One may say I am missing some obvious points, and have no business experience...
So I'll question myself, as nobody wishes to "contra-indicate"...
RP...you have no business experience and said that customers will dry up once prices increase and labour unrest sets in! Why would the "clever" private operators" come on board then?
Well...this is the scary part, IMO.
Private operators need not show much more than a tiny profit, eventually. The massive reading on their stock market portfolios regarding their vested long-term interests and perceived or real capital and/or PHYSICAL assets in their ventures is enough, IMO, especially for the biggest of the big.
And as per a later installment, the assets could indeed become physical.
Remember, it is always great when a new operator takes over...one visits a new restaurant first in town to have a look...for example. New menus, better service etc. But that normally wanes over time.
The Restaurant operators have to do virtually zero branding, for example, as there is no "other" option around the corner to compete with. They put menus on the fridges in the bungalows advising tourists to visit them instead of braaiing, a massive cornered advertising privilege that presumably costs them nothing?
This is unheard of regarding the free-market system, IMO, and inevitably leads to complacency and resulting downgrade in services in a captive market...complaints vs customers, which takes a long time to actually make a difference?
KNP services were outsourced to BEE instants after a slew of complaints regarding restaurants, shops and picnic spots many years ago. It worked at first. Then those companies couldn't hack it, leading to the international ones slowly now in charge.
But it didn't work for all...take the Skukuza Selati restaurant, for example, which now stands idle as the owners refused to budge regarding this "phase three" privatisation, (With added "strong arm tactics" from SP), and they took to the courts.
So back to the point: Why should Large Privates now bother regarding privatisation of camps?
Their deals have been struck, and it has been proven that tourist/taxpayers' money will be channeled to SP coffers, not infrastucture development, over the last twenty years, end of story. No new big camp has been built, nor major tar road, for that matter, in that timeframe. (The last big tar road was to Pafuri Border post...but not paid for by SP, rather a government border thing). Development has centred around now struggling concession lodges over that time.
Big Privates only come in once they see a struggling "opposition"...and once figures reach the quarter billion Rand mark, IMO...
It is also different once the money gets this big...before that the providers approach buddies/family with contracts, but the big stuff starts when the very clever privates approach the provider, SP in this case, so a bit of a misconception?
Also, I wonder how company tax works regarding these sorts of endeavours? That is a huge part of Privates' budget!
The Privates have "carte blanche" now.
The sad part is, regarding permanent job creation and guaranteed exclusive long-term Kruger fundraising, a start could have been made to a big normal restcamp in the Tshokwane area, for example, properly using public funds.
Scips and other qualified financial members...help a bit here? Am I mad?
