occupancy % levels

Improved from average 64,7% to 66%

Revise Tourism Business Model

Draft Revised Model completed

PERFORMANCE AGAINST OBJECTIVES: TOURISM

TARGET ACHIEVEMENT

Grading of 40% of tourism facilities

50% of tourism facilities graded

Funding Proposal for tourism infrastructure overhaul

Funding allocated by DEAT amounting to R396 million

Improve Concession Net Income

Concession Net Income increased from R8,553,250 to R10,273,115

PERFORMANCE AGAINST OBJECTIVES: TOURISM

TARGET ACHIEVEMENT

Improve concession occupancy average

Average annual occupancies increased from 33% to 43%

Growth in Wild card sales

Wild card sales grew by 9,533 to 81,000

PERFORMANCE AGAINST OBJECTIVES: P&C

TARGET ACHIEVEMENT

Establish park forums in 12 national parks

Park Forums established in 11 national parks

Delivery on the Expanded Public Works Programme

Delivery in line with project plan

Reach 2,500 learners in Kids in Parks & 85,000 people in other awareness programmes

Reached 2,600 learners and 86,000 people

PERFORMANCE AGAINST OBJECTIVES: P&C

TARGET ACHIEVEMENT

Develop State of Cultural Heritage and Indigenous Management Reporting System

System developed

PERFORMANCE AGAINST OBJECTIVES: HR

TARGET ACHIEVEMENT

Achieve EE ratio of 89% Achieved EE ratio of 94%

Implementation of an Employee Satisfaction Survey

Questionnaire has been developed

Develop a Performance Measurement System

Measurement System developed

PERFORMANCE AGAINST OBJECTIVES: HR

TARGET ACHIEVEMENT

HIV & AIDS Programme (Prevalence Survey)

81% of staff participated in Prevalence Survey

Implement formal Individual Development Plans for employees and a Coaching & Mentoring Programme

Guidelines set for the programmes and process started

PERFORMANCE AGAINST OBJECTIVES: REPUTATION

TARGET ACHIEVEMENT

Implement Brand Enhancement Programme

Project Plan Developed

Establish baseline for universal access

Baseline established at 4,48% of accommodation

Improve media representation

Value of media coverage estimated at R10milion

PERFORMANCE AGAINST OBJ.: CORPORATE GOVERNANCE

TARGET ACHIEVEMENT

Introduce Project Management & Reporting System

Project implemented, to be finalised in new financial year

Implementation of a Balanced Scorecard

Balanced Scorecard has been developed

Introduce a ‘whistle blowing’ system

Project started

Assessment of state of OHS compliance

All parks assessed and baseline set

PERFORMANCE AGAINST OBJECTIVES: FINANCIAL

TARGET ACHIEVEMENTAchieve break-even budget Achieved break-even budget

Improve Income to Cost ratio Income to Cost ratio reduced from 90.77% to 90.11%

Grow Revenue by 14% 10% achieved due to over estimation of conservation fees

Enhance Return on Investment (ROI)

All infrastructure projects had ROI as built-in measure of success

PERFORMANCE AGAINST OBJECTIVES: FINANCIAL 31 March

200631 March

2005

R'000 R'000

Revenue

Tourism, retail, concessioning and other 486,048 441,184

Operational grants received 102,720 85,631

Income from special project grants 116,808 52,822

Other operating income 8,888 10,713

Land acquisition grant 41,000 41,000

Sale of fauna and flora for land expansion 11,579 14,802

Donations 18,698 6,577

785,741 652,729

Expenses 746,482 612,699

Cost of sales of retail operations 71,088 51,113

Operating expenses 179,847 179,299

Administration expenses 88,148 72,927

Compensation of employees 290,591 256,538

Expenses relating to special project grants 116,808 52,822

Surplus from operations 39,259 40,030

Net investment income 2,090 1,690

Investment income 7,173 7,318

Adjustment to fair value of listed investments - 1,052

Finance costs (5,083) (6,680)

Surplus for the year 41,349 41,720

PERFORMANCE AGAINST OBJECTIVES: FINANCIAL

REPORT ON REMUNERATION• 2001 Conditions of Service for Exco changed from

permanent to fixed contract employment– Benefits reduced & bonus of 70% package introduced on

low-salary base. [paid out 01/02; 02/03; 03/04]– 2005/06 Salary Adjustment (Potential Bonus reduced to

25%)• Deloitte commissioned in 2004/05 to do a study of salary situation

across organisation and specifically on Executive pay

• Adjustments led to skewed figures than normal packages 05/06 Annual Report

REMUNERATION

• Board decided on a shift from low income/high incentive to market-related packages/low incentive

• Incentive is linked to performance achievements based on the Balanced Score-card

• Since SANParks is not a high profit organization, basic salaries have to be market-related

• Increases were mere 6% and 6,5%

BIODIVERSITY MANAGEMENT CHALLENGES

CORPORATE OBJECTIVE CHALLENGE/RISK

Attain leadership in biodiversity and cultural heritage management

• Damage causing animals – damage to boundary fences– destroying of crops

• Disease management– spreading of diseases– disease outbreaks

• Species management– Elephant management– Wild dog management

Be the custodian of choice for Protected Areas

•Mandate to manage national parks (constitutional directive)• High land prices• Marine Protected Areas- alignment with MLRA & PAA• Land claims

– high expectations– Beneficiation– compensation for improvements

TOURISM DEVELOPMENT CHALLENGESCORPORATE OBJECTIVE CHALLENGE/RISK

Become Nature based Tourism Destination Of choice

• Limited skills base to draw from in the fields of Nature Conservation Guiding and Hospitality Management.

• Tourism infrastructure upgrading to ensure we meet Grading Council requirements.

• Insufficient Growth of Black Tour operators

Enhance SANParks Reputation

• Insufficient Marketing Budgets for Research, Domestic marketing Campaigns and International Marketing Initiatives.

Commercialisation • BEE setbacks (Restaurants & Brandwag Hotel)

PEOPLE & CONSERVATION CHALLENGES

CORPORATE OBJECTIVE CHALLENGE/RISK

Cultural Heritage (indigenous knowledge and oral histories)

• Rely on external funding (funds could dry up before project completion)

• Limited information and research• Inadequate interpretive & management skills amongst staff • No proper infrastructure (museums, interpretive centers,

etc)

Kids in Parks & Imbewu Projects

(Dedicated access programs for disadvantaged youth)• Rely on external funding.• Limited staff resources.

Park based education programmes

• Largely reliant on external funding. • Park resources are limited and may hinder delivery

CORPORATE OBJECTIVE CHALLENGE/RISK

Community conservation initiatives

• Reliance on external funds brings uncertainty in terms deliverables.

Land restitution & post settlement support

• Reliance on the settlement of claims, and the willingness of the affected communities to engage after the restitution process

Stakeholder participation processes

• External public participation processes can yield unexpected results, since it is reliant on the input from the broader public

PEOPLE & CONSERVATION CHALLENGES

HUMAN RESOURCE CHALLENGESCORPORATE OBJECTIVE CHALLENGE/RISK

Strategic Human Resource management

• HR Strategy requires improvement– Efficiency levels – Structure versus BP deliverables

• Weaknesses in the HR Information System– Inaccurate information– Record management

Attract , Develop and retain the suitable human capital

• Recruitment plan requires improvement– Service level to manage placement turn around time

and recruitment demands • HR Development & Training

– Talent management and retention

SAFETY & SECURITY CHALLENGESCORPORATE OBJECTIVE CHALLENGE/RISK

Be the custodian of choice for Protected Areas

• Resources protection from poaching by local and cross-boundary entities

Become the nature-based destination of choice

• Employee and visitor safety in national parks under threat from criminal elements

TARGETS FOR 2006/2007: FINANCIAL• Improve Income to Cost Ratio to 88%• Achieve R458,500,000 tourism revenue• Determine baseline against alternative sources of

revenue• Achieve <10% variance of actual against budget• Development of a Contract Management System and

programme• Integrate Wild Card System and web-based reservations

to Roomseeker to improve efficacy

• Purchase 20,000ha for land expansion• Achieve 70% of project deliverables against biome

initiatives (ABI, Garden Route, GG/QQ amalgamation, ‘New Vaalbos’)

• Remove alien invasive species in 131,507ha• TFCA implementation programme• Rollout of Park Management Plans• Rehabilitation of land (redundant structures, farmlands &

archeological sites)

TARGETS FOR 2006/2007: CONSERVATION

• Operationalise the Cape Town Research Node• Achieve 98% adherence to Enhanced Scientific Advisory

Council Project• Implement 98% of State of Biodiversity Management

Reporting System

TARGETS FOR 2006/2007: CONSERVATION

• Finalise Revised Tourism Model• Revise Commercialisation Strategy in line with lessons

learnt• Complete 100% grading of tourism facilities• Implement Uniform Tourism Standards• Implement Customer Satisfaction Index• Tourism Infrastructure Development Programme• Replace KNP Restaurant Operator

TARGETS FOR 2006/2007: TOURISM

• Achieve 22% black visitor demographics• Achieve 67% Occupancy• Conduct Marketing Research into emerging markets and

devise action plan• Achieve “Good BEE Contributor” Status on the Tourism

BEE Scorecard• Increase Wild card sales by 10%• Review Sales Strategy & Model• Develop Yield Management Efficiency Programme

TARGETS FOR 2006/2007: TOURISM

• Achieve 80% of national parks with effective park forums• Broaden Kids in Parks Programme to 5 other national

parks• Implement 70% of project deliverables on Restitution

Plans• Complete an Economic Impact Assessment Study of

national parks• Increase published social science research by 10%• Implement 98% of State of Cultural Heritage and

Indigenous Management Reporting System

TARGETS FOR 2006/2007: PEOPLE & CONSERVATION

• Retain EE ratio of 94%• Implement a Management Information System• Performance Management programme• Implement Employee Satisfaction Survey• Implement Career Pathing and Succession Planning

Programme• Implement a Coaching and Mentoring Programme• Implement a ‘Know Your Status’ (HIV&AIDS) campaign• Implement a Lifestyle Management Programme• Implement a Remuneration Strategy

TARGETS FOR 2006/2007: HUMAN RESOURCES

• Achieve 70% delivery on Brand Enhancement project

• Achieve effective Media Engagement Programme

• Introduce an annual South African National Parks Week programme

• Improve universal access to national parks by 70% towards target baseline

• Implement Corporate Safety & Security Programme

• Maintain presence in key international markets

• Target ‘emerging markets’ through focused segmented media

TARGETS FOR 2006/2007: ENHANCE REPUTATION

• Achieve 50% procurement from BEE compliant suppliers• Achieve 5% improvement on Corporate Risk Profile• Achieve 100% BSC implementation• Achieve 100% compliance to OHS legislation

TARGETS FOR 2006/2007: CORPORATE GOVERNANCE