Tag: Hamac
The 12J exit trap – what investors must do before it’s...
The five-year lock-in period on South Africa's Section 12J hospitality investments is over. Across the country, investors who entered these vehicles for the generous upfront tax deduction are now facing a far more sobering reality. Hospitality investors face distressed assets, a near-absent secondary market and a Capital Gains Tax (CGT) liability that is calculated not on their actual return, but on every Rand they receive at exit.
Parity vs proliferation – why short-term rental regulation is needed
Public debate often frames short-term rental (STR) regulation as a clash between “disruptors” and “dinosaurs”. However, the reality for South African hospitality is both simpler and more urgent. The City of Cape Town’s move to impose commercial property rates on STRs does not represent an attack on innovation. Instead, it addresses a problem that policymakers have ignored for far too long.
Economic stress test – SA’s recovery under pressure
As we enter the second quarter of 2026, South Africa’s economy faces a critical test. SA’s hard-won recovery now confronts significant pressure. A global energy shock has triggered a sharp rise in living costs. Fuel prices continue to surge. Consequently, logistics-driven inflation now affects the entire consumer landscape.
Is SA hospitality’s ‘recovery’ hiding a deeper structural risk?
The headlines keep telling us that South Africa’s hotel sector is witnessing a strong recovery. This year, analysts estimated the market at $11.49 billion. They expect it to exceed $15 billion by 2030, at a CAGR of 6.37% between 2025 and 2030. However, anyone running a hotel locally knows these figures tell only part of the story. In reality, SA hospitality’s ‘recovery’ looks far more fragile on the ground.
