south african tourism goal

• Sep 7, 2022

Rejuvenating South Africa's Economy - the tourism industry's potential

Copyright © 2022 Inclusive Society Institute PO Box 12609

Mill Street

Cape Town, 8000 South Africa 235-515 NPO All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without the permission in writing from the Inclusive Society Institute D I S C L A I M E R

Views expressed in this report do not necessarily represent the views of the Inclusive Society Institute or those of their respective Board or Council members. All records and findings included in this report, originate from a panel discussion on developing a new economic blueprint for South Africa, which took place in August 2022

Author: Mariaan Webb, Creamer Media Writer

Edited by: Daryl Swanepoel

AUGUST 2022

Abbreviations & acronyms

Introduction, identifying weaknesses.

• Inadequate understanding from government

• Insufficient public- and private-sector cooperation

• Volume over value focus

• Price-differentiation strategies

• Policy implementation challenges

• Domestic airline failures

• Aviation certification delays

• Monopolistic tendencies

• Brand reputation neglect

• Infrastructure failures

Suggestions for fostering growth

ACSA Airports Company South Africa

GDP gross domestic product

ISI Inclusive Society Institute

SMME small-, medium-sized and microenterprises

Stats SA Statistics South Africa

SA Tourism South African Tourism

TSA Tourism Satellite Account

UNWTO United Nations World Tourism Organization

WTTC World Travel and Tourism Council

Tourism is of vital economic and social importance to many countries around the world. Before the Covid-19 pandemic, which led to drastic changes in people’s mobility, travel and tourism accounted for one in ten jobs (330-million) globally and 10.30% of the world’s gross domestic product (GDP) (WTTC, 2022a).

Tourism is also a valuable contributor to the South African economy. Measured against other industries, tourism’s direct contribution to GDP is bigger than either agriculture, utilities (electricity, gas and water) or construction. The ‘Tourism Satellite Account (TSA) for South Africa’ report, compiled yearly by Statistics South Africa (Stats SA), states that the sector’s direct contribution to GDP was 3.70%, or R209-billion in 2019, before the pandemic crushed the sector (Stats SA, 2021).

To measure total contribution of travel and tourism to GDP, TSA relies on data from the World Travel and Tourism Council’s (WTTC’s) country report for South Africa. WTTC calculates the sector’s direct and indirect contribution to the economy in 2019 to be 6.90%, or R363.20-billion (Stats SA, 2021).

Direct contribution of tourism to GDP: 2015 – 2019

Source: Tourism Satellite Account for South Africa, Statistics South Africa

Travel restrictions implemented by countries to stop the spread of Covid-19 had a major impact on the tourism industry, cutting across all subsectors, from accommodation to aviation. South Africa’s borders were closed from the end of March 2020 to September 2020, preventing tourists from visiting the country. The emergence of new variants of Covid-19 in June and July 2021 also impacted on tourism as many countries prevented their citizens from traveling to South Africa. The UK government, for example, developed a red list, which comprised countries to which its citizens were prohibited from travelling. South Africa was on the red list from May 2021 to October 2021.

The WTTC country report estimates that the total contribution of travel and tourism to GDP declined by 55%, to R180-billion, in 2020. As pandemic restrictions eased, tourism rebounded and is estimated to have contributed about R195.20-billion to South Africa’s GDP in 2021 (WTTC, 2022b).

Tourism has been identified in the National Development Plan as being of economic priority given it is a labour-intensive sector that could contribute to achieving job creation targets. However, despite its recognised potential, the industry believes that government does not fully recognise or value tourism’s importance as an economic contributor.

The Inclusive Society Institute (ISI), in collaboration with the Tourism Business Council of South Africa, convened a tourism sector dialogue in June 2022 as part of a broader research project to develop a New Economic Blueprint for South Africa. The dialogue was attended by a wide range of organisations representing various subsectors within the tourism industry in the country, including the hospitality sector, the airline industry, travel agents, destination marketing agencies and hotel, resort and game lodge establishments.

This report gathers the tourism industry’s views on what South Africa must do to remove constraints to economic growth and development in the sector and offers suggestions on what could be done to accelerate and expand tourism’s contribution to GDP growth.

Inadequate understanding from government

Although statistics highlight the sizeable contribution of tourism to the South African economy, there is a view that government does not fully recognise the importance of tourism to the country’s economy. Having a national Tourism Ministry is not enough and the success of the industry has relied on various departments working together. There is often a lack of trust between departments, preventing government from operating efficiently.

Inefficiencies in departments, often other than tourism, can have major implications for the industry. For instance, the Department of Transport’s backlog in issuing operating licence renewals to tour operators, or the regulations imposed by the Department of Home Affairs when it introduced unabridged birth certificates for minor children travelling through any port of entry, can have unintended consequences for tourism.

While government must do more to show its understanding of and appreciation for tourism, the industry is also required to accelerate processes of inclusion and black economic empowerment so that owners and operators better reflect the racial demographics of South Africa.

Insufficient public- and private-sector cooperation

Although the Covid-19 pandemic has assisted in fostering closer cooperation between the public and private sectors, this is an area that remains of great concern to the industry. There is a lack of collaboration between the Department of Tourism, its marketing arm, South African Tourism (SA Tourism), and the private sector in crafting tourism strategies. For instance, there is a view that marketing strategies are developed from a political angle rather than with a commercial slant and, therefore, lack sufficient opportunism. Focusing too much on BRICS countries (Brazil, Russia, India and China) is perceived to be politically opportunistic, but it does not deliver the commensurate commercial dividends.

Volume over value focus

Government’s tourism growth agenda focuses too much on volume, and not enough on value. SA Tourism’s aspirational target is to reach 21-million tourist arrivals by 2030, although that goal had looked out of reach even before the Covid-19 pandemic. SA Tourism now believes that attracting 14.80-million visitors is a more “realistic target” for 2030 (SA Tourism, 2021).

However, the consensus was that instead of focusing on visitor numbers and trying to be “everything to everyone”, South Africa must position itself as a destination that attracts “valuable” visitors who spend money throughout the value chain. It must also guard against overtourism or placing its infrastructure under pressure.

Price differentiation strategies

Safari camps, luxury lodges and many other supreme tourist destinations dropped their prices and offered South Africans discounted rates when international travel was not possible while Covid-19 travel restrictions were still in place. To revive the tourism industry, price differentiation strategies must be employed more broadly to encourage South Africans and other Southern African Development Community residents to explore the country. The Industrial Development Corporation, in partnership with SA Tourism and the Tourism Business Council of South Africa, recently launched a travel campaign to that effect. As part of the campaign, South Africans will be able to secure discounted rates of up to 35% to selected destinations across the country (Engineering News, 2022).

Financial constraints mean that more South Africans are opting to take local holidays than travelling overseas. A recent poll by consultancy group Travel Lifestyle Network indicated that 67% of those canvassed have a domestic holiday once a year or more and 22% once every six months. With the rising cost of living, price is going to be a key differentiator to attract consumer spend in the remainder of 2022 and 2023 (Business Day, 2022).

Policy implementation challenges

South Africa has an abundance of policy documents, positions and pronouncements, but often these do not yield the desired results, owing to a lack of consistent implementation. The lead up to the 2024 general election will likely compound implementation challenges, as a new government will be elected in less than a year-and-a-half. Implementation success hinges on continuity and a new administration may pursue or prioritise different interests.

Domestic airline failures

The failure of Comair, the operator of low-cost carrier kulula.com and British Airways, which it operated under a licence agreement, was a major setback for the tourism industry. The company was responsible for 40% of domestic airline capacity before its closure in June 2022 (BusinessTech, 2022).

Comair failed to secure funding to stay airborne after being impacted on by global pandemicrelated travel restrictions. However, the group’s problems started before Covid-19, when the Boeing 737 Max aircraft was grounded, and its fleet-renewal programme pushed up debt and debt service costs. Placing South African Airways (SAA) in business rescue in 2020 was another major setback for Comair, which at the time was still owed R790-million by the State-owned carrier as part of a Competition Commission settlement. SAA ran an incentive scheme for travel agents in the early 2000s, which was found to penalise Comair. After SAA went into business rescue, it was ruled that Comair could get back only 7.5c in the rand of the R790-million still owned to it by SAA (Fin24, 2022a).

SAA itself resumed operations only in late 2021, having been in business rescue for almost two years, which had a substantial impact on business and leisure travel. SAA’s predicament was caused by several issues, including political interference and leadership turmoil.

The liquidation of Comair has substantially reduced domestic seat capacity, exacerbating a crisis in the industry, which over the past two years also lost low-cost carrier Mango Airlines.

While other operators will eventually fill the gap left by Comair and Mango, capacity constraints have pushed up ticket prices, further hampering the tourism sector’s recovery from the pandemic. Operators of domestic airlines have warned that ticket prices will remain high owing to the price of fuel (Fin24, 2022b).

Aviation certification delays

Authorities are slow to process aviation certifications, which is a significant obstacle for the air travel industry. Every aircraft that an international airline uses on a route to South Africa must be registered and this process is taking too long. An aviation sector participant in the ISI dialogue indicated that it takes the South Africa Civil Aviation Authority several months to issue an airline operating certificate, compared with six days in Germany, for instance.

Monopolistic tendencies

Some of the key services pertaining to aviation and airports, such as Airports Company South Africa (ACSA) and Air Traffic and Navigation Services, are monopoly State-owned entities. There is no visibility on how ACSA, for instance, is ensuring that it gets the most out of its existing assets.

Brand reputation neglect

There is concern about the ongoing damage to the South African brand as a safe and welcoming tourism destination. Civil unrest and violent crime, especially near popular tourism sites, such as the Kruger National Park, exacerbate perceptions that South Africa is an unsafe destination.

Infrastructure failures

Delipidated road infrastructure and poorly maintained buildings do not support tourism growth.

Many small towns near or on route to key tourist sites are in decay due to poor service delivery and inadequate maintenance resulting from municipal failure. Tourists no longer support towns where streets are riddled with potholes and litter is strewn everywhere. The poor quality of provincial roads in popular tourist hotspots is also of concern. Tourism industry participants have been complaining for years about the poor state of roads in the picturesque Mpumalanga Lowveld, for instance.

Focus points to accelerate tourism industry growth

Tourism continues to recover at a strong pace following the Covid pandemic. Globally, destinations welcomed three times as many international arrivals in the first quarter of 2022 as in the same period of 2021. The World Tourism Organisation’s ‘UNWTO World Tourism Barometer’ forecasts that there will be a gradual recovery in tourism throughout 2022, as more destinations ease, or lift, travel restrictions and pent-up demand is unleashed (UNWTO, 2022).

South Africa’s tourism figures are also encouraging, with tourist accommodation income rising by 83% in the first quarter of 2022. Income from hotel accommodation doubled in the first quarter, compared with the same quarter of 2021 (Stats SA, 2022).

For South Africa to take full advantage of the tourism rebound, collaboration between government and the industry is of critical importance. The country must pitch itself to the right clients and polish its brand to ensure that visitors choose or continue to choose South Africa, and that when tourists do arrive on South African shores they enjoy a world class experience, with full safety and security and supported by adequate tourism-related infrastructure and facilities.

BusinessTech. 2022. Flight costs in south Africa are up 50% – and could go much higher after Comair loss, June 23, 2022. [Online]. Available at: https://businesstech.co.za/news/lifestyle/599518/flight-costs-in-south-africa-are-up-50-and-could-go-much-higher-after-comair-loss/ [accessed August 24, 2022].

Engineering News. 2022. IDC launches domestic tourism campaign to stimulate economic recovery, August 4, 2022. [Online]. Available at: https://www.engineeringnews.co.za/print-version/idc-launches-domestic-tourism-campaign-to-stimulate-economic-recovery-2022-08-04 [accessed August 24, 2022].

Fin24. 2022a. How Comair ended up in a battle for survival, June 2, 2022. [Online]. Available at: https://www.news24.com/fin24/companies/explainer-how-comair-ended-up-in-a-battle-for-survival-20220602 [accessed August 24, 2022].

Fin24. 2022b. Why flights are so pricey right now, July 31, 2022. [Online]. Available at: https://www.news24.com/fin24/companies/its-not-the-comair-gap-why-flights-are-so-pricey-right-now-20220731 [accessed August 24, 2022]

South African Tourism. 2021. Annual Performance Plan 2021/22, March 22, 2021. [Online]. Available at https://static.pmg.org.za/SA_Tourism_2021-22_ANNUAL_PERFORMANCE_PLAN.pdf [accessed August 18, 2022].

Statistics South Africa. 2021. Tourism Satellite Account for South Africa, final 2017 and provisional 2018 and 2019, November 30, 2021. [Online]. Available at: https://www.statssa.gov.za/?p=14992 [accessed August 18, 2022].

Statistics South Africa. 2022. Statistical Release: Tourist accommodation for March 2022, June 2, 2022. [Online]. Available at: https://www.statssa.gov.za/publications/P6410/P6410March2022.pdf [accessed August 18, 2022].

United Nations World Tourism Organization. 2022. Tourism recovery gains momentum as restrictions ease and confidence returns, June 3, 2022. [Online]. Available at: https://www.unwto.org/news/tourism-recovery-gains-momentum-as-restrictions-ease-and-confidence-returns [accessed August 24, 2022].

World Bank. 2022. Worldwide Governance Indicators, 2022. [Online]. Available at: https://info.worldbank.org/governance/wgi/Home/Reports [accessed August 18, 2022].

World Travel and Tourism Council. 2022a. Economic Impact Report, 2022. [Online]. Available at: https://wttc.org/Research/Economic-Impact [accessed August 18, 2022].

World Travel and Tourism Council. 2022b. South Africa Country Report, 2022. [Online]. Available at: https://wttc.org/Research/Economic-Impact/moduleId/704/itemId/204/controller/DownloadRequest/action/QuickDownload [accessed August 18, 2022].

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

This report has been published by the Inclusive Society Institute

The Inclusive Society Institute (ISI) is an autonomous and independent institution that functions independently from any other entity. It is founded for the purpose of supporting and further deepening multi-party democracy. The ISI’s work is motivated by its desire to achieve non-racialism, non-sexism, social justice and cohesion, economic development and equality in South Africa, through a value system that embodies the social and national democratic principles associated with a developmental state. It recognises that a well-functioning democracy requires well-functioning political formations that are suitably equipped and capacitated. It further acknowledges that South Africa is inextricably linked to the ever transforming and interdependent global world, which necessitates international and multilateral cooperation. As such, the ISI also seeks to achieve its ideals at a global level through cooperation with like-minded parties and organs of civil society who share its basic values. In South Africa, ISI’s ideological positioning is aligned with that of the current ruling party and others in broader society with similar ideals.

Email: [email protected]

Phone: +27 (0) 21 201 1589

Web: www.inclusivesociety.org.za

Recent Posts

Danish Labour Market Model: Lessons for South Africa

Coalition Government: Lessons from Finland

Overview of the Construction Mafia Crisis in South Africa

Opmerkingen

• Corporate & media website
• Travel Website
• Travel trade website
• Business events website
• About South African Tourism
• Media centre
• Annual Report
• Asset Library

Choose your country and language:

• Congo Democratic Republic
• South Africa

Asia Pacific

• South Korea
• Netherlands
• United Kingdom

By creating an account, I agree to the Terms of service and Privacy policy

Click here to access media assets for Africa's Travel Indaba

A A frica's Travel Indaba Media Centre

Please click on the below links to access media assets for Africa's Travel Indaba 

Press Releases 

South African Tourism is the tourism marketing arm of the South African government. Simply put, our job is to promote the country domestically and internationally, whether for leisure, business or events tourism.

O O ur commitment

We are committed to meaningfully contributing to the government's objectives of inclusive economic growth, sustainable job creation, and redistribution and transformation of the industry through:

• Increasing the number of tourists who visit our country
• Increasing the geographic spread, length of stay and spend of all visitors
• Improving seasonal arrival patterns
• Working to transform the industry so that historically disadvantaged South Africans may benefit from the sector

Our footprint

The organisation has grown from a few offices around the world to having operations in 13 international markets, with a mandate to market and share all that is unique, warm, and beautiful about South Africa.

South Africa on social media

The BMW International Open has made us excited for the BMW Golf Cup World Final to be hosted in SA. We caught up wi… https://t.co/IDHsnwn33E

Always a pleasure partnering with local businesses to promote SA on the global stage. Warren Weitsz, Co-Founder of… https://t.co/doxJa4wVxf

To say the players are bringing their A-game is an under statement! Round 2 has given us many unforgettable moments… https://t.co/IA2Ki5qsWO

"...Patrons have been keen and interested in engaging on where the best fairways in SA are. Paired with some of our… https://t.co/9kNQbIl1J5

Our stand at the BMW International Open has been drawing a lot of attention – and rightfully so! “We are proud and… https://t.co/jYDjs6VRM2

Clear skies, rolling greens, supportive crowds – the conditions couldn’t be better for a day at Golfclub München Ei… https://t.co/Z7UnxSbbuP

What happens when an amateur and pro hit the fairway together? Find out in the Pro-Am Tournament, where 3 amateurs… https://t.co/Ee3hgR1Ggc

They are joined by Grand Pavios Event Organiser. They will visit Kwa-Zulu Natal, Cape Town, and Knysna showcasing S… https://t.co/066ntNJGr1

As the country of Honour at the 2023 event, South Africa represented by South AfricaTourism in collaboration with W… https://t.co/ie2E9ZqaCF

Hosted in La Rochelle, France, the Grand Pavios is a major annual event for sailing enthusiasts and an internationa… https://t.co/R2P0GYpVrQ

Ready to get into the swing of things? The Pro-Am Tournament of the 2023 BMW International Open starts today in Mü… https://t.co/3l9e4mPMSo

Don’t miss out on what happened in the world of South African tourism with our #TourismTuesday newsletter. Read ou… https://t.co/Gvg2rDCBiT

Continuation.. To all the fathers in tourism, we salute you for your hard work, passion, and dedication. Thank you… https://t.co/TcpxDeaKkM

Continuation... On this special day, we encourage everyone to take a moment to appreciate and celebrate the fathers… https://t.co/7atxViWyxd

Fathers ensure a safe environment in which everyone can enjoy our country's diversity and play a pivotal role in cr… https://t.co/T8vvGTCu7i

Continuation... Today, we want to celebrate and honour the remarkable dads who play a vital role in shaping the wor… https://t.co/qS9WYfXyE0

@sontondlovu, the ACEO/COO of SA Tourism, joins in celebrating Father's Day by sending warm wishes to all the fathe… https://t.co/7ZbeNsUYoy

In commemoration of Youth Day, let’s shine a spotlight on the Basic Quality Verification programme by @TGCSA_, that… https://t.co/TZ2FDTadcJ

We look forward to showcasing South Africa’s abundant tourism offerings to a global audience while reminding them a… https://t.co/8df5w5kyGL

A dynamic collaboration between SA Tourism and the iconic BMW Group is set to supercharge the country’s efforts tow… https://t.co/tB5xLgYjnq

• Useful links
• Asset library
• Press centre
• Useful info
• Contact South African Tourism
• Image Library
• Explore South Africa
• South African Tourism
• Events calendar
• Find an expert
• COVID-19 Coronavirus
• Tourism Tuesday

Tourism Month 2024

1 to 30 September

Tourism Month is celebrated annually in September, and provides a heightened month-long focus on the importance of the sector to the South African economy. It features themed activities that are aligned to the United Nations World Tourism Organisation’s (UNWTO) World Tourism Day celebrations. 

This global observance day by The United Nations World Tourism Organisation aims to foster awareness of tourism’s social, cultural, political and economic value and the contribution that the sector can make towards reaching the United Nation’s Sustainable Development Goals.

Tourism Month encourage South Africans to travel domestically to sustain jobs and support the recovery of tourism in line with the Tourism Sector Recovery Plan.

The Department Tourism developed the Tourism Sector Recovery Plan with the tourism sector and it contains a set of interventions to protect and rejuvenate supply, reignite demand and strengthen enabling capability to support the sector’s recovery. 

Tourism authorities in the provinces:

• Eastern Cape Parks and Tourism Agency
• Free State Tourism
• Gauteng Tourism Authority
• KwaZulu-Natal Tourism Authority
• Limpopo Tourism and Parks
• Mpumalanga Tourism
• North West Province Parks and Tourism Board
• Northern Cape Tourism
• Western Cape Tourism

Share this page

Similar categories to explore.

• National Assembly
• South African Tourism Quarter 1 Report for the 2023/24 financial year; with Minister

31 October 2023

Chairperson: ms t mahambehlala (anc), meeting summary.

South African Tourism (SAT) presented a report on its performance in the first quarter of the 2023/24 financial year. It noted that while there was overspending, several targets were not achieved.

The Committee was told that recommendations arising from a risk assessment report had been implemented. Internal controls were being improved to obtain a clean audit report. Targets for producing reports on tourism were not met.

A global marketing campaign was finalised. It would use interesting stories about people and places to deliver a message about South Africa as an exceptional destination. Domestic and global Business-to-Business (B2B) campaign plans were approved.

 A total 4 053 tourist establishments were graded against a target of 1 356. This was attributed to the annual tourism grading cycle for individual properties.

Committee Members asked about the timeframe for filling key posts currently occupied by acting officials. They were assured that a new board and permanent officials would be in place by the end of November, 2023. They asked what strategic steps would be taken to address targets not achieved and what measures would be taken to ensure findings by the Auditor-General would be addressed.

They also asked to be provided with details of marketing contracts with the SA Rugby Union and the Springbok captain, Siya Kolisi.  

Meeting report

In her opening remarks, the Chairperson stated that she had received a letter from the Minister of Tourism, Ms Patricia de Lille, about suspending an employee of South African Tourism (SAT). She said the report was detailed and asked the Minister to brief the Committee on the matter first.

The Minister said she had sent a request to the board about the suspension and asked the board to provide details to the Committee.

Mt Tim Harris, Chairperson, SAT Board, said there were complaints from a whistleblower about the digital marketing officer. The board decided to start an investigation and sought a legal opinion on the matter. The individual concerned was given an opportunity for representation. The individual was on suspension with salary.

There was a discussion about who should make the presentation to the Committee.

Mr A Matumba (EFF) asked why the acting chief executive officer (CEO) could not make the presentation as the accounting authority.

The Chairperson said the Committee resolved that the acting CEO could not present both the financial and administrative matters. She could not be the acting  CEO and the chief financial officer  (CFO). There was a separation of powers. An arrangement had been made that she present only the finances and that the chief operating officer (COO) should make the presentation.

The Minister said she was finalising the process of appointing a permanent board by the end of November and the permanent CEO would be appointed by the end of November as well. She stated it was not desirable to have the acting CEO and CFO make the presentation. The matter would be resolved when SAT appeared before the Committee to present a second quarter performance report.

South African Tourism Quarter 1 Report for the 2023/24 financial year

Ms Nomasonto Ndlovu, COO, South African Tourism (SAT), took the Committee through the quarter one performance of the entity, reporting on its five programmes.

Programme 1: Corporate support

The three recommendations arising from the 2022/23 Risk Management Maturity Assessment Report were implemented, including a review of the operational risk registers, linking the key risk indicators to the operational risk registers, and assigning risks to risk owners.

The Quarter 1 milestones in the Corporate Compliance Campaign were implemented, including developing the Operation Clean Audit (OPCA) implementation plan, establishing the project steering committee and the inaugural project steering committee meeting. The objective of OPCA was to ensure the internal control environment was effective, efficient, and conducive to the entity obtaining favourable audit outcomes which could result in improved productivity and a clean audit by March 2026. SAT implemented 26 percent of valid audit recommendations, exceeding the planned target of 25 percent.

One hundred percent of compliant invoices were paid within thirty days from date of receipt.

Initiatives were implemented to promote integrity and ethics in supply chain management (SCM). These included letters to business unit managers confirming budget allocations and related accountability; capability building for procurement committees; and creating awareness across the organisation of the SCM code of conduct.

In terms of employment equity targets, 65 percent of staff were women, against a target of 60 percent. There were women in 44 percent of the senior and top management positions, against a target of 50 percent. There were no people with disabilities, against a target of two percent. Across all occupational levels, 75 percent of staff were Africans, Coloureds, or Indians, against a target of 60 percent. The challenge with regard to women in senior and top management positions was the moratorium that was in place during the quarter and an increase in resignations. Regarding people with disabilities, the challenge was that disclosure was voluntary.

Programme 2: Business enablement

Two of the eight planned Quarter 1 milestones for the Integrated Digital and Analytics Operating Framework were recorded. The challenge was that the performance could not be verified. This was corrected in Quarter 2. 

The Departure Survey Fieldwork Report and the Domestic Tourism Survey Fieldwork Report were not produced as planned. Additional training was provided to the business unit to ensure optimal performance in Quarter 2.

The Quarterly Trend Analysis Report planned for the quarter was not published as planned. This was corrected through additional training for the business unit. Twenty-five thought leadership pieces were published, against the target of two, to provide data on the 24 marketing and investment priorities. One Tourism Statistics and Performance Report was produced as planned. The improvement plan based on the 2022/23 South African Tourism Corporate Brand Index was developed.

Programme 3: Leisure tourism marketing

The 2023/24 Global Tourism Brand Campaign Plan (Live Again 2.0) was finalised. The campaign would use interesting stories about exceptional people and places to deliver the message of South Africa as an exceptional destination. Live Again 2.0 was launched at the Africa Travel Indaba on 9 May 2023. Timeous planning and project management led to the achievement of the target.

Two global tourism campaigns were localised in South Africa - the 30 Years of Freedom campaign celebrating the lifetime achievements of Hugh Masekela and the Indaba Brand Experience which showcased South Africa as an exceptional destination for both business and leisure travel.

Two global brand collaborations and partnerships were secured, which included an MOU with the South African Tourism Services Association (SATSA) to strengthen relations between the public and private sectors and a brand ambassador agreement with Siya Kolisi.

Based on the 2023/24 Global Tourism Brand Campaign, annual localised campaign concepts and implementation plans for each hub were developed, except for the Asia and Australasia regions. This region did not achieve its target because of non-compliance with reporting requirements due to capacity constraints.

The annual seasonal campaign and implementation plan for domestic tourism was developed and approved. It sought to showcase a variety of affordable experiences in a clear and accessible way, supported by a personal safety message. The Sho’t Left Travel Week campaign concept was also developed and approved.

Programme 4: Business events

The domestic and global Business-to-Business (B2B) campaign plans were developed and approved. The domestic campaign aimed to create awareness about the bid support programme. Thirty-three bid submissions were achieved as planned. The submissions were for South Africa to host international and regional business events. The global campaign sought to promote the exceptional sectors of South Africa, its role as key player and leader within the knowledge economy and its exceptional infrastructure and hosting capabilities.

One business event, the Tourism Investment Forum Africa, was hosted in Upington. The event attracted 194 delegates and speakers from the African continent and provided 38 job opportunities.

The Quarter 1 Business Events Bidding Impact Report was produced as planned. 

The Africa Travel Indaba was successfully hosted from 8 to 11 May 2023. It attracted 8 688 attendees, 1 464 buyers, and saw 55 423 meetings being held. The Post-Show Economic Impact Study briefing for Meetings Africa (MA) 2023 was successfully concluded.

Programme 5: Tourist experience

A total of 4 053 establishments were graded against a target of 1 356. This was attributed to the annual tourism grading cycle for individual properties. The three milestones of the grading model and the Tourism Grading Council of South Africa (TGCSA) Value Proposition Roadmap were achieved for Quarter 1. This included the TGCSA brand campaign launch, commencement of change management for the business model, and the development of the operational model. The achievement of the target was due to adequate planning and implementation. The intention of this work was to broaden the opportunities for the inclusion of emerging tourism products.

A product proposition was developed. It would identify tourism establishments, attractions and experiences to match them to the brand of South Africa as an exceptional tourist destination with a variety of authentic and diverse tourism offerings. A three-year Tourism Value Chain Strategy was developed.

(Tables and graphs were shown to illustrate budget allocation and expenditure per programme and employment equity numbers)

Ms L Makhubela-Mashele (ANC) asked what percentage of the board worked on filling vacancies, seeing that it had to stabilise the entity and more capital was needed to fill vacancies. She asked what the timeframes were for filling the CEO and other vacancies, because there had been a commitment that systems would be in place by the end of November 2023. She asked that the Committee be furnished with a report when the study on Meetings Africa 2023 had been concluded.

She remarked that the nine board meetings that had been held were an indication the SAT board was busy. She asked if this did not mean it was stretched in terms of capacity seeing that it comprised three people and one of them was very busy and never attended meetings. She asked the board chairperson to explain what he meant by the short-term appointment of Ms Nomasonto Ndlovu because the investigation into whistleblower allegations against her had been concluded. She had requested to step down when the allegations surfaced.

The Minister said the appointment of the board would be finalised by 29 November 2023.

Mr Harris said the moratorium on hiring was lifted for several posts like those of the CEO, CFO, CMO, and strategy officer. The recruitment process for the CFO was progressing well. The board had been focusing on resolving the CFO matter, making use of National Treasury guidelines. He added that the board had received a report about the previous CFO.

He pointed out that the delegation from SAT was there to support the Minister. The board and management of SAT were jointly responsible for putting together the presentation, and it was decided it made sense for the CFO to present the report because it dealt with the time she was the acting CEO.

Mr M De Freitas (DA) enquired why spending was above where it should be at 40 percent vs 25 percent.

Ms Nombulelo Guliwe, acting CEO and interim CFO, said that in a normal financial year, the planning for finances was done during the first quarter to determine the budget for the whole year. Sometimes there were contracts that required pre-payments. The pre-payments did have approvals. Overspending on programmes was caused by the current financial situation of the entity.

Mr A Matumba (EFF) asked why the chairperson of the SAT board was undermining the recommendations of Parliament by appointing senior executives without finalising the appointment of a permanent board. The recommendations stated the Minister should expedite the process of appointing a permanent board so that executives of the entity could be appointed.

He said the Committee should be told about the number of meetings held and the attendance. The report should indicate if there were any special meetings, and also show costs spent on the board members. He said it was important to know the spending on marketing the country and the number of foreign visitors coming to South Africa to visit or work so that value for money could be seen. He remarked that issues raised by the Committee were not taken seriously because what happened to Ms Ndlovu should not be repeated. Even though she was performing, she was removed as an acting CEO, but now the whole thing appeared to have been window-dressing.

The Minister stated that figures on marketing South Africa reflected the input from the private sector and what SAT invested. That was why there was one figure. There had been competition between the private sector and SAT in marketing the country. Currently, the Department is working on a process of joint marketing.

On the appointment of senior executives, she said one of the conditions set by the Committee was that executive positions should be filled as soon as possible. That was why the filling of executive positions was started and she was the one who lifted the moratorium on that. She asked whether she could gather more information about issues related to the board meetings and costs and send a report to the Committee. The appointment of a new minister to the Department and the coming in of the new board contributed to the many board meetings. There was assurance that SAT had not spent too much on board affairs.

Ms Guliwe said that marketing investment always started with the work being done in Programme 2. There were also overlaps with the private sector. A return on investment (ROI) analysis was done for every campaign.

Ms S Maneli (ANC) asked how many board meetings were held virtually and how many were held physically. She asked whether the overspending in Quarter 1 was something that was going to happen every year. She sought clarity on why targets were not met. She asked what recruitment was being done to attract the disabled.

The Minister stated that she agreed with the Committee on the matter of employing people with disabilities. The target was only two percent. A strategy needed to be developed and certain posts should lean towards disabled people. She also stated that SAT was presenting on what occurred in Quarter 1. The only concern was overspending. There was a process for internally approving overspending before it took place, and that had been her concern.

Ms Ndlovu said SAT was implementing disability learnerships and conducting gap analysis so that the organisation was receptive to people with disability. When the employment moratorium was fully lifted, recruitment would be intensified. They had approached Disability Info SA to see if they could phrase their advertisements differently.

Ms H Ismail (DA) asked what strategic steps would be taken to address targets not achieved and what kind of internal audit measures would be put in place to meet the targets. She asked what measures would be taken to address the Auditor-General's (AG) findings, because there had been over-expenditure but less performance.

Ms Guliwe said the internal audit committee was responsible for reviewing the budget regularly and coming up with mitigations. The controls were in place.

Ms Ndlovu said mitigating steps were started in all areas identified in Quarter 1. There would be significant improvements in the second quarter. There were new internal processes to improve reporting and provide training and re-training.

Ms P Mpushe (ANC) remarked that SAT continued to report non-achievements in recruiting people with disabilities. She asked how far the entity was with the Best Company to Work for survey and wanted to understand what plans were in place to ensure the targets on the Brand Index were met.

Ms Ndlovu said there was poor planning around the Brand Index. She noted the concerns of the Committee and said they were continuously trying to ensure that meetings were not cancelled.

The Chairperson remarked that overspending in the report did not correlate with what had been achieved. She sought clarity on the 120 percent overspending on human capital. SAT had not been complying with statutory quotas regarding the disabled. There was a lack of clarity on the moratoriums on filling vacancies.

In a previous meeting with the Committee, SAT indicated that 23 board meetings were held but now said there were nine meetings. She had asked for clarification on the 23 board meetings and that report had not been submitted.

What were the reasons for introducing a new programme which had no achievements? She wanted to know the reasons why there were no achievements in programmes 2, 3, 4, and 5.

Lastly, she wanted to understand why SAT was not visible during the Rugby World Cup tournament yet it had signed a contract with Siya Kolisi. SAT had a responsibility to sell the country globally. There was also currently a cricket world tournament.

The Minister said she noted the misalignment of budget and performance. She said she received information from the board about rugby contracts on 12 September 2023 after the Committee requested it on 9 September. The Springbok contracts were started by SAT and that information would be sent to the Committee. One contract was with the SA Rugby Union (SARU) and the second was with Siya Kolisi. She had questioned reference to a bonus clause because such things did not exist within government. An amount of R7.7 million was provided to activate a campaign at the friendly match between South Africa and New Zealand at Twickenham. SA was not allowed to advertise at the actual World Cup events. The executive committee of SAT had a mandate to spend up to R10 million, hence it was broken into instalments. The Minister of Sport, Mr Zizi Kodwa, was not aware of the contract with SARU. She had scheduled a meeting with him to discuss the matter.

Ms Bronwen Auret, Chief Marketing Officer, said there was no partnership between SAT and SARU. The contract with Siya Kolisi would end in June 2024. There had been quite a few restrictions because he was focusing more on the game. But now he would continue with his role and his audience had grown.

Mr Harris said the nine meetings referred to were in Quarter 1. Four meetings were for inductions, two for discussions around the resignation of the CEO and the remainder were about the whistleblower allegations. The previous board conducted the 23 meetings.

Ms Guliwe said that budget optimisation was not achieved. SAT did not meet the targets for Quarter 1 and it was agreed to fast-track the meeting of targets.

She said SAT spent R7.7 million on the rugby campaign on top of R6 million that was contributed. The contracts did not end with the end of the World Cup. Concerning the overspending on human capital management, she stated that each functional head had to identify what needed to be reprioritised to reach the targets.

The Chairperson remarked that there was a difference between visibility and rands and cents.SAT had decided to disengage on visibility during the World Cup. It was summertime, and more people would flock to South Africa after this World Cup. Tourism was meant to contribute immensely to the GDP, but  SAT was failing the country.

Ms M Gomba (ANC) remarked that the Rugby World Cup was an opportunity to market South Africa. The spectators and viewers would have learnt more about the country and would want to visit. SAT did not take advantage of the many millions of spectators. She said the acting CEO should better understand where the budget went, and asked if SAT operated on an accrual budget system or a zero-based system.

Ms Guliwe said zero-based budgeting was used and it was aligned to National Treasury regulations.

Mr Matumba asked whether SAT had a team in France to activate its campaign. He asked why SAT was relying on Stats SA for information considering that it was spending a lot of money on research. He remarked that the current board was repeating what the previous board did in the chopping and changing of the CEO. It was doing the same in the appointment of the CFO.

The Minister said Stats SA was the best source for statistics and information. It had the best resources.

She said she and the Director-General of the Department of Tourism would meet with SAT on what it wanted to achieve with the Tracking Information System. She stated that the Department had decided that all acting positions would end at the end of November 2023. She assured the Committee the Department would not be spending money on the AGOA Summit but would still be in the inter-ministerial committee on the summit.

Regarding sports events, she proposed that the policy of SAT needed to be reviewed because there were a number of national teams. She would approach the Minister of Sport about signing an MOU on the issue.

In her closing remarks, the Chairperson said the Minister had committed that the Committee would receive a report on the board matters. The Committee was of the view that the moratorium on filling vacancies should be lifted so that there would be an opportunity to meet the target on people with disabilities. The Minister had committed to meeting  SAT on the Information Tracking System, and had committed to engaging the private sector on joint marketing of South Africa. The Minister had further proposed that the policy of SAT had to be reviewed so that the Departments of Sport and Tourism could partner with the national teams.

The Chairperson said the report about SARU would be considered in a closed meeting. The Committee wanted a report on all SIU investigations conducted at SAT. The Committee acknowledged improvements at SAT even though there was no achievement of targets.

The meeting was adjourned.

Follow this committee

Write to this committee

• SAT: 2023/24 Q1 Summary Presentation
• SAT: 2023/24 Q1 Performance Report

Download as PDF

You can download this page as a PDF using your browser's print functionality. Click on the "Print" button below and select the "PDF" option under destinations/printers.

See detailed instructions for your browser here .

What's wrong with this page?