Run a tour, guiding or accommodation business the way the Tourism Act expects.
Tourism looks unregulated from the outside and is anything but. The guide needs a card from the provincial registrar, the vehicle needs an operating licence from the National Public Transport Regulator, the guest house needs zoning consent and a food certificate, and the stars on the sign need a grading certificate behind them. Each is issued by a different body with its own form, and the Tourism Act puts a fine of up to R100 000 on the operator who employs an unregistered guide. This page lists what each kind of tourism business needs, who issues it and what it costs.
Tour operators and guides
- Every guide registered. Section 57 of the Tourism Act forbids anyone acting as a tourist guide for reward without registration with a provincial registrar, and forbids any business employing one. The guide needs a CATHSSETA-accredited qualification, a first aid certificate and R240 for three years. The tourist guide registration guide has the documents, the categories and the penalties.
- An operating licence for every vehicle that carries tourists. The National Land Transport Act requires an operating licence for tourist transport services, issued by the National Public Transport Regulator, the NPTR, on Form 1A with the tax clearance, the vehicle papers, public passenger liability insurance and a R600 fee per application. The NPTR handbook exempts courtesy services using fewer than three cars. The operating licence guide covers the process and the operating licence service prepares the file.
- Accreditation as a tourist transport operator with the NPTR, R2 000, which requires acceptable vehicles, maintenance records or a plan, and recommendation letters. The Department of Tourism is a referral in the process.
- Drivers with a professional driving permit, category P, renewed every two years. See the professional driving permit guide.
- Cross-border permits from the Cross-Border Road Transport Agency for tours into neighbouring countries; the cross-border permit guide has the fee table.
Guest houses, B&Bs and lodges
- Zoning or consent use. Most homes are zoned single residential, and running paying accommodation from one needs the municipality’s consent under its planning by-law, judged on parking, neighbours and the number of rooms. Cape Town treats short lets as accommodation use and may require consent case by case. Without it, a prohibition notice and fines.
- Building compliance. Approved plans for any alteration, and fire and occupancy requirements under the National Building Regulations for more than a few guests.
- A certificate of acceptability under Regulation R638 if you serve food, from the municipal environmental health practitioner. The food premises certificate service does the application.
- A liquor licence from the provincial liquor authority if you sell or serve alcohol, even a glass of wine with dinner. The liquor licence service prepares the pack.
- Star grading, if you want it. Voluntary, through the TGCSA, with a joining fee of R295 and an annual fee on rooms and rate, discounted 80 to 90 percent for small operators who upload a tax clearance, business registration, BEE affidavit and public liability insurance. Using stars without the award is an offence. The star grading guide explains the scoring and the discount.
- Short-term rental platforms. The Airbnb hosts page covers the platform, tax and by-law side for a spare room or a whole home.
Every tourism business
- A registered business and a tax clearance, because the NPTR, the TGCSA discount and every tour operator contract ask for both. The company registration and tax clearance PIN services cover them.
- Public liability insurance. Not a legal requirement in general law, but the NPTR requires public passenger liability cover, the TGCSA discount requires public liability cover, and no inbound operator will contract without it.
- COIDA, UIF and PAYE for staff, from the cleaner to the driver. The Employer Admin pack sets them up together.
- VAT once turnover passes R1 million in twelve months, and the rule that accommodation for more than 28 days is only partly subject to VAT.
- A BEE affidavit, because the tourism sector code is what corporate and government travel buyers score you on, and the free affidavit builder produces it for a business under R10 million.
- Written terms and a booking contract, with the Consumer Protection Act’s cancellation rules built in.
Where the money is lost
- An unregistered guide on the operator’s tour. The operator’s fine is up to R100 000; the guide’s is a fine or a year in prison.
- A minibus carrying tourists on a private licence. Impoundment at a roadblock, with the group stranded.
- Stars on the website after the grading lapsed. An offence under section 59, and the TGCSA has a reporting line for it.
- A guest house in a single-residential zone without consent. A neighbour’s complaint becomes a prohibition notice.
- Missing the 90 percent grading discount because one of the four documents was not uploaded.
The guides and services
Frequently asked questions
I run walking tours in my own town. Do I really need to register?
Yes. Guiding for reward in a limited area is exactly what a site guide registration is for. The training is the cost; the registration itself is R240 for three years.
My guest house has three rooms. Do I need zoning consent?
Usually yes, if the property is zoned single residential. Some municipalities allow a small B&B as a primary right or with a simpler home business permission; most require consent use for paying guests. Ask the municipal planning office before you advertise, and get it in writing.
Is star grading worth it for a small place?
If you want government, corporate or tour operator bookings, yes, because many of them only use graded establishments, and with the discount a small property pays a few hundred rand a year. If you only sell through platforms to leisure travellers, it is optional.
Can I drive my own guests in my own car?
If you are paid for the transport, or it is part of a paid tour, the vehicle needs an NPTR operating licence for tourist transport and you need a category P professional driving permit. The courtesy exemption covers a lodge running fewer than three cars to fetch guests without charge.
Star grading with the 90 percent discount secured, R890
Right category chosen, the TGCSA online application completed, the tax clearance PIN, business documents, BEE affidavit and insurance uploaded so the discount lands on the invoice, and the criteria for your star target sent before the assessor arrives. The TGCSA’s discounted fee is paid to the TGCSA on top.
Get me gradedKeep exploring
Sources: the Tourism Act 3 of 2014; the National Land Transport Act 5 of 2009 and the National Public Transport Regulator’s handbook, including its fees of R2 000 for accreditation and R600 per operating licence application; the Tourism Grading Council of South Africa and the Department of Tourism’s Tourism Grading Support Programme; Regulation R638 under the Foodstuffs, Cosmetics and Disinfectants Act; municipal planning by-laws, which differ by municipality. This is information, not legal advice.