NWR won’t sell assets - new board

The management of Namibia Wildlife Resorts (NWR), under the leadership of a new board, has dispelled rumours that it intends to sell off some national resorts.
According to a discussion document prepared by a member of the previous board chaired by Lea Namoloh, the company toyed with ideas to seek either joint ventures or technical partners for loss-making resorts. It also considered ceasing operations or selling off of some of these resorts. This document – and other similar reports – stirred rumours that there are plans to sell off, among other national assets, the Etosha National Park.
But NWR says none of the considerations in the discussion document have been taken on board and emphatically states that there is “no intention to sell off or close any resort”.
“Intensive work will go into ensuring operational efficiencies and profitability at each resort, embedded within a planned restructuring of the company, and will shift even the headquarters from being a cost centre to being a profit centre,” managing director Zelna Hengari said in a response to questions.
Hengari said the resorts at Etosha, Duwisib, Shark Island, or any of the other loss-making resorts, would not be sold or hived off in any manner.
The Namutoni and Onkoshi rest camps at Etosha have been running at a loss for the last two and six years respectively.
A proposal to the former board was that Namutoni, if its performance did not pick up within a year from September 2015, would have to get a technical partner to operate it “under the NWR’s brand” modelled after the arrangement with the Windhoek Country Club.
Proposals for Onkoshi were that either a technical partner be sought to run the operations or to cease operations and return it to the Ministry of Environment and Tourism.
In some instances, where NWR was recommended to seek a technical partner, it was further suggested that current staff cannot be redeployed within the company and would have to be laid off.
Duwisib has been making a loss for six years and it was proposed that operations be ceased in the area owned by NWR and the remainder be handed back to the government. It was suggested that the Khorixas camp be converted into a training centre or sold or donated to the town council. For Shark Island the former director suggested a joint venture to upgrade the resort and operate it under the brand of the operator. The alternative recommendation was that it be sold or donated to the Lüderitz town council.
Hengari said Khorixas was “going nowhere” and confirmed plans to transform it into a hospitality and tourism training facility.
She said Hobas, Ai-Ais and Namutoni were being renovated and would soon be opened as “quality products” in the tourism market.
PPPs
NWR said a review of the public-private partnerships (PPPs) on various of its resorts was not to change the terms of these agreements but to optimise the benefits to NWR and to derive lessons for future such arrangements. It said it was deriving “tangible benefits” in terms of rental income and profit sharing from the arrangement with Sun Karros for the Daan Viljoen resort.
The lease agreement with Tungeni Africa Investments for the Wild Coast resorts lapsed in August last year and they were returned to NWR.
Mile 14 is now rented out to Sun Karros, which reopened the campsite with a new bar and restaurant in December last year. NWR said a holiday resort and estate were in the offing for Mile 14 as well.
Tungeni is currently in consultations with NWR for a “longer-term development” at Jakkalsputz.
These three coastal resorts are currently being operated by Platinum Investments with which NWR had signed a joint venture on 23 October last year. Platinum has been represented by Henk Blom. The other two partners are Jurie Booysen and Kallie van Wyk.
NWR said it had specific plans for the local market at Mile 108 and international markets at Mile 72.
NWR added that it is getting regular income from Reho Spa, which is now operated by the Rehoboth Community Trust.
CATHERINE SASMAN