Welcome to the Zulu Kingdom, KwaZulu-Natal

How to Establish a Hunting and Game Farm

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Note that legislation now requires all businesses providing services to tourists be registered with the provincial tourism authority, Tourism KwaZulu-Natal. Kindly contact TKZN if you are not sure whether registration is mandatory or optional for your business, as well as information on how to register.

DEFINITION

A hunting and game farm is normally run as a joint enterprise, the one supporting the other. Game animals are farmed for the purposes of meat, skin and horn off-take (culling) and tourist viewing. The culling is usually combined with sport hunting. Game farming may also yield benefits in terms of photographic safaris, fishing and may others.

LAND AND PLANNING ISSUES

Space and Infrastructure

Approach KZN Wildlife to enquire if there is sufficient space on the property for the envisaged game operations, buildings and visitor facilities. Establish from the District Municipality if there is potable water, power and adequate road access available.

Parking

The following questions should be considered:

If people are going to arrive at the farm in their own transport, is there parking for the number of visitors you envisage? Is there public transport to the site and is there parking for tour buses?

Amenity Value

Does the attractiveness of the surrounding are enhance the enjoyment of visitors?

Accessibility / Roads

The following questions should be considered:

Is the site easy to find for people using their own transport? ie Are there road signs?

Is the site within reasonable distance of main roads frequented by tourists?

The District Municipality and the Department of Transport have controls for the erection of any signs. If new access onto streets is needed, the Local Municipality will usually construct them at the cost of the developer. Permission must be obtained from the Department of Transport to construct new access points onto main roads outside the Local Municipal areas.

LEGAL REQUIREMENTS

Starting a game farm requires a great deal of input, and it is recommended that you first contact KZN Wildlife for advice and guidance on the matter and what is required in terms of the law.

The legislation relevant to game hunting may be found in the Nature Conservation Ordinance (15 of 1974) which can be obtained from your nearest KZN Wildlife office, or their head office in Pietermaritzburg.

Land Use Zoning

Approach the Department of Local Government & Housing and the Local or District Municipality about any special environmental, mining or other zones that could conflict with the intended use.

Where the land use will be substantially changed, application must be made to the Provincial Department of Agriculture and Environmental Affairs for permission for a change in land use in terms of the National Environmental Management Act (107 of 1998).

Developments on Ingonyama Trust land require a permission to occupy (PTO) certificate. Small and large developments require an application through Department of Agriculture and Environmental Affairs and Regional Office of Department of Land Affairs, respectively. A call to these departments will inform you about the procedures to be followed. Permission of the Provincial Planning and Provincial Environment authorities is also required.

Registration, Licensing and Permits

Approach the District Municipality to register your business.

If the enterprise includes the sale of perishable food, then a trading licence must be purchased for R200 from the Business Licencing Department of the nearest Local Council.

In order to start a hunting/game farm, it is necessary to adhere to certain requirements eg. fencing, stocking of game, farm management practices, etc. On setting up a farm, actions taken must be checked and authorised by the Conservation Authorities and permits and licences obtained. Some of these include game stocking / introductions to the farm, and permits for the removal of, or the hunting of animals on the farm.

Various permits and licences are required by landowners and hunters for hunting various game species, depending on the status and schedule of the species in question. A hunter must be in possession of a permit or licence except, subject to certain conditions, in the case of landowners who are permitted to hunt without a permit or licence on their own land.

A permit authorises a landowner or occupier either to hunt on the land himself or allow paying licensed hunters to hunt on the land. Permits may be obtained at no cost and applications should be made verbally, or in writing, to the local Zone Officer at your nearest KZN Wildlife office.

A licence is required by a hunter who is not hunting on his own land, and must also obtain permission from the landowner. Licences may be purchased either from the Receiver of Revenue, certain sporting and gun shops, or from some of the KZN Wildlife Zone Officers in outlying areas. The fee is dependent on the type of licence purchased.

Clients must be accompanied by a person who is in possession of a valid Professional Hunters Licence. For overseas clients, hunts are only to be organised and marketed by a person in possession of a valid Hunting Outfitters Licence.

The legal requirement to be met before a hunting outfitter or professional hunter is able to obtain a licence is completion of a comprehensive training course at a professional hunting school.

Regulations and By-Laws

Approach the District Municipality for guidelines on fire risk to ensure that you have adequate fire control equipment and arrangements. Approach the District Municipality to ensure that your plans comply with their regulations on water, electricity, sewerage, noise etc.

Other Legal Requirements

Hunting camps, trophy preparation facilities, vehicles and staff are required to conform to set standards as set out by the Conservation Authorities. Facilities which are offered to clients must be approved by the nature conservation agencies. The hunter / outfitter is legally responsible for supplying all hunting requirements to clients.

Rules regarding the hunting season must be adhered to. Information on this is also available through the local Zone Officer of KZN Wildlife.

If you wish to erect a road sign in the road reserve area (as distinct from on your own property) advertising your business then you need approval from:

Department of Transport in the case of national roads;

the Facility Signs Committee in the Provincial Department of Transport in the case of secondary roads;

the Local Municipal Engineer in the case of local roads within a Local Municipality area.

Policy

KZN Wildlife, TKZN and the Department of Arts, Culture and Tourism should be consulted for updates on policy.

Neighbour Relations

Many existing and potential game and hunting farms adjoin (or maybe located within) poor communities in the rural areas of KZN. It is an absolute necessity that the relationships between such farms and their poor neighbour should be good and that both should recognise the symbiotic need that each has for the other. Therefore, it is important to strive to secure partnerships, or some formalised co- operation, with such communities as part of building a positive tourism atmosphere in South Africa, ensuring tourist safety and achieving a transfer of financial benefits to communities. The latter may be achieved by direct expenditure in such communities on curios, craft products and cultural artefacts, certain accommodation and possibly a percentage fee based upon the fees paid by the hunters/tourists to the farm.

The promotion of such partnerships is advocated in the White Paper on the Development and Promotion of Tourism in South Africa. The Community Liaison Division of KZN Wildlife and Tribal Authorities may be consulted for advice on this.

BUSINESS REQUIREMENTS

BUSINESS REQUIREMENTS Structure of Your Business

You may be registered as a Sole Proprietor, or your business may be registered as a Private Limited Company ((Pty) Ltd Company), or Close Corporation (cc).

Chambers of Commerce are a good contact through which to obtain details of organisations that can give advice on the structuring of your business. Advice may also be obtained from Business Advice Centres

Managing Your Business

Management of your business will involve:

a decision on the types and packaging of services; bookkeeping and accounting; arrangement of VAT and taxes; record-keeping for your own records, for advertising reasons and for tax purposes; taking and managing bookings from clients; employment and labour conditions which includes employment equity, labour unions, and conditions of employment. It is important for local people to be employed in the operation; training of staff: it is vitally important that staff are trained in customer care and to be professionals in their field; and insurance cover which includes both security and public liability.

Chambers of Commerce are a good contact through which to obtain details of organisations that can give advice on the management of your business.

Requirements for the efficient management of the farm include:

a facility for slaughtering, processing and packing of meat; trophy processing; accommodation; vehicles for hunting; a likely minimum of 1000ha of land; wildlife management; marketing of carcasses and live game; research on the needs of the species of game that will survive in the area, water sources, soil type etc.

Affiliation to:

CHASA (Confederation of Amateur Hunters' Association of South and

PHASA (Professional Hunters Association of South Africa) who will promote your undertaking.

Advice may be sought from your local Nature Conservation Office. Research may be carried out in collaboration with:

Centre for Wildlife Management, University of Pretoria

Research Institute for the Economic Aspects of Game Management, University of Potchefstroom

Marketing and Advertising

Marketing and advertising may be done through a variety of media such as through printed brochures, internet, television and word of mouth. TKZN should be approached to enter your business into their tourism assets database for the Province which provides freely available information on tourism facilities. The District Municipality has a copy of the same database. Publicity Associations should be approached to help disseminate your information. PHASA should be able to advise you on how to market your services overseas, for example, at the large Conventions in the United States of America, where many professional hunters sign up their clients for the next year.

Publicity material must be submitted to the nature conservation officials before being presented to the media. Offers to clients are screened to detect misleading information.

Any brochures produced to advertise your establishment should include an easily readable map showing how to find the farm.

Voluntary Requirements

Membership of SATSA (Southern Africa Tourist Services Association) is advisable to ensure that minimum tourism industry standards are adhered to. Membership of SATSA can be used as a marketing tool and provides tourists with an assurance that certain standards are being maintained. The requirements for membership of SATSA are available from the SATSA website: www.satsa.com or requests for application forms should be addressed to:

The Chapter Secretary of SATSA c/o Gooderson Leisure Corporation P.O. Box 10305 Marine Parade, 4056

SATSA represents the private sector organizations which service the incoming Southern African tourism industry. Membership includes airlines, coach operators, accommodation establishments, vehicle hire companies, attractions, conference organisers, and related marketing organisations.

You must have a registered Private Limited Company ((Pty) Ltd Co) or a registered Close Corporation (CC). Sole Proprietors are not eligible for membership.

There is a joining fee of R627.00. The annual subscription for Chapter membership is R1425.00. The annual subscription for National membership is R2850.00. The subscriptions are in addition to the entrance fee. The first year is a provisional membership only and is subject to SATSA approving your full membership.

The costs of joining and subscribing are reviewed every few years. The SATSA application form requires the applicant to sign an agreement to abide by the SATSA Code of Conduct.

The company must produce a copy of their brochure (describing services offered and prices) used for marketing the organisation. SATSA evaluate whether the product being offered falls within the SATSA parameters and ensure that prices are market-related.

If the applicant is not a South African citizen then they must produce proof of residency in South Africa and a copy of their work permit.

The application is to be made in the name of the company or close corporation, not in the name of the individual owner (s).

The application will require details of general public liability insurance. (This type of insurance is to cover your business in the event of someone slipping on your carpet (for example) and they sue you for negligence.)

The application must be accompanied by a letter from the firm's accountants/auditors indicating that they are the appointed auditors and that the firms financial record books confirm that the company is in a sound financial position. The application must also be accompanied by two letters of recommendation from existing fully paid up SATSA members.

If you intend providing accommodation on your farm, the criteria set out in SA Tourism's voluntary grading system which has been established in terms of the Tourism Act are also useful as practical guidelines for achieving a specific standard of service. Booklets may be purchased from SA Tourism which outline the minimum standards required for the grading system. SA Tourism keeps a record of all persons with accommodation establishments who are members of this scheme, and of all establishments that are graded and classified in terms of the scheme.

Sources of Information

A useful source of information on similar establishments for hunting and game farms is TKZN website (www.zulu.org.za). TKZN also has a resource centre which may be used to obtain information.

FINANCIAL ISSUES

Sources of Finance

Finance for your proposed business may be obtained from various sources. It can either be in the form of individual savings, loan finance, or in some instances, State subsidy.

Sources of loan finance include: Business Partners Limited

Ithala Development Finance Corporation Limited

Industrial Development Corporation (IDC)

Development Bank of Southern Africa (DBSA)

Joint Venture Financing

Commercial Banks

The Land Bank

The Department of Trade and Industry provide limited subsidy for certain small and medium sized enterprises in the Tourism field. They should be consulted. TKZN may be approached for advice on potential funders.

Business Plan

Loan organisations normally require a comprehensive Business Plan to be prepared in applying for a loan. Such a Business Plan should include:

business analysis;

financial forecasts; based on rational assumptions and experience;

budgeting guidelines;

schedules determining the amount and kind of finance most appropriate for the business; details on proposed financing sources; and

useful information about the planned business which will aid decision making by the loan organisation.

The Business Plan must make allowances for the provision of water, sanitation and electricity in cases where they do not already exist.

More details on the required content of Business Plans may be obtained from commercial Banks, Business Partners Limited, and Ithala Development Finance Corporation Limited.

Advice on business planning may be obtained from:

the Tourism Information Service Division of TKZN,

Business Advice Centres

the Department of Economic Development and Tourism.

The How To Draw Up a Business Plan brochure from TKZN You may employ consultants to advise you or to draw up your Business Plan with you. This would be at your own expense. TKZN could give you a list of such persons that could assist you. Also consult the brochure How To Draw Up a Business Plan.

Financial Record Keeping

Good record keeping systems provide information for managing finances. The key items in record keeping include:

Original records e.g. sales slips, receipts, invoices etc.;

Journals which record the details of every transaction in chronological order e.g. the cash book;

Ledger where information obtained from journals is made more useable;

Trial balance is a list of all ledger accounts balances taken out to prepare financial statements;

Financial statements:

Income statement

Balance sheet.

The minimum requirements for a small business operation are:

Cash book

Cash Control Systems

Assets Register

Debtors Record

Creditors Record.

Budgeting

Budgets are based on past experience current state of affairs and future expectations. Budgets will help provide an estimate of financial requirements in the execution of plans in the business operation. Kinds of budgets include:

Sales budget: a forecast of expected monthly income;

Materials budget: expected purchases;

Labour budget: expected remunerations and numbers of workers;

Capital budget: expected fixed assets expenditure e.g. machinery, land etc;

Cash budget: expected working capital requirements over a specific period.

Tariff Structures

Tariffs should be based on those of your competitors and a detailed analysis of income and expenditure for the proposed operation. Research will therefore be needed in order to set realistic tariffs. Publicity Associations and SA Tourism may be approached for assistance.

Advice on setting of tariffs may be obtained from:

TKZN tourism assets database,

Publicity Associations, and

SA Tourism.

LIST OF USEFUL CONTACTS

Bed and Breakfast Association 031-561 3795

Business Advice Centres Durban: 031-309 5432 Pietermaritzburg: 033-345 4604

Business Partners Limited Durban: 031-266 7130 Richards Bay: 035-789 7301

Centre for Wildlife Management, University of Pretoria 012-420 2627

CHASA 053-833 2676

Department of Arts, Culture and Tourism 031-309 7559

Department of Land Affairs 033-355 4300

Department of Agriculture and Environmental Affairs 033 355 9100

Ithala Development Finance Corporation Limited 031-907 8911

KZN Wildlife 033-845 1999

Tourism KwaZulu-Natal (TKZN) 031-366 7500

PHASA 012-663 2417

South African Tourism (SA Tourism) Head Office Johannesburg 011-895 3000

Southern Africa Tourist Services Association (SATSA) 031-261 2525

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