If you’ve spent any time looking at how accommodation is priced in South Africa, you’ve probably noticed that some properties charge a small "Tourism Levy" while others don’t. It is a very common topic that comes up when setting up your rates, and it is completely natural to wonder what exactly it is and whether your own business should be charging it.
Think of the Tourism Levy as a small, collective investment we South African hosts make to tell our country's beautiful story to the world. Let’s sit down together and look at what the levy is, where the money goes, and how it all works so you can decide what makes the most sense for your property.
What exactly is the Tourism Levy (TOMSA)?
Commonly known as the TOMSA Levy (Tourism Marketing South Africa Levy), it is a voluntary contribution made by the tourism industry to help market and promote South Africa as a world-class travel destination.
It has been running successfully since 1999, administered by TOMSA on behalf of the South African tourism community. It is a wonderful way for local businesses—including B&Bs, guest houses, lodges, hotels, and self-catering spots—to play an active role in showcasing our beautiful country to local and international travellers.
Is it a Government Tax?
No, not at all. This is one of the most common misunderstandings about the levy.
To keep things completely clear, it helps to see how the Tourism Levy differs from standard government taxes like VAT:
- A voluntary choice: Unlike VAT, which is a compulsory government tax administered by SARS, the Tourism Levy is entirely voluntary.
- Driven by the industry, for the industry: While VAT goes directly to the government, every cent of the Tourism Levy is collected by participating businesses and paid over to TOMSA. This money is then used specifically to fund and market South African tourism.
What is the money actually used for?
When you participate, the money you collect doesn't disappear into a black hole. It goes straight into practical projects that support and grow our local hospitality industry. This includes:
- Marketing South Africa to global travellers so they choose our shores for their next adventure.
- Encouraging domestic travel and local getaways so South Africans explore their own beautiful backyard.
- Funding major campaigns that bring more visitors to our country.
- Supporting tourism growth and local industry development projects.
Ultimately, when more travellers choose South Africa, it keeps rooms filled and directly benefits independent accommodation businesses like yours.
Do I have to charge the levy?
No. The choice is entirely yours.Because the programme is completely voluntary, some properties choose to display it separately on guest invoices, some wrap it directly into their room rates, and others choose not to charge or participate at all.If you do choose to join the TOMSA family and register your property, the levy for accommodation is generally 1% of your room rate. For example:
- If your room rate is R800.00, the levy is R8.00.
- If your room rate is R1,100.00, the levy is R11.00.
- If your room rate is R2,500.00, the levy is R25.00.
What should you do next?
Deciding whether to charge the levy is entirely a personal business decision. If you’d like to explore whether it's the right fit for your property, or if you want to understand how to handle the monthly calculations and payments, we have some friendly companion guides ready for you:
For official information about the programme, registration requirements, and payment procedures, you can also visit the the TOMSA website directly.