The Department of Tourism alongside the SA Tourism Board have reached a mutual agreement not to go ahead with the R1-billion sponsorship deal with Tottenham Hotspurs FC.
In the proposed deal, which caused a national outcry, SA would pay the amount over three years.
The confirmation of the cancelation was announced in a statement by the Minister of Tourism Patricia de Lille on Thursday evening.
This is after de Lille said declared that the controversial R1-billion deal was not budgeted for during a recent media briefing.
The minister said the SA Tourism Board provided a full response in a letter, confirming that they will no longer proceed with the transaction nor seek the concomitant requisite approvals for the proposed transaction.
De Lille previously emphasised that the country is under difficult economical constraints and urged that there be careful consideration before using any public funds.
“Our justification for any significant spending must still make sense in terms of the broader economic climate we find ourselves in as a country,” said de Lille.
“In this regard, I look forward to continuing to engage SA Tourism’s board and executive management, as I have done in my first two weeks in office.
“Working with them and the Department of Tourism on strategic actions we can take to enhance South Africa’s position globally as a top tourist destination.”
Furthermore, de Lille said that she will continue to engage the board of SA Tourism in more detail on the department’s budget in ensuring that there is support in job creation and growing the economy.
De Lille also urged that there be early communication regarding matters that concern the department and the main entity of SA Tourism in future.
“This matter is now concluded, and we continue working together to explore all avenues,” added de Lille.
“Create the environment conducive for the private sector to invest and crowd in on government initiatives within the legislative framework to grow tourism, welcome more visitors in our beautiful country and create more jobs for people in the sector.”
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