Temporal Change of Foreign Tourism in Sri Lanka: A Study on Economic Perspective
Abstract
Purpose: Many countries rely heavily on tourism as an economic driver. It has a large workforce. Sri Lanka's economic turmoil has been a big impediment to tourist trips. Tourists are keeping away from this picturesque country because of high inflation, frequent power outages, and fuel scarcity. This impacted the tourism industry, job losses etc. This research investigates the relationship between foreign tourist arrivals (FTA) and nation's GDP, and the barriers to tourism growth.
Methodology: The work is completed through gaining access to quantitative and qualitative data. SLTDA tourist reports from 2018 to 2022, World Data (2020), UNWTO (2017), Central Bank of Sri Lanka provided quantitative data. The information comes from an assessment of literature, articles published in significant newspapers, journals. Cartographic techniques were employed for analysis, and the correlation test was used to assess the relationship between tourist arrivals, foreign receipts, and GNP.
Findings: There is a positive relationship between FTA and tourism growth. Economic crisis has deteriorated Sri Lanka’s tourism as people are unwilling to visit Sri Lanka owing to uncertainty, inflation, power outages, and fuel scarcity, even the domestic tourist are unwilling to spend money for travelling and leisure purpose.
Originality: In addition to demand and supply factors, the article indicates that other factors, like inflation and currency value, play a significant role in tourism development. The paper cites several reasons why developing-country governments must preserve stability in order to thrive all sectors of the country's economy, including tourism.
References
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[3] Barnet, E.M. 1975. The impact of inflation on the travel market, The Tourist Review, Vol. 30 No. 1, 2-5. , DOI: https://doi.org/10.1108/eb057715
[4] de Silva, C. 2022. Tourism and sustainable development. The Island. DOI: 10.4324/9781315104911-2
[5] Escap, U., 1993. The economic impact of tourism in Sri Lanka. 1993. Retrieved from https://repository.unescap.org/bitstream/handle/20.500.12870/2840/ESCAP-1993-RP-economic-impact-tourism-Sri-Lanka.pdf?sequence=4
[6] Fernando, S. 2015. Tourism in Sri Lanka and a computable general equilibrium (CGE) analysis of the effects of post-war tourism boom. DOI: https://doi.org/10.25904/1912/479
[7] Fernando, S. 2016. Managing the post-war tourism development in Sri Lanka. International Journal of Business and Social Science, 7(11), 90-100.
[8] Fernando, S., Bandara, J. S., and Smith, C. 2013. Regaining missed opportunities: the role of tourism in post-war development in Sri Lanka. Asia Pacific Journal of Tourism Research, 18(7). DOI:10.1080/10941665.2012.695284
[9] Fernando, S., Bandara, J. S., Liyanaarachch, S., Jayathilaka, R., and Smith, C. 2013. Political violence and volatility in international tourist arrivals: The case of Sri Lanka. Tourism Analysis, 18(5). DOI:10.3727/108354213x13782245307876
[10] George, A. H., George, A. S., and Baskar, T. 2022. Sri Lanka's economic crisis: A brief overview. Partners Universal International Research Journal, 1(2). DOI: 10.5281/zenodo.6726553
[11] Glossing, S., Scott, D., and Hall, C. M. 2020. Pandemics, tourism and global change: a rapid assessment of COVID-19. Journal of sustainable tourism, 29(1), 1-20. DOI:https://doi.org/10.1080/09669582.2020.1758708
[12] Hall, C. M., Scott, D., and Gössling, S. 2020. Pandemics, transformations and tourism: Be careful what you wish for. Tourism geographies, 22(3), 577-598. DOI: 10.1080/14616688.2020.1759131
[13] Haywood, K. M. 2020. A post COVID-19 future-tourism re-imagined and re-enabled. Tourism Geographies, 22(3), 599-609. DOI: 10.1080/14616688.2020.1762120
[14] Henderson, C.J. 2006. Managing Tourism Crises. Butterworth-Heinemann, Elsevier, UK https://doi.org/10.4324/9780080466033
[15] Hitchcock, M., King, V., and Parnwell, M. 1993. Tourism in South. East Asia, 19. DOI:https://doi.org/10.4324/9780429431395
[16] Info, S. L. 2011. Geografical location. Sri Lanka Info.
[17] Jayasinghe, A.R.N.T. 2020. Factors that Affecting to Develop Buddhist Tourism in Sri Lanka. International Journal of Trend in Scientific Research and Development, Volume 4, Issue-6, pp.1754-1760,
[18] Jayawardena, R., Kodithuwakku, W. and Sooriyaarachchi, P. 2023. The impact of the Sri Lankan economic crisis on medication adherence: An online cross-sectional survey. Dialogues in Health, 2, 100137. https://doi.org/10.1016/j.dialog.2023.100137
[19] Khalil, S., Kakar, M. and Waliullah M. 2007. Role of Tourism in Economic Growth: Empirical Evidence from Pakistan Economy. The Pakistan Development Review, 46, 985-995.
[20] Lai, T. W. 2002. Promoting sustainable tourism in Sri Lanka. Linking Green Productivity to Ecotourism-Experiences in the Asia Pacific Region.
[21] Mason, P. 2015. Tourism planning and management: concepts and issues. Tourism Impacts, Planning and Management, 87-104. https://doi.org/10.4324/9781315781068
[22] Mustafa, A. M. M. 2019. Contribution of tourism and foreign direct investment to gross domestic product: Econometric analysis in the case of Sri Lanka. DOI:10.26643/rb.v118i8.8017
[23] Naser, E., Abbas, B.N., and Sayyed, K. S. A. 2011. Effects of positive and negative rural tourism (Case study: Rural Semnan Province). Journal of Geography and Regional planning, 4(2), (2011) 63-76.
[24] Navirathan V., Vijayakumar S., Jeyarajah S. 2023. Impact of COVID-19 on The Entrepreneurs In The Tourism Sector In Batticaloa District, Sri Lanka. The Journal of Business Studies 07(02)2023, 1-16
[25] Perera, P., Jayakody, C., Jayapali, U., and Newsome, D. 2023. Challenges and opportunities for the resumption of nature tourism in post-pandemic Sri Lanka. International Journal of Geoheritage and Parks. https://doi.org/10.1016/j.ijgeop.2023.03.001
[26] Petrevska, B. 2012. Tourism and crisis–Past patterns and future challenges. In Conference Proceedings Vol. 2, International Conference ‘Trends and Challenges in the Economic Development’, Varna, Bulgaria (Vol. 2, pp. 112-121). University of Economics Varna.
[27] Pizam, A. 2009. The Global Financial Crisis and its Impact on the Hospitality Industry. International Journal of Hospitality Management, Vol. 28, No. 3, p. 301. DOI: http://dx.doi.org/10.1016/j.ijhm.2009.03.012
[28] Saliya, C. A. 2023. Financial Crisis in Sri Lanka: Impact of Institutional Factors on External Debts. 35th Asian FA 2023 Annual Conference. 26-27 June 2023. University of Economics HCMC, Vietnam.
[29] Sooriyaarachchi, P., and Jayawardena, R. 2023. Impact of the economic crisis on food consumption of Sri Lankans: An online cross-sectional survey. Diabetes and Metabolic Syndrome: Clinical Research and Reviews, 102786. https://doi.org/10.1016/j.dsx.2023.102786
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[31] Steven, Rakotopare and Newsome 2021. Avitourism tribes: As diverse as the birds they watch Consumer tribes in tourism, Springer, Singapore, pp. 101-118
[32] Strangio, S. 2022. Thai tourism has turned a corner, senior officials say. Retrieved from https://thediplomat.com/2022/09/thai-tourism-sector-has-turned-a-corner-senior-officials-say/.
[33] Zaei, M. E., and Zaei, M. E. 2013. The impacts of tourism industry on host community. European journal of tourism hospitality and research, 1(2). 12-21.
[34] Central Bank of Sri Lanka Retrieved from: www.cbsl.gov.lk
[35] Global Financial Crisis Bulletin 2009. Impact of the economic crisis on the hospitality, travel and leisure industry. Retrieved from : https://www.academia.edu/8455419/Global_Financial_Crisis_Bulletin_Impact_of_the_Economic_Crisis_on_the_Hospitality_Travel_and_Leisure_Industry
[36] Press Trust of India. 2022. Retrieved from: ‘Sri Lanka Economic Crisis: Lucrative Tourism Industry Bears Major Brunt’ https://www.outlookindia.com/business/sri-lanka-economic-crisis-lucrative-tourism-industry-bears-major-brunt-news-209455
[37] Public finance, 2022. Interest Cost Accounts for 71.7 percent of Government Revenue. Retrieved from: https://publicfinance.lk/en/topics/Interest-Cost-Accounts-for-717-percentof-Government-Revenue-1625468514
[38] Public finance, 2023. Sri Lanka post-default rating linked to IMF debt reduction path: Fitch.
[39] Singapore Tourism Board. 2021. Singapore tourism sector emerges from 2020 with greater resilience and re-invention. Retrieved from: https://www.stb.gov.sg/content/stb/en/media-centre/media-releases/Singapore-Tourism-Sector-Emerges-From-2020-With-Greater-Resilience-and-Reinvention.html
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[42] SLTDA, 2020 Retrieved from: https://sltda.gov.lk/en/monthly-tourist-arrivals-reports-2020
[43] SLTDA, 2021 Retrieved from: https://sltda.gov.lk/en/monthly-tourist-arrivals-reports-2021
[44] The Star. 2022. A full recovery of tourist arrivals likely in 2024. Retrieved from https://www.thestar.com.my/business/business-news/2022/06/07/full-recovery-in-tourist-arrivals-likely-in-2024
[45] UNWTO 2017. European Union Short-Term Tourism Trends (Volume 1). Madrid, Spain. DOI/book/10.18111/9789284418930, ISBN: 978-92-844-1893-0.
[46] UNWTO 2017. Tourism Highlights 2017 Edition. Madrid, Spain. e-ISBN: 978-92-844-1902-9. DOI/book/10.18111/9789284419029.
[47] UNWTO 2017. Annual Report 2016. Madrid, Spain 978-92-844-1871-8. pp 11-14. Retrieved from: https://www.unwto.org/global/publication/unwto-annual-report-2017
[48] UNWTO and ILO 2013. Economic Crisis, International Tourism Decline and its Impact on the Poor, UNWTO: Madrid.3 Retrieved from: https://www.ilo.org/wcmsp5/groups/public/---ed_dialogue/---sector/documents/publication/wcms_214576.pdf
[49] World Bank Group. 2021. As Sri Lankan Economy Recovers, Focus on Competitiveness and Debt Sustainability Will Ensure a Resilient Rebound. World Bank Group. Available at: https://www.worldbank.org/en/news/press-release/2021/04/09/sri-lankan-economy-recovers
Published
2023-09-29
How to Cite
BHAKAT, Ayan; DAS, Nirmalya; GUCHHAIT, Santu.
Temporal Change of Foreign Tourism in Sri Lanka: A Study on Economic Perspective.
Journal of Environmental Management and Tourism, [S.l.], v. 14, n. 6, p. 2786 - 2798, sep. 2023.
ISSN 2068-7729.
Available at: <https://journals.aserspublishing.eu/jemt/article/view/8097>. Date accessed: 21 may 2024.
doi: https://doi.org/10.14505/jemt.v14.6(70).25.
Section
Article
Copyright© 2023 The Author(s). Published by ASERS Publishing 2023. This is an open access article distributed under the terms of CC-BY 4.0 license.