Moves to formalise short-term rental regulation in the Western Cape is gaining momentum with industry bodies, academics and the City of Cape Town highlighting the urgency of intervention and the risks of applying Cape Town-aligned measures across the province.
The debate follows sustained pressure from inner-city communities, including Bo-Kaap, who argue that unchecked short-term rental growth is eroding cohesion, driving up rents and accelerating displacement. According to Ground Up , Cape Towns Local Spatial Development Framework estimates that 70 of inner-city residential units are now used for short-term rentals, underscoring the extent of market distortion in high-demand neighbourhoods.
FEDHASA Cape Chairperson Lee-Anne Singer told Tourism Update that, while the association supports the principles of fairness, safety and compliance, a single approach designed for Cape Towns dense and pressured market cannot simply be copied across the Western Cape. Singer warned that smaller towns and rural areas rely on short-term rentals to fill accommodation gaps and remain competitive outside peak season. Applying inner-city rules province-wide could unintentionally push out small operators that play an important role in their communities.
