Adelaide Zoo racks up $24 million debt

The South Australian Government has had to step in to assist the Adelaide Zoo which is $24 million in debt.

On Tuesday, South Australian Minister for Environment and Conservation, Paul Caica, announced in parliament that the Government had given Zoos SA $2 million to help see it through 2011/12.

Zoos SA Chief Executive Chris West has moved to dispel fears that the zoo may close and that no job cuts planned stating "clearly it's a serious situation... but we are confident that we can work this through."

Professor West says economic burdens outside of the Zoo's control are to blame for the financial hardship, but admitted a lack of sponsors for the prize exhibit, pandas Wang Wang and Funi, was adding to the difficulty.

Professor West added that "the root cause is mainly because of the Global Financial Crisis and the fact that we didn't achieve as much corporate sponsorship as we planned to."

Zoos SA is an independent conservation charity but Professor West acknowledges the connection between his organisation and the State Government explaining that a mutually beneficial relationship has grown between the zoo and government, which has encouraged conservation and education within the community.

Professor West argues that the Zoo makes "a very large contribution" to the State's tourism product stating "last year the pandas made a contribution of nearly $60 million to the economy of the state and Zoos SA as a whole made a contribution of about $116 million."

The ABC quoted a less enthusiastic Minster Caica commenting on the overall contribution the panda's had made to the operational costs of the Adelaide Zoo.

Minster Caica explained "the Government has recently been informed that while the pandas have indeed attracted many more people through the gates, including from interstate and overseas, and revenues have increased in the form of sponsorships, memberships and events, these revenues have not been able to match the increase in the zoo's operating expenses."

The South Australian Government is currently involved in a review of the economic management of the Adelaide Zoo that includes both the zoo's board and management teams.

Professor West says he welcomes the review, the zoo is safe, employees will keep their jobs and the pandas are staying put, concluding that "the last thing that we'd ever plan to do would be to send the pandas back to China."

19th January 2011 - PANDAS WILL LEAVE ADELAIDE ZOO IN DEBT FOR A DECADE