Just how much does a concession cost?

[fourfive8]

A few years ago I think the Chinese also got into the same "game" of procuring exclusive use of large blocks of land in several countries under the guise of non hunting, photo eco-safari operations. The reality was they wanted unfettered control for mineral and natural resource extraction without the pesky hunting safari operators looking over their shoulder about one of the CCP oligarch's favorite side gigs, ivory and horn poaching. Some of that "official government permitting" was also for logging of old growth hardwoods for a fraction of the real value. But most was/is for surface strip mining of huge swaths of land for rare earth minerals like lithium. Of course all legal under government permit which also included perks such as no requirement for environmental mitigation or surface reclamation. What hunting outfitter can compete with the money and political power wielded by the ChiComs? With stakes that high, the whole thing is rife with potential for government corruption and bribery.

 

[Philip Glass]

It is business and doubtful the information is ever widely disclosed.

 

[IdahoMo]

Where I hunted in Zambia, an anti-hunting photo group were prepared to pay a block fee of $365,000 per year plus community pledge of $200,000 per year then antipoaching $100,000 and $150,000 for the quota in their proposal in the last illegal tender. Luckily, the High Court just ruled that the original tender is to be followed instead. The hunting safari company had bid less in the original tender than the anti-hunters in the illegal tender but still very expensive.

When I questioned the photo company’s ability to make a profit on that much money, I was told they didn’t care about profit but just wanted to get the area and stop the hunting!

That's not surprising, but still wild. At that point, it's not about conserving wildlife and wild places (i.e. conservation) but being spiteful towards hunting.

 

[IdahoMo]

@Tokoloshe Safaris, @PeteG, @HENRY GRIFFITHS SAFARIS, Thanks for taking the time to walk me through some of the options that exist, and show just how complex it can be.

Like @Safari Dave 's list, and the comments provided by you all, the safari concession model sounds alot like realestate. For the uneducated, gross rents on a property can sound like a large number, but after your subtract mortgage, insurance, vacancies, maintenance, CapEx, and ever increasing property tax, you find out the owner of the property is assuming a lot of risk for a modest return. But in the safari business you get to sprinkle in a bit of TIA excitement on top of it all! Big thanks to all you operators.

It would be very cool to quantify just how much money goes into a given country due to the hunting safari business, and have it broken into bins for the various govt. organizations, tribal areas, community services, and local employment. My guess is that the ratio of what goes back to the country and it's people are much higher than when you compare those funds to more globally accepted aid organizations like WWF (conservation) or US AID (economic/community development). Bit off topic, but just some things I like to think about.

 

[LivingTheDream]

It is business and doubtful the information is ever widely disclosed.

They published the auctions for Tanzanian concessions, I will have to see if I can find it and post it here.

 

[375Fox]

Where I hunted in Zambia, an anti-hunting photo group were prepared to pay a block fee of $365,000 per year plus community pledge of $200,000 per year then antipoaching $100,000 and $150,000 for the quota in their proposal in the last illegal tender. Luckily, the High Court just ruled that the original tender is to be followed instead. The hunting safari company had bid less in the original tender than the anti-hunters in the illegal tender but still very expensive.

When I questioned the photo company’s ability to make a profit on that much money, I was told they didn’t care about profit but just wanted to get the area and stop the hunting!

I wonder how long they could afford that cost or if they would fail to meet their obligations after the first year or several years? Imagine what these areas could be if they contributed all of that money to anti-poaching?

 

[Wheels]

Some of the more expensive concessions in Tanzania are controlled by families for personal use. The public doesn't get to hunt there. A couple years ago, a family from UAE got a concession from an American family that has probably sunk $100 million into Tanzania wildlife over the past 30 years. Politicians change. Personal relationships change. There is probably more than top bid figured into some equations.

A well known long time outfitter on a concession in Tanzania was out bid by an Indian family recently. That outfitter in turn outbid another well known long term outfitter from the neighboring concession. That outfitter is now probably looking for another neighboring concession. It can make it tough when the outfitter has sunk a lot of capital into infrastructure and game management over the years only to lose it.

 

[buck wild]

Back about the time I joined here, there was a member that made a successful bid on a block in Zim. His plan was for him and a few friends to go over and shoot the quota for themselves. Once they arrived, it was one nightmare after another and they shot very few animals- something like two impala and a zebra. It was like crazy low numbers. No one had been maintaining the infare structure, no camp, no anti-poaching etc. The guy was PISSED !!

 

[375Fox]

Back about the time I joined here, there was a member that made a successful bid on a block in Zim. His plan was for him and a few friends to go over and shoot the quota for themselves. Once they arrived, it was one nightmare after another and they shot very few animals- something like two impala and a zebra. It was like crazy low numbers. No one had been maintaining the infare structure, no camp, no anti-poaching etc. The guy was PISSED !!

I laugh every time I see mentions here of unguided hunts in Cameroon. I’d say these guys were lucky to have got two impala and a zebra in Zimbabwe. Everyone thinks outfitter prices in wild areas are high until they realize what needs put into the areas.

 

[putter97127]

Back about the time I joined here, there was a member that made a successful bid on a block in Zim. His plan was for him and a few friends to go over and shoot the quota for themselves. Once they arrived, it was one nightmare after another and they shot very few animals- something like two impala and a zebra. It was like crazy low numbers. No one had been maintaining the infare structure, no camp, no anti-poaching etc. The guy was PISSED !!

I remember that as well. Hopefully someone with better search skills than me can find the thread, or the member will post on this thread. It was pretty interesting and eye opening as to what safari outfitters have to deal with

 

[Aaron N]

Back about the time I joined here, there was a member that made a successful bid on a block in Zim. His plan was for him and a few friends to go over and shoot the quota for themselves. Once they arrived, it was one nightmare after another and they shot very few animals- something like two impala and a zebra. It was like crazy low numbers. No one had been maintaining the infare structure, no camp, no anti-poaching etc. The guy was PISSED !!

Are you talking about @rookhawk?

 

[Scott CWO]

I wonder how long they could afford that cost or if they would fail to meet their obligations after the first year or several years? Imagine what these areas could be if they contributed all of that money to anti-poaching?

Unlimited money from all the anti-hunters. Same company has other concessions and some in Botswana.

 

[Philip Glass]

They published the auctions for Tanzanian concessions, I will have to see if I can find it and post it here.

That would be interesting. It would take a spreadsheet to figure out the break even!

 

[Masai]

Is there a place to check the upcoming concessions in countries like Zimbabwe? As much as I check, I dont find anything updated online.

 

[Ridge Runner]

I was given an opportunity to purchase what was left of a very large "farm" in RSA. Seems a partnership was being dissolved, or the European lady that once owned this property pasted and the heirs were selling it. either way here's a very brief description of the property; it still consisted of a good amount, several thousands of acres, of good hunting land, very large home, what was once stables were converted for other uses, 6 once independent servant quarters, renovated to guest lodging, and one independent servant quarters was renovated into a swimming pool with a lounge area.

To answer the OP's question, this particular portion (about a 1/3) of the original amount of property sold for $1.2+ million USD.

Compared to the US real estate market prices at that time; had this property been located in the continental US the property value would have easily been somewhere between $15m+ USD to $40m+USD.

At that time the minimum employee wage was R300 per week. Estimated other expenses would run around R1000+ to R3000+/- per month. Depending on your personal wants, needs, and creature comforts; Personal expenses: food, fuel, phone service, etc., a good estimate R3500+ easily per month.

These were just the base figures I was given to own and operate a "farm".

 

[DLSJR]

Here are the results of the most recent auction of Tanzania blocks in 2022. These are the annual lease payments in U.S. Dollars. All concessions were awarded for A 10-year period.


SN Company Hunting Block category Amount USD
1 TROPHY BELT TANZANIA CO. LIMITED Hunting Block: Kizigo GR C II 90,000
2 NZOHE HUNTING SAFARIS LIMITED Hunting Block: Kitwai GCA SW III 39,000
3 MICHEL MANTHEAKIS SAFARIS LTD Lukwati GR S II 91,000
4 ROBIN HURT SAFARIS (T) LTD Lake Natron GCA S I 192,000
5 ILAROI RANCHING LIMITED Ugalla GR S II 105,000
6 LUKE SAMARAS SAFARIS LTD Selous GR MS1 II 120,000
7 KILOMBERO NORTH SAFARI LTD Lake Natron GCA W II 171,000
8 BUSHMAN HUNTING SAFARIS (T) LTD Burko OA I 400,000
9 SAFARI ROYAL HOLDINGS LTD Lukwati GR N II 86,000
10 TROPHY BELT TANZANIA CO. LIMITED Ngaserai OA II 85,000
11 MALIKIA CLEARING & FORWADING COMPANY LIMITED Hunting Block: Selous GR MT1 II 85,000
12 TANZANIA SAFARI AND HUNTING (2003) LTD Rungwa Rungwa GR W I 155,000
13 TANZANIA BIG GAME SAFARIS LTD Monduli Juu OA II 101,000
14 MICHEL MANTHEAKIS SAFARIS LTD Longido GCA N II 84,000
15 ROBIN HURT SAFARIS (T) LTD Luganzo GR II 166,000
16 ILAROI RANCHING LIMITED Rungwa Mwamagembe GR II 95,000
17 TANZANIA BIG GAME SAFARIS LTD Ruvu Masai GCA II 125,000
18 ESHKESH SAFARIS LTD Masai OA E II 135,000
19 SAFARIA SAFARIS TANZANIA LIMITED Rungwa Rungwa GR E I 151,000
20 TROPHY BELT TANZANIA CO. LIMITED Simanjiro GCA W III 200,000
21 TANZANIA SAFARI AND HUNTING (2003) LTD Lake Rukwa GR I 185,000
22 AFRICAB ADVENTURE LIMITED Rungwa Mpera GR I 285,000
23 AFRICAB ADVENTURE LIMITED Ugalla GR E II 230,000
24 GAME FRONTIERS OF TANZANIA LTD Makere-Uvinza OA III 52,000
25 EBN HUNTING SAFARIS LTD Moyowosi GR S II 250,000
26 TANZANIA SAFARI AND HUNTING (2003) LTD Selous GR U3 II 95,000
27 DESTINATION 255 CO LIMITED Hunting Block: Liparamba GR III 31,000
28 PORI TRACKERS OF AFRICA LTD Selous GR LR3 II 93,000
29 ILAROI RANCHING LIMITED Rungwa OA S II 90,000
30 LUKE SAMARAS SAFARIS LTD Selous GR LR1 II 121,000
31 ADAM CLEMENTS SAFARIS LIMITED Moyowosi/Njingwe GR3 II 176,000
32 TANZANIA BIG GAME SAFARIS LTD Masai OA W I 151,000
33 SAFARIA SAFARIS TANZANIA LIMITED Selous GR MHJ3 II 82,000
34 ILAROI RANCHING LIMITED Lolkisale GCA I 235,000
35 WEMBERE HUNTING SAFARIS LTD Kilombero Ruhudji/Ifinga E II 81,000
36 ADAM CLEMENTS SAFARIS LIMITED Lake Natron GCA N II 160,000
37 CLEMENTS SAFARI TRACKERS LTD Hunting Block: Moyowosi/Njingwe GR 1 II 81,000
38 KILOMBERO NORTH SAFARI LTD Kilombero Ruhidji Ifinga GR (W) II 81,000
39 AFRICAN BUFFALO SAFARIS TRACKERS LTD Mto wa Mbu GCA I 151,000
40 MKWAWA HUNTING SAFARIS (T) LTD Selous GR U4 II 130,000
41 PLAINS GAME ADVENTURES LIMITED Simanjiro Naberera GCA III 65,000
42 PORI TRACKERS OF AFRICA LTD Selous GR LR2 II 85,000
43 TROPHY BELT TANZANIA CO. LIMITED Simanjiro Kitiangare GCA III 190,000
44 TANZANIA BIG GAME SAFARIS LTD Rungwa Ikili GR I 161,000
45 TRAILCHASERS LIMITED Selous GR MA1 II 92,000
Total 6,029,000

A couple notes, Bushman Safaris bid of $400,000 a year for Burko was invalidated when they claimed they made an error in calculating their bid numbers. It was subsequently negotiated and awarded to Bushmen at a much lower annual lease. Also note that the Masailand concessions went for extremely high prices in general.

I’ll post more about other costs for safari companies in Tanzania in a future post.

 

[VertigoBE]

Here are the results of the most recent auction of Tanzania blocks in 2022. These are the annual lease payments in U.S. Dollars. All concessions were awarded for A 10-year period.


SN Company Hunting Block category Amount USD
1 TROPHY BELT TANZANIA CO. LIMITED Hunting Block: Kizigo GR C II 90,000
2 NZOHE HUNTING SAFARIS LIMITED Hunting Block: Kitwai GCA SW III 39,000
3 MICHEL MANTHEAKIS SAFARIS LTD Lukwati GR S II 91,000
4 ROBIN HURT SAFARIS (T) LTD Lake Natron GCA S I 192,000
5 ILAROI RANCHING LIMITED Ugalla GR S II 105,000
6 LUKE SAMARAS SAFARIS LTD Selous GR MS1 II 120,000
7 KILOMBERO NORTH SAFARI LTD Lake Natron GCA W II 171,000
8 BUSHMAN HUNTING SAFARIS (T) LTD Burko OA I 400,000
9 SAFARI ROYAL HOLDINGS LTD Lukwati GR N II 86,000
10 TROPHY BELT TANZANIA CO. LIMITED Ngaserai OA II 85,000
11 MALIKIA CLEARING & FORWADING COMPANY LIMITED Hunting Block: Selous GR MT1 II 85,000
12 TANZANIA SAFARI AND HUNTING (2003) LTD Rungwa Rungwa GR W I 155,000
13 TANZANIA BIG GAME SAFARIS LTD Monduli Juu OA II 101,000
14 MICHEL MANTHEAKIS SAFARIS LTD Longido GCA N II 84,000
15 ROBIN HURT SAFARIS (T) LTD Luganzo GR II 166,000
16 ILAROI RANCHING LIMITED Rungwa Mwamagembe GR II 95,000
17 TANZANIA BIG GAME SAFARIS LTD Ruvu Masai GCA II 125,000
18 ESHKESH SAFARIS LTD Masai OA E II 135,000
19 SAFARIA SAFARIS TANZANIA LIMITED Rungwa Rungwa GR E I 151,000
20 TROPHY BELT TANZANIA CO. LIMITED Simanjiro GCA W III 200,000
21 TANZANIA SAFARI AND HUNTING (2003) LTD Lake Rukwa GR I 185,000
22 AFRICAB ADVENTURE LIMITED Rungwa Mpera GR I 285,000
23 AFRICAB ADVENTURE LIMITED Ugalla GR E II 230,000
24 GAME FRONTIERS OF TANZANIA LTD Makere-Uvinza OA III 52,000
25 EBN HUNTING SAFARIS LTD Moyowosi GR S II 250,000
26 TANZANIA SAFARI AND HUNTING (2003) LTD Selous GR U3 II 95,000
27 DESTINATION 255 CO LIMITED Hunting Block: Liparamba GR III 31,000
28 PORI TRACKERS OF AFRICA LTD Selous GR LR3 II 93,000
29 ILAROI RANCHING LIMITED Rungwa OA S II 90,000
30 LUKE SAMARAS SAFARIS LTD Selous GR LR1 II 121,000
31 ADAM CLEMENTS SAFARIS LIMITED Moyowosi/Njingwe GR3 II 176,000
32 TANZANIA BIG GAME SAFARIS LTD Masai OA W I 151,000
33 SAFARIA SAFARIS TANZANIA LIMITED Selous GR MHJ3 II 82,000
34 ILAROI RANCHING LIMITED Lolkisale GCA I 235,000
35 WEMBERE HUNTING SAFARIS LTD Kilombero Ruhudji/Ifinga E II 81,000
36 ADAM CLEMENTS SAFARIS LIMITED Lake Natron GCA N II 160,000
37 CLEMENTS SAFARI TRACKERS LTD Hunting Block: Moyowosi/Njingwe GR 1 II 81,000
38 KILOMBERO NORTH SAFARI LTD Kilombero Ruhidji Ifinga GR (W) II 81,000
39 AFRICAN BUFFALO SAFARIS TRACKERS LTD Mto wa Mbu GCA I 151,000
40 MKWAWA HUNTING SAFARIS (T) LTD Selous GR U4 II 130,000
41 PLAINS GAME ADVENTURES LIMITED Simanjiro Naberera GCA III 65,000
42 PORI TRACKERS OF AFRICA LTD Selous GR LR2 II 85,000
43 TROPHY BELT TANZANIA CO. LIMITED Simanjiro Kitiangare GCA III 190,000
44 TANZANIA BIG GAME SAFARIS LTD Rungwa Ikili GR I 161,000
45 TRAILCHASERS LIMITED Selous GR MA1 II 92,000
Total 6,029,000

A couple notes, Bushman Safaris bid of $400,000 a year for Burko was invalidated when they claimed they made an error in calculating their bid numbers. It was subsequently negotiated and awarded to Bushmen at a much lower annual lease. Also note that the Masailand concessions went for extremely high prices in general.

I’ll post more about other costs for safari companies in Tanzania in a future post.

Holy crap those are big sums of money for just the annual lease! You have to organise a crap ton of safaris just to cover this, costs and make a little profit!

 

[Ridge Runner]

Here are the results of the most recent auction of Tanzania blocks in 2022. These are the annual lease payments in U.S. Dollars. All concessions were awarded for A 10-year period.


SN Company Hunting Block category Amount USD
1 TROPHY BELT TANZANIA CO. LIMITED Hunting Block: Kizigo GR C II 90,000
2 NZOHE HUNTING SAFARIS LIMITED Hunting Block: Kitwai GCA SW III 39,000
3 MICHEL MANTHEAKIS SAFARIS LTD Lukwati GR S II 91,000
4 ROBIN HURT SAFARIS (T) LTD Lake Natron GCA S I 192,000
5 ILAROI RANCHING LIMITED Ugalla GR S II 105,000
6 LUKE SAMARAS SAFARIS LTD Selous GR MS1 II 120,000
7 KILOMBERO NORTH SAFARI LTD Lake Natron GCA W II 171,000
8 BUSHMAN HUNTING SAFARIS (T) LTD Burko OA I 400,000
9 SAFARI ROYAL HOLDINGS LTD Lukwati GR N II 86,000
10 TROPHY BELT TANZANIA CO. LIMITED Ngaserai OA II 85,000
11 MALIKIA CLEARING & FORWADING COMPANY LIMITED Hunting Block: Selous GR MT1 II 85,000
12 TANZANIA SAFARI AND HUNTING (2003) LTD Rungwa Rungwa GR W I 155,000
13 TANZANIA BIG GAME SAFARIS LTD Monduli Juu OA II 101,000
14 MICHEL MANTHEAKIS SAFARIS LTD Longido GCA N II 84,000
15 ROBIN HURT SAFARIS (T) LTD Luganzo GR II 166,000
16 ILAROI RANCHING LIMITED Rungwa Mwamagembe GR II 95,000
17 TANZANIA BIG GAME SAFARIS LTD Ruvu Masai GCA II 125,000
18 ESHKESH SAFARIS LTD Masai OA E II 135,000
19 SAFARIA SAFARIS TANZANIA LIMITED Rungwa Rungwa GR E I 151,000
20 TROPHY BELT TANZANIA CO. LIMITED Simanjiro GCA W III 200,000
21 TANZANIA SAFARI AND HUNTING (2003) LTD Lake Rukwa GR I 185,000
22 AFRICAB ADVENTURE LIMITED Rungwa Mpera GR I 285,000
23 AFRICAB ADVENTURE LIMITED Ugalla GR E II 230,000
24 GAME FRONTIERS OF TANZANIA LTD Makere-Uvinza OA III 52,000
25 EBN HUNTING SAFARIS LTD Moyowosi GR S II 250,000
26 TANZANIA SAFARI AND HUNTING (2003) LTD Selous GR U3 II 95,000
27 DESTINATION 255 CO LIMITED Hunting Block: Liparamba GR III 31,000
28 PORI TRACKERS OF AFRICA LTD Selous GR LR3 II 93,000
29 ILAROI RANCHING LIMITED Rungwa OA S II 90,000
30 LUKE SAMARAS SAFARIS LTD Selous GR LR1 II 121,000
31 ADAM CLEMENTS SAFARIS LIMITED Moyowosi/Njingwe GR3 II 176,000
32 TANZANIA BIG GAME SAFARIS LTD Masai OA W I 151,000
33 SAFARIA SAFARIS TANZANIA LIMITED Selous GR MHJ3 II 82,000
34 ILAROI RANCHING LIMITED Lolkisale GCA I 235,000
35 WEMBERE HUNTING SAFARIS LTD Kilombero Ruhudji/Ifinga E II 81,000
36 ADAM CLEMENTS SAFARIS LIMITED Lake Natron GCA N II 160,000
37 CLEMENTS SAFARI TRACKERS LTD Hunting Block: Moyowosi/Njingwe GR 1 II 81,000
38 KILOMBERO NORTH SAFARI LTD Kilombero Ruhidji Ifinga GR (W) II 81,000
39 AFRICAN BUFFALO SAFARIS TRACKERS LTD Mto wa Mbu GCA I 151,000
40 MKWAWA HUNTING SAFARIS (T) LTD Selous GR U4 II 130,000
41 PLAINS GAME ADVENTURES LIMITED Simanjiro Naberera GCA III 65,000
42 PORI TRACKERS OF AFRICA LTD Selous GR LR2 II 85,000
43 TROPHY BELT TANZANIA CO. LIMITED Simanjiro Kitiangare GCA III 190,000
44 TANZANIA BIG GAME SAFARIS LTD Rungwa Ikili GR I 161,000
45 TRAILCHASERS LIMITED Selous GR MA1 II 92,000
Total 6,029,000

A couple notes, Bushman Safaris bid of $400,000 a year for Burko was invalidated when they claimed they made an error in calculating their bid numbers. It was subsequently negotiated and awarded to Bushmen at a much lower annual lease. Also note that the Masailand concessions went for extremely high prices in general.

I’ll post more about other costs for safari companies in Tanzania in a future post.

Are these annual payments or payments for the whole ten year lease?

Please disregard my question as I read VertigoBE's thread, then re read your thread, these prices are per year for ten years. If I understood your thread correctly.

 

[IdahoMo]

Thanks very much @DLSJR

 

[DLSJR]

Are these annual payments or payments for the whole ten year lease?

Please disregard my question as I read VertigoBE's thread, then re read your thread, these prices are per year for ten years. If I understood your thread correctly.

Those are annual lease payments.

For Masailand, the operators can hunt most of the year as the soil tends to dry well and is rocky as much of Masailand is volcanic. However, for the Selous and western Tanzania, many areas operate in a fairly short window from July to end of October, give or take a few weeks. On top of that, they have to completely remove everything at the end of the season and then bring it all back to start the next season. Those are huge expenses. Tanzania is an expensive country to hunt and logistics as well as government fees are a big part of why it costs so much to hunt there.