Star grading is voluntary. You can run a guesthouse, lodge or self-catering unit lawfully without it, provided you hold the authorisations that are compulsory. Grading earns its cost where you sell through channels that require or favour it, and it is a poor use of money where your guests come from direct bookings and walk-ins.
Work out which you are before applying, because the fee recurs annually.
What grading actually is
An independent assessment against published criteria for your category, whether hotel, guesthouse, bed and breakfast, self-catering or backpackers. The criteria differ by category, so a small guesthouse is not judged against hotel standards.
Assessment covers the building and rooms, cleanliness and maintenance, bathroom facilities, service, and guest information. Grading is awarded for a period and renewed, with a fee based on the size of the establishment.
Who it pays for
Government and corporate travel bookings frequently require a graded establishment. Inbound tour operators and some international booking platforms favour or require it, and a rating affects placement.
If your bookings come mainly from direct enquiries, repeat guests and walk-ins, the money is usually better spent on photography, listings and reviews, which do more for those channels.
What assessors look for
Consistency rather than luxury. A modest establishment that is clean, well maintained and honestly described can grade well, while an expensively furnished one with poor maintenance does not.
Fix maintenance before applying. Assessors are looking at the condition of what exists, and repairs are cheaper than a second assessment.
The compulsory parts come first
Zoning or consent use for the property, a Certificate of Acceptability where you serve any food, fire and building compliance, and a liquor licence if you serve alcohol. Grading does not substitute for any of these.
Grading criteria and the assessment process are published by the Tourism Grading Council of South Africa, and support or subsidised grading is periodically available for smaller and black-owned establishments.
Frequently asked questions
Is star grading compulsory?
No. It is voluntary, and you may trade lawfully without it provided you hold the compulsory authorisations.
Who benefits most from grading?
Establishments selling through government, corporate, inbound operator or platform channels that require or favour a rating.
What do assessors actually check?
Condition, cleanliness, maintenance, facilities and service against criteria specific to your category, rather than luxury.
What should I do before applying?
Complete outstanding maintenance. Assessors judge the condition of what exists, and a second assessment costs more than the repairs.
What is compulsory instead?
Zoning or consent use, a Certificate of Acceptability if you serve food, fire and building compliance, and a liquor licence where alcohol is served.
Further reading
Originally published in March 2018. Updated September 2026 to explain how grading works and when it is worth the annual fee.
