Adele Mackenzie and Dale Hes

Tourism Minister Lindiwe Sisulu has moved to distance herself from SA Tourism’s apparent plans to spend R910 million (€48m) on a sponsorship deal with English Premier League (EPL) side Tottenham Hotspur.

Daily Maverick reported on Tuesday (January 31) that it had gained access to confidential SA Tourism (SAT) presentations proposing that a large chunk of the DMO’s budget be spent on a three-year sponsorship partnership with the footballing giants.

“This reported deal, is purely an SAT board matter on which Minister Sisulu has not been formally briefed. Like any other board, the SAT board is independent and Minister Sisulu does not interfere with its decisions. Proposals get received by SAT, and are processed by a project team, then are sent through to the executive committee before being presented to the SAT board,” Sisulu’s spokesperson Steve Motale said in a statement responding to the article.

The deal, which would see SA Tourism emulating the likes of DMOs from Rwanda, Malta and Abu Dhabi in sponsoring EPL clubs, would reportedly run from as soon as February 2023 to June 2026.

According to Daily Maverick, the presentation claims that, in exchange for the investment, SA Tourism will receive media exposure to the value of R5.9 billion (€312m).

Motale went on to point out that the proposal stems back to 2017, and would still need to pass muster with the Tourism Ministry and receive approval from National Treasury. Daily Maverick cited unnamed sources who said that the deal was on the verge of being finalised, with Sisulu “eager for the deal to be sealed before President Cyril Ramaphosa’s impending reshuffle”.

“With regard to this matter, Minister Sisulu is still awaiting a report and to be briefed by the SAT board. It is mischievous to relate this to the imminent cabinet reshuffle. Minister Sisulu is in consultation with her legal team and will communicate the way forward in due course,” Motale wrote in response to the claims.

Tourism industry response

A high-profile member of the tourism industry who spoke to Tourism Update on condition of anonymity, said that such a sponsorship would make little business sense.

“There is a 2030 strategy put in place by government, with input from the private sector, which places its main emphasis on marketing to three key emerging source markets: China, Nigeria and India. The UK is already an established source market, so such a large investment in marketing there, rather than in big campaigns in the markets with the most potential, would make little sense,” the source said at the sidelines of a Tourism and Grading Council of South Africa Roundtable Discussion in Johannesburg, where the news has created major ripples amongst industry leaders.

“With SA Tourism also looking for a new permanent CEO, this would mean that the new leadership would start off with a huge chunk of their marketing budget already spent,” the source added.   

*This is a developing story. Tourism Update is awaiting further details from SA Tourism.