Abstract
This paper estimates the visitation demand function for Kgalagadi Transfrontier Park (KTP) in
order to determine the scope for raising fees charged to international tourists in order to fund
revenue-sharing schemes for local communities. International and Southern African
Development Community tourists account for approximately 25% and 2% of the total number
of visitors to South African national parks, with domestic visitors making up the remaining
portion. Though small, the South African international tourism market is mature, and accounts
for a disproportionately large share (around 42%) of net revenue. To estimate visitation demand
at the KTP and three other national parks, random effects Tobit Model was used. Using the
estimated elasticities, the revenue-maximising daily conservation fee was computed to be
R1 131.94 (US$144.20) for KTP, which can be compared with the R180 (US$22.93) currently
charged. Furthermore, the study also demonstrated that there is a possibility of raising fees at
the other three parks. Sharing conservation revenue with communities surrounding parks could
demonstrate the link between ecotourism and local communities’ economic development, and
promote a positive view of land restitution involving national parks.