Violence starts to scare away tourists

Cape Town: A whiff of panic surrounds South Africa's tourism industry after deadly xenophobic attacks that have prompted travel warnings from Western nations and led some Africans to cancel visits.

Tourism is a cornerstone of the economy, contributing eight per cent of annual GDP and employing about one million people. Some 8.4 million people visited last year, with the number expected to rise to ten million by 2010, when South Africa hosts the soccer World Cup.

"It looks like there is panic among tourists across the globe but mainly from Africa," said Reynold Thakhuli, spokesman for the Tourism Business Council of South Africa, which is fielding worried calls from major tourist partners overseas.

Germany was among the first countries to issue a travel advisory after mob rampages that have killed at least 42 African immigrants and prompted more than 15,000 others to flee Johannesburg area shantytowns.

The German Foreign Ministry advised visitors to avoid central Johannesburg and outlying townships. Other countries that issued warnings include the US and Canada.