As the summer season winds down, many South Africans are looking for cheap deals on last-minute holidays. File Picture The committee on Tuesday met with officials from the Department of Tourism, representatives of the South African Short-Term Rental Association (Sastra), and stakeholders to deliberate on newly gazetted draft “Codes of Good Practice” aimed at guiding the sector while broader legislative reforms are developed.
Image: File picture
Parliament’s Portfolio Committee on Tourism has intensified its scrutiny of South Africa’s fast-growing short-term rental sector such as Airbnb, raising wide-ranging concerns about enforcement, taxation, community impact and regulatory gaps as government moves to formalise the industry.
The committee on Tuesday met with officials from the Department of Tourism, representatives of the South African Short-Term Rental Association (Sastra), and stakeholders to deliberate on newly gazetted draft “Codes of Good Practice” aimed at guiding the sector while broader legislative reforms are developed.
Tourism Minister Patricia de Lille told MPs that the code is an interim measure as government prepares amendments to the Tourism Act.
The proposed code is intended to guide conduct across the sector while a more comprehensive amendment bill is being prepared. It outlines responsibilities for hosts, guests and digital platforms, with a strong focus on safety, community impact and legal compliance.
The proposed legislation is expected to be introduced during the 2026/27 financial year.
“The growth of short-term rentals has created new opportunities for hosts, communities and travellers,” De Lille said. “But it has also introduced regulatory gaps and raised concerns that require a clear and fair framework.”
Among the provisions are requirements for hosts to inform guests of local bylaws, manage noise and behaviour, and provide essential safety equipment. Guests, in turn, are expected to respect community rules and avoid disruptive conduct. Platforms such as booking sites are encouraged to support dispute resolution and share relevant data with authorities where appropriate.
The department's officials emphasised that the framework is non-binding for now, but forms a critical step toward a more structured regulatory environment.
While welcoming the move, Members of Parliament made it clear that voluntary guidelines alone would not be enough to regulate a sector that is rapidly reshaping the country’s tourism and property landscape.
A central concern raised by MPs was enforcement. Several members questioned how a non-binding code would translate into real compliance, asking what penalties would apply to operators who ignore the rules and how government would monitor adherence across thousands of listings on digital platforms.
The department's officials acknowledged the challenge, noting that while the code is voluntary, it operates within an existing legal framework. They said non-compliance that breaches laws such as consumer protection or municipal bylaws could still trigger enforcement through other regulatory bodies.
Municipal capacity and coordination emerged as another major issue. MPs highlighted inconsistencies between national policy and local bylaws, warning that fragmented regulation could create loopholes and uneven enforcement.
Questions were raised about whether municipalities have the resources and authority to monitor short-term rentals effectively, particularly in high-density urban areas and tourism hotspots.
The economic impact of short-term rentals also came under scrutiny. MPs asked whether the sector is contributing fairly to the fiscus, noting that traditional hospitality businesses are subject to taxes and levies such as the Tourism Marketing South Africa (TOMSA) levy.
In response, the department's officials said tax compliance falls under the purview of National Treasury and the South African Revenue Service, and that engagements with the sector on tax obligations are already underway.
However, the absence of explicit provisions in the draft code drew criticism from lawmakers who argued that parity with hotels and guesthouses is essential for fair competition.
Sastra, representing over 2,000 members, presented a detailed overview of the sector, highlighting its growing economic footprint and its role in expanding access to tourism.
Sastra chair Miguel Martins defended the sector, arguing that existing tax laws already apply to short-term rental operators. He emphasised that the industry is dominated by small-scale hosts, many of whom rely on rental income for their livelihoods.
However, Martins acknowledged challenges within the sector, including complaints about noise, overcrowding and disruptive guest behaviour. He also highlighted the sector’s contribution to job creation, noting that short-term rentals can generate employment in cleaning, maintenance and property management.
However, MPs challenged this view, questioning whether platform-based rentals create “meaningful” and sustainable jobs compared to traditional tourism businesses.
Community impact - particularly noise, overcrowding and gentrification - was another focal point of the discussion. MPs cited cases where short-term rentals have disrupted residential neighbourhoods and driven up property prices, especially in major cities.
MPs also called for standardised safety requirements across all short-term rentals and asked who would be responsible for inspections. Concerns were raised about misleading listings, cancellations and the lack of clear recourse for guests who encounter problems.
The department's officials acknowledged these concerns, saying municipalities would need to develop “proportionate responses” to balance economic benefits with social impact. The department indicated that existing legislation, including consumer protection laws, would apply alongside the code.
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