S. African tourism set for slump due to xenophobic violence

South Africa's tourism sector looks set for a slump following the recent spate of xenophobic violence which hit parts of the country last month.

South Africa's Minister of Tourism Derek Hanekom said that cautious warnings issued by several countries to their citizens against coming to South Africa would negatively impact the country's tourism sector, which already slumped in the second quarter of 2014.

Several countries such as the UK, Australia and United States have issued statements, warning their citizens not to travel to South Africa unless they have a sound reason to do so.

Tourism is one of South Africa's fastest-growing sectors, and the third-largest contributor to GDP, according to Mmatsatsi Ramawela, CEO for the South Africa Tourism Business Council.

The government expects the sector to generate nearly 600 million U.S. dollars a year by the end of the decade and create 225, 000 new jobs.

But the recent wave of xenophobic attacks dimmed the prospects of tourism.

The tourism sector remains exposed, said North West University professor Raymond Parsons.

In what can be interpreted as a backlash, Mozambique is boycotting this year's Tourism Indaba which starts in Durban, South Africa on Saturday. Mozambique took the move after one Mozambican was killed in events related to xenophobia.

Delegates from other African countries as well as the US and UK also cancelled their bookings, citing fear for xenophobic attacks.

However, organizers of the Durban Tourism Indaba said the event is expected to attract 9,000 visitors.

"In order to protect our visitors, security has been beefed up at all the events and venues," Thulani Nzima, CEO for Tourism SA, told Xinhua in a telephone interview.

"We're optimistic that the indaba will be a resounding success and we don't foresee any impediments."

Meanwhile, Limpopo Provincial Premier Stan Mathabatha also noted that the wave of xenophobia would have impact on the country's tourism and economy as a whole.

The travel warnings issued by several countries have sounded the alarm, he said.

Mathabatha said South Africans needed to be educated to protect and like foreigners who are in the country, instead of attacking them.

He said, "Some of the foreigners who are staying in the country are investing in businesses and employing locals for the benefit of the economy."

"South Africa will be hurt economically even months after the wave of violence died down," said Isaac Matshego, an economist at Nedbank.

He said South Africa was taking a knock, not just from tourism or travel receipts, but from an economic outlook.

Matshego, however, is optimistic about the country's economic future.

The tourism industry can rebound if the government takes necessary steps to curb the violence, said Matshego. Endi