N$180 m bailout for NWR

THE troubled Namibia Wildlife Resorts (NWR) parastatal is planning a major revamp after its new Managing Director, Tobie Aupindi, presented a business plan and turnaround strategy to Government.

Cabinet has approved the NWR plans and their immediate implementation, and the signing of a Government guarantee for a loan of N$120 million. Another Government bailout of N$60 million will be granted, N$10 million of which is to be provided under the contingency provision of 2006-07 and the remainder under the next Medium Term Expenditure Framework (MTEF).The NWR has accumulated debt of over N$80 million.The parastatal is responsible for the management of 23 resorts and campsites throughout the country – within national parks and in Namibia’s most pristine areas.Appalling service rendered by staff, mainly at the three resorts of the Etosha National Park, and dilapidated infrastructure have been the main complaints of tourists and tourism operators.The new plan provides for the upgrading and redevelopment of NWR resorts at strategic sites in anticipation of increased tourism levels linked to the 2010 Soccer World Cup in South Africa.”The Etosha camps had been identified as top priority with 2010 in mind and the Etosha centenary year celebrations in 2007,” the Cabinet briefing paper said.The Etosha National Park was declared a park on March 22 1907 by the German colonial governor Von Lindequist.The business plan provides for the NWR to enter into public-private partnership agreements for those resorts that are not suitable for the NWR brand.The plan also recognises that the parastatal needs to be repositioned in the tourism industry and must, therefore, undergo a complete transformation to convert it from a loss- to a profit-making enterprise.The NWR did not approach the private tourism sector for input and the Presidential Economic Advisory Council (PEAC) was also not asked to give advice on the new business plan and the turnaround strategy, The Namibian has learnt.”Namibia Wildlife Resorts and the tourism industry must work closely together, as the bookings for the Etosha National Park and other Government nature parks must all be made at their offices, but the new MD stopped all block bookings for tour companies without even informing us,” a source in the tourism industry told The Namibian.”Since Mr Aupindi took office at the NWR in April this year, he has not met with us from the tourism associations,” the source said.But the MD of the NWR denied the allegations.”I am in touch with the private sector; we cannot work in isolation in the tourism industry,” Aupindi told The Namibian.”I introduced myself to the newly elected president of Fenata, Mr Willem de Wet, and even to his predecessor,” he added.”Do not listen to rumours”.Asked about not approaching the private sector or PEAC for input to the new business plan, Aupindi said that according to the hierarchy he reported to the NWR board of directors, who accepted the plan and the turnaround strategy.”The board reports to the Minister of Environment and Tourism and the Minister to the President, who chairs the Cabinet,” Aupindi said.Aupindi also retrenched two top officials at the NWR last month – the marketing manager and the public relations officer.The planned revamping of Namibia’s resorts did not materialise under the First and Second Development Plans, despite attempts to do so.In the six years of its operations, NWR failed to become profitable and it accumulated debts exceeding N$80 million.Services and infrastructure deteriorated so much that some of the facilities failed to meet the minimum standards for registration with the Namibia Tourism Board, which warned NWR to improve its operations or face closure of these resorts.Another Government bailout of N$60 million will be granted, N$10 million of which is to be provided under the contingency provision of 2006-07 and the remainder under the next Medium Term Expenditure Framework (MTEF).The NWR has accumulated debt of over N$80 million.The parastatal is responsible for the management of 23 resorts and campsites throughout the country – within national parks and in Namibia’s most pristine areas.Appalling service rendered by staff, mainly at the three resorts of the Etosha National Park, and dilapidated infrastructure have been the main complaints of tourists and tourism operators.The new plan provides for the upgrading and redevelopment of NWR resorts at strategic sites in anticipation of increased tourism levels linked to the 2010 Soccer World Cup in South Africa.”The Etosha camps had been identified as top priority with 2010 in mind and the Etosha centenary year celebrations in 2007,” the Cabinet briefing paper said.The Etosha National Park was declared a park on March 22 1907 by the German colonial governor Von Lindequist.The business plan provides for the NWR to enter into public-private partnership agreements for those resorts that are not suitable for the NWR brand.The plan also recognises that the parastatal needs to be repositioned in the tourism industry and must, therefore, undergo a complete transformation to convert it from a loss- to a profit-making enterprise.The NWR did not approach the private tourism sector for input and the Presidential Economic Advisory Council (PEAC) was also not asked to give advice on the new business plan and the turnaround strategy, The Namibian has learnt.”Namibia Wildlife Resorts and the tourism industry must work closely together, as the bookings for the Etosha National Park and other Government nature parks must all be made at their offices, but the new MD stopped all block bookings for tour companies without even informing us,” a source in the tourism industry told The Namibian.”Since Mr Aupindi took office at the NWR in April this year, he has not met with us from the tourism associations,” the source said.But the MD of the NWR denied the allegations.”I am in touch with the private sector; we cannot work in isolation in the tourism industry,” Aupindi told The Namibian.”I introduced myself to the newly elected president of Fenata, Mr Willem de Wet, and even to his predecessor,” he added.”Do not listen to rumours”.Asked about not approaching the private sector or PEAC for input to the new business plan, Aupindi said that according to the hierarchy he reported to the NWR board of directors, who accepted the plan and the turnaround strategy.”The board reports to the Minister of Environment and Tourism and the Minister to the President, who chairs the Cabinet,” Aupindi said.Aupindi also retrenched two top officials at the NWR last month – the marketing manager and the public relations officer.The planned revamping of Namibia’s resorts did not materialise under the First and Second Development Plans, despite attempts to do so.In the six years of its operations, NWR failed to become profitable and it accumulated debts exceeding N$80 million.Services and infrastructure deteriorated so much that some of the facilities failed to meet the minimum standards for registration with the Namibia Tourism Board, which warned NWR to improve its operations or face closure of these resorts.