Tourism Grading: The Key to Government Hospitality Contracts

No Star, No Tender

For any accommodation establishment—from a B&B to a massive hotel—wishing to do business with the South African government, holding valid grading from the Tourism Grading Council of South Africa (TGCSA) is effectively mandatory. National Treasury regulations instruct accounting officers to use graded establishments to ensure value for money and safety standards.

The Grading Process Simplified

Grading is an independent quality check. An assessor visits your property and scores it against criteria:

1. Physical Facilities: size of rooms, quality of linen, condition of furniture.
2. Services: housekeeping standards, reception efficiency, food quality.
3. Universal Accessibility: provisions for guests with disabilities.

How Stars Affect Procurement

Your star level restricts who you can host:

• 1 & 2 Star: Rarely used for official travel, sometimes for large group deployments.
• 3 & 4 Star: The 'sweet spot' for government officials (Directors, Deputy Directors). Bulk of yield.
• 5 Star: Restricted. Only Ministers, DGs, and Judges are typically authorized for 5-star stays.

Beyond the Star: CATHSSETA

Training is also a component. Tenders often ask for proof of skills development levy payments to CATHSSETA. Participation in internship programs for hospitality students also counts heavily in your B-BBEE scorecard.

Conclusion

Don't view grading as just a plaque on the wall. In the public sector market, it is your license to trade. Without it, you are invisible to the state procurement system.