December 5, 2003

By Samantha Enslin

Durban - The Greater St Lucia Wetlands Park has embarked on a new phase in its development following the appointment of eight concessionaires to develop tourism sites that are expected to generate over R300 million a year in direct spending.

Andrew Zaloumis, the chief executive of the World Heritage Authority, said the significance of the transactions announced yesterday was that five years ago the area was considered too high a risk for investors.

There was negative growth in tourism as investors were deterred by the high incidences of malaria and poor infrastructure. National government has now spent about R630 million in upgrading infrastructure, the bulk of which has been improving road access. A malaria intervention programme has resulted in a 94 percent reduction in infection rates in the north east of KwaZulu-Natal.

The eight successful bidders will invest R432 million in developing these eight sites. They will create 884 beds in the area. This includes the redevelopment of 527 existing beds.

The concessions, which have been awarded for between 15 and 30 years, are expected to create 900 jobs.

Concession fees will be linked to turnover.

St Lucia hit the headlines 10 years ago when plans to mine the dunes of St Lucia for titanium and other heavy minerals caused a public outcry.

Following a petition, signed by a half a million citizens against the mining, the government declined to give mining the go ahead.

But tourism in the area faltered as investors saw it as high risk. The eight sites will create three times more jobs than mining. Now the eight concessionaires are expected to create 900 jobs against the 330 jobs mining would have generated.

The new facilities are expected to accommodate between 80 000 and 100 000 guests a year.

The eight sites have been awarded to IL Leisure for the Amanzinyama and Cape Vidal Lake sites, Lubombo Hotels for the Cape Vidal Beach site, Wilderness Safaris for the Enkovukeni and Bhanga Nek-KwaDapha Complex, Akani Leisure for the Ndlozi A and Ndlozi B sites and Halcyon Hotels for the Perrier's Rock site.

The bids were based on environmental sustainability, commercial viability, empowerment, and a financial return to the park. Combined the bidders represent 70 percent empowerment