Sri Lankan Tourism Industry | Report
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Added on 2019-09-26
Sri Lankan Tourism Industry | Report
Added on 2019-09-26
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Student[COMPANY NAME] [Company address]SRI LANKAN TOURISM INDUSTRY
Sri Lankan Tourism IndustryTable of ContentsPart 1..........................................................................................................................................................21.Factor condition.............................................................................................................................52.Demand conditions........................................................................................................................73. Related and Supporting Industries................................................................................................104. Firm Strategy, Rivalry....................................................................................................................125. Role of Government.........................................................................................................................136. Role of Chance.................................................................................................................................13Part 2........................................................................................................................................................15Advantages of FDI as Mode of Entry.............................................................................................15Disadvantages of FDI as Mode of Entry........................................................................................16Part 3........................................................................................................................................................18References................................................................................................................................................211
Sri Lankan Tourism IndustryPart 1One of the major foreign exchange earner sector and the main growth area in any of the countryis its tourism sector. The tourism sector is highly beneficial for the places with cultural andnatural resources in abundance. In the past five years, the world tourism market has depicted atremendous growth of 3.7 percent and is even further suspected to show a growth of 4.9 percentin the coming five years. It is expected that the Pacific region and Asia would record the highestgrowth. Sri Lanka arrived in the international tourism sector in the 1960s era. Due to theabundance of natural and cultural resources, the country has shown that tourism sector is one ofthe most promising sectors for the economic development of the country especially after theperiodical setbacks during the civil war along with the natural disasters and world terroristattacks. For instance, it was seen that the number of international tourists entering Sri Lankaincreased in 2008 accounting for 438,475 whereas the count was 18,969 in 1966. Particularly,the Travel and Tourism contribution was seen to be around 7.5% of the total GDP of the SriLankan economy in 2009. In 2009, tourism contributed around 503,000 jobs, 6.2% of the overallemployment and these facts are expected to grow by 2020 to around 6.7% of the totalemployment. Sri Lankan Travel and Tourism economy, out of the 186 registered countries of theWTTC is ranked at number 87 worldwide and 110 as per the contribution of tourism to thenational economies.2
Sri Lankan Tourism IndustryThe strategic issue in the field of the tourism industry of Sri Lanka is considered to be thecompetitiveness. In contrast to the other regions in Asia and the world, the last five years of thetourism growth in Sri Lanka are found to be highly flat. The tourism sector has realized that lackof growth in due to the civil conflict in the nation and the sector has also recognized the otherserious constraints related to the tourism business and its operations in the way the business isproceeding. This can be evaluated using the Porter’s model of the competitive advantage or thePorter’s Diamond.Porter’s model of the competitive advantage which is also known as the Porter’s Diamond isused as a powerful methodology which can help to establish enterprise for achieving superior3
Sri Lankan Tourism Industrycompetitiveness in this whole while the world of globalized economy. This model does notdefine the competitiveness of the enterprise present in a nation on the basis of the natural as wellas favorable factors nut also depends on the factors that are generated by negative and positivesynergies having an ultimate goal towards the productivity growth. The Porter’s model or the‘Diamond of National Competitive Advantage’ has presented four major elements of the nationthat will help in shaping up of the local firms to compete so as to hamper or may be support thecompetitive advantage namely: factor conditions, demand conditions, related and supportingindustries and the firm strategy and rivalry. Additionally, the role of government and the role ofchance should also be taken into account for assessing the competitive advantage of the nation.4
Sri Lankan Tourism Industry1.Factor conditionThe factor conditions include the factors like infrastructure which can be realized by thegovernment along with the human resources. The Sri Lankans are aiming to shape the policiesrelated to their civil aviation along with the domestic air travel so as to provide in the reforms forimproving their tourism-related infrastructure along with presented a unanimous voice towardsthe policies like land planning, tourism planning, taxation, environmental protection, municipalgovernment, etc.The factors related to the airports infrastructure, and related issues can affect the competitiveadvantage of the Sri Lankan tourism can be seen by the attacks at Bandaranaike InternationalAirport in July 2001 depicting the damages that can be done to the tourism performance of thecountry ("An analysis of the issues and prospects facing SriLankan Airlines and its embeddedpartnership with Sri Lankan tourism", 2015). The natural and cultural resources of Sri Lanka like the exotic beaches provide a competitiveedge to the tourism industry of the country. This is one of the key variables of the country'stourism industry. Furthermore, the factor conditions of the Sri Lankan tourism industry include:a.The welcoming nature of the peopleb.A strategic location that is highly accessible for the markets that are considered to betourist-generating markets of Asia and Western Europe.c.Serene Environment ranging from beaches to rainforest and finally to the mountains.d.Diverse and highly unique flora and faunae.Multicultural heritage of the foods, customs, and artsf.High literacy rate with high English literacy5
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