Government must review R422 million spent on SA Tourism offices abroad

23 March 2016

During the 2015/16 financial year, a total of R422 million was used to fund SA Tourism offices abroad. In response to a written question by the DA the Department of Tourism revealed that this is the total cost to run South African Tourism (SAT)’s country offices in thirteen countries worldwide. 

The DA believes that the number of SAT country offices and the high costs to run them are not warranted, given South Africa’s numerous foreign missions to these countries, resulting in duplicating tourism promotion and destination marketing costs. 

I will be submitting fruther parliamentary questions to the Minister of Tourism, Mr Derek Hanekom, to enquire whether his Department intends on cutting down on its SAT offices globally, with the goal of eliminating duplication. I will also summon the Minister and his senior departmental management team to the next Portfolio Committee meeting to discuss this matter.  

The country offices are, with allocated budgets, as follows:

- USA: R69 069 634

- UK: R52 316 899

- Germany: R54 297 239

- France: R35 939 548

- Netherlands: R27 687 781

- Italy (to be closed in 2016/17 financial year): R14 771 183

- India: R32 166 316

- China: R26 617 535

- Japan: R12 664 850

- Australia: R33 239 550

- Angola (rental agreement ending August 2016): R14 251 649

- Nigeria: R25 035 247

Brazil (General Marketing Agent): R23 658 828

The DA would make use of existing foreign missions focussed on tourism to reallocate SAT country offices to key source markets only. We would also combine some of the country offices strategically, given their geographic locations. 

Government should follow the example of the City of Cape Town, where there is a similar tourism entity called Cape Town Tourism. City Council has reduced the entity’s budget, due to the entity’s implementation of a programme to become self-sustainable through improved and focused marketing. 

At a time of high economic strain, government cannot afford to spend unnecessary money. The duplication between the functions of SA Tourism and the Department leads to millions of rands spent on redundant projects such as the country offices, bearing little or no tangible outcomes when this money should be going towards stimulating a viable tourism industry that generates jobs. 

Issued by James Vos, DA Shadow Minister of Tourism, 23 March 2016