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Tourism Turmoil: South Africa's Board Dissolved After CEO Suspension

Published 1 week ago4 minute read
Precious Eseaye
Precious Eseaye
Tourism Turmoil: South Africa's Board Dissolved After CEO Suspension

South Africa’s tourism sector has been rocked by significant governance challenges within South African Tourism (SAT), culminating in the dissolution of its board by Minister of Tourism, Patricia de Lille. The turmoil began with Minister de Lille's public rejection of the SAT board’s decision to place its Chief Executive Officer, Nombulelo Guliwe, on precautionary suspension. Labeling the suspension as “unlawful,” the Minister’s intervention highlighted deep-seated governance concerns at a crucial time for the nation’s tourism industry.

Minister de Lille’s assertion, made on Thursday, was that the SAT board lacked the proper mandate to suspend its CEO. This was due to the board not being “properly constituted” following the resignation of its chairperson, Professor Gregory Davids, on July 31, 2025. Legal advice cited by the Minister indicated that the absence of a chairperson rendered the board ineligible to make such a critical decision, specifically emphasizing that without a chairperson, the board could not lawfully convene a special meeting to pass such a resolution.

The SAT board had initially announced Guliwe’s immediate suspension pending an investigation into alleged misconduct, with plans for an interim acting CEO to ensure business continuity. However, Minister de Lille’s strong response underscored a fundamental disagreement over governance and due process. She reiterated her commitment to “adherence to sound governance principles” and pledged to address the matter directly with the SAT board, having previously cautioned them in a meeting on July 4 and a subsequent letter on July 13, 2025, about the importance of following governance procedures for meeting validity. Despite the board’s assurance in a letter dated July 22, 2025, that it had implemented “enhancements” to ensure properly constituted meetings, the core issue remained unaddressed.

Subsequently, Minister de Lille dissolved the South African Tourism Board and removed its members, effective immediately, citing Section 16(3)(a) and 16(1) of the Tourism Act respectively. This decisive action followed the board's failure to address the legality of the procedure followed when convening a special board meeting on August 1, 2025. According to legal advice to the Minister, Section 18(2) of the Act and Clause 9.1.2 of the Board Charter empower only the Board Chairperson to convene a special board meeting. Since Professor Gregory Davids had resigned on July 31, 2025, the board had no chairperson to lawfully convene the August 1 meeting, rendering its actions “unlawful and ultra vires its powers.”

This conflict surfaces at a critical juncture for the South African tourism sector, which is actively working to rebuild international arrivals, stimulate domestic tourism, and restore jobs lost during the COVID-19 crisis. The uncertainty surrounding SAT’s leadership threatens to undermine efforts to project South Africa as a reliable and attractive destination, especially as global competition intensifies and travelers become more discerning. For tourism professionals across Africa, this episode serves as a stark reminder of the vital role that robust governance frameworks, leadership stability, transparency, and adherence to legal and ethical standards play in destination management. Internal disputes and leadership vacuums can divert focus from essential objectives such as marketing and product development.

Looking ahead, the Minister will initiate the process to appoint a new board under Section 13(3) of the Act, inviting nominations for eligible persons. In the interim, one or more persons will be appointed under Section 16(3) of the Act to manage the board's affairs. The Department of Tourism assures that these developments will not derail ongoing programmes, including SAT's collaboration with the Tourism Business Council of South Africa (TBCSA) for a successful G20 summit, and the implementation of the Tourism Growth Partnership Plan. Additionally, the inaugural Tourism Investment Summit, where bankable infrastructure projects will be presented to investors, is scheduled for September 10, 2025, in Cape Town. South Africa will also mark Tourism Month in September, with upcoming announcements regarding digital solutions from a hackathon and ongoing promotions on the Sho't left website, offering discounts of up to 50%.

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