GDL

Private enterprises are active in conservation initiatives in Africa. Some of these enterprises have long-term licences for the development of conservation areas. The


motivation of these organisations to participate in conservation is ultimately determined by the economic output of their activities. An electric fence is being


constructed in the Maputo Elephant Reserve, Mozambique. A costs-benefit analysis was carried out, in order to assist in the optimisation of the management activities


of the elephant population, based on elephant population size, fence costs, crop raid costs, elephant poaching, and benefits derived from tourism (game-viewing and hunting). Tourist numbers increased with increasing elephant density through a concave utility function. Optimal harvest/hunting strategies were calculated from


optimal control theory, using dynamic optimisation (Pontryagin’s Maximum Princi-ple). Poaching and raid costs could be compared to fence construction costs at


different elephant population sizes. Costs generated through elephant poaching and elephant crop raid costs were higher than fence construction costs at a population


size 4100. Elephant hunting was a less favourable activity, economically and ecologically, than elephant viewing, due to the large game-viewing profits per


elephant. Only if the licence fee increases from US$6500 to 28,500 would hunting become attractive, although ecological and economical constraints would probably


prevent the development of hunting activities in the area. The assumed resource


price of elephant (US$5000) was lower than the marginal value derived from


tourism, indicating that elephants should be bought until the maximum stocking rate


is reached.

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