Durban could stand to lose out on hosting the 2022 Commonwealth Games as a result of lack of funding, Minister of Sport and Recreation, Fikile Mbalula, said on Tuesday.

Mbalula said discussions were being held ahead of the 2022 Commonwealth Games to resolve issues of funding. He said if both the Department of Sport and Recreation and the Commonwealth Games Federation failed to find common ground on cost-cutting measures, the South African government would not host the games.

Philip Sithole, Head of Durban Tourism, remained tight-lipped about the announcement, saying he could not provide comment because a decision had not yet been made.

The South African government through Cabinet and National Treasury approved the hosting of the games within its framework of fiscal consolidation. Mbalula reiterated South Africa’s readiness to host the games within its available means.

Hospitality establishments could suffer if Durban loses its position as host city.

Angus Macmillan, Spokesman for the City Lodge Hotel Group, said South Africa had benefited from sporting events hosted in the past. “These types of events bring a lot of hotel-staying visitors to the country, some of whom become ‘ambassadors’ and repeat visitors,” said Macmillan. “While it would be a pity for Durban and the local tourism industry to miss out on this major event, the major cost implications have to be fully comprehended – if they are too great, then it may just be ‘a bridge too far’ for the city to act as the host of this event.”

Meanwhile, competing destinations have expressed their interest in hosting the event. A Liverpool City Council spokesperson said: “Liverpool is interested in hosting the games in 2022. We have heard that Durban might be unable to deliver the Commonwealth Games in 2022 and have already indicated to the Government that we would be happy to be considered to host them instead.”