Mehloding Community Tourism Trust

Having begun in 2002, the Trust is held and operated for the communities along the trail and run by 4 Community Tourism Organisations that co-ordinate local SMME’s to provide services for the guesthouse and trail.  The aim of the Trust is employment and training in tourism in an area that suffers 60% unemployment. It aims to facilitate work for 400 people in the communities around Masakala and to generate income for Trust members while also preserving the local environment. The project is community owned but subsidised by provincial and local governments, affiliated with the Eastern Cape Tourism Authority and Tourism KwaZulu-Natal that work on marketing and recognition. It is directly subsidised by the Alfred Nzo Municipality.

Innovation

The Trust’s innovative approach is the community ownership of a product focused on tourism.  The application of a main-stream industry in a locally-based environment not only to employ the local population but use its traditions and natural landscape for their own benefit is a new variation of a solid business model.

Effectiveness

The Trust earned R67,000 in 2005, up from R14,000 in 2004, comprising over half its budget. With the grant from the local government of R112,000, and had a surplus of R72,000 at the end of the year, 60% was redistributed to the community Trust members. The products are certified by the Fair Trade in Tourism South Africa Trademark and an AA member, both of which contribute to its marketing. The Mehloding Hiking trail has been designated a heritage site by the Department of Sports, Arts and Culture in the Eastern Cape. So far, 11 permanent staff have been created as well as 25 part time positions to which salaries of R36,000 have been paid in 2005.

Poverty Impact

In addition to the jobs created directly by Mehloding, the projects have contributed to SMME’s in the spheres of produce production, crafts and horse rides. All employment by Mehloding is contracted through local enterprises, including its construction and maintenance.

Sustainability

The project began in 2004 and is not fully sustainable. Demand has grown but profits still do not cover expenses. Government grants gave it an operating surplus but not the sustainable wealth creation that would be hoped for.

Replication

Although this project is context specific, but there are lessons, such as training local people on how to incorporate their traditions and surroundings into viable income-generation, that can be replicated in other eco-tourism initiatives.

Partnerships

• DEAT
• DPLU
• Eastern Cape Tourism Board
• Tourism KwaZulu-Natal
• Alfred Nzo District Municipality
• Fair Trade in Tourism SA (FTTSA)
• Environmental Rural Solutions (ERS).

Visit www.mehloding.co.za for more information