There are fears that the unrest could have longer term consequences for the country.
Moeketski Mosola, head of South Africa Tourism, told the BBC the government is alarmed by the situation, especially as they are preparing to host the football World Cup in 2010.
"We are extremely concerned about the situation on the ground, you must remember that 67% of the tourists coming into South Africa are mainly African," he told the BBC's World Tonight programme.
Cape Town is the hub of South Africa's tourism industry.
There have also been new attacks in Strand, east of Cape Town, Durban and North-West province, where three people, reportedly from Pakistan, were stabbed and dozens of Mozambican and Somali nationals displaced.
On Thursday, troops were deployed to quell attacks - the first time soldiers have been used to stamp out unrest in South Africa since the 1994 end of apartheid.
Police said it took them eight hours to contain the unrest in Dunoon, 25km from the city centre, and several people were arrested.
"Some people were assaulted, but mostly shops were looted," police spokesman Billy Jones told AFP news agency.
John, a Malawian at the Dunoon meeting, said it disintegrated and foreigners started fleeing as groups began to loot Somali-owned shops.
"We feared for our safety. They're just killing everyone - they start beating you when they find out you're a foreigner," he told the BBC, adding that he was returning home as soon as possible.
Thursday night's unrest prompted some 500 people, including Somalis, Mozambicans and Nigerians, as well as Zimbabweans to flee their homes, some seeking refuge in police stations.
Plain clothes police open fire on looters in Cape town
Our correspondent says the police have beefed up their presence in other Cape Town trouble spots as looting spread on Friday.
Cape Town first witnessed xenophobic attacks two years ago when the Somali community - especially those who owned shops - were targeted and some murdered.
Durban also witnessed unrest earlier this week but most of the violence has been in the Gauteng region around Johannesburg, which is now reported to be relatively quiet.
Meanwhile, the government and union leaders are to meet to address the crisis in South Africa's crucial mining industry.
Medium-sized firm DRDGold said two of its workers - one of whom was South African - had died in violence near Johannesburg on Tuesday.
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