South Africa's hospitality industry will experience greatly improved service levels once the minimum wage law comes into effect on 1 July this year.

The law stipulates that companies employing ten or less people will have to pay their employees a minimum wage of R1 400 a month, while those employing ten or more people will have to pay R1 650 a month.

The Department of Labour's spokesperson Kgomotso Sebetso said: "As the department, we are looking at the fact that tourism will be a main focus before, during and after the 2010 world cup.

"We have therefore decided to regulate the industry to try and improve services and avoid being embarrassed before international visitors."

He said it was important to look at the conditions of employment and deal with the industry's low wage levels.

"We decided there should at least be a minimum salary, but nothing stops an employer paying his or her employees R10 000 a month," he said.

In terms of a new determination under the Basic Conditions of Employment Act, businesses associated with the hospitality industry will have to pay employees such as waiters a minimum wage.

Despite concerns from restaurateurs and other employers within the industry, Rahman Murtuza, head of the newly established Gaming and Hospitality Management Academy in Cape Town, is confident the legislation will substantially improve the hospitality industry in South Africa.

"The current situation is comparable to slavery. Restaurateurs need to recognise the value of their employees and bring the service and hospitality industry to a higher level by providing training and helping employees strive for greater professionalism within the industry."

A large number of restaurants and other food outlets rely on casual staff and have a high staff turnover with workers often having to rely on tips as their only payment.

Mr Murtuza, who has been in the industry for 42 years, believes a regulation to bring the service and hospitality industry to a higher level has been long overdue.

"An employer who invests in a salary will want his employees to perform.

"This will lead to an increase in proper training which in turn will give employees exposure and the chance to follow a career within the hospitality industry."

The tourism industry has been identified as one of the priority sectors by the Accelerated and Shared Growth Initiative for South Africa (AsgiSA) which also encouraged the new law on minimum wages.

AsgiSA aims to achieve a six percent annual economic growth by 2010 and halve poverty and unemployment by 2014.