3. TOURISM : Development of Sego Game Reserve
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Opportunity
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An opportunity exists to create an attractive destination for tourists, around Sego Nature Reserve.
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Nature of the Project
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It is proposed that the lodge development consists of:
- 23 bedrooms each with two beds of which eight are self-catering
- Conference centre
- Restaurantt
- Curio shop
- Campsite
- Adventure and nature activities
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Rationale for this venture
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The Sego Game Reserve will be close to the entrance to the gorge which runs through the mountains. The development at Sego will attract tourists who travel along the R71 to the Magoebaskloof area. This route is also used to get to the northern parts of the Kruger National Park.
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Attractiveness Assessment
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The proposed development will create an attractive destination for overnight and day visitors which will create economic benefits for the communities in the area, while maintaining its environmental integrity. There are 126 tourist accommodation establishments in Capricorn District, with the biggest proportion being hotels/motels (26.4%) and 3 star facilities (46.9%).
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Opportunity Alignment
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Limpopo’s Tourism Growth Strategy identifies six priority tourism clusters to drive tourism growth in the province. The clusters are:
- Family and recreation
- Mega-conservation
- Safari and hunting
- Golf and game
- MICE (meeting, incentives, conference and events, or business tourism)
- Special interest.
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Key Competitive Advantage
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Sego offers a unique landscape as well as vegetation where there are specific bird and insect species.
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Potential Economic Impact
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The Sego development will equip and train people from the surrounding local communities to effectively take up employment in, provide services to, and ultimately operate the proposed tourism business. The development projected to require 33 employees. The project will therefore create job opportunities, promote entrepreneurship and encourage skills training of the labourers.
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Investment Requirements
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The Sego development is financially viable. The initial investment needed is projected at R17.6 million. Gross operating revenue is projected to reach over R14 million and profit projected at over R4 million by year five. The project has an ungeared, pre-tax IRR of 19.9%.
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Linkages
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The approximate investment for the proposed project is set on R17.6 million (at 2008 prices).
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| Note: Molepo Dam and Sego Game Reserve can be undertaken as a single investment opportunity because of their close proximity to each other. |