South Africa’s short-term rental market, which has grown to make up around 50% of the country’s accommodation sector, is set to face its first formal regulation as the government moves to oversee Airbnb and other home-sharing platforms. The Department of Tourism has gazetted a Draft Code of Good Practice for Short-Term Rentals (STR) and invited public comment. If adopted, the Code will standardise regulations and require short-term rentals to follow rules similar to those imposed on hotels and guesthouses.
Impact on Short-Term Rentals
Tourism Minister Patricia de Lille says the code aims to guide conduct in tourism services, facilities, and products, and to promote sustainable tourism. According to the Department of Tourism, short-term rentals have become a growing and established feature of South Africa’s tourism landscape, supporting geographic spread, enabling more travellers to access diverse destinations, and creating additional income opportunities for households and small property owners.
Figures from the Short Term Rental Association of South Africa (SASTRA) show that short-term rentals now make up around 50% of the country’s accommodation sector. SASTRA, which represents property owners, hosts, employees, and small businesses dependent on them, welcomed the objectives of the Draft Code of Good Practice: standardising service levels, guiding guest behaviour, and clarifying how digital platforms can support everyone for a positive experience.
Concerns and Criticisms
However, the association warned that the Code comes with significant gaps. The sector is the first in hospitality to receive a Code of Good Practice, and SASTRA questioned why hotels, guesthouses, and B&Bs are not held to similar standards. Some of the key concerns include:
- Lack of a legal or official definition for short-term rentals in South Africa, creating uncertainty over who exactly falls under the scope of the code
- No means or suggestion of execution or measures of success
- Short-term rental operators being held to a higher standard than hotels, guesthouses, and B&Bs
As the government moves to regulate the short-term rental market, it is essential to consider the potential impact on the industry and the economy. For more information on the Draft Code of Good Practice, visit the Government of South Africa website.
