Unlocking Sri Lanka's Potential: Exploring the Success of Tourism as a Development Strategy

In this study we will discuss about tourism industry and below are the summaries point:- Tourism has been a successful development strategy for many developed countries and has benefited both developed and developing nations. Sri Lanka has experienced development through tourism, facing challenges during the civil war but rebounding after its conclusion. The tourism industry in Sri Lanka has contributed socially and economically, attracting foreign investors and tourists, creating job opportunities, and offering a unique experience for visitors.

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CHAPTER ONE
INTRODUCTION
1. Most of the developed countries have used tourism industry as one of their successful
strategies to gain the standards of development. According to World Tourism Organization,
tourism is simply travelling to and staying in places outside the usual environment for not more
than one consecutive year for leisure, business and other purposes. This concept of tourism helps
all the developed countries as well as the developing countries towards their development.
2. Sri Lanka is such a country which has been developing with tourism throughout the
years, and the late 1960s was the golden era of tourism in Sri Lanka. With the beginning of the
civil war the tourism industry faced many difficulties. With the start of Humanitarian War in
2006, ended in 2009, again the gates were opened for tourists. By then, the industry helped to
provide benefits to the country both socially and economically in many ways. Sri Lanka is
famous throughout the world as a tourist paradise. It has attraction of various sorts to satisfy the
varying interests of foreigners who come to Sri Lanka for either holidaying or sight-seeing. Sri
Lanka has a growing tourism industry. Since gaining independence from the British in 1947, Sri
Lanka has continued to attract foreign investors and tourists to the island. The country's
important placement also enables it to attract transit visitors into the island. For the holiday-
makers from Europe and other temperate countries the golden beaches that fringe this beautiful
island are indeed an attraction. Over the years, many beautiful resorts, hotels and spas have been
opened. Incorporating the diverse culture of the country, the various tourists establishments here
offer visitors a unique, yet memorable experience to remember with.

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3. Tourism industry has contributed the country for all these years and will develop the
country for coming years as well.
The research objectives are
a. How the travel and tourism will contribute towards GDP
b. Impact of tourism for the development towards the transportation system in Sri Lanka
c. Contribution of tourism towards poverty alleviation
d. How the tourism industry will dominate towards the work force and bring in new job
opportunities
4. All the new development projects conducted by the Sri Lankan tourism development
authority with the guidance of the government would contribute to develop the tourism industry
and benefit the country in various ways. More over what are the actions should be taken to
develop the gross domestic product, what are the areas which should be developed when it
comes to transportation sector to develop the tourism, how to generate more job opportunities
through tourism will be recommended at the end of our research.

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THE “MAHINDA CHINATHANA” AND TOURISM
5. In the “MahindaChinthana” it has identified that tourism is capable of effectively driving
the country‟s socio economic development. The vision of this program is to make Sri Lanka the
foremost leisure destination in South Asian region.
6. It includes key objectives such as,
a. To achieve 2.0 million tourist arrivals by the year 2016.
b. Target the upscale Free Independent Travelers (FITS) who are comparatively high
spenders.
c. To make tourism as the Sri Lanka‟s third largest foreign exchange earner
d. Transform tourism to become the fastest job creator and to help reduce the
unemployment levels
7. In the MahindaChinthana the Government has given a high priority towards sustainable
development, which includes cleaner wholesome production, protection of indigenous flora and
fauna and cultural treasures. This program includes a diversified tourism sectors such as eco-
tourism, adventure tourism, agro- tourism, community tourism, culture tourism, nature tourism,
sports tourism and wellness tourism. The promotions of these tourism sectors mainly focus on
the countries like China, Japan, Korea and Australia. As a result of that, it automatically provides
an opportunity for foreign and local investors to invest productively to make Sri Lanka the best
tourist destination in South Asia.
8. The MahindaChinthana includes five major strategies to achieve the following
objectives.
a. Developing Sri Lanka as a regional hub in the tourism industry
b. Resorts development
c. Marketing promotion
d. Accommodation facilities and other infrastructure
e. Roads and railways

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ECO TOURISM AND HOTEL INDUSTRY
9. When it comes to tourism, the latest concept in tourism is eco-tourism which cannot be
forgotten. But in the Sri Lankan contest, the concept of eco-tourism is not a new idea as Sri
Lanka is blessed with a variety of fauna and flora. The tourists who visit Sri Lanka never regret
about their visit due to eco-tourism. The history of Sri Lankan eco-tourism goes back to its
ancient Buddhist tradition. The world‟s first wildlife sanctuary was set up by royal edict in 3 rd
century BC in Mihintale. Today the sanctuaries, national parks and reserves comprise 14% of the
island‟s total land area.
10. When compared with other Asian countries, Sri Lanka‟s ecosystem has more rain forests,
mountains, lowlands, virgin forests and wetlands. Numbering over 220, Sri Lanka for its size has
perhaps the largest number of waterfalls of any country in the world. In Sri Lanka, although eco-
tourism is in its inception, concerted efforts are being taken to develop eco-tourism methodically
by the Ministry of Tourism in Sri Lanka. Those efforts are supported by all stakeholders in the
tourism industry, NGO‟s and other sectors responsible for environment, natural resources,
wildlife and forestry. Presently there is a Sri Lanka Eco-Tourism Foundation. Also, Sri Lanka
Tourism Awards 2011 was held in 30th August 2012 and Sri Lanka Eco-Tourism Foundation was
awarded as the best initiative for eco-tourism research, training and education and the best model
community based tourism project in Sri Lanka.
11. Recently by the world‟s most popular travel rating site Trip Advisor put out a list of the
10 most extraordinary treetop hotels, Sri Lanka‟s very own Saraii Village in Weerawila, a
relatively new comer to the field of sustainable tourism and green travel, made it to the list.
Figure 1.0: Saraii Village in Sri Lanka
Source: Official Web Site of Sunday Times

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12. There are so many eco lodges in Sri Lanka such as Tikiri Villa, Sigiriya Village Hotel,
the Boulder Garden Hotel, Kumbuk River Eco Extraordinaire, Madulkelle Tea and Eco Lodge,
Chaya Wild Yala, Ella Jungle Resort- Ella, Grand Udawalawe Safari Resort, Heritance in
Kandalama, Jetwing Vill Uyana in Sigiriya and Amaya Lake Dambulla are few of them.
Figure 2.0: Grand Udawalawa Safari Resort
Source: Official Web Site of Eco Tourism- Sri Lanka
Figure 3.0: Amaya Lake in Dambulla
Source: Official Web Site of Eco Tourism- Sri Lanka
Figure 4.0: Chaya Wild Yala
Source: Official Web Site of Eco Tourism- Sri Lanka

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Figure 5.0: Jetwing Vill Uyana in Sigiriya
Source: Official Web Site of Eco Tourism- Sri Lanka
.

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BACKGROUND OF THE STUDY
13. Sri Lanka is a tropical country, situated in the Indian Ocean and located between the sea
routes to the East and the West, which resulted in the country exposing to various cultural and
political influences. Throughout the years, the island has become a destination for tourists since
the world has recognized it as a hub for tourism through its reputation for spices, precious stones
and scenic beauty. From the white sand beaches of Hikkaduwa, Nilaweli, and Unawatuna to the
grassy mountains of Kandy, Nuwara Eliya and Horton Plains, the tourism industry has persisted
since a very long time.
14. All successive governments since the late 1960s have adopted tourism as an important
aspect of their planned program of economic development and they recognized and introduced
the tourism industry as a major development policy to the economy. The growth and
development of tourism was obstructed from time to time during the last three decades due to the
Humanitarian War. The major problem occurred was the unfavorable security situation which
prevented the tourists visiting Sri Lanka. As it has been mentioned above, the late 1960s was the
golden era of tourism in Sri Lanka. The arrival of tourists to the country was very high as it
directly helped the country‟s economy, hotel industry, and primitive industries and even
increased the strength of the labor force. Sri Lanka entered the international tourism market in
the late 1960s. Since then the industry has been growing steadily for years, but with the start of
the civil war in Sri Lanka the development process was obstructed. With the beginning of the
war and due to the Tsunami disaster, the percentage of tourist arrivals decreased in leaps and
bounds. Accordingly travel and tourism industry, Gross Domestic Product has also declined.
Unemployment percentage also grew up along with poverty. Yet globally, tourism remained as
the fastest growing service industry in the economies of most of the developing countries.
15. With the end of the Humanitarian War in 2009, under the guidance of the Government,
the obstacles created by the war for development were cleared. According to the Annual
Statistical Report of Tourism Development Authority (2011), Sri Lanka‟s tourism has boomed
to a new milestone with 855,975 arrivals in 2011, which has also become the all-time high figure
in the history of the country. Also, the foreign exchange earnings increased by 41.4% from
65,018 million in 2010 to Rs 91,926 million in 2011. Foreign exchange receipts per tourist per

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day recorded an increase of US $10, from US $ 88 to US $ 98 in 2011 compared to the previous
year.
16. Along with Sri Lanka, Asia emerged as the main source of tourism after the year 2009.
Accordingly, Western Europe became the second source of tourism. The room occupancy rate in
graded accommodation increased to 77.1% in 2011 as compared to 70.2% in the previous year.
Employment opportunities have been generated by the tourism sector at the end of the
Humanitarian War. Recently, the Ministry of Economic Development officially launched the
tourism development strategy for the next five years period –from 2011 to 2016. According to
the strategy, the main target of the tourism sector in the next five years is to achieve a target
number of 2.5 million tourists (2011:Annual Statistical Report, Sri Lankan Tourism
Development Authority). The main tourism resources identified are considerable diversity,
including beaches along its 1585 km coastline, natural/ecological and wildlife attractions,
indigenous culture, historical cities/heritage, Buddhist heritage, and remnants left by Arabs,
Portuguese, Dutch and British.
17. Throughout the years, tourism has been one of the most efficient industries which
developed the country even in most difficult period of times and it had faced dramatic changes
accordingly when the governments were changed. Even in the upcoming years it will provide
more opportunities as well as benefits towards the country‟s development. With the responsible
authorities performing their tasks well, the plans and dreams which everyone has to make Sri
Lanka the “Wonder of Asia” will come true.

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CHAPTER TWO
LITERATURE REVIEW
18. This chapter discusses main objectives of this study and the basic information we
gathered under the main topics: development of socio economics, contribution of travel and
tourism towards GDP, contribution of tourism to poverty alleviation, development of
transportation, contribution of the Tri Services towards the development of tourism, background
of employment that develops tourism and adverse impact of tourism. Basically this chapter
includes the areas which form the basis of our research.
DEVELOPMENT OF SOCIO ECONOMIC CONDITION
19. Socio economics focuses on the relationship between social behaviors and economy. It
inspects how social norms, ethics and other social philosophies that affect end user behavior
form an economy, politics and other social sciences to inspect potential results of the changes to
the society or the economy. The effects of socio -economy on tourism can be divided into few
categories. Those are nature based tourism, cultural and spiritual tourism, heritage tourism,
health tourism and sports and adventure tourism.
Nature Based Tourism
20. Sri Lanka has many resources for nature based tourism. A number of sanctuaries and
national parks in Sri Lanka with tropical forests, rich wildlife, and beautiful landscapes including
mountain ranges, water streams, and abandoned ancient irrigation tanks are resources for the
tourism industry. For example, Sinharaja Forest, Yala National Park, Gal Oya National Park,
Nil- gala medicinal forest and sanctuary, World‟s End, Hot Water Springs, Maligathenna
Sanctuary, Udawalawa National park and etc.
21. Wildlife safari with foreign tourists provides opportunity to local citizens to upgrade their
economic background. Local citizens can provide meals and accommodation to tourists at higher
cost to foreigners and local rates to local citizens.

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22. Animals, waterfalls, water pools, living-in ground huts and tree-top huts are tourist
attractions. Community participation is an essential component in all those tourism related
activities. Their income will grow up as the community supplies local products, labor and other
services to the tourism industry.
Cultural Tourism
23. The cultural diversity and uniqueness of Sri Lanka provide a competitive edge over
cultural tourism than in many other countries in the region. Sri Lanka is a home for all the major
three communities: Sinhala, Tamil, English and all the four major religions: Buddhism,
Hinduism, Islam and Christianity.
24. Katharagama, the Temple of Tooth Relic, Adam‟s Peak and Sri Maha Bodhi are the
examples of places that deal with cultural tourism. Other than those places Anuradhapura and
Polonnaruwa play a major role in cultural tourism. There are potentials to promote cultural
tourism to improve the well-being of the community. Kataragama has the potential to be
developed as a holy city of Sri Lanka to attract many visitors not only locals but also foreigners
from countries like India, Nepal, Burma etc.
25. The improvement of basic facilities for visitors such as clean and tidy cities,
accommodation facilities and other facilities are urgent needs in this endeavor. The lack of
infrastructure and other basic facilities including the accommodation are major challenges in
most of the Sri Lanaka‟s holy cities like Anuradhapura and Polonannaruwa.
Heritage and Spiritual Tourism
26. The available resources of Buddhist and Hindu religious practices create spiritual and
heritage tourism. Arts and architecture of the ancient people such as Kandy Perahara,
KataragamaPerahara, Sigiriya Mirror Wall, Sigiriya pictures, ancient king‟s palaces, ponds,
Isurumuniya Lovers, LowaMahapaya should be promoted with regard to the heritage tourism.

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27. Educational tours and excursions to visit historical heritage in Sri Lank should be
promoted among school and university students. Tourism packages consisting of meditation,
yoga, and Ayurveda medical spas, specially designed accommodation facilities in a clam and
quite locations, possibly close to historical sites or in woods could easily be promoted among the
foreigners. Tours to visit important religious and historical sites in Sri Lanka could also be
incorporated to it.
Sports and Adventure Tourism
28. Sports play a major role in uplifting the prospects of tourism in Sri Lanka. According to
the official web site of Sri Lanka Travel,there are sufficient facilities to play golf, cycling, scuba
diving, snorkeling, surfing, hiking, trekking, and etc(2013).
29. Other than the above sports hiking, diving, deep see fishing, rock climbing, whale
watching are also most famous adventure sports around Sri Lanka. Sri Lanka is best known for
its fertile green land forms that are suitable for hiking and trekking enthusiasts. Adam's Peak is
one of the best trekking zones and Nuwara Eliya is known for its lavish tea gardens, waterfalls
and gushing streams.
30. Diving is also another main sport of tourists. According to the official web site of Sri
Lanka Travel, the Indian Ocean around Sri Lanka with its coral gardens, multitude of exotic
fishes and ancient wrecks give best diving experiences (2013). For example Kalpitiya, Ampara
and Trincomalee in Eastern and Western coasts offer rare chances of wreck diving, skin diving
and diving with dolphins. Diving in the deep blue waters gives good experiences for tourists.
Most of them like to play with the coral world and colorful marine life. Arugam Bay, Nilaweli
and Kalkuda are very popular tourist destinations in Sri Lanka. Among all these places, Arugam
Bay is known to be the best and it is also rated as among the top surfing destinations in the
world.
31. Cycling is another revitalizing sport in Sri Lanka. Tourists enjoy cycling with the
landscapes, rural lifestyle, pristine sandy beaches, rubber plantations, wildlife, green tea gardens
etc.

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TRAVEL & TOURISM- DIRECT CONTRIBUTION TO GDP
32. The tourism industry has been identified as the single largest economic contributor that
affects the Gross Domestic Product of a country in numerous ways. After the Humanitarian War
which lasted for three decades, there is a rapid development in the country in numerous ways
especially in the economy. GDP is the core method of evaluating and finalizing the ultimate
economic inflow and outflow of all the sectors at the end of the year. As tourism is a core
contributor of the country‟s economy, the monetary inflow and outflow of tourism are also
calculated in finalizing the GDP of the country.
33. Gross Domestic Product means the market value of all final goods and services produced
in a country within a specific time period. It includes all of private and public consumptions,
government outlays, investments, exports and imports that occur within a defined territory. GDP
mainly consists of 3 main aspects.
a. Agriculture, Forestry and Fishing
b. Industry
c. Services
34. The Services include the hotels, restaurants, transport and communication which are
related with tourism industry.
35. GDP includes specifically the service sector which covers the tourism industry that are
examined. Tourism industry makes a greater contribution to the economy of the country.
36. The World Travel and Tourism Council (WTTC) has all the recorded data of the
contribution of Travel and Tourism to GDP. According to the data, although Sri Lanka‟s travel
and tourism industry‟s direct contribution to GDP peaked at 4.9% in 2004, it turned down
significantly to 3.1% in the year 2009. Though there was a significant decrease in 2009, it has
increased up to 3.8% on the ground of large arrival of tourists. This mainly reflects economic
activities coming under services. The major two services are Hotels & Restaurants and Transport
& Communication. Under the category of Transport & Communication the services that can be
identified in relation to the tourism industry are railway transportation, passenger and goods
transportation, cargo handling-ports and civil aviation etc. In 2015, travel and tourism earnings

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are expected to increase at an annual rate of 4.9 % and its share in GDP is expected to increase
up to 3.7%. Further, statistics show that in the year 2020, the annual rate will be increased up to
5.6 and its share of GDP is expected to increase up to 3.5%.
Table 1.0: Income of Travel and Tourism and Its Contribution to GDP in Sri Lanka
Source: Analysis of WTTC (World Travel and Tourism Council)
37. According to the data of Sri Lanka‟s National Accounts Statistics, „Hotels & Restaurants‟
has gained 0.7% of Sri Lanka‟s GDP in the year 2012. Its share has largely remained at 0.40-
0.60% from 2005 to 2010, with a considerable increase in 2012. In real terms, the share of
„Hotels & Restaurants‟ declined from 0.5% in 2005 to 0.4% in 2009, but it has thereafter
increased to 0.5% in 2010 and finally up to 0.7% in 2012(Department of Census and Statistics,
2012).

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Table 2.0: GDP from Hotels and Restaurants in Sri Lanka
Source: Analysis of Department of Census and Statistics, Sri Lanka (2013)
38. The above data indicates that tourism industry has made a prodigious contribution in the
development of the Gross Domestic Product of the country. But it is evident that when data is
calculated, the tourist attraction has diminished in 2009. Nevertheless, after the Humanitarian
War, again it has augmented up to 3.8% from 3.1%. However, it is expected that the present
government‟s plans would attract a larger number of tourists with the development of the
service sector. Furthermore, it is intended to attract 4.9% of tourists and it is predicted that it will
heighten up to 5.6 percent in 2020. Thus, it is expected that there will be a share of 3.5% from
the tourism industry.
39. It should be noted that when the tourism industry develops, the economic inflow and
outflow of the country will be greatly affected. Hence, the GDP rates will be proliferated which
will result in driving the country in the path of development.
Year LKR
Million
Current
Prices
Growth
(Percent)
Share
in GDP
LKR
Million
Constant
(2002) Prices
Growth
(Percent)
Share
in GDP
2005 14,218 20.9 0.6 9,186 -14.1 0.5
2006 16,646 17.1 0.6 9,411 2.4 0.5
2007 18,367 10.3 0.5 9,199 -2.3 0.4
2008 20,611 12.2 0.5 8,741 -5.0 0.4
2009 24,988 21.2 0.5 9,901 13.3 0.4
2010 33,213 32.9 0.6 13,845 39.8 0.5
2011 44,254 33.2 0.6 17,501 26.4 0.6
2012 57,943 30.9 0.8 21,029 20.2 0.7

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CONTRIBUTION OF TOURISM TOWARDS POVERTY ALLEVIATION
40. As a developing country Sri Lanka has been facing so many problems since the past.
There are some strategies that can be implemented to overcome the problems and to make Sri
Lanka a developed county. Among all the problems, at present, poverty can be considered as a
major issue in Sri Lanka. First, we have to define what poverty is. It is the human condition
characterized by the sustained or chronic deprivation of resources, capabilities, choices, security
and power necessary for an adequate standard of living and other civil, cultural economic
political as well as social rights (UN). Simply poverty can be described as the incapability of
meeting very basic needs such as food, safe drinking water, and shelter and sanitation facilities.
41. The Sri Lankan Government has implemented the following strategies to alleviate the
poverty.
a. Providing incentives for those who like to start business of their own
b. Granting loans, subsidies to uplift their standards
c. Improving Psychological aspects
d. Providing lands for cultivation
e. Decentralizing industrialization
f. Changes in the educational system
42. It is problematic that whether these strategies are sufficient enough to cope with poverty.
These strategies are also fruitful to alleviate poverty. In that regard, tourism is also a good
industry which helps to alleviate poverty in Sri Lanka.
43. Tourism is one of the fastest growing industries in the world. It helps not only the growth
of Gross Domestic Product (GDP) in a country, but also it contributes to reduce poverty in a
country. Tourism is important to the world because of the amount of income it brings into
countries and it promotes interconnectedness throughout the world. It is said that by tourism
poverty can be reduced. There is a feasibility to alleviate poverty in rural areas. It helps to
provide jobs to the residents of the country that are being visited not only in the tourism and
service industry, but also in the manufacturing industry as many people leave their vacation

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destination with souvenirs in hand. Although there were natural disasters in the world, tourists
haven‟t stopped traveling. Tourists tend to have disposable income that they spend in the country
they are visiting. They also, on the whole, have more leisure time with which they use on
numerous, shorter vacations throughout the year. Most tourists are well educated with
sophisticated tastes which have resulted in the demand for better service and products. Many
tourists also travel with their families, resulting in the need for more family-oriented vacation.
There are many purposes for tourists to visit to Sri Lanka as presented in the following table.
Table 3.0: Percentage Distribution of Tourists by Purpose of Visit in Sri Lanka
Source: Feasibility of Poverty Alleviation in Sri Lankan Rural Tourism as a Recreation Activity
44. It is evident that according to above graph most of the tourists visit Sri Lanka for
pleasure. With the increase of activities that fulfills their need of pleasure, we can attract more
tourists to Sri Lanka. Sri Lanka can increase those activities as a strategy in order to develop the
tourism industry. According to SLTDA data, there are 6 places that attract tourists to Sri Lanka.
They are ancient cities, the Colombo city, beaches in the South coast, hill country and beaches in
the East coast.
45. According to the Poverty Distribution Map, there are several districts with high poverty
levels. In urban areas the poverty level is high due to the population there. Poverty levels in rural
areas include 80% in the total poverty level in Sri Lanka. Poverty has different causes such as
enclave structure of state sector, the reliance on agriculture in rural areas, lack of services and
insecure land tenure etc. Other reasons for poverty include lack of education and reliance on low

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value employment (wages) and unemployment. Unemployment can occur due to the lack of
education, job opportunities and soft skills and job experience. House-hold poverty is due to
instability of the jobs and the ways to reduce vulnerability for unemployment is diversified with
multiple source of income. Therefore, tourism can create many job opportunities and diversified
income and reduce the vulnerability to unemployment. In Sri Lanka there are poor household
employees related to tourism such as households with family members working as casual/wage
laborers, locally owned or self-employed persons running small guest houses and restaurants,
local guides, transport providers, those who making handcrafts and running local gift shops, as
well as farmers (as suppliers). For tourist industry, higher educational knowledge is not required.
It provides job opportunities such as selling handcrafts.
Tourists like to buy handcrafts as souvenirs when they visit to religious, historical or any other
places. There are many kinds of handcrafts such as small bags, statues, masks, paintings,and
clothesetc., which are made by rural people. Therefore, small scale industrials get a chance to
sell their goods and lot of foreign exchange will flow into the country.
a. Providing lodges for tourists
b. Give training to the people who are willing to be tourist guides
c. Provide incentives to start self-based businesses
d. Villagers can use their places as residencies for the foreigners
e. The demand for the local foods would go high. Therefore, people can run such
businesses.
46. As it is mentioned above, Sri Lanka can target the tourist attractions in order to increase
the tourism in Sri Lanka and the Government can motivate people by providing facilities for
business. The Government can train people for different types of jobs. The main problem for
poverty in Sri Lanka is the lack of education. There is no need of a high level of education for
those who work in the tourism industry. Therefore, people can do more jobs. For example, a
seller can earn well by selling king coconuts to tourists. These benefits can be gained by poor
people in Sri Lanka.

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Benefits of Tourism to Alleviate Poverty
a. Tourism stimulates economic growth both at the national and local levels and promotes
the growth of the agriculture, industry, and services sectors.
b. Tourism provides a wide range of employment opportunities easily accessible by the poor
(Direct market for goods and services, opportunities for micro, small and medium‐sized
enterprises).
c. International and domestic tourism spreads development to poor regions and remote rural
areas of a country that may not have benefited from other types of economic development.
d. The development of tourism infrastructure provides benefits to the livelihood of the poor
through improvement linked services such as transportation, communication, water supply,
energy and health services.
Drawbacks of Tourism in Alleviating Poverty
a. Tourism sector operates as a trickle down system that is driven by a few key players that
does not allow for the maximization and spread of localized economic benefits.
b. Tourism is volatile to external shocks such as civil unrest, disasters, and crime.
c. Potential for tourism as an income source is limited as it is dependent on the local context
such as the popularity of the attraction, the level of infrastructure available, capacity and
skills available.
d. It can take away resources from other income sources (i.e agriculture land) while also
leading to issues of conflicts, over use, and access and control of these resources.
e. Some influences damage social and cultural traditions and lifestyles.

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DEVELOPMENT OF TRANSPORTATIONSPORT
INFRASTRUCTURE
47. Transportation within Sri Lanka is possible on road, railway, water and domestic air,
though roadtransport plays a major role. There is also a widespread railway network covering a
large portion of Sri Lanka. However, it is inadequate, in poor condition and not widely used for
passengertransportation. Natural and synthetic sea harbors are, largely, used for transporting
cargo.Inland rivers and lakes are used for tourism and long haul transportation between cities.
CIVIL AVIATION
48. There are 23 airports in Sri Lanka, with the Bandaranayake International Airport (BIA)
atKatunayake, 35Km North of Colombo and the recently constructedMattalaRajapaksa
International Airport (MRIA),15km North of Hambanthota being of significant size. They are the
only international airports in Sri Lanka. It is administered by Airport and Aviation Services (Sri
Lanka) Ltd. In April 2011, the airport announced the acquisition of 100 ha of land to build a
parallel runwayrequired to handle growing aircraft traffic that could soon lead to saturation of
existing capacity.The government has also planned a major expansion program at the airport to
the extent ofUS$400 million to cater to 2.5 million tourist arrivals by 2015. The proposed
expansion projectwould also involve a second terminal to be built with modern facilities that are
benchmarked tothe Shanghai International Airport in China. The projects consist of a 300-room
transit hotelinside the airport in addition to the existing 24 rooms.In addition, a second
international airport, The MRIA in Hambanthota district was planned to build inWeerawila, but
these plans were scrapped due to environmentalconcerns. The site was then moved to
Mattala.The airport was built with funding from China Harbor Engineering Corporation. The
newairport has a 3,500ft. long runway of 75m width.
49. When considering domestic airports, Sri Lanka has domestic airports located at;
Ampara, Anuradhapura, Batticaloa,Hingurakgoda, Kalutara, Kandy, Killinochchi,
Koggala, Sigiriya, Trincomalee, Vauniya, Weerawila.

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50. And Waterdromes located at;
Ampara, Arugam Bay, Batticaloa, Bentota, Castlereagh, Colombo-Dandugama,
Colombo-Peliyagoda, Dambulla, Dikwella, Hambanthota, Iranamadu, Jaffna, kalpitiya, Kandy-
Polgolla, Kandy-Victoria, Koggala, NuwaraEliya, Pasikudah, Tissamaharama, Trincomalee.
51. According to the Annual Statistical report published in 2011 by the Research and International
Relations Division, it is clear that the tourist arrivals in Sri Lanka has drastically increased after the end
on war in year 2009.
Figure 6.0: Growth of Passenger Arrivals and Departures-2000 to 2011
Source: Sri Lanka Tourism Development Authority Department of Immigration and Emigration

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Rail Transportation
52. Sri Lanka‟s railway network is largely inadequate to meet the transport needs of the
country.Presently the Sri Lankan Railway network consists of 1,447 kilometers covering 172
main stationsand around 161 minor stations. The railway lines run through some of the most
scenic rail routesin the world. In particular, the Main Line with a length of 291 km covering 78
stations, windsthrough waterfalls, natural forest mountains, misty peaks and precipices, estates,
pine forests,bridges and peak level stations.While Sri Lanka Railways (SLR) played a dominant
role in the country‟s transport sector until1928, its share in passenger and freight transportation
has decreased since then. The railwayscontinue to face serious competition from road
transportation, and have been adversely affectedby the country‟s civil war. Annually, around 7-8
percent of train services are cancelled and only an estimated 30 percent arrive on time. Average
travel speeds are low at 35-40 km/hr. At present,the bus service, both the state and private,
accounts for about 68 percent of total transportationand carry about 1,728 million passengers per
annum. In contrast, SLR carries about 98 million passengers per annum, accounting for 5 percent
of total passenger transportation. The remaining 27 percent is shared between sea, air and other
modes of transport, carrying about 686 millionpassengers per annum.
53. Train travel removes the stress from the travelling to multiple locations while on
vacations.Whether traveling from city to city or province to province, train travel allows tourists
to enjoythe view without navigating a vehicle in a foreign location.Customers may choose from
first class service and second class service, just as in an airline. This allows travelers to enjoy
their vacation according to their budget level while upgrades are affordable.Train journeys are
one of the least stressful forms of transportation out there: someone else does the driving; there
will be more legroom than on an airplane and the passengers will be able to move around at will
not just when the captain turns the seatbelt sign off.
54. Rail services such as Rajadhani Express and Expo Rail have dedicated to ensure the most
comfortable rail experience to all the tourists. They provide services such as

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a. A/C Super Luxury Compartment
b. Butler Service
c. Wi-Fi Connectivity
d. LCD TV with Movies, Music and Documentaries
e. Leather Adjustable Reclining Seats
f. Power Outlets to every seat for Laptop and phone users
g. Timber flooring
h. Onboard Snack menu
i. Modern clean toilet facilities
Road Transportation
55. Roads are the backbone of the transport sector in Sri Lanka. National roads carry around
68-70percent of the transport traffic in Sri Lanka. However, uncontrolled roadside development,
aswell as neglect and poor road maintenance have resulted in low travel speeds and poor
service.This discourages long distance traffic and hinders the spread of economic activities
anddevelopment in regions other than the Colombo Metropolitan Area (CMA).
56. The Ministry of Highways is the apex organization in Sri Lanka for the development of
the roadsector. It is responsible for the formulation of national policies, implementation
strategies andmonitoring of the performance of the road sector, improving and maintaining the
national roadnetwork. The Road Development Authority (RDA) is the highway authority in the
country and isresponsible for the maintenance and development of the National Highway
Network, comprisingthe Trunk (A Class) and Main (B Class) roads and the planning, design and
construction of newhighways, bridges and expressways to augment the existing network.

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Table 4.0: Key Surface Transport Statistics of Sri Lanka
Source: Central Bank of Sri Lanka, IMaCS Analysis
57. Sri Lanka‟s entire road network comprises National Highways (A & B), Provincial roads
(C, D & E), unclassified Local Authority roads and other roads maintained by several
Government Departments and State Sector Estate Agencies. As per the data available up to
September end 2010, the total length of the National Highways maintained by the Central
Government is approximately 12,019 km.
Table 5.0: Road Network by Province in Sri Lanka
Source: Compiled by IMaCS

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58. Road transport network and quality of roads is better in the Western, Central, and
Southernregions. The Northern and Eastern regions have higher share of provincial (C, D, and E)
classroads. Weak transport infrastructure, particularly, outside the Central and Western
Provinces, has prompted most hotel operators to invest in and operate their own fleets of buses,
vans andauto-mobiles. Domestic air transport has potential for development, but is an expensive
option.According to the National Road Master Plan 2007-2017, there are proposed projects such
as the Outer Circular Highway, Colombo – Kandy Expressway, Colombo – Jaffna
Expresswayand the extension of the Southern Expressway.
59. According to the Ministry of Ports and Highways Sri Lanka the highlighting ongoing
development projects are:
a. National Highways Sector Project (SRI-2217)
1) Maduruwagoda (30+000) to Aluthgama section of Horana - Anguruwathota -
Aluthgama (B157) Road.
2) Kirulapone – Homagama section of Colombo - Ratnapura - Wellawaya -
Batticaloa (A004) Road
3) Pamankada - Kesbewa section of Colombo - Horana Road (B084)
(Including the bypass)
4) Matara (0+100) - Godagama (4+360) section of Matara - Akuressa (A024)
Road
5) Hikkaduwa–Baddegama–Nihena (B153) Road
6) Katukurunda – Nagoda section of Katukurunda – Neboda (B207) Road
b. National Highways Sector Project – Supplementary Loan
c. Trincomalee Integrated Infrastructure Project (TIIP)
d. Northern Road Rehabilitation Project (NRRP)
e. Priority Roads Project 1(PRP1)
f. Priority Roads Project 2(PRP2)
g. World Bank Funded Road Sector Development project – (Phase II)
h. Pro-Poor Eastern Infrastructure Development Project
i. Reconstruction of five bridges in Eastern Province
j. Northern Road Connectivity Project

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1) Rehabilitation / Improvement to B437 Road from Vallai to Araly (0+000
km - 27+400 km)
k. Conflict Affected Region Emergency Project (CAREP)
l. UK steel Bridge Project
m. The improvement of Peradeniya – Anuradhapura Road Project
n. Improvement of Hatton – NuwaraEliya Road Project
o. Kuwait Fund for Arab Economic Development (Rehabilitation/Reconstruction of 32
bridges and one by-pass road under the Kuwait Fund for Arab Economic Development)
p. Veyangoda Fly over railway crossing
60. By now since the construction of the Colombo - Katunayake Expressway connecting
Colombo and Bandaranayake International Airport with 2 lanes each way from Colombo to
Peliyagoda and 2 lanes each way from Peliyagoda to Katunayake with the width ranging from
26 to 33.5m and also the Sothern Expressway connecting Colombo and Matara is over, tourists
and also the locals are able to reach their destinations comfortably consuming less time.
61. Hence, according to the gathered information it is clear that the transportation system in
Sri Lanka will be developed with the completion of the proposed projects in all transportation
mediums. With the completion of all these projects tourists and locals will be able to experience
a much more comfortable journey.
CONTRIBUTION OF THE TRI FORCES TO THE DEVELOPMENT OF TOURISM IN
SRI LANKA
62. After the thirty-year war in Northern and North East of Sri Lanka, the contribution of the
Tri-Forces to the development activities has increased dramatically. The development projects
are fully governed by the Tri-Forces in the North and North Eastern of the country. Not only the
constructions but also the maintenance is carried out by the Tri-Forces under the guidance of
His Excellency the President MahindaRajapaksa, the Defence Secretary Mr.
GotabhayaRajapaksa and the Commanders of the Tri-Forces.

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63. LAYA Leisure at Kukuleganga, LAYA Beach at Wadduwa, LAYA Safari at Yala, Sober
Island Resort, Light House Galley at Colombo, Fort Hammenhiel Resort Jaffna, Club House at
Uswetakeiyawa, Malima Lake Front Rest at Kanthale, Eagles Lagoon View and Marble Beach
Resort are some of the hotels and resorts constructed and maintained by the military sector. It is
not limited to the infrastructure development. The steps have been taken to facilitate the traveling
demands of the tourists inside the country through helitours by Sri Lanka Air Force and boat
services by Sri Lanka Navy. Sri Lanka provides a rare opportunity of whale watching as Sri
Lanka Navy has taken the role of providing facilities for both tourists and Sri Lankans for whale
watching.
64. In addition to the hotels and resorts, the military sector has taken steps to preserve and
maintain the coastal line of the country including the tourists‟ attractions like Nilaweli,
Pasikkuda, Arugam Bay and Kuchachaveli. Along with the development activities that facilitate
the tourists, the Tri-Forces have taken the necessary actions in order to provide maximum
security to the tourists during their stay in Sri Lanka.
BACKGROUND OF EMPLOYMENTS TO THE CONTRIBUTION OF THE
DEVELOPMENT OF TOURISM SECTOR
65. The tourism industry creates employment opportunities in tourism related businesses
such as hotels and other accommodation travel agencies, tour operations, entertainment business,
souvenir, handcraft etc. Its contribution has two aspects: direct contribution and indirect
contribution. Selling goods and services to the tourism sector is considered as indirect
employment. However, the indirect employments which are generated are much higher than the
direct employment. The estimate calculation shows that with every 100 direct jobs created, there
are 140 indirect jobs generated in the supply sector.
66. The contribution begins from the Hotel School sector. It is the only Government
approved institute in Sri Lanka which was established by the Government for the purpose of
training young men and women in hospitability and travel industry. And they facilitate students
island-wide with branches in Anurdhapura, Bandarawela, Pallekele, Koggala, and Ratnapura.
Their main objective is to train students in skills in hotel management etc. People contribute to

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tourism with their own businesses in handcraft, small restaurants etc. They can be considered as
persons who support tourism. Tourist guides and travel agencies are considered as one kind of
supporters.
67. Another point of view is that there was an increase in the development in 2007. In 2006 -
2007 tourist industry added around 20 000 jobs. The tourist arrivals were fluctuated in 2008 and
1836 jobs were created in the industry in 2009. Most of people were in accommodation and
catering services. Finally, the total contribution of indirect employment sector was 72 899 in
2009. It increased in 1.5 percent. However, WTTC expected 210 000 persons to the travel and
tourism industry in 2011 including all sectors such as hotels, travel agencies, airlines, and
passenger transportation.
68. It is evident that the employment sector is also an important sector in the tourism sector.
Even a small employee such as a vender is a contributor of the tourism.
ADVERSE IMPACT OF TOURISM
Environmental
69. Sri Lanka is a country which has many tourist attractions such as sandy beaches, small
islands, wild life sanctuaries and religious and culturally important places. With the increase of
the tourist arrivals the government and the private sector have focused their attention mainly on
creating those places more attractive by constructing new hotels and resorts in those places.
70. Even though it creates attractiveness, there will be the following environmental problems
in future.
a. Garbage and pollution
b. Wildlife poaching
c. Destruction of mangroves
d. Hunting
e. Constructions which disturbs nature

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71. The above mentioned are some of the problems that prevail and will be there in the years
to come. Even though there are many rules and regulations over the development activities, the
unauthorized constructions have threatened the beauty and the value of nature at large scale.
Social
72. With the development of tourism industry the number of job opportunities has increased
at a considerable rate in Sri Lanka. Along with that, the number of people who are engaged in the
unauthorized employment have also increased due to the fact that most of them have no proper
educational background. Some of the employments are not authorized by the Government. e.g.
a. Prostitution
b. Drug dealing
c. Gambling
d. Child trafficking
e. Illegal trading of indigenous plants and animals ( Jude Anjana et al ,2011)
73. Even though there are many laws and regulations on trading, the above mentioned
activities are practiced secretly in the country.

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CHAPTER THREE
DEVELOPMENT OF TOURISM IN SRI LANKA
74. This chapter includes information on two new projects that has been implemented by the
Government under the development plan. The projects are the master plan of developing
tourism. They have been implemented in Kuchchaveli town and in Pasikuda. The information in
this chapter includes the location of the two projects, the end results and the organization of the
constructions.
MASTER PLAN FOR TOURISM DEVELOPMENT – KUCHCHAWELI TOWN
75. In early times Trincomalee is referred to a port of Gokanna in Mahawansa. Kuchchaveli
is the longest coastal belt. It has a 40 km length and attractive coastal topographical features.
After the thirty year war the SLTDA has taken measures on the development of tourism. For the
wellbeing of the communities, new projects have been launched throughout Sri Lanka. The
Kuchchaveli project is one of the main projects. Its vision is “To make Kuchahaveli a „Green
Integrated Resort‟ requiring all development activities to be environment friendly”. The
objectives of the project include the followings.
a. Promoting sustainable tourism development in economic, environmental and
socio- cultural aspects.
b. Enhancing the image of Sri Lanka to attract visitors who respect and love the
local cultural and nature.
c. Try to encourage alternative power, recycling of water and harnessing the rain
water.
d. Develop the health of people who are living in Kuchchaveli G.N. Division.
e. Promoting domestic tourism.
76. Furthermore, the proposed activities include whale watching, exploring ship wrecks,
boating, surfing, swimming, golfing, cycling and trekking.

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77. An objective of the project is to create a green spine by acquiring the area on the
landward side of road.
a. No boundary walls are allowed and instead hedges and live fences are used.
b. There is a proposed private walk way in between the hotel and the bio-shield.
c. The building heights could vary from single story to 3 stories with buildings
closest to the beach. And the maximum number of rooms per acre is 10.
d. Internal roads parallel to the main highway will provide access to the tourism
area. Roads will be landscaped with palms.
e. Bicycle tracks and pedestrian paths will be provided.
78. There is an approximate 140 acres available in the area in which the followings have
been proposed to be established.
a. Shops with parking areas.
b. Post office, internet facilities, restaurants, banks
c. Sri Lanka Tourism Development Authority office and Information Centre
d. Medical Centre
e. Tourist Police
f. Shopping complex, sports complex
g. Art gallery
h. Life guard unit, Aquarium
i. Changing rooms, vehicle park and the drivers‟ waiting area
j. Cycle hiring area
k. Public utilities
79. Some facilities related to fisheries, rowing, water sports and golf are to be established.
Also, cycle tracking and walk ways through the green area will be constructed. The estimated
cost and the duration for completion have been estimated. Few of the proposed constructions are
now in progress.

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Figure 7.0: Proposed Tourism Project Area - Kuchchaveli
Source: Official Web Site of SLTDE
Figure 8.0: Trekking
Source: Official Web Site of SLTDE

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Figure 9.0: Whale Watching
Source: Official Web Site of SLTDE
Figure 10.0: Infrastructure Development
Source: Official Web Site of SLTDE

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Figure 11.0: Infrastructure Development
Source: Official Web Site of SLTDE
Figure 12.0: Fisheries
Source: Official Web Site of SLTDE

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MASTER PLAN FOR TOURISM DEVELOPMENT –PASIKUDA
80. Another giant project constructed under the guidance of Tourism Planning and
Development Division of Sri Lanka Tourism Development Authority is the development of a
national holiday resort at Passikudha. This project started its work on 23rd January 2012. It
consists of the construction of hotels and tourism infrastructure. The 14 hotels consist a total of
930 rooms and the investments on these hotels are 6533 million rupees.
81. Most infrastructure projects have already been handed over to the authorities and few are
still in progress. The projects which have already completed the constructions include
construction of changing rooms, public toilets, gravel road (Southern Wing), water supply
scheme from Valachchenai, renovation of water pumps at NPCL Valachchenai and landscaping.
And the ongoing construction projects include constructing a sewage treatment plant and water
supply arrangement within the resort. 90% of the construction of the road from Kumburumullai
to Passikudha and Valachhcenai to Passikudha has already been finished.
82. These two projects will definitely develop both the domestic and global tourism in our
country and provide benefits socially as well as economically in the years to come.
Figure 13.0: Construction of Changing Rooms
Source: Official Web Site of SLTDE

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Figure 14.0: Construction of SLTDA Office
Source: Official Web Site of SLTDE
Figure 15.0: Construction of Gravel road
Source: Official Web Site of SLTDE

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CHAPTER FOUR
RESEARCH METHODOLOGY
PRIMARY DATA COLLECTION OF THE FIELD RESEARCH ON THE
DEVELOPMENT OF TOURISM AND FUTURE DEVELOPMENT
83. Both qualitative and quantitative evaluations were utilized in this research project which
consisted of collecting figurative and statistical data, conducting interviews, distribution of
questionnaires with structured questions. The requisite data for the research were drawn from the
following sources:
Primary Sources
84. Primary data was gathered by interviewing resource personnel in the relevant sectors and
by distributing a questionnaire among randomly selected foreign tourists.
85. Five personnel were selected from the relevant sectors: Mr. Indrajith De Silva, the
Deputy General of the Department of Promotion Bureau, Mr. AnupaRanaweera, the Town
Planner – Department of Planning and Development in SLTDA, Mr. ChandanaWijeratne,
Deputy Director of Convention Bureau of SLTDA, Mr. SajithSamanth, Senior Lecturer in Sri
Lanka Institute of Tourism and Hotel Management and the Director of Sales of TajSamudra
Hotel, Colombo were interviewed by using an interview guide which is annexed. Five
interviews were conducted which lasted for about one and half hours each.
86. A randomly selected group of sixty tourists from Queen‟s Hotel Kandy, Mount Lavinia
Hotel, TajSamudra Hotel, Hikkaduwa Beach Hotel were interviewed and a questionnaire was
distributed. The questionnaire consisted of 20 questions which consisted of both open format
questions and closed format questions. The questionnaire was to assess their impression on Sri
Lanka, whether Sri Lanka is promoted well in their mother countries, their ideas that would help
to develop the tourism industry in Sri Lanka.

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Secondary Sources
87. Secondary data was gathered from the relevant Acts, books, journals, and the internet.
Specifically publications done by the Sri Lanka Tourism Development Authority in relation to
the research topic, The Annual Reports 2010 and 2011 were referred.
METHODS AND TECHNIQUES
88. The analysis will include statistical data of ten years since 2000 to 2011 and discuss the
decrease of the tourist‟s arrival till 2009 (during the war period), the gradual acceleration since
2009 and the expected tourist arrival in 2016.
89. The information gathered from the interviews will be discussed and the planned projects
which would attract 2.3 million of tourists by the year 2016 will be presented.
90. The information gathered from the tourists will be analyzed in the form of statistical
inference and based on that, the recommendations will be decided.
DATA ANALYSIS
Dependent Variable: Gross Domestic Product
Method: Least Squares
Table 6.0: Tourism and Its Contribution to GDP
Source: Central Bank Report (2011)

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Table 8.0: Overall GDP
Source: Central Bank Report 2011
Figure 16.0: Modeling with Linear
Regression Analysis
Source: Central Bank Report (2011)
Table 7.0: Modeling with Linear Regression
Data
Source: Central Bank Report (2011)

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Figure 17.0: Travel and Tourism of GDP
Source: Central Bank Report 2011
Table 9.0: Poverty Head Count Ratio
Source: Central Bank Report (2011)

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Analysis of Interviews
91. Under the sub topic of the analysis of interviews, we have included the interviews
conducted with responsible personnel of Sri Lankan Tourism Development Authority. This
section contains what they have mentioned on tourism and the development projects that have
been launched by the Government to develop the tourism industry.
a. Hotel Management and Benefits
92. Mr. DeeraKeerthiHettiarachchi, one of the senior lecturers in Sri Lanka Institute of
Tourism and Hotel Management said that “The present situation of tourism is far better than in
the past and the hotel management field is one of the emerging areas in Sri Lanka which will
provide benefits in numerous ways and provide many employment opportunities to the society”.
b. Ongoing Projects and Town Planning
93. MrChandanaWijerathna, the Deputy Director of Coast Conservation Department of the
Sri Lankan Tourism Development Authority (SLTDA) said that the “Ongoing projects under the
supervision of the Government such as Kuchchaveli Project, Pasikuda Project, and Kalpitiya
Development Project will contribute and help the socio-economic development and the
development of the tourism industry”.
c. Promotion Campaigns
94. Mr. Indrajith De Silva, the Deputy General of the Department of Promotion Bureau deals
with foreign affairs. He is involved with the promotion campaigns of Sri Lanka that are
conducted overseas with other private sectors. According to him, “At the moment SLTDA has
planned many projects to increase the value of Sri Lankan culture, heritage and beauty within the
country and across the globe. For instance, a project has been launched to promote and upgrade
the rest houses”.

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ANALYSIS OF THE QUESTIONNAIRE
Figure 18.0: Purposes of Tourist Arrivals
Source: Author
Figure 19.0: Satisfaction with the Security Provided by the Sri Lankan Government
Source: Author
0
10
20
30
40
50
60
70
80
Vaction Business
Purposes
Education
Purposes
Conference Other
Strongly Agree Agree Neutral Disagree Strongly Disagree

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Figure 20.0: Tourists‟ Ideas about the Areas Needed to Be Improve in Sri Lanka
Source: Author
Figure 21.0: Reasons for Visiting Sri Lanka
Source: Author
0
10
20
30
40
50
60
70
80
90
Hotel Services Transport Communication Security
0 1 2 3 4 5 6
Less Expense
Natural Beauty
Cultural Background
Other reasons

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Figure 22.0: Likeness to Study Meditation, Ayurveda, Treatment, Yoga and Cultural Events in
Sri Lanka
Source: Author
DATA INTERPRETATION
Tourists Arrivals
95. According to the Annual Statistical Report, published by the Sri Lanka Tourism
Development Authority, the growth of the tourist arrival from the year 1966 to 1982 has shown a
gradual increase, but it shows a sudden decrease from 1983 to 1988. Even though the growth has
increased from 1987 to1991, the percentage of the change is not significant. With the beginning
of the year 1992, the number of arrivals has increased in an average level up to the year 2009.
But with the end of the Humanitarian War, it increased rapidly by the end of 2011.
96. When considering the mode of transportation, majority of the tourists have visited Sri
Lanka through the airport, while the rest of the tourists have visited through the harbor. The
tourists who visited Sri Lanka in the last ten years can be divided into the following five main
sectors based on the purpose of their visit.
Strongly Agree Agree Neutral Strongly Disagree Disagree

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a. Pleasure
b. Business
c. Visiting friends and relatives
d. Conventions and meetings
e. Religious and cultural activities
f. Other
97. Among them majority of tourists visited Sri Lanka for the purpose of pleasure and they
were from European countries. It was around 80% from the total number of arrivals. In addition
to that, 8% of the foreigners visited Sri Lanka mostly from far Eastern countries for investments
and business purposes. Most of the South Asian foreigners visited Sri Lanka for the religious and
cultural purposes, and it is 3 % of the total arrivals. The rest of the tourists visited Sri Lanka for
conventions andmeetings, visiting friends and other purposes.
TOURISTS ARRIVALS - GDP, POVERTY & INCOME
Tourists Arrivals - GDP
98. This shows the increase of the GDP with the increase of tourist arrivals. The coefficient
of this is around 25267. This is the amount of money which is spent by a single tourist in Sri
Lanka. According to the R-squared value, the coefficient is about 0.846867. As this value is
above 0.75, it shows that the sample is an effective sample to compare the GDP with the tourist
arrival. According to the diagram, its shows a positive impact on the increase of GDP. As a
commutative data from 2002 to 2011, the growth GDP shows a difference of Rs.14041.
99. According to the Bank Report (2011) this chart shows the overall increase of the GDP
(Gross Domestic Product) with one tourist arrival with regard to the hotel industry, transport and
infrastructure etc. By considering all these aspects, the variable is TN (tourist arrival). The
coefficient is 12.41972 million. Considering this amount we can have a decision that the overall
income is also in a positive manner in the GDP. In quantitative manner, tourism has supported to
develop the economy in Sri Lanka. But the other qualitative factors are not included in the GDP,
but quantitatively the income gained by the Sri Lanka Tourism Industry is significant.

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100. In considering the chart, the R-squared is 0.83. R-squared 0.83 meansthat it is also in a
good status. As a percentage, 75% is a positive fact. And the other data are also in pulse
numbers. The diagram shows the gradual increase of the GDP income gained from tourism.
Finally, it is obvious that tourism has a positive impact on GDP.
DEVELOPMENT OF TOURISM AND ITS INFLUENCE ON POVERTY
101. Tourism industry in Sri Lanka shows a significant development since the end of the war
which prevailed in the country almost over three decades. It is clearly obvious by the number of
tourist arrivals that increased after the war. The growth of tourist arrivals has contributed directly
and indirectly towards the increase of Gross Domestic Product in Sri Lanka. Even though the
Gross Domestic Product shows an increase, it is only a quantitative growth and not qualitative
growthsince it hasn‟t contributed towards decreasing poverty in Sri Lanka. It means that the
growth of the Gross Domestic Product has no significant influence over the income of poor
people in the country. This phenomenon is known as “trickledown effect” and to overcome this
“pro poor” concept can be used.

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CHAPTER FIVE
DISCUSSION
102. The research we conducted is based on the topic of development of tourism industry and
future benefits for Sri Lanka. Under this research question we discussed on topics such as how
the Government and Sri Lanka Tourism Development Authority will develop the tourism
industry and how that development will provide benefits socially and economically, how it will
increase the GDP rate, and develop the transportation system of the country and finally how it
will decrease the poverty rate.
103. To reach these results the methodologies we used were as follows. Quantitative evolution
was basically used for the research project with a collection of figurative and statistical data,
conducting interviews and questionnaires. And the gathered data included years from 2000 to
2011.
104. After analyzing the gathered data we came to a conclusion with recommendations. As the
arrival rate of tourists arose, the direct contribution towards GDP increased, but the poverty rate
did not eradicated. Hence, it gives us the idea that the benefits earned through the development
of tourism industry did not distributed among the society. With that we came into a conclusion
that we need to have a project for pro poor tourism. By that we can create a system to make the
benefits flow to each and every corner of the society, which will automatically make the
employment opportunities and will decrease the poverty rate.
105. According to the data gathered from tourists and by the questionnaires distributed among
the tourists we came into a conclusion with the comments they made about our transportation
system. They suggested that there is a need of a railway system which should be more developed
and that is available island wide. The railway system should also be more comfortable. As the
highway system is developing rapidly in time to come, the road system will be at a good
position. These are the information we gathered with regard to the research topic and the
decisions and recommendations we would provide as a result of the project.

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RECOMMENDATIONS
i. Uplift and develop the small industries in order to enable them manufacturing quality
products, so that the demand would increase.
ii. Promotion campaigns should be initiated at Colombo, Galle and Kandy in order to
promote the newly discovered tourist attraction zones in North and North Eastern areas
such as Kuchchaveli and Pasikuda.
iii. Necessary actions should be taken to clean and maintain the specific beaches under the
supervision of the Tourism Development Authority.
iv. Railway stations and railways should be standardized.
v. There should be cultural shows organized at night in order to promote the Sri Lankan
identity and culture.
vi. Quality and the hygiene of the food should be standardized.
vii. There should be cultural shows organized at night in order to promote the Sri Lankan
identity and culture.
viii. Quality and the hygiene of the food should be in standardized.
ix. Eco-tourism should be developed and it should be made profitable to poor people as well.
x. There have only been few promotion campaigns in London and few other countries. But
there should be more promotion campaigns organized worldwide and with the help of the
world famous persons of Sri Lanka.
xi. Not only the main roads, but also the minor roads should be developed as the tourists
expect to travel more rather than to few places.
xii. There should be programs that would inspire the students who pass out from the hotel
schools, to remain in Sri Lanka and serve the country rather than going to another
country.

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CONCLUSION
106. Throughout our research on developments in tourism industry and future benefits for Sri
Lanka we have focused on what are the major sectors which highly contribute towards the
development of the country and how those areas will be nourished with the development of
tourism industry. The main area we focused is the socio economic development of the country
and through that how the Gross Domestic Product increases how the transportation system will
be developed, how the poverty rate will be decreased, what sort of new employment
opportunities would be created and finally how the government will achieve their targets to
develop the tourism industry.
107. When it comes to the growth of GDP, the economic inflow and outflow will be hugely
affected by the development in tourism as the direct contribution to the GDP of tourism will rise.
Similarly, the system of transportation also will be guided to new construction and not only the
road systems, but also the modes of transportation will also shape up. Accordingly, with the
benefits earned through the tourism sharing among the society without any discrimination the
poverty rate also will fall down.
108. So to reach the successful destination of development, the only possible way is to
develop the tourism industry in Sri Lanka. Then, not only it will provide benefits to us, but also it
will make the nation stand proudly among the globe.

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REFERENCES
i. Department of Census and Statistics Sri Lanka (2013), National Accounts 2012,
Annual, Dross Domestic Product by Industrial Origin at Current Prices of Major
Economic Activities, pg 2
ii. ICRA Management Consulting Services Limited (2011), Travel and Tourism,
Transport Infrastructure, pg 30-42
iii. Ministry of Highways and Road Development Authority (2007). National Road
Master Plan (2007-2017),National Road Master Plan - Components, pg 16-17
iv. Sri Lanka Institute of Hotel Management (2011), Adventure Sports. Viewed on 1
September 2013. http://www.slithm.edu.lk/
v. Sri Lanka Tourism Promotion Bureau (2002), Adventure Sports. Viewed on 3
September 2013. http://haroldgoodwin.info/
vi. Sri Lanka Tourism Promotion Bureau (2013), Adventure Sports. Viewed on 5
September 2013. http://www.srilanka.travel/adventure_sports
vii. Sri Lanka Tourism Promotion Bureau (2013), Cultural Tourism. Viewed on 6
September 2013. http://www.sltda.lk/cultural_tourism
viii. Sri Lankan Tourist Development Authority (2011), Annual Statistical Report,
Schedule Airline Operations and Passenger Rolls, pg 37-38

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APPENDICES
APPENDIX 01- SAMPLE QUESTIONNAIRE
This questionnaire intends to measure the feasibility of the project related to Syndicate 18, which
facilitates to store, and retrieve questions and conduct analysis with the use of an interview
system, for the Syndicate 18 of Intake 29. The questionnaire consists of two sections and you are
at liberty to refrain from answering any particular question. The security of the given data and
anonymity of your identity will be protected.
INSTRUCTIONS:
 The questionnaire includes two sections.
 Please place a tick mark in the corresponding checkbox where necessary.
 When answering open ended questions, briefly answer according to the best of your
knowledge in the space provided.
 If you come across any difficulty while answering, do not hesitate to contact the
researcher.
Sample No: - …………. Researchers’ Report
Date:- …………………..……………….
Time:- …………………………………..

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Section 1 – Demographic Details
1. From which country are you from? _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Section 2 – About the Tour to Sri Lanka
2. How did you get to know about Sri Lanka?
a. Newspaper /Journal
b. Through internet
c. From someone who visited Sri Lanka
d. Others
3. What is the purpose of visiting Sri Lanka?
a. Vacation
b. Business
c. Educational purpose
d. Conference
e. Other
4. What places of the country did you visit?
a. Hill country
b. Coastal area
c. Historical places
d. Wild life
5. Is it cheap to visit Sri Lanka compared to other Asian countries?
Strongly Agree Agree Neutral
Disagree Strongly Disagree

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6. Are you satisfied with the security provided by the Sri Lankan Government?
Strongly Agree Agree Neutral
Disagree Strongly Disagree
7. What is the best way of traveling in Sri Lanka?
a. By train
b. By bus
c. By Taxi
d. Any other method
8. If the answer is (a), do the Sri Lankan trains provide a good service?
Strongly Agree Agree Neutral
Disagree Strongly Disagree
9. Do you think that Sri Lanka is one of the best places for whale watching/dolphin watching?
Strongly Agree Agree Neutral
Disagree Strongly Disagree
10. Are you satisfied with the services provided by the hotels?
Strongly Agree Agree Neutral
Disagree Strongly Disagree
11. Are you satisfied with the service provided by the local guide?
Strongly Agree Agree Neutral
Disagree Strongly Disagree

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12. What are the areas to be improved in services, provided to the tourists?
a. Hotel services
b. Transport
c. Communication
d. Security
e. Any other comments _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
13. What is the reason for yourvisitto Sri Lanka?
a. Less expense
b. Natural beauty
c Cultural background
d. Religious and spiritual background
e. Other reasons
14. Was your trip to this tourist destination organized by a travel agency/ any organization?
Yes No
15. Would you like to study meditation, ayurvedic treatment, yoga, cultural events in Sri Lanka?
Strongly Agree Agree Neutral
Disagree Strongly Disagree
16. Are you interested in buying handcrafts and souvenirs made in Sri Lanka?
Strongly Agree Agree Neutral
Disagree Strongly Disagree
17. Are you satisfied with the hospitality of Sri Lanka?
Strongly Satisfied Satisfied Neutral
Strongly not Satisfied Not Satisfied

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18. Has your purpose of visiting Sri Lanka been accomplished?
Strongly Agree Agree Neutral
Disagree Strongly Disagree
19. Do you wish to visit Sri Lanka again?
Yes No
20. What is your general idea about Sri Lanka?
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Thank You for Your Co-operation