Eswatini Strengthens Bed Levy Compliance and Enforcement

The Eswatini Tourism Authority (ETA) and the Eswatini Revenue Service (ERS) signed a Memorandum of Understanding (MoU) on September 29, 2026, to enhance information sharing and enforcement regarding the collection of Eswatini’s 3 per cent Bed Levy.

This formal agreement signifies a concerted effort by two key government agencies to bolster compliance and revenue collection for the Bed Levy, which is a critical component of Eswatini's tourism funding. The MoU is expected to lead to closer scrutiny of tourism operators, particularly accommodation providers, ensuring that the levy is accurately collected and remitted. This move underscores the government's commitment to maximizing revenue from the tourism sector and addressing any existing gaps in compliance, which could include under-reporting or non-payment.

Legally, the Bed Levy is typically established under specific tourism or finance legislation, with the Eswatini Tourism Authority (ETA) often responsible for its administration, as per the Eswatini Tourism Authority Act, 2001. The ERS, operating under the Eswatini Revenue Service Act, 2008, is the central body for tax collection and enforcement. The MoU itself is an administrative instrument that facilitates inter-agency cooperation, leveraging the ETA's industry-specific data and the ERS's robust enforcement powers. This collaboration creates a more formidable regulatory environment, making it more challenging for non-compliant businesses to evade their obligations. It reflects a broader trend of government agencies pooling resources to enhance regulatory effectiveness.

The key parties involved are the Eswatini Tourism Authority (ETA) and the Eswatini Revenue Service (ERS), acting in concert. The primary businesses affected are those within the hospitality sector, specifically accommodation providers, who are legally obligated to collect and remit the 3% Bed Levy. This includes hotels, guesthouses, lodges, and potentially other forms of short-term rental accommodations.

Practitioners advising clients in the tourism and hospitality sector must immediately review their clients' bed levy compliance procedures. This includes verifying the accuracy of calculations, ensuring timely collection from guests, and prompt remittance to the authorities. Clients should be advised to maintain meticulous records of all transactions related to the bed levy, as the increased information sharing between ETA and ERS will likely lead to more frequent and thorough audits. Proactive measures to address any past non-compliance or discrepancies are strongly recommended to mitigate the risk of penalties and legal action. This development signals a heightened regulatory risk for the sector, demanding immediate attention to compliance protocols.