SA Tourism sponsorship saga: SAT wanted in on Formula 1 racing

Further to the R900 million sponsorship deal with English football club Tottenham Hotspur, South African Tourism (SAT) wanted to involve itself with Formula 1 racing, which could be worth $50 million (about R888 million) per year for a team sponsorship.

Backlash

Despite the backlash from the proposed sponsorship deal with Spurs which would purportedly boost tourism, in a presentation for the tourism portfolio committee on Tuesday, SAT said work to be done to reach 21 million arrivals by 2030 included “mega events, strategy and tactics”.

These tactics included Formula 1 2024, World Expo 2035, land border town activations and in the domestic market, mega travel promotions in peak travel periods.

When asked whether SAT was interested in F1 sponsorships, if it would be race or team sponsorship and what the potential cost to that proposition would be, spokesperson Thandiwe Mathibela had not responded by the time of publication.

However, marketing and communications strategist Clive Simpkins alleged this was not even their original idea before the committee briefing.

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‘Excuses’

“It was actually brought up in response to Tourism SA acting CEO Themba Khumalo making excuses at the presser,” he said.

“During the briefing, a suggestion was made that if they were really looking at bringing a whole of the people to SA, F1 would be the way to go.”

READ MORE: SA Tourism’s R1 billion marketing plan almost as useful as erecting a giant flag

Millions of fans

Following extensive research, The Citizen found that while F1 was a highly popular motorsport which normally attracted millions of fans worldwide with its global reach, according to Drive Sports Marketing, “sponsoring an F1 team or event is an excellent way to promote a brand and reach a massive audience, however, its popularity comes with a high cost”.

The agency also noted another option for companies looking to sponsor Formula 1 was to sponsor a specific race.

“This type of sponsorship includes trackside advertising and branding, as well as opportunities for activation and engagement with fans,” the agency said.

“The cost of race sponsorship varies, but it is estimated to be in the range of $2 million to $5 million per race.”

Expert weighs in

Marketing expert Sarah Britten said while the way in which SAT was handling the entire sponsorship ordeal was distasteful, it was also “disconcerting” that they did not give context to the whole thing.

“Because, putting on ‘Visit South Africa’ on a football jersey is good for reach but, then, how do you turn the reached exposure into a desire to actually fly here?” Britten said.

“So we in SA, particularly if we’re going after the UK market, we’re not only competing with only say Kenya and Tanzania but with Greece and Spain, which are very popular short haul destinations where it’s a lot cheaper to go, with better value for money.”

She also said SA had a lot to fix, including expensive flight tickets. “Whether it’s sticking a logo on the side of a Formula 1 car or on a football jersey, we need to understand that people have heard of SA and most importantly we’re not a logo but an experience.”

Meanwhile, the portfolio committee on tourism has called for the proposed R1 billion deal with Spurs to be cancelled.

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