Nelson Mandela Bay Tourism is set to retrench the majority of its staff members.
The tourism agency's chairperson, Buli Ngomane, said on Friday that after receiving emergency funding from the municipality, the metro indicated that it would cut off all funding at the end of December last year.
Ngomane said the agency received outstanding funding for two quarters of last year which was used to settle debts and for staff back-pay.
NMBT couldn't receive funds from the municipality earlier last year after it was discovered that there was a non-compliance issue.
Ngomane said the agency will have to look at downsizing.
“It’s going to affect 80% of our workforce. Although we will be leaner there is no dilution of any of the services to our members,” she said.
“The only thing we’re doing is relinquishing some of the tasks we did no behalf of the City as whole.
We will still be operating as a tourism entity and representing all of our members who are in excess of 230,” Ngomane said. Nelson Mandela Bay Municipality said in communications to the tourism agency that it would be “insourcing” its destination marketing functions.