Proposed regulations for short-term rentals in South Africa could affect the entire industry, causing many to consider whether remaining in the market is viable and making others sceptical of buying into it.

This is according to Only Realty Property Group CEO Grant Smee, who spoke to Cape Talk about the proposed regulations.

“Ultimately, like any hospitality industry, your money is made on vacancy levels and the fewer nights you are empty, the more money you make,” said Smee.

“If the government limits how many nights you can rent the property out, that’s going to be a massive issue for almost all Airbnb owners.”

Smee is referring to regulations proposed by Airbnb in a report released at the beginning of October. The report provided case studies on how South Africa can regulate the short-term rental market.

These included limiting the number of nights owners can rent their property for if done on a short-term basis and creating a national registry of all short-term rentals.

This followed backlash from Cape Town residents after claims that many felt they were being priced out of the city due to short-term rentals pushing up property prices.

“There is a large speculative market when it comes to Airbnb. On the rental side, hosts will rent a property and then re-rent on Airbnb, pushing up the long-term rental prices and limiting stock for renters,” said Smee.

“There are also speculators and investors buying property for Airbnb, often paying a premium for that property because the returns are much higher on the platform. This also pushes prices up.”

Smee pointed to the example of the Atlantic Seaboard area — which includes areas like Camps Bay and Seapoint — where any available property suitable for Airbnb is snatched up. He said this created ongoing momentum of price increases.

He was asked how property rights play into the matter, regarding how one should be allowed to do with their property or investment as they please.

To this he replied that while there may be an argument for this on the individual level, one needs to consider how this is affecting the market as a whole.

Airbnb concerns in Cape Town

Data analyst Melville du Plessis recently compared the number of long-term rentals to short-term rentals in Cape Town Metro.

Of the 7,918 rentals available in the 61 square kilometre area, only 547 are long-term rentals or 6.9%.

While this metric does not compare total short-term listings to total long-term listings, it illustrates the supply of long-term listings.

It also excludes areas generally out of reach of most people’s budgets, such as Camps Bay, Fresnaye, and Clifton.

Short-term rentals prove far more lucrative when looking at the difference in return between the two markets.

Comparing the average daily rate, short-term rentals were 271% more expensive than long-term rentals.

Looking at the monthly return of short-term rentals and assuming a 50% occupancy rate, only three of the ten suburbs offer a higher income from long-term rentals.

Therefore, Capetonians are incentivised to list their properties on Airbnb and similar platforms rather than as long-term rentals.

However, buying up or controlling over fifty properties to take advantage of this opportunity raises questions about the unintended consequences caused by the platform.

In their original pitch deck to investors, which helped them secure $600,000 (R10.5 million), Airbnb founders Brian Chesky, Joe Gebbia, and Nathan Blecharczyk used the slogan “book rooms with locals rather than hotels.”

The three believed their platform would help travellers save money, hosts make money, and tourists experience the culture, as hotels create a disconnect from the city.

In its report, Airbnb mentioned that 49% of hosts said the extra income helped them afford their homes, and 50% said it helped them afford the rising cost of living.

Here, it emphasised that its platform supports South African homeowners by allowing them to earn an extra income and cope with the rising cost of living. However, its top six Cape Town profiles own and control a combined 681 listings.

Of these 681 listings, 678 are entire houses or apartments, according to data from Inside Airbnb.

Public consultations on proposed new marriage laws has kicked off in Gauteng; and its provisions and omissions has already sparked some fierce debate

In South Africa, marriages are currently governed by three separate laws, each addressing different types of unions:

1. The Marriage Act: Covers monogamous marriages between opposite-sex couples.
2. The Recognition of Customary Marriages Act: Applies to marriages conducted under African customary law, which can include polygynous marriages, and also only covers opposite-sex couples.
3. The Civil Union Act: Allows for monogamous partnerships, including both same-sex and opposite-sex couples.

In 2021, the Department of Home Affairs began a process to unify these different laws into a single “umbrella” marriage policy.

The proposed Marriage Bill aims to create a unified, system for all marriages in South Africa.

Proponents say it addresses the inequalities of the current system, which treats different types of marriages (civil, customary, and Muslim) differently.

“The Marriage Bill seeks to harmonise all the different marriage laws into one, accommodating all cultures and religious beliefs,” said Parliament’s Portfolio Committee on Home Affairs in a recent statement.

This is argued to ensure Section 9(3) of the Constitution (which prohibits unfair discrimination based on factors such as sex, sexual orientation, race, culture, and religion) is fully realised. 

The department has argued that the Bill also ‘modernises outdated laws’, simplifying the process and removing restrictions on marriage ceremonies, raising the minimum marriage age to 18, aligning with international standards, and protecting children’s rights by criminalising child marriage.

A more in-depth discussion of the provisions can be found below:

New marriage laws for South Africa coming

However, the bill has faced criticism for various reasons: with one side arguing that it is “too liberal” with its same-sex provisions, while others have expressed concerns exist about its potential to exclude certain groups.

These concerns include (but not limited to) the requirement for all marriages to be registered, which may be difficult for women in customary marriages, the lack of clear recognition for Muslim marriages, and the exclusion of domestic partnerships.

Public hearing backlash (and support)

The Parliamentary Committee said that at the meeting in Tshwane, several religious leaders, cultural activists, and general members of the public expressed reservations.

During the public hearings in Tshwane, “speakers held strong religious and cultural views and argued against some provisions in the bill such as same-sex marriage and polyandry,” said the committee.

Some argued that Bill in its current form would “undermine culture and tradition, which do not recognise the concept of polyandry and marriage between people of the same gender,”

There were also those who felt there was no need for a single legislation to govern all types of marriages, as this could undermine some cultural and religious right.

“The religious leaders felt very strongly about proposed plans in the Bill to prevent Department of Home Affairs’ officials from refusing to conduct marriages that go against their personal beliefs, this was seen as a violation of religious rights,” said the committee.

“A proposal was made for an exemption to ensure people are not penalised for their beliefs,” they added.

Some said that the Bill was “too liberal, and they proposed that a law must have limits, instead of allowing and legalising every societal trend.”

The Bill also faced criticism for not addressing ‘ukuthwala’, a traditional practice where women are abducted for forced marriages.

Critics called for its outlawing, especially as it often involves underaged girls marrying older men.

There were also calls for the Bill to include measures against fraudulent marriages, particularly those involving South African women and foreign men for citizenship purposes.

Additionally, some public submissions suggested raising the legal marriage age from 18 to 21 or 25, arguing that 18-year-olds are often still in school.

Looking at Ekurhuleni, several residents urged the Portfolio Committee to include protections for people cohabiting with their partners in the Marriage Bill, citing the risks faced by women and children when these relationships end.

They called for provisions to safeguard property and rights in such arrangements.

The Bill received mixed reactions in Ekurhuleni: supporters praised it for promoting equality and aligning marriage laws with constitutional rights, including the legal age of marriage at 18, in line with international standards.

However, they criticised the proposed penalties for child marriage as too lenient.

Opponents argued the Bill fails to fully address Muslim marriages, leaving legal uncertainty for Muslim women.

They called for clearer provisions on recognising various marriages and regulating polygamous marriage consent.

The committee will today conclude the Gauteng public hearings with two hearings in Mogale City and Midvaal Local Municipality.

The committee invites all interested individuals and organisations to come and share their views.

A German man wanted by Interpol for alleged drug trafficking was intercepted at OR Tambo International Airport. (Gallo Images)
A German man wanted by Interpol for alleged drug trafficking was intercepted at OR Tambo International Airport. (Gallo Images)

•     A German man wanted by Interpol for alleged drug trafficking was intercepted at OR Tambo International Airport.
•     The man has been on the run for eight years, according to South Africa's Border Management Authority.
•     He was found to be travelling with a fraudulent Israeli passport, according to police.

A German man who was on Interpol's most wanted list for alleged drug trafficking was arrested during a routine border operation at OR Tambo International Airport on Friday.

According to South Africa's Border Management Authority (BMA), the man was on the run for eight years.

He travelled from South Africa to Turkey, allegedly on a fraudulent Israeli passport, but was sent back to South Africa, where BMA officials realised that he had a German accent even though he insisted he was an Israeli national.

The Department of International Relations and Cooperation (Dirco) confirmed from the Israeli Embassy that the man was not an Israeli national.

"Interpol was contacted and the suspect was found to be on the red list of the most wanted and had evaded arrest for drug trafficking for the past eight years," BMA commissioner Dr Michael Masiapato said.

"The suspect was also found to have an international warrant of arrest and had been living in Malawi under a new identity and in possession of a Malawian temporary residence. He was found to have travelled under the German and Israeli passports and also suspected to have stolen the Israeli identity."

Interpol immediately arrested the man, and he is still in custody awaiting extradition to Germany, Masiapato added.

"This interception underscores the critical role the BMA plays in safeguarding South Africa's ports of entry and collaborating with international security agencies to combat transnational crime. Our robust systems and partnerships with Interpol and other global entities have proven indispensable in protecting our nation's security and integrity."

This apprehension "sends a clear message that South Africa's ports are fortified against individuals who seek to exploit them for illegal purposes", Masiapato added.

Masiapato and executive director of Interpol NCB Pretoria, Brigadier Ntime Mokhine, signed a memorandum of understanding (MOU) in Pretoria on Thursday to reflect their commitment to enhancing the security of South Africa's ports of entry.

In 2024, driving emerges as a considerably cheaper option than flying for Christmas travel in South Africa.

This is especially true for journeys between Johannesburg and major holiday destinations like Cape Town or Durban.

A return trip by car costs approximately R4,192 to Cape Town and R2,181 to Durban.

In contrast, average round-trip flight prices for the same routes are significantly higher, at R6,913 and R4,169, respectively.

One of the key reasons for this disparity is the welcome relief at the petrol pump.

South Africans can expect a reduction of over R2 per litre in petrol prices in December 2024 compared to the previous year.

This decrease substantially lowers fuel expenses, making road travel even more attractive for budget-conscious holidaymakers.

For families, the savings become even more pronounced. A car trip costs the same regardless of the number of passengers, making it far more economical for a group of four compared to flying.

A family traveling by car would need to spend an extraordinary amount—around R23,000 for Cape Town or R16,000 for Durban on overnight accommodation during the journey—to match the cost of plane tickets for four.

BusinessTech looked at the price of a round trip from Johannesburg to Cape Town and Durban with the most popular cars per vehicle type (prices sourced from TopAuto. Prices also include toll fees)

JHB to CPT
Type    Car    Consumption
per 100km    Single Trip    Return Trip
SUV    Toyota Corolla Cross    6.8L    R2,258.28    R4,516.56
Bakkie    Toyota Hilux    7.1L*    R2,085.67    R4,171.34
Hatchback    VW Polo Vivo 1.6    6.1L    R2,169.03    R4,338.06
Crossover     Suzuki Fronx    5.5L    R1,871.47    R3,742.94
*Diesel

JHB to DBN
Type    Car    Consumption
er 100km    Single Trip    Return Trip
SUV    Toyota Corolla Cross    6.8L    R1,157.13    R2,314.26
Bakkie    Toyota Hilux    7.1L*    R1,086.53    R2,173.06
Hatchback    VW Polo Vivo 1.6    6.2L    R1,120.71    R2,241.42
Crossover     Suzuki Fronx    5.5L    R999.08    R1,998.16
*Diesel

Below are the prices per airline for a round trip from Johannesburg to Cape Town and Durban for a 10-day holiday during Christmas (20 Dec 2024 to 2 Jan 2025)*.
Airline    Round trip price
(JHB to CPT)    Round trip price
(JHB to DBN)
CemAir    R6,858    R5,168
FlySafair    R6,122    R3,822
Lift    R6,950    R3,850
Airlink    R6,268    R3,778
SAA    R8,371    R4,231

Even factoring in potential overnight stops for rest during the roughly 15-hour drive to Cape Town, driving remains the more affordable option.

The cost of air travel has risen notably, putting additional strain on holiday budgets.

Increased operational costs for airlines, such as higher airport fees, maintenance costs, and rising demand during the festive season, have pushed ticket prices higher.

Additionally, the demand for air travel spikes during the Christmas period, further driving up prices.

Despite the convenience and time savings offered by air travel—especially for those who can afford the higher prices—the financial benefit of driving is hard to ignore.

For solo travelers, couples, or families, the significant cost difference makes driving the preferred option.

While flying takes only a few hours and eliminates the need for overnight stops, the price gap is difficult to justify for many South Africans, especially during a time when budgets are often stretched.

Ultimately, whether traveling solo or with loved ones, South Africans planning their festive season getaways are likely to find driving the more economical choice for Christmas 2024.

*Prices sourced from each airline’s website Departing flights were for Friday, 6 December, while return flights were for Thursday, 02 January. Air travel prices are prone to change and not all airlines offer the same packages.

There have been numerous pleas to South Africans to switch to smart ID cards, but many are still reluctant to the idea for a few reasons.

It has been 44 years now that green ID books have been used in South Africa. One might think the reason for the reluctantly to change to a smart ID is possibly some form of emotional attachment to the document. However, some have revealed the real reason why.

Millions of South Africans are still using green ID books. Newzroom Afrika took to the streets on 14 November 2024 to find out from some citizens why they still don’t have smart IDs. Those interviewed said they hadn’t parted with their ID books because of two main reasons; long queues and cost.

WHY DO SOME SOUTH AFRICANS STILL DON’T HAVE SMART ID CARDS?

Speaking to Newzroom Afrika, the few citizens given the chance to share their reasons for not having smart IDs mentioned two reasons. They expressed that there should be no cost for IDs and that the long queues at Home Affairs put them off. One of them said there are usually long queues at Home Affairs and you still don’t get assisted “even if you pay someone to hold the line for you.”

Another citizen bemoaned the required payment for the smart ID. She complained: “I’m not willing to pay R140 to change it. They changed the system, so they need to give me the first one for free, and then if I lose it, I’ll pay for it. I’m not willing to pay because they changed the system.”

THE IMPORTANCE OF SECURITY

The Department of Home Affairs frequently reminds citizens that there are better security features in the smart ID card. These features help improve the security of their identity. According to MyBroadband, a 2024 report by Smile ID Digital Identity Fraud revealed in their Know-Your-Customer checks identified fraud. It detected fraud in about 34% of incidents where the green ID book used during the accessing of different services.

The South African reported a warning from Home Affairs to SASSA beneficiaries on 26 October 2024. The Department said beneficiaries without smart ID cards are vulnerable to identify theft and fraud.

OLD DOCUMENTS REMAINING VALID COULD INCREASE FRAUD

Smile ID further stated that the green ID book remaining valid after switching to the smart card could increase fraud. The report said: “Logistical issues around properly discarding the older IDs can lead to them falling into the wrong hands.”

HAVE YOU CHANGED TO A SMART ID YET?