The Industrial Development Corporation (IDC) has requested proposals from consulting firms to conduct a prefeasi- bility study (PFS) for the envisaged develop-ment of a theme park in the Muldersdrift area.

The purpose of the study is to gauge the need, viability, infrastructure requirements, product offering and packaging, potential market support, forecast use, costs, benefits and multiplier effects of the proposed facility.

The call for proposals followed an open tender process by the IDC in January and the subsequent appointment of a service provider to identify appropriate sites for the development of the theme park.

The study identified 47 sites of over 30 ha each in the Muldersdrift area as poten-tially suitable locations for the proposed development.

Muldersdrift is located in the path of urban development and, as such, displays the mixed- use typology of a typical urban–rural transi-tion zone, although parts of the area fall within areas earmarked for conservation or limited development.

The scope of the PFS will involve the evaluation of the identified area and sites to determine the theme park’s potential use.

Factors to be considered include market proximity, physical limitations or constraints and access routes, with the 47 identified sites ranked from most suitable to least suitable, according to the key underlying ranking factors.

The PFS should further identify and investigate the impact of existing municipal, environmental and heritage specifications and factors, such as land-use zoning, building restrictions, disaster management, geological stability, environmental impact and heritage impact on the proposed development.

Further, market analysis should be con-ducted to determine the demographic characteristics of the resident market, includ-ing the population growth, age distribution and income distribution, as well as the tourist market, analysis of which should examine its potential size and historic growth.

“In addition, potential yearly usage for the proposed theme park should be estimated for the first five years of operation, based on a number of factors, including planned com-ponents, the size of available markets, qualitative market characteristics, market penetration rates achieved by comparable facilities, location and possible competition,” the IDC outlines in the bid documents.

The study will include financial analysis for the park, based on potential usage esti-mates for the first five years of operation, and should include predicted revenues by category, operating expenses, operating profit and the potential return-on-investment for equity investors.

“This analysis should also establish the warranted development cost, which should be compared with the actual development costs for existing comparable facilities. “This comparison should provide guidance on whether the proposed project could be developed for its warranted investment,” the IDC says.

The PFS will also be required to provide planning recommendations to service the expected market demand in terms of product offerings and mix.

This will include the theme park’s concept, the types of activities it offers, its major components and land and component sizing parameters.

Fundamentally, the PFS should determine the number of permanent and temporary jobs to be created during the construction phase and the first five years of operation, making special reference to the economic multiplier effect of such job creation.

Bids for the PFS will be evaluated according to certain technical criteria, which includes the bidder’s relevant experience and the scope of the proposal, as well as the skills and qualifications of the project team.

Commenting on the drivers behind the decision to develop a theme park in South Africa, the IDC describes theme parks as “star players” in the tourism industry, which plays a “special and important” role in generating tourism demand.

“Theme parks are the primary motivators of tourism trips to many destinations, and core elements of the tourism product, and have been identified by the Tourism Strategic Business Unit as a sector strategy.

“This is chiefly as a result of the anticipated positive impact that the proposed development will have on the South African economy in terms of job creation, local development and investment in world-class infrastructure and logistics,” the corporation says.

The proposed theme park will offer hotels and conference facilities, as well as restaurants, retail outlets and souvenir shops.

The closing date for proposals was August 20.