South African Tourism Makes Progress in Budget Utilisation
South African Tourism (SAT) has reached a significant milestone in its budget utilisation for the 2024/25 financial year, with a statement from CEO Nombulelo Guliwe indicating that the organisation has spent 72% of its allocated budget.
This comes after reports in the media raised concerns that SAT might fail to utilise its annual budget of R1.2 billion, potentially resulting in the return of more than R800 million to National Treasury.
Commitment to Budget Optimisation
Guliwe emphasized the organisation’s commitment to budget optimisation, stating that the management and leadership team are dedicated to interrogating costs and avoiding reckless spending.
“Even inaccurate information about a non-existent 80% surplus will not coerce us into spending recklessly,” she added.
However, it remains unclear what specific projects or initiatives the budget was earmarked for.
Investigation into Event Management Tender
SAT has disputed the awarding of a R100 million event management tender to an inexperienced company for Meetings Africa and Africa’s Travel Indaba, with an independent forensic investigation currently underway.
Guliwe clarified that no bidder has been awarded the R100 million event management tender, contradicting earlier claims.
Value of the Tourism Sector
President Cyril Ramaphosa highlighted the importance of the tourism sector in his latest letter to the nation, citing its significant contribution to growth and employment in South Africa.
The sector’s value lies in its ability to attract international tourists, with Ramaphosa stating that the country recorded around 8.5 million international tourist arrivals in 2023, generating over R95 billion in revenue.
Ramaphosa also expressed optimism about the sector’s potential, saying, “Our tourism sector has the potential to be even larger than it currently is.”
As part of its efforts to promote South Africa as a tourism destination, SAT has secured 53 bids for international events that are expected to generate R616 million for the economy in the current financial year.
These events are anticipated to attract over 24 000 delegates between 2024 and 2029, cementing South Africa’s position as a premier destination for global conferences and events.
Prospects for the Sector
According to the World Travel and Tourism Council (WTTC), tourism’s direct and indirect contribution to South Africa’s GDP was 8.2% in 2023, with the sector employing 1.46 million people in the same year.
Research from Stellenbosch University suggests that for every 30 new tourists to a destination, one new job is created, further underscoring the sector’s potential for growth.
Early indicators from the recent festive season suggest strong sector performance, with high occupancy rates and strong participation in events across the country.
Between January and October 2024, the country had 7.2 million visitors, a 5.7% increase compared to the same period in 2023.
SAT’s efforts to promote South Africa as a tourism destination are expected to yield positive results, with the organisation poised to take advantage of the opportunity to host the G20 Summit in 2024.
