Parliament has called for urgent corrective measures to address the long-running backlog in tour operator licences following a briefing by the National Public Transport Regulator (NPTR) to the Portfolio Committee on Tourism.
The committee heard that 652 licence applications remain outstanding. Committee Chairperson Ronalda Nomalungelo acknowledged progress by the NPTR but warned that continued delays are placing significant financial strain on operators and undermining the broader tourism value chain.
Members raised concerns about vehicle impoundments and fines issued to operators who have reapplied and are awaiting licence approvals. The committee described such actions as unacceptable and called for an immediate halt to enforcement measures against compliant applicants still in the processing queue. It also recommended a refund mechanism for operators who were unlawfully fined and urged clearer communication to provinces and municipalities.
The committee further called for the expedited appointment of the NPTR Board to strengthen governance and accountability, increased staffing capacity to clear the backlog and fast-tracked legislative reforms proposed by the NPTR Task Team. The Department of Transport was urged to ensure that automation of the licensing system is implemented within the timelines presented.
As part of a longer-term solution, the Minister of Transport was encouraged to convene a special meeting with provincial MECs and regulatory authorities to clarify interpretation and application of the National Land Transport Act (NLTA) and prevent inconsistent enforcement across provinces.
Loss of confidence
Speaking to Tourism Update, Onne Vegter, Chair of the SATSA Transport Committee, said the licensing backlog continues to hamper tourism growth and investment.
“Tourist transport operators have no confidence in the regulator and, as a result, have been reticent to expand or replace their fleets due to challenges with obtaining operating licences,” he said, adding that delays of up to three years or longer are common.
Inconsistent enforcement has distorted competition, Vegter added. “No business can survive if a newly purchased vehicle is forced to stand idle for up to three years while its application at the NPTR is pending.” Many operators have had to choose between closing their business or operating illegally while waiting for applications to be processed, he pointed out.
On Parliament’s call for a halt to enforcement against compliant applicants, Vegter said enforcement is neither fair nor reasonable while the NPTR fails to meet legislated turnaround times. He noted that a previous Minister of Transport instructed, in March 2024, that law enforcement should stop penalising tourist vehicles with pending applications but the instruction was never gazetted and did not filter down to provincial and municipal levels.
“The only way to effectively halt the ongoing harassment and impoundment of tourist vehicles is for the Minister to gazette such an instruction to make it official,” Vegter said.
Not fit for purpose
On the regulator’s capacity to clear the backlog, Vegter said: “Let me be clear: the regulator is not fit for purpose.” He argued that the NPTR lacks operational capacity and administrative ability to handle the volume of applications. He attributed this to capacity constraints and what he described as a fundamental misinterpretation and incorrect implementation of the NLTA as well as an over-complicated regulatory process.
Vegter said the original intent of the NLTA was to accredit tourist transport operators once and thereafter make it quick and easy for accredited operators to obtain operating licences for their vehicles as an over-the-counter transaction.
The committee also expressed concern that some tour operator businesses have reportedly closed due to prolonged delays and called for an assessment of whether government-related delays contributed to those closures and whether support measures may be required.
Vegter warned that the situation has implications for national tourism capacity. He said inbound tourism is expected to grow and will require sufficient accredited operators and licensed vehicles to move visitors safely. Instead, he argued, regulatory hurdles are stifling growth with some operators closing after waiting for licences and others shrinking their fleets rather than expanding.
Looking beyond the backlog, Vegter proposed two possible solutions:
- Reform the regulator’s standard operating procedures to align with the NLTA’s original intent and eliminate unnecessary requirements.
- In the longer term, rewrite the NLTA to simplify requirements and remove broad clauses that allow additional requirements to be imposed.
The committee has committed to reconvening within three months to assess progress on the agreed interventions.
