Two new pieces of legislation could fundamentally change how South Africa’s hospitality industry operates: who businesses are allowed to employ, and whether foreign-owned hotel groups and investors can continue to invest and expand here. FEDHASA has formally objected to both and is calling on Parliament to reconsider.
The Employment Services Amendment Bill was tabled in Parliament in May 2026. The Revised Draft Business Licensing Bill arrived even more quietly, uploaded to a government website with no gazette notice and no opportunity for public comment. Both Bills hand significant new powers to government ministers, and both could make running a hospitality business in South Africa considerably harder.
“For years, FEDHASA has been calling on government to reduce red tape and the burden of regulatory oversight placed on all levels of business,” said Brett Tungay, National Chairperson of FEDHASA. “This legislation is further bureaucracy on bureaucracy. It is not what industry is calling for.”
Employment Services Amendment Bill
This Bill gives the Minister of Employment and Labour the authority to set quotas on the number of foreign nationals a business can employ, broken down by sector, occupational category, or geographic area. Non-compliance carries penalties of up to R1 million or 10% of annual turnover.
Hotels, lodges, and restaurants across South Africa rely on a mix of local and international expertise, in kitchen management, front-of-house operations, conferencing, and tourism services. Quotas imposed without clear criteria or proper industry consultation would make it harder to fill specialist roles, slow down hiring, and add compliance costs that many businesses cannot absorb.
The Helen Suzman Foundation described an earlier version of the Bill as “unworkable and, in all likelihood, an unlawful interference in South African labour markets and in the lives of foreign nationals lawfully residing in South Africa and who have been granted the right to work here.” FEDHASA agrees.
The Bill is expected to be published for formal public comment in the coming months.
Revised Draft Business Licensing Bill
The bigger concern may be the Business Licensing Bill, and the way it was introduced. The Department of Small Business Development added a significant new clause to the Bill on its website in May 2026, without gazetting it, without the Government Printer, and without inviting public comment. Industry only found out because someone was watching closely.
That new clause – Clause 17 – would allow the Minister to declare certain business activities or entire industries off-limits to foreign-owned or foreign-controlled businesses. For hospitality, where international hotel brands, foreign franchise operators, and cross-border investors play a direct role in job creation and tourism growth, this is a real and immediate concern.
“We are a country in dire need of employment,” said Tungay. “Why can’t we have foreign nationals create that employment alongside local South Africans, rather than legislating them out of the picture?”
FEDHASA has made formal submissions on both Bills and will engage at every stage of the parliamentary process. The association is calling on the relevant departments to conduct full economic and constitutional impact assessments before either Bill proceeds further.
