According to South African Tourism (SAT), the organization has utilized 72% of its budget for the financial year 2024/25. CEO Nombulelo Guliwe highlighted that this “demonstrates our commitment to maximizing our budget.”

This statement comes in response to media reports suggesting that SAT has not fully utilized its annual budget of R1.2 billion, raising concerns that it may need to return over R800 million to the National Treasury.

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Read: SA Tourism appoints a permanent CEO and new board [Feb 2024]

Guliwe affirmed that the current SAT management and leadership team is committed to thoroughly analyzing costs and will refrain from unnecessary expenditures amidst claims of budget underutilization.

“Despite inaccurate reports of a nonexistent 80% surplus, we will not succumb to pressure for indiscriminate spending,” she stated.

However, details regarding specific budget allocations remain ambiguous.

R100m Tender

The controversy centers around a R100 million tender for event management awarded to a relatively inexperienced company for Meetings Africa and Africa’s Travel Indaba, which SAT is contesting.

In December 2024, SAT commenced an independent forensic investigation into this event management tender, which is still in progress.

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“As clarified in the announcement made on December 16, 2024, no vendor has been awarded a R100 million event management tender,” Guliwe clarified.

Value of the Sector

In his latest letter to the nation, published on Monday (January 13), President Cyril Ramaphosa emphasized the importance of the tourism sector, especially as South Africa gears up to host the G20 Summit, which is expected to be the continent’s largest tourism stimulant.

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The tourism sector significantly contributes to South Africa’s economic growth and job creation, with Ramaphosa noting in 2023 that the country welcomed around 8.5 million international tourists, who added over R95 billion in spending.

“Our tourism sector has enormous potential for expansion beyond its current reach,” stated Ramaphosa.

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“This year, we will host the inaugural G20 summit on African soil, using this platform to promote South Africa as a premier destination for tourism.”

Prospects

SAT has obtained 53 bids for international events, which are anticipated to generate R616 million for the economy during the current financial year.

Looking ahead, these events are expected to attract over 24,000 delegates between 2024 and 2029, further bolstering South Africa’s reputation as a leading destination for international conferences and events.

The World Travel and Tourism Council (WTTC) reported that tourism contributed 8.2% directly and indirectly to South Africa’s GDP in 2023.

This sector serves as a crucial employer, with 1.46 million individuals engaged in tourism as of 2023, and projections suggest this figure could reach 1.7 million jobs in 2024 once finalized data is available.

Read: SA’s significant unemployment challenge continues to pose risks

Research from Stellenbosch University indicates that one new job is created for every 30 new tourists visiting a destination.

From January to October 2024, SAT reported 7.2 million visitors to South Africa, representing a 5.7% increase compared to the previous year within the same timeframe.

Additionally, preliminary data from the recent holiday season indicates robust sector performance, with high occupancy rates and notable event participation across the nation.

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