Question

Explain how South African Tourism (SAT) is funded?

Answer 1

South African Tourism (SAT) needs a great deal of funding because international marketing is expensive. Tourism Marketing Levy South Africa (TOMSA) was set up in 1998 to raise additional funds for the marketing of destination South Africa. It is a private sector initiative. South African Tourism (SAT) makes use of these funds to promote the country as a preferred tourist destination, both locally and internationally.
The TOMSA levy is 1% of each confirmed booking. The collection of the TOMSA levy by tourism businesses is voluntary. The amounts paid are not the same as paying a tax to the business. The tourist pays the levies and the business just acts as a collector of the levies. These levies are paid to the Tourism Business Council of South Africa (TBCSA), which administrates TOMSA.