Managing the Post-War Tourism Development in Sri Lanka

Abstract

Sri Lankan tourism has managed to recover quickly since the end of war in 2009. After recognising the role of post-war tourism, the Sri Lankan government has launched a Tourism Development Strategy (TDS) plan. Sri Lanka Tourism is confident that the new strategic direction will move the country forward as a most sought travel destination in Asia while all stakeholders of the industry reap its benefits. This study evaluated the post-war tourism boom and the targets of Sri Lankan government’s TDS and empirically explored the targets set in the TDS by using a simple econometric model. The econometric analysis suggests that tourist arrivals to Sri Lanka would increase by 21.5 per cent per year if the peaceful environment continues in Sri Lanka. There are a number of impediments to be recognised in achieving the targets set out TDS. It is clear that within the next few years, tourism industry will become a sustainable sector in the Sri Lankan economy being the top GDP contributor within next few years.