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Research, Policy and Practice

Table 7 Financial and economic values associated with proposed livestock systems and tourism wildlife viewing enterprises – Karoo 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 Commercial Tourism
Financial data    
 Initial capital 139,384 7,481,255 6,527,865
At stability    
 Gross turnover 25,208 1,972,255 6,627,604
 Financial costs variable 13,775 612,625 12,130,743
 Financial costs fixed 8,095 1,102,375 9,056,362
 Entrepreneur net income 3,338 257,255 5,440,499
 Community income 6,578 219,024 2,577,744
Overall return    
 Financial IRR (10 years) 5.42% 13.42% 19.81%
 Financial NPV (10 years at 10%) (29,844) 1,129,712 17,984,661
 Wage bill 3,240 453,024 3,981,744
Economic data    
 Initial capital 119,933 7,386,407 30,350,760
 Gross output 29,647 2,144,615 25,504,896
 Economic costs 23,149 1,650,267 15,994,383
Incremental contribution to GNI 6,498 494,348 9,510,514
Incremental contribution to NNI 3,857 308,247 8,268,390
 Economic IRR (10 years) 18.48% 27.24% 40.03%
 Economic NPV (10 years at 10%) 42,544 4,190,185 44,289,321
 Number of jobs 0.60 29 153
Incremental contribution to GNI per hectare 2.79 9.47 109.32
Incremental contribution to NNI per hectare 1.66 5.91 95.04
 Community income per hectare 2.82 4.20 29.63
 Entrepreneur net cash income per hectare 1.43 4.93 62.53
 Initial economic capital per hectare 51.47 141.50 348.86
 Economic gross output per hectare 12.72 41.08 293.16
  1. IRR, internal rate of return; GNI, gross national income; NNI, net national income; NPV, net present value.