This project thrives to determine how the Kgalagadi Transfrontier park can serve as a drive in tourism that generates economic and social benefits to land claimants and as a result maximize the positive spill over effects on the Khomani San people.
In developing countries like South Africa, national parks are under increasing pressure to foster economic growth and development to local communities surrounding parks. Out of 22 national parks managed by South African National Parks (SANParks), about 6 parks have been affected by the land claims.The aim of the project is to estimate the demand function for the Kgalagadi Transfrontier Park (KTP), information about substitutes and compliments is included. Using the KTP, Kruger and Addo Elephant national park as a case study, this paper applies the Contingent Behavior (CB) approach to estimate revenue-maximizing conservation fees. Our study assumes that Kruger and Addo Elephant national park pass as either substitutes or complements for visitors. Price and cross-price elasticities of demand are estimated using the Tobit models to assess the responsiveness of visitation demand to changes in park conservation fees. The validity and credibility of the revenue-maximizing conservation fees of which the voluntary –levy estimate is dependent on can practically only be tested by implementing these fees at the point of entry at the parks.
