NEWS LETTER ON THE FINANCES OF THE VOORTREKKER MONUMENT GROUP FOR THE PERIOD 1 MARCH – 30 SEPTEMBER 2007

 

During a recent  meeting of the Boards of Directors, the CEO could report back with some degree of satisfaction concerning the financial status of the Voortrekker Monument (VTM), comparing it with the situation of the same period of the previous eight years.  The Board of Directors once again expressed their appreciation for the sophisticated system of budgeting and cash flow management applied by the VTM, a clear confirmation of disciplined financial management.

 

The excellent results of the past seven months can be attributed to amongst others, the following:

 

·         Considerably better than budgeted income from gate fees. (Instead of the budgeted R2 090 000 for the period of seven months, we have already received R2 577 270 which means a surplus of R487 270 for the seven months, VAT in all cases included).

·         The successes thus far this year from different fundraising endeavours and the commercial utilization of the VTM facilities.

·         The better than budgeted income from the sale of niches in the Garden of Remembrance. (There are only 200 niches available and they are selling at a rate of more than twenty per month).

·         The manner in which the Friends of the VTM and of Blood River have thus far responded to requests to pay their outstanding membership fees as soon as possible.

·         Savings on expenditure, especially on human resources, because some posts have deliberately been left vacant.

 

A few graphs are attached to illustrate some of the above.

 

VISITOR STATISTICS

 

Thanks to more effective measure instruments, we can now make more accurate deductions concerning trends in visitor statistics. It would probably interest you to know from where the international visitors of five of the past seven months (March and June excluded), hail from:

 

China

5764

Germany

4276

France

3306

Rest of Asia and Australasia

3267

The Netherlands

2840

Rest of Europe and Russia

1808

USA, Canada and Brazil

913

United Kingdom

613

Rest of Africa

101

 

The total number of paying visitors over this period of seven months (traditionally the weakest tourism months at the VTM because our peak season is from middle September to the end of November), is also better when compared to the previous eight years namely:

 

1999-2000

76913

2000-2001

89222

2001-2002

88310

2002-2003

85610

2003-2004

88163

2004-2005

84716

2005-2006

81376

2006-2007

75067

2007-2008

90654

  

We are currently trying to accurately determine how many people make use of the VTM facilities on an annual basis without paying the normal gate fees (e.g. people going to the restaurant as well as people who attend the annual Day of the Covenant church service, concerts and other activities). According to estimates this will push the total number of visitors to the site up to approximately 300 000 per year.

 

A further interesting aspect is that the relationship between domestic and international, paying visitors is gradually improving in favour of the aforementioned as can be seen from the following:

 

 

Domestic

International

2002-2003

62 736

105 467

2003-2004

59 782

116 750

2004-2005

57 199

103 606

2005-2006

68 436

85 630

2006-2007

64 894

82 354

2007-2008 (March-Sep)

46 668

43 986

 

Despite the positive situation set out above, the VTM will never be able to rest on its laurels regarding its finances and other resources. Indeed, the challenges are so many that the emphasis on fundraising is abnormally high when seen against the normal core functions of the VTM. You will most probably find it interesting to know from which resources the operational revenue of the VTM Group (that is the VTM Section 21 Company, the VTM Projects (Pty) Ltd and the Voortrekker Monument Trust) is obtained and what it is spent on:

 

SOURCES OF OPERATIONAL REVENUE FY 2007/2008

 

Gate Fees

54%

State Subsidy

21%

Rental and sundries, incl fundraising

14%

Selling of niches

  5%

Nett profit on sales

  4%

Membership fees Friends of the VTM

  2%

 

 

 

SUMMARY OF OPERATIONAL EXPENCES FY 2007/2008

 

HR related costs

58%

Administrative and diverse

14%

Bank and finance costs

  8%

Security and alarms

  6%

Redeemable funds (for redeeming debt) – included here only for cash flow purposes

  5%

Repair and maintenance

  5%

Marketing and Communication

  2%

Insurance and lisences

  1%

Audit and other professional costs

  1%

 

The State subsidy to the VTM will this year amount to RM1, 566. The State does not make any contributions towards the capital expenses of the VTM, nor does the Heritage Foundation or any of the other sites falling under the control of the VTM and the Heritage Foundation, receive any State assistance.

 

Lastly it is mentioned that the VTM has to spend a further R410 309, 00 on capital improvements and new facilities during the current financial year (The Heritage Centre excluded, since this is being financed separately). This amount of ±R410 000 must also be financed from the operational revenue of the VTM, as the VTM does not have any other sources of income for such capital expenditure.

 

The situation concerning the Heritage Centre will be explained in a separate message.

 

Yours faithfully

 

 

GERT OPPERMAN

CHIEF EXECUTIVE OFFICER

 

6 October 2007