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Research, Policy and Practice

Table 5 Financial and economic values associated with livestock systems and tourism wildlife viewing enterprises – Woodland biome (N$, 2008, where N$1.00 = US$0.13)

From: Expected climate change impacts on land and natural resource use in Namibia: exploring economically efficient responses

  Traditional Cattle post Commercial Tourism
Financial data     
 Initial capital 99,381 1,064,782 3,259,660 11,825,946
At stability     
 Gross turnover 35,225 380,143 937,506 15,076,056
 Financial costs variable 8,050 241,301 418,605 7,701,617
 Financial costs fixed 10,677 81,713 424,152 3,089,850
 Entrepreneur net cash income 16,498 57,129 94,749 4,284,590
 Community income 23,518 27,000 62,370 626,400
Overall return     
 Financial IRR (10 years) 19.99% 7.79% 7.09% 35.05%
 Financial NPV (10 years at 10%) 48,792 (19,245) (570,856) 17,509,309
 Wage bill 7,020 27,000 62,370 1,144,800
Economic data     
 Initial capital 86,756 958,603 2,979,933 10,814,706
 Gross output 29,372 432,123 814,223 16,335,133
 Economic costs 19,549 263,867 608,497 9,368,723
Incremental contribution to GNI 9,823 168,256 205,726 6,966,410
Incremental contribution to NNI 7,963 145,309 69,992 6,292,706
 Economic IRR (10 years) 23.94% 11.53% 7.49% 70.29%
 Economic NPV (10 years) at 10%) 56,184 99,006 (409,815) 34,391,437
 Number of jobs 1.3 4 5 28
Incremental contribution to GNI per hectare 54.57 26.29 20.57 483.78
Incremental contribution to NNI per hectare 44.24 22.70 7.00 436.99
 Community income per hectare 130.66 4.22 6.24 43.50
 Entrepreneur net cash income per hectare 91.66 8.93 9.47 297.54
 Initial economic capital per hectare 481.98 149.78 297.99 751.02
 Economic gross output per hectare 163.18 67.52 81.42 1,134.38
  1. IRR, internal rate of return; GNI, gross national income; NNI, net national income; NPV, net present value.