The Real Equilibrium South African Rand/US Dollar Exchange Rate: A Comparison of Alternative Measures

This article indicates how different measures of the real exchange rate, i.e., the exchange rate adapted for cost inflation, price inflation and labour costs, influence the equilibrium view and misalignment of the South African rand/US dollar exchange rate. The approach followed is based on the behavioural equilibrium exchange rate approach by Clark and MacDonald (1998), where the exchange rate is influenced by a number of fundamental and transitory factors. The real equilibrium exchange is estimated by using a single equation regression and a number of key explanatory variables. To determine the long-run relationship a Vector Error Correction Mechanism is used.     

Clustering attendees at the Philharmonic Orchestra’s Summer Festival

There has been an increase in the number of arts and music festivals held annually in South Africa. These festivals range from wide all-encompassing arts festivals, such as the National Arts Festival, to specific festivals that cater for very specific audiences, such as the Jazz Festival and the Philharmonic Orchestra Festival. It may therefore be expected that the attendees of the various types of festivals would differ quite substantially. While much research has been conducted to understand visitor behaviour at general arts festivals and the economic contributions of these festivals, attendees of these more specialised events have been neglected. However, understanding who the attendees are and their behaviour is paramount to the sustainability of these festivals. Therefore, this paper aims to address this void and set the following objectives: (1) to compile a profile of attendees at the Philharmonic Orchestra Festival; (2) to cluster attendees of the Festival into distinct groups; and (3) to compare the various clusters with one another. Data were obtained by administrating 500 visitor questionnaires during January 2010. Using cluster analysis, visitors are grouped based on various characteristics and the differences between the clusters are explored using factor analysis and analysis of variance. Main results indicate that most visitors are mature in age and well educated, from which three clusters were identified with differences evident between the clusters.     

Is the rhino worth saving? A sustainable tourism perspective

Southern African countries are increasingly dependent on natural beauty and wildlife for tourism. Conservation is essential for sustainable tourism, and is expensive, especially for threatened and endangered species. The current price of a species only takes into account its current usefulness, often leading to an underestimation of the value of wildlife. This paper contributes to debates on the value of endangered species by estimating current use and non-use values for the rhino, a species under extreme threat. Internationally, literature that values scarce and endangered species uses willingness-to-pay (WTP) to derive a value of the species. This paper uses WTP to determine the non-consumptive use value of the rhino based on three surveys, n = 1291, conducted in South Africa's Kruger National Park (KNP) and compare it to consumptive use values. Non-use and inter-temporal values are also estimated to provide a comprehensive valuation of the rhino. Non-consumptive use values per rhino in KNP are shown to exceed consumptive use values by a minimum of 50%. The threat of extinction is shown to be linked to institutional, market and policy failures. Policy implications include raising poaching fines, raising wildlife value awareness and incentivising the community benefits of wildlife conservation.