This one has a straightforward answer, that is challenging to wrap one’s head around and tad lengthy to properly illustrate. Here’s the Cole’s notes.
I can only speak for BC, but the Yukon operates similarly. I outfitted the BC North Coast for both species of bears, moose, and lots of mountain goats. I had a loan secured against my home to make it happen including all my savings on top. To get a workable guide territory where I’m from, you’re looking at $600,000-several million. There are smaller hobby territories with minimal quota, but they’re not viable as a business generally due to small quota which equates to the ability to earn and pay it off. Very few of us here have that much money in cash, which means involving the bank and leveraging your home generally as banks don’t accept territory certificates as collateral.
Then you’ll need a staff, even if it’s just one guide and one helper, who need to make a living and provide for their families. That means you’re paying them whether you’re making money or not, and the first two years, you better plan on not which means you’re floating your own family, and at least one other at minimum. If you don’t take care of them, you lose them quick right when you need them as the guiding industry is so transient. That’s no slag on the guides, they go where the money is. Then, consider your quotas are finite. What you sell for hunts comes out of your ability to earn and pay your bills in the future, using or selling them cheap is dangerous. Then right when you’re feeling comfortable, the government can cut your quota with no notice saying sorry, what you already used was enough.
Then as your operation grows, so do your expenses. If you don’t own the aircraft and boats, plan to spend well into six figures a year on charters. A round trip to my territory cost $2500-3500, I could fly to Africa for what it costs to take a floatplane or jet boat to my camp. If you do own your own aircraft and boats (or horses) you spend the same just by a different path, you know what they say about boats let alone aircraft or horse ownership. On top of your territory payments, equipment maintenance and insurance, your staff salaries, your liability insurance, trade shows and advertising…
My head guide once said to me must be nice to be billing that for a goat hunt eh? I said hey, if I have you guide it for me, you make more on it than I do. He said “What?” and I was dead serious. The fellow I bought from told me there was $5000 in profit in a goat hunt all said and done when looked at, at year end. That margin proved accurate if I guided it myself. In the end, I averaged a hair more income than my day job which I left behind to guide, and worked about twice as much and was far more financially exposed. This is not a sob story, I’d do it again with some changes, it was a hell of a life.
But just keep in mind, if you are in the segment of the population that can pay for hunts, you’re generally wealthier than your outfitter and by good margin. It’s not a business you enter for the salary, it’s for the love of it. As to why Africa is cheaper, you’re looking at and comparing wild hunts on giant territories (ours was 5,300 square Kms, or 1.3 million acres) to stocked hunting themed game farms. Try comparing to wild Tanzania, Namibia’s Caprivi, open Zambezi Zim or bongo in the CAR… you’ll find the same prices. It isn’t cheap to operate truly remote, even with far cheaper African leases and staff.
Hopefully that makes some sense of the numbers you’re seeing, you’re annual income as a Rigby buyer likely outstrips that of all the guide outfitters you’re shopping except perhaps the family dynasty thinhorn sheep territory holders. None of us could buy one of their territories, one was recently for sale for around $8 million if memory serves.
Good hunting.