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INVESTMENT OPPORTUNITIES

3. TOURISM : Zebediela farm stay

Opportunity

An opportunity exists for the development of a farm stay, which is linked to a farm tour.

Nature of the Project

The farm currently consists of existing infrastructure that include an old farmhouse, three outbuildings, sewerage septic tank, water reticulation, swimming pool and power supply. The proposed development will consist of:

  • Converting the existing farm house and buildings to farm stay accommodation
  • Extension and upgrade of additional buildings and facilities
  • Infrastructure development (Extension of sewage tank and water reticulation)
  • Renovation of buildings
Rationale for this venture

Nearly 13% of domestic tourism trips are undertaken to the Limpopo province of which the majority visits to Capricorn DM. Guesthouse owners in Capricorn DM revealed the need for more accommodation in the area due to the fact that they are fully occupied most of the time.

Attractiveness Assessment

A limited supply of accommodation exist in Lepelle-Nkumpi LM, this include five guest houses with a capacity of 75 bed nights in the area, which are mostly fully occupied. The target market for the proposed accommodation establishment will include schools, tourists, farm visitors/business people to Zebediela Citrus Estate as well as temporary employees, visitors and business people of local mining companies in the area. Even government officials will form part of the target market.

Opportunity Alignment

The Zebediela Farm Stay project is an identified opportunity and has been investigated as part of the Local Economic Development (LED) process. This community-driven project has the potential to be a joint venture project.

Key Competitive Advantage

Lepelle-Nkumpi LM is only two hours’ drive from the lucrative Gauteng market with easy access to the main road. The Zebediela farm is a unique type of accommodation in the area – thus providing variety in the tourism market as opposed to the existing lodges and guesthouses found in the area. Infrastructure in Lepelle-Nkumpi LM has the potential for 20 to 30 bed nights but these facilities are in need of renovation.

Potential Economic Impact

The proposed accommodation establishment might have the following potential impacts on Lepelle-Nkumpi LM:

  • Farm stays can generate immediate jobs (both direct and indirect) within a short-time frame.
  • Tourism employs a multiplicity of skills.
  • The tourism industry creates entrepreneurial opportunities.
  • Tourism has a multiplier effect: The impact of tourism is greater than the initial expenditure by visitors.
Investment Requirements

For phase one (cosmetic changes and equipping the farm house with necessities), the operational expenditure amounts to approximately R600 000. The projected expenses, when the project is fully operational, will amount to approximately R1.2 million per annum.

Linkages

Agri-tourism or other activities that might evolve from the proposed project include:

  • Overnight farm stays
  • Special events and festivals e.g. harvest festivals
  • Horseback riding
  • Bird watching
  • Hiking
  • Fresh products and value-added products
  • Youth and adult education e.g. organised tours, demonstrations
  • Swimming
  • Bush picnics

Contact Us

URBAN-ECON, PRETORIA
Danie van der Merwe
Tel: 012 342 8686
danie@urban-econ.com

Contact Us

Capricorn District Municipality
Ellen Mashakoe
Tel: 082 781 4768
mashakoee@cdm.org.za

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