Page 1

REVE
Feb. March 2011

Page 2
DARY OF
February
3. The International Monetary Fund (IMF) disbursed its sixth tranche of Sri Lanka Stand-By Arrangement (SBA) to the value of USS 216.6 million.
5. A series of super-cell storms evacuated thousands of Australians from Victoria's flood-stricken towns.
6th The Disaster Management Centre of Sri Lanka reported that 1,243,478 people were affected by floods in 18 districts in the island. Eleven deaths were reported while 250,501 people were displaced.
9th A UN official reported that continuous severe drought threatened 2.4 million people in Somalia where malnutrition and food shortages are serious problems.
11 Egyptian Army took over power after a mass protest against President Hosni Mubarak in Egypt, ending his 30-year rule.
12th The Minister of Disaster Management, Sri Lanka, revealed that the relief operations to restore infrastructure and rebuild the livelihoods of 1.2 million people affected by the second wave of the flood disaster in the country will cost the government Rs.33 billion.
13 Egypt's military dissolved the Parliament and suspended its Constitution following the ouster of long-time leader Hosni Mubarak.
15. The Independent, a London newspaper, named Sri Lanka a travel 'Hot Spot' for 2011.
18 New protest in Egypt kept pressure on the Army to speed up reform.
21" A 6.3 magnitude (Richter Scale) earthquake shook Christchurch in New Zealand.
Thousands of people in the Philippines fled their homes as a volcano erupted.
The Libyan Deputy Ambassador to the United Nations called on the country's ruler Muammar Gaddafi to step down and face trial over “war crimes and genocide".
Revolt grew in Libya, a neighbour of Egypt.
23. The Indian coast guard handed over 16 fishermen and a fleet of trawlers to the Sri Lanka Navy at the International Maritime Boundary in Mannar.
26** The Maldivian President Mohamed Nasheed met the Sri Lankan President Mahinda Rajapaksa at Temple Trees, Colombo for bilateral talks on issues affecting the two countries and the region.
March
1“ The UN Secretary General Ban-Ki-Moon announced that the United Nations General Assembly suspended Libya's membership in the UN Human Rights Council.
2". Sources in New Delhi reported that India and the 10 nations of ASEAN (Association of Southeast Asian Nations) bloc aim to increase trade by 40 percent by 2012.
4 Syrian activists demanded political reforms be made a top priority as revolts rattle regimes across the Middle East, toppling Egypt's and Tunisia's leaders in less than a month.
The Sri Lanka President Mahinda Rajapaksa requested the Libyan leader Muammar Gaddafi to restore peace in Libya soon.
6" The Libyan leader Muammar Gaddafi said that he wanted the United Nations (UN) or the African Union (AU) to probe the unrest rocking in Libya and promised free access for investigators.
7. A strong 6.6 magnitude (Richter Scale) earthquake hit off the Solomon Islands.
8" Anti-government protestors in Bahrain gathered outside the US embassy in Manama, calling Washington to stop supporting the autocratic regime of the ruling Al Khalifa royal family.
9" A major 7.2 magnitude (Richter Scale) earthquake struck off Japan, and triggered a 60-centimetre (24 inch) tsunami, swaying buildings in Tokyo.
After a revolution called 'Jasmine Revolution' which ended the former dictator's rule, Tunisian Court dissolved the ruling party of the ou sted Tunisian President Zine El Abidine Ben Ali.
10 Haitian authority reported that, there was 4,672 Cholera death toll in Haiti since last October when the first case of Cholera was detected.

EVECNTTS
The Power and Energy Minister of Sri Lanka disclosed that the Ceylon Electricity Board earned a profit of Rs. 5,062 million in 2010 for the first time in the last decade.
11. A massive tsunami triggered by 8.9 magnitude (Richter Scale) earthquake hit Japan, causing extensive losses of thousands lives and economic damage estimated at over US$10 billion.
12 Another 6.6 magnitude (Richter Scale) quake hit Nagano and Niigata in Japan.
As a result of March 11 disaster, Japan's Fukushima atomic plant exploded .
13 Geo physicists of the National Aeronautics and Space Administration (NASA) revealed, that the powerful earthquake that unleashed a devastating "Tsunami 11 March' appears to have moved the main island of Japan by eight feet and shifted the earth on its axis. This can speed up earth's rotation by 1.6 micro seconds which in turn causes shortening of the day.
Japan battled with a meltdown of two reactors at a quake-hit nuclear plant.
The US and Russia held talks to discuss an initiative for a joint USRussia missile as well as ways to boost their economic ties.
Thousands of people were taken to the streets in towns across Italy to protest against Italian Prime Minister Silvio Berlusconi's policies.
The Arab League appealed to the United Nations to impose no-fly zone on Libya's government troops backed by war-planes fought to drive rebels from remaining strongholds in the West of the country.
15th The 3rd and 4th reactors of the Japan's Fukushima atomic plant exploded. It made the radiation levels more dangerous.
The Libyan government forces struck the rebellions' heartland, Eastern city of Ajdabiya with air strikes, missiles and artillery.
The Bahrain King declared Martial Law as his government struggled to quell an uprising by the island's Shi'ite Muslim majority.
16. The official number of death and missing after a devastating earthquake and tsunami that flattened Japan's North East coast has neared 15,000, and hinted at a much higher toll.
Tokyo news sources reported that Gold prices fall in the wake of Japan's disaster.
18. After Berlin abstained in the UN vote to impose a no-fly zone, German Foreign Minister Guido Westerwelle said that no German troops will take part in any military intervention in Libya as there are "considerable risks and dangers".
The people of Bahrain joined the regional movements for democracy by demanding the end of Bahrain's monarchy.
The US President Barack Obama was criticised by his opponents in the US for his handling of the growing wave of resentment in Arab countries.
20. The US, Britain and France pounded Libya with Tomahawk missiles and air strikes.
China expressed regret over the multinational air strikes in Libya.
21" Venezuelan President Hugo Chavez blasted the military attack on Libya by the Western alliance.
Turkish Prime Minister Recep Tayyip Erdogan expressed opposition to air strikes on Libya. -
Cuba strongly condemned the foreign military intervention in Libya's domestic affairs.
India expressed regret about the air strikes on Libya carried out by France, Britain and the United States, calling for a peaceful solution to the crisis.
Religious leaders in Yeman called on embattled President Ali Abdullah Saleh to resign as dozens of people have been killed by pro-Saleh supporters.
The World Bank said that Japan's massive earthquake and tsunami could cost its economy up to US$ 235 billion, or 4.0% of annual output of the country and reconstruction may take five years.
22" Sri Lanka's first coal-based power plant in Norochcholai was
opened by President Mahinda Rajapaksa. It will add 300MW to the national grid.
The United States placed sanctions on 14 firms controlled by Libya's State Oil Company, tightening a financial noose on a key source of funds for the Muammar Gaddafi's regime.
Contd. on page 43

Page 3
Published by
Research Department.
People's Bank, Head Office,
Sir Chittampalam A.
Gardiner Mawatha,
Colombo 02, Sri Lanka.
Dr. Saman Kelegama
ADVISORYBOARD
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Chairman, People's Bank
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Director Research Dr. Manoj Kumar Ag People's Bank
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Pyingté
 
 

Nos. 11 & 1 2 Feb/March 2011
C O N T ENTS
Feature
39 WTO: Trade Policy Review — Sri Lanka
2010
Special Report
Tourism
arwall 03 World and Regional Situation of Tourism Industry
Silva 08 Recent Trends and Patterns of Tourism
Employment and Challenges for Manpower Development in Tourism Industry of Sri Lanka
de Silva 16 Child Welfare and Tourism
Lupathirage 19 Health Tourism and its Potentials and
Impacts on Tourism Industry of Sri Lanka
he 27 Conservalrtion of Biodiversity and Sustainability of the Tourism Industry in Sri Lanka
33 Role of Alternative Tourism in
Sustainable Rural Development
Next issue
Banking Industry
'd at People's Bank, Printing Services Dept.

Page 4
HGHLIGHTS OF TO
Tourist Arrivals 700 ・ ー・ヘ・ニ・ニー・. ペ・ベ........>- .......ー・....ー.............ーーーーーー・ニー・ 5
A Tourist Arrivals -% of change 600 yASkSSSLSSSkSSSkSeLSLSeMSMLLSSLSKKSeSDSSS0SSS0SLSASSASJS0LSLLAS0SHHSSE0SASSrSSrrS0SSrrSrrrArrLS0SSySSLSASAASASS ავ-s::::::::::::::::ჯ-ჯა-xsჯ-ჯა:-xs<.2-->ა-ა-და-»ა:აჯა. ჯჯ.·.».ჯჯ •ჯ» 4. 용
500 霍400 ఫ は
○ 芭300 鬆
ဒွိ ဒွိ { に 200。 教
2 100. -
දෘථ ങ്ങ N r གནས་ Wed s N ඥා KI> ge ed k C - g ki> جمیع go Kas SCO ed g ge g ged Čе g
en es
Tourist Arrivals by Sex Tourist Arrivals
6{}°叢 --S་ 160ཉ་ལྕི་ཉཉར་ WWM 3s gics 述 50༦༠མ་ར...༦ 5 140 སྤྱི་ལ་དབང་ཤར་ས་ལ་བབ་པར་བྱང་ཤར་དང་ར་ཤར་དར་
Male 120 to 40 - EdFemale || Ề 100 - 鳍 80
is a 江 40
20 Z 20
0 is ゴ C
三 ට් Age Y en en ge (Year
Tourist Arrivals by region-2010 Seasonality of Tou
180 Latin America Middle east, 160 2010 & Caribbean, .70% YSJS00SiyiiiGiiiiiiiiGiiiS Africa, 홍 ・ こ120*
奎100廿 s 80 .oယှိ ယo 翡 6 0ང་བརྩི་བ་ F 40 .00
2000
0
日 c お - 、 空 로 說 : 安 :
Employment in the Tourist Industry
Direct Employment sa Indirect employment 90
as 80
به من... - : 0 7
60 x«8 垂 50-量一 3-a----- a------ Mvx
వి, 器 40 အခွံ •• -..........ဒ္ဒါ v ... ----- -- .....န္တိ.... "お : 緩
7რ 20 :
10
0 , '' g g ed gd ge ge ܡ g Ko g d ge g ge ged g ed ge ○ en en ea e en N e
Source: Sri Lanka Tourism Development Authority
2
 
 
 
 
 
 
 
 
 

DURISMINDUSTRY
O Pleasure
O
Business
)鳍
| Visiting Friends & O Relations 邸
lla Convention & Meetings
0 Religious & Cultural
0 || Others
y Age-2010 Tourist Arrivals from top Ten Countries
。白2009
2010
وتيم : S حجم "نحن نعم "Sعن تعيين S S $ته کچ; స్ట్మోర్క్ కోవ్యూ తో
شج ܬ݁ܶܟ݂ ܣܛܢ
rist Traffic
-----2009
Foreign Exchange Earnings from Tourism
2009*
2010**
* Revised * Provisional
14
2
Accomodation Capacity (No. of Rooms)
Graded Establishments ロ Supplementary Establishments
cዮ) KC o C gad on
Contd. on page 45
Economic Review: Feb./March 2011 -

Page 5
World and Regional S
Industry
Introduction
ow, there is a growing
realisation among the
developing countries that tourism industry is a potential source of economic growth and employment generation. This, predominantly a service sector activity, has already done wonders in many countries like Spain, France, Mexico, Thailand and many more. Still, it might be argued that, tourism has now become highly inter-disciplinary business. It is being studied from anthropology to economic sciences to environment.
Still, it is found that this activity is largely guided by human actions having great economic potentiality, as the world is moving towards higher level of economic growth and development. Tourism might be pursued for different reasons like leisure (recreation, holiday, health, study, religion and sport) or for business, family mission, meetings, etc. Broadly, these
but, dimensions may keep on adding to
remain the same, eW
the existing broad categories like reproduction tourism, sex tourism, sustainable tourism, biodiversity, etc. Tourism might be domestic or foreign. Here, we shall be dealing only with the international tourism. This has been catching the attention of the scholars since the beginning although inducement effect of the domestic tourism for
economic growth is no less
important. In fact, now tourism has
taken a specific shape with focused
policy and statistical
measurements, unlike in the
beginning of the twentieth century.
- Economic Review: Feb./March 2011
International
additional signific leads to foreign ex which is more cru
developing count more indirect opp
destinations. At
Secretary-Genera (2010), “When a su stainable na
recreation can hel growth and allev fact, tourism has leading ways developed count their participatic economy. The *Sustainable Tour.
Poverty' initiativ role of tourism i
Millennium Deve
Economic signi international tour)
middle-income co
well highlighted Mitchell (2005) as “International tou low- and middle
were USS 153 significantly high 68 billion of offi
these countries'
It might also be u another dimensio
the tourism can b
the national econ spill over benefits Binns and Nel (2 with the South A
that how tou]
effectively us development stra problems like p economic uplift development. Th
taken further no

Situation of Tourism
tourism gets ance, because it change earnings cial for poor and :ries and brings Iortunities to the
ccording to UN ul, Ban Ki-moon pproached in a nner, travel for p drive economic riate poverty. In proved one of the
the
ries to increase
for least
on in the global UNWTO's Own
ism – Eliminating
e illustrates the in achieving the lopment Goals” ificance of the rism for low and
untries has been
by Ashley and they argued that rism receipts for income countries
billion in 2003, er than the USS cial aid spent in
sed to infer about
n of tourism, i.e., e used to globalise ony to get greater for the economy. OO2) have shown frican case study ism night be ed for local tegy in solving the overty, through and community Le issue is being
w to find out how
Dr. Manoj Kumar Agarwal"
Wilsitting Professor, Department of Economics, University of Colombo.
tourism might be used for sustainable development in any country (Tao and Wall, 2008). However, different countries have different potentialities for earnings through tourism (Thrane, 2008). This might not necessarily require
that all countries must have similar
tourism strategies. Rather, these
must be embedded in the national
contexts (Ooi, 2002).
Tourism at the Global Level
The present-day tourism expansion is an outcome of the increasing globalisation around the world. It could be argued, at the outset, that tourism activities are mainly embedded in the services sector of
an economy although other activities are also linked through inducement effects. Here, we shall be looking at the pattern of international tourism since the
early 1990s when most of the countries around the world went for
large-scale economic reforms encompassing globalisation as the main plank.
It could be seen from Table 1 that the world tourism growth is approaching nearly 4 percent during 1993-2010. It shows that, given the pace, the number of tourists would be nearly doubled in two decades. The growth rate of the world GDP
3

Page 6
(Gross Domestic Product) has been 2.9 percent a year during 1990-2000 and 3.2 percent 2OOO-O 86. The
international tourist arrivals'
during
growth rate is 3.7 percent and
the growth rate of the revenue
receipts from the tourists at the
world level has been much
higher, at 6.3 percent a year.
From these statistics, it might
be inferred that the propensity
to spend by the tourists is
increasing. Alternatively, it could
be deduced that the tourism
sector has the potentiality to
grow faster than the GDP, and
even broad sectors like the
manufacturing and the services,
although the tourism is largely
embedded in the latter sector.
Average growth rate of the
service sector at the global level was 3.1 percent during the 1990s while in the following period it grew at 3.2 percent. Thus, it could be a major source of economic growth. It seems to have high income elasticity as well. This is well understood by the fact that the tourism inten sity has become almost la percent in 2008, i.e., number of international tourists
was 91.3 millions while the world population was 6,697 million. This is also a strong indicator of global integration socially, politically as well as economically. Moreover, the World Tourism Organisation expects that by 2020 the number of international arrivals is expected to reach 1.6 billion.
Regional Pattern of Tourism
The of
international tourist arrivals offers
regional pattern
a very significant inference for the developing economies, particularly in Asia and the Pacific region along with the Middle East. One thing that could be underlined at the
outset is the fact that all the regions around the world are
Table 1: To
Year Arr (Mt.
1993 5.
1994 5
1995 5
1996
1997 5
1998 6
1999 6
2OOO 68
2OO1 68
2OO2 7(
2003 69
2004 76
2005 8(
2006 84
2OO7 9 (
2008 9.
2009 8,
2O1 O 93
Growth rate (% per year)
Source: Calculat (Varioια
experiencing pos during 1993-2( inflo
Still, the developed
tourists’
countries.
regions are now
favourable to th
Broadly, for touri World Tourism O has divided the
regions - Africa, the Pacific, Euro East. Europe ( considered to be
While the Americ
are the USA and
obviously well de the region are de' with varying degr also has Sonne d
Still, it is signific international to
basically confined America. Now, the rapidly. Table 2
is big gap in term among the di American regio
4.

urist Arrivals in the World from 1993 to 2010
'ivals % Change Revenue Receipts % Change llions) (US billion $)
5.7 3.O 321.9 2. 5O.O 6.7 354.9 10.3
5O.O O.O 405.9 14.2
72.2 6.3 436.5 7.7
6.O 4.1 442.8 O.7
4.3 3.1 4448 O.6
37.4 3.8 458.2 3.3
34.7 7.4 475.3 4.3
34.4 O.O 463.8 -2.8
D4.7 3.0 481.9 2.3
92.2 -1.8 529.3 8.5
51.4 O.O 633.2 19.7
)3.O 5.5 679.6 7.3
7.O 5.4 744.O 9.5
)4.O 6.7 857.O. 15.2
3.0 ... O 942.O 9.9
77.0 852 4.0 سه.O -9.6
35. O 6.7
3.7 6.3
ions based on data from India Tourism Statistics s issues) and UNWTO Neus (Various issues)
sitive growth rate D 10 in terms of
w from other
the gap between and developing wide and getting e latter regions. ism purposes, the rganisation (WTO) world into five
Armerica, Asia & pe and the Middle on the whole is
developed region. ca's main players Canada which are
veloped, others in veloping countries ees. Asia & Pacific
eveloped nations. ant here. that the
urism has been
to Europe and the trend is changing shows that there
s of tourist inflows fferent regions.
in has been the
Economic Review: Feb./March 2011
slowest performer with just a growth of 2 percent annually during 1993-2010 followed by Europe with 2.5 percent annual growth rate. On the other hand, Africa has been doing well by showing a growth rate of 6.2 percent which is somewhat better than the Asia 8, the Pacific region (6.1 percent). Among all these, the Middle-East region has gone ahead of other with a spectacular growth rate of above 11 percent, being almost twice of Africa and the Asia & Pacific.
Further analysis of the growth pattern is undertaken through the estination of growth of tourist arrivals in a quadratic regression model. It is encouraging to find that, despite two major crises during the last two decades (afternath of 9/11 terrorist activity in the USA and global slowdown originating in late 2008), there has been some slowdown for a temporary period in tourist arrivals. However, the world economy finds some support from accelerated

Page 7
Table 2: Regional Pattern of
International Toul
growth rate in tourist arrivals. In fact, the acceleration tendency is found to be further stronger for the revenue receipts from the tourists. This acceleration is due to
contribution by the three emerging regions of Africa, Asia 8, the Pacific, and the Middle East whereas the traditionally dominant regions of Europe and America are not showing any such tendency. Thus, the energing regions might be looked upon as the potential sources of tourism expansion at the global level.
Impact of such changes in regional growth pattern of international tourist arrivals is shown in
Table 3. Share of the Europe has declined sufficiently from 60.1 percent in 1993 to 50.4
Yer Africa America 4
% % Arrival Change Arrival Change Arr
1993 18.5 2.8 102.1 -0.2 74
994 8.9 2.2 105.0 2.6 8O
1995 2O.O 5.8 109.O 3.8 86
1996 21.8 9. O 15.O 5.9 93
1997 23.2 6.4 7.O 1.2 93
1998 24.9 7.3 2O.O 2.5 93
1999 26.2 5.2 122.O 2.3 O3
2OOO 27.9 4.3 128.2 5. 1C
20O1 28.8 3.2 22.2 -4.7 5
2OO2 29.8 3.5 6.8 -4.4 124
2003 31.4 5.3 113.3 -3.0 13
2004 34.2 8.9 125.8 11.0 144 2OO5 37.3 9. 133.2 5.9 155
2006 41.4 11.O. 135.8 1.9 167
2OO7 44.4 7.2 142.5 4.9 184
2008 44.4 O.O. 147.8 3.7 184
2OO9 45.8 3.2 140.5 -181 4.9ے
2OO 48.7 6.4 15.2 7.7 2O3
Growth 6.2 2.O
rate
CVk 5.1. 19236
(%) .
CV - Coefficient of variation
performance. The increases in the sl
three regions. No Asia & Pacific regi has exceeded tha
(16.2 percent). M gone ahead of
former's share d
has become three
performance of th regions and slow p traditional sti responsible for ch in tourist inflow a
There are few coul
which are the tr
favoured destir
percent in 2010 and so is the
case with the America.
However, all other regions have
gained due to their higher
Table 3: Regia (perce
Year Africal Ame 1993 3.6 9 2OOO 4.1 18 2OO 5.2 16
- Economic Review: Feb./March 2011

rist Arrivals (in millions) from 1993 to 2010
Asia & the Europe Middle East
Pacific
% % % ival Change Arrival Change Arrival Change
7 O.9 309.9 2.5 10.5 O.O
7 8.0 335.O. 8. O 11.1 5.7
... O 6.1 322.O -3.7 14.O 22.5
.4 9.1 354.O 9.7 3.3 -2.2
. -O.3 371.O 4.9 14.3 7.5
.2 O. 374.O O.7 5.1 5.6
B.O O. 38.O .8 20.5 35.8
),6 2.O 393.6 6.8 24.5 13.7
5.8 4.7 393.1 O. 24.5 O.3
.9 7.8 4O4.8 3. O 28.4 6.O
3.2 4 9.4-۔O4.9 O.O 29.5 3.7
... 1 27.3 42.O 4.O 36.2 2.7
5.3 7.8 438.7 4.3 38. O 4.9
"...O 7.5 462.2 5.4 40.9 7.6
1.3 10.4 484.4 4.8 47.6 164
. -0.1 480.8 -0.8 55.9 17.4
... O -1.7 459.6 5.O 52.7 -5.7 B.8 12.6 471.5 3.2 6O.O 3.9
6. 2.5 1.4
3.07 137.87 109.50
re have been big hares of the other
ow, share of the on (21.8 percent) it of the America
Widdle East has
Africa and the uring the period fold. Thus, higher Le three emerging erformance of the
ongholds are ange of structure and size as well.
ntries in the world
aditionally most nations for the
ional Structure of
international tourists. In the top list (Table 4), countries are mainly from Europe
1 O countries
followed by America. But now the countries of Asia are also gradually energing as Malaysia has replaced one European nation although China has been already there. Besides, the emerging countries are showing faster growth of tourist inflow. This is what we can derive
from earlier analysis as well. This is a positive sign of tourism expansion.
Such tourism expansion night be attributed to several reasons. More and more countries from different regions of the world have been
International Tourist Arrivals
ent) in 1993, 2000 and 2010
ricas||Asia - & Pacific || Europe | Middle East || World .8 14.5 60.1 2.O 1 OO. O 7 16.2 57.5 3.6 OO. O .2 21.8 50.4 6.4 1 OO. O
5

Page 8
going for market reforms in their economies along with increased integration with the world economies. This is leading to greater interests and movements in the emerging economies. Now, many countries are gradually realising the significance of tourism in economic growth, and therefore, orienting the policy strategy accordingly. Increased global income is responsible for more expenditure on the tertiary and service sectors is one of the major beneficiaries of that. Increased tourism-related infrastructure and modes of travel and communication, besides the significant role of the internet-based information and interactions, now make the tourism and travel more convenient and trouble free.
Aramberri (2009) has categorised the countries into different groups based upon the share of Travel 8. Tourism (T&T) in their respective GDPs. They are:
d. Top producers (it includes the Maldives which has the highest T&T share in its GDP)
ii. Successful developers which are further sub-categorised as:
a. Developed countries
b. Rising stars ( Malaysia and included)
c. Flip-floppers (e.g Nepal are include
iii. Laggards whi divided into two g
a. Countries havi their GDP in the
percent (e.g., Phil Federation, Vietna
b. Countries havir their GDPs less t (in this category South Africa, Pakistan and B included).
Conclusion
Tourism has b business now in world, besides it new and poten economic growth in many countrie of internation a increasing due to economic order wh is getting mo prominence. The growth trend ir tourist arrivals earned from them particularly the de
Table 4: Top 10 Countries in Terms of Intern
Na 2OOO 2005
Rank Countries Arrivals Countries 4
millions)
1. France 75.6 France V
2 USA 50.9 Spain s
3 Spain 47.9 USA A.
4 Italy 41. China
5 China 31.2 Italy
6 UK 25.2 UK
7 Russian Fed. 21.2 Mexico 2
8 Mexico 20.6 Germany
9 Canada 19.7 Turkey
O Germany 18.9 Austria
Total top 10 352.3 Total top 10 3 countries countries
World 684.7 World
Source: Calculations based on data from India Tc
Neus (Various issues)

2.g., Thailand, Indonesia are
., Sri Lanka and d)
ch is further sub
Oups:
ng T&T share in range of 8 - 6.6 ippines, Russian um and Mexico)
ng T&T shares in han 6.6 percent countries like China, India, angladesh are
een a growing (most part of the is being used as tial source of and employment s. The prospects l tourism are changed world here globalisation re and more re is increased international and revenues Many regions, :veloping regions
like Africa, Asia 8, the Pacific and the Middle East are showing an accelerating trend in tourist arrivals unlike the established regions like the America and Europe. These emerging regions are found to be propelling the world tourism. The world tourism shows sign of acceleration in the last two decades. Thus, the pattern of world tourism is changing where newer destinations, particularly from developing regions, are gaining prominence. The developing nations strategise their policies and tourism products in such manner that increased wealth around the world through growing international tourism is shared by them for their economic development.
References:
Agarwal, Manoj Kumar and Rudra Prasad Upadhyay (2006). Tourism and Economic Development in Nepal; Northern Book Centre, New Delhi (India).
Aramberri, Julio (2009). “The Future of Tourism and Globalization - Some Critical Remarks'; Future, Vol.
41, pp. 367-376.
Binns, Tony and Etienne Nel (2002). Tourism as a local development strategy in South Africa; The Geographical Journal, Vol. 168 (3); pp. 235-247.
ational Tourist Arrivals in 2000, 2005 and 2009
2009
Arrivals Countries Arrivals Share in smillions) (millions) World (%) 75.9 France 74.2 8.43
55.9 USA 54.9 6.24
49.2 Spain 52.2 5.93 46.8 China 50.9 5.78
36.5 Italy 43.2 4.91 28.0 UK 28.0 3.18 21.9 Turkey 25.5 2.90 21.3 Germany 24.2 2.75 20.3 Malaysia 23.6 2.68 20.0 Mexico 21.5 2.44 75.8 Total top 10 398.2 45.25
countries O3.0 World 88O.O OOOO
urism Statistics (Various issues) and UNWTO
Economic Review: Feb./March 20ll

Page 9
Brown, Robert M. (1935). The Business of Recreation; Geographical Revieuv, Vol. 25 (3); pp. 467-475.
Gujarati, Damodar N. (1995). Basic Econometrics; McGraw-Hill Inc.,
Singapore, (Third Edition).
Ministry of Tourism. India Tourism Statistics; For various years, Market Research Division, Ministry of Tourism, Government of India, New Delhi.
Ooi, Can-Seng (2002). “Contrasting Strategies - Tourism in Denmark and Singapore'; Annals of Tourism Research, Vol. 29 (3); pp. 689-706.
Oppermann, Martin (1999). “Sex Tourism; Annals of Tourism Research, Vol. 26 (2); pp. 251-266. Pennings, Guido (2005). “Legal Harmonization and Reproductive Tourism in Europe'; Reproductive Health Matters, Vol. 13 (25); pp. 120128.
Sen Kunal and Manoj Agarwal (2007). 'Exploring the opportunities of people-to-people contacts: EUIndia Tourism Cooperation; Briefing paper of the European Network of Contemporary Academic Research in India; Briefing paper No.4.
Tao, Teresa, C.H. and Geoffrey Wall (2009). Tourism as a sustainable livelihood strategy’; management, Vol. (30), pp. 90-98.
Tourism
Thrane, Christer (2008). "Earning differentiation in the tourism industry: Gender, human capital and socio-demographic effects’; Tourism Management, Vol. 29; pp. 514-524.
United Nations World Tourism Organization, (2006). Tourism 2020
Vision, http://WWW. Jun Wito. Org/
Winter, Tim (2007). Rethinking Tourism in Asia'; Annals of Tourism Research, Vol. 34 (1); pp. 27-44.
Wood, Robert E. (1980). "International tourism and cultural
change in Southea Development and Vol. 28 (3); pp. 56.
World Bank Development Indic Bank, Washingtol
World Tourism UNWTO Neuvs; V United Nations
Organization, Mac
World Tourism
WWW. unWto.org.
Footnotes:
Department University O L. U C K N O V
mk-agar WalQ.
mkagarwal lu@re
World Tourisr (UNWTO) has b World Tourism. Da every year) by focu themes having co long run relevance Biodiversity in 20 2009; Tourism: R Challenge of Clima Tourism Opens DC 2007; Tourism E. Trauel and tran ітаginary ofJules of the 21st century tourism: tuvo living understanding, development of S Thus, there are gr and efforts to n
more relevant and global requiremel in 2002 at the U
on Sustainabl world's Govern “achieve by 20 reduction of the biodiversity los regional and na contribution to p. and to the bene
Earth". Therefo:
- Economic Review: Feb./March 2011

st Asia'; Economic Dultural Change, -58.
2010). World Ltors 2010; World
(USA).
Organization. arious issues,
World Tourism brid (Spain).
Organization.
of Economics, f Lucknow, V ( I n d is a hot mail.com; liffmail.com
n Organisation een celebrating y (27 September using on different bntemporary and like Tourism and D10; Diversity in esponding to the e Change in 2008; lors for Women in nriches in 2006; sport: from the Verne to the reality in 2005; Sport and forces for mutual culture and the
ocieties in 2004. owing realisations ake the tourism responsive to the hts. For example, N World Sunnit a Development nents agreed to 0 a significant current rate of s at the global, tional level as a overty alleviation fit of all life on e, the theme of
2010 Tourism Day has been Tourism and Biodiversity.
Regarding the tourism expansion in America, Brown (1935) argues that little study about the tourism 'crop in America might be attributed to the fact that tourism had been only by a few relatively rich people until the coming up of the automobile. The habit of compiling statistics on tourism did not develop.” (p.468).
'World Tourism Organisation, 2010: Tourism and Biodiversity, UNWTO Neus, Issue 3/2010; p. 12
Quoted in Sen and Agarwal (2007), p.3
Agarwal and Upadhyay (2006) have highlighted about the Nepalese economy that The opportunity can be ceased by promoting tourism further to globalise the Nepalese economy for its growth and modernisation'. (p. 318)
World Development indicators 2010
According to the World Tourism Organization, the international tourism arrivals increased fron 25 millions in 1950 to 806 millions in 2005. The income generated by the se arrivals grew at an even stronger rate reaching l 1.2% during the same period, outgrowing the world economy, reaching around USS 680 billion in 2005. While in 1950 the top 15 destinations absorbed 88% of international arrivals, in 1970 the proportion was 75% and decreased to 57% in 2005, reflecting the emergence of new destinations, many of them in developing countries. (www.unwto.org)
Winter (2007) argues that there has been insufficient attention about the growing Asian tourists and Asian tourist within Asia that need to be looked properly and more focused research is needed on
such issue.

Page 10
Recent Trends and
Employment and Manpower Develo Industry of Sri Lank:
introduction
espite having various
definitions for tourism,
the World Tourism Organisation (WTO) has defined tourism "travelling to and staying in places outside their usual environment for more than twenty four (24) hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited". On the other hand, tourism is a collection of activities, services and industries that deliver a travel experience, including transportation, accommodation, eating and drinking establishments, retail shops, entertainment facilities and other hospitality services provided for individuals or groups, travelling away from home (WTO, 2007).
Tourism is currently one of the world's largest industries with annual receipts of over one trillion US dollars. It is almost close to USS 3 billion a day. In 2010, International tourist arrivals were 935 millions, showing nearly 7% growth rate compared to 2009. Tourism exports account for nearly 30% of the world's exports of commercial services and 6% of overall exports of goods and services. Tourism is the fourth highest export category according to the ranking of the world's international trade after fuels, chemicals and automotive products. For many developing countries, tourism is one of the main sources of foreign exchange as well ( w w w w t t c .. or g / e n g / Tourism Research).
Global tourism
in come and contributing to development in and developing travel and touri being one of the dynamic industrie
economy, general million jobs in 20 per cent of globa has been forecast
be more than 2 (8.8% of total emp and it will
258,592,000 jobs jobs (9.7%) by
W W W - W t t C
Tourism Researc the United Nation Organisation forecasted that would provide ar. jobs by 2019. potential to be generator of jobs global economic the success of th on service quality goes hand in har and motivated wo
Attractiveness o
Fourist Destina
Sri Lanka inherits
as a tourist dest
beautiful natural waterfalls, mount
forests and ma
ancient civilisatio
compact nature O crowded into a
making it even n tourist arrivals. W
8

Patterns of Tourism Challenges for pment in Tourism
2.
also generates employment, socio-economic many developed countries. The sm industry, as largest and most is in today's global led more than 235 10 representing 8 ll employment. It ed that there will 58,592,000 jobs loyment) in 2011, increase from
s to 323,826,000 2021 (http:// . o r g / e n g / h/). In addition, ls World Tourism (UNWTO)
global tourism ound 296 million Tourism has a
has
come a major
after the recent crisis. However, ese jobs depends , which, in turn, hd with a skilled
rkforce.
f Sri Lanka as a
|tion
many attractions, nation, such as, beaches, lakes, ain scenery, rain jestic ruins of ins, along with the f these resources
tropical island hore attractive to Jery importantly,
Economic Review: Feb./March 2011
Dr. D.A.C. Suranga Silva
Senior Lecturer, University of Colombo and
Director General Sri Lanka Institute of Tourism and Hotel Management.
friendlier people with Buddhist, Hindu, and Christian cultures have created pleasant environment for tourists. Although, Sri Lanka is still popular destination for beach holiday attraction, the country has a great potential for the development of various types of specific tourism segments based on its authentic culture, unique nature, rural lifestyle and friendly people.
activities/
It is worth mentioning the statement made by Marco Polo on the attractions of Sri Lanka which could clearly indicate the potential development of Sri Lanka tourism in global tourism.
On leaving the Island of Andoman and sailing a thousand miles, a little south of west, the traveller reaches Ceylon, uhich is undoubtedly the finest Island of its size in the entire uar.
-Marco Polo
Historical Background of Tourism Industry of Sri Lanka
Before the independence of Sri Lanka in 1948, almost all tourists were transit passengers from the West and the East passing through Colombo. These transit passengers

Page 11
generated a considerable demand for shopping in Sri Lanka. Colombo port was a major service point or a transit port during that time. Realising the potential, the British colonial government established a Tourist Bureau in 1937, to provide facilities and services for these
tourists in Sri Lanka. With the outbreak of World War II, tourist arrivals declined significantly and the bureau was closed down (Samaranayake, 1997).
After independence, in a bid to develop tourism industry, the government re-established tourism bureau in 1948 and renamed it "Government Tourist Bureau, first under the Ministry of Commerce, and later under the Ministry of Defence (Samaranayake, 1997). The development of Katunayaka International Airport in 1965, was al important step as was the conversion of some colonial buildings for international hotels. The establishment of the Ceylon Tourist Board and the Hotel Corporation in 1966 and the Hotel Training Schools in 1966 were also important mille stones in the development of tourism in Sri Lanka in the 1960s. The tourism industry in Sri Lanka was officially institutionalised after the establishment of the Ceylon Tourist Board in 1966.
After having set the industry on a sound legal footing and organising it systematically in 1966, international tourist arrivals increased from 18,969 in 1966 to 23,666 in 1967, representing a 25% improvement over the previous year. Out of this total tourist arrival, 43% was from Western Europe, with 32% from Asia, 17% fron North America, 5% from the South Pacific and below 1% from other regions. (Annual Report of Ceylon Tourist Board, 1976; Samaranayake, 1997).
On the basis of the tourist arrivals and receipts, the growth of the industry can be distinguished into four eras since 1966 (Figure 1). The
- Economic Review: Feb./March 2011
first era, from 196 a steady and fas' tourist arrivals a Lanka. During th annual growth arrivals was 22% tourist receipts. frO 977 tO 1 ! annu al growth arrivals and recei 32% respectively, of liberalised ecor development of in greater involvem sector and foreig the major rea changes. These w factors such as fa in exchange improvement o tourism, the rap. the international (in the wake of de and a stable inte and economic enw arrivals reached 1982. During th 1983 to 1989, t] significant a "de attractions marr conflicts and yol Lanka. During th growth rates of tc receipts were - respectively. The in 1990. The ye considerable turi industry when recorded the hig (61%) of the in inception. A sho trend in the
activities, the e unrest in the south of Sri
--سس-- Lanka, the devaluation of the rupee, government 1S v a r i o us 3 promotional a c t i v i ti e s were some of 翡 the major reasons for t h i s impressive gro with .
Unfortunately, S. this notable

56 to 1977, showed trate of growth of ind receipts in Sri is era, the average rate of tourist with 40% for the in the second era, 982, the average rate of tourist pts were 23% and . The introduction nomic policies, the lfrastructures, the ent of the private gn investors were sons for these ere boosted by the avourable changes rates, the f mass package id development of transport system :clining oil prices), rnational political ironment. Tourist a peak point in e third era, from he industry faced clining" stage, its 'ed by the ethnic uth unrest in Sri uis period, average ourist arrivals and 0.3% and -1.6% fourth era began ear 1990 was a ning point for the tourist arrivals hest growth rates dustry since its rt-term declining Tamil terrorist asing the youth
progress was limited to only a short period, falling victim once again to the restarting of Tamil terrorist activities (e.g. president Premadasa's assassination in 1993, bomb blasts at the Central Bank of Sri Lanka in 1996 and at the Hilton Hotel in 1997). Despite these terrorist activities, the industry has been able to record around 10.9% of average annual growth rate for tourist arrivals and around 16% for tourist receipts during the time period from 1990 to 1999.
Despite a pick-up, the industry has not been able to utilise more than 50% of its room occupancy in most of the time periods since the beginning of the industry. This room occupancy ratio has considerably declined because of the Tamil terrorist activities in Sri Lanka. Unsurprisingly, terrorist activities have negatively affected, not only tourist arrivals, but also tourism receipts. The time duration of a tourist's stay in Sri Lanka has shortened and the travel areas touritists can visit in Sri Lanka have also been limited to the southern and central provinces of the country. This has led to a considerable reduction in tourist income in Sri Lanka.
Among : tne most guaring shortcomings which impeded the industry in 1990s are:
1) A lack of integrated policy and plan for tourism;
2) An inadequate private sector and local community involvement;
--Tourist Amvals - Tourist Reciepts
盤 鹽 盜 盤 籃 鑒 墨 鑒 靈 盤 靈 劉
gure 11: Tourist arrivals (OOO) and receipts
(USS Mil), 1966-1999
CEC
Author compilation from Annual Reports
of Ceylon Tourist Board

Page 12
3) A lack of a clear-cut division of responsibility
Table 1:
Relative impo:
between the ministry and other agencies involved in
Sector
the tourism sector;
4) A lack of skilled
Textiles & Garments Private Foreign Remittanc
manpower; and Tea
5) Absence of co-ordination
Transportation Services Rubber based products
TourismMinor Agriculture products
between the sectors responsible for the promotion of foreign investment.
Petroleum products
After the elimination of terrorism in 2009, for last
Computer & Information Technology Services
Others
year 2010, tourist arrivals
increased by 50 percent Total
year-on-year (654,476), with earnings also keeping pace nearly 70 percent growth (US$ 250 million). The hotel and travel Colombo Stock Exchange (CSE) index increased by nearly 200 percent in 2010. The tourism industry in Sri Lanka has generated a substantial contribution to income and employment of the economy since the 1970s. According to several empirical analyses, the estimated overall tourism income multiplier is around 2. This means that one additional unit of rupee spending on tourism industry can generate at least 2 rupees through its multiplier effects of the economy. Pertinently, the tourism sub-sector multipliers are higher than those of many other sectors of the economy. A given unit of expenditure in the tourist sector can generate higher level of subsequent expenditure within the economy than the same unit expenditure spent in most nontourism sectors. At present, the gross tourism earning represent around between 1.5% to 2% of GDP (Gross Domestic Product) in Sri Lanka, which is more or less similar to the contribution of tea (1.6%) and coconuts (1.7%) to the economy. The industry has a significant relationship with the other sectors of the economy through its strong forward and backward linkages (United Nations, 1996).
SSMS 00 JSSSMSSSSSSS si iieA
Source: Author's data com
In terms of for earning of the c industry still rep1 place of the col Tourism contri foreign exchang compared to 26. foreign remittanc textiles and garm tea, 6.9% from services, and 3.1 based products present positic contribution on S
economy may go u due to the rapid shown in Sri Lan
2009.
Impact of Employment Ge Lanka
Being a very wide of employment in general is very ext of these potential untapped in destinations. Car exist in public an In the public se opportunities in and departments centre and the s
information ass guides, etc. Qu professionals are in the private se

rtance of tourism as foreign exchange (FE) earner
2008 2009 FE Earnings % of FE FE Earnings % of FE
Rs. Million. Earnings - Rs. Million Earnings 376,024 26.5 376,146 26.2
eS 316,091 22.3 382,818 26.6
137,600 9.7 136,171 9.5
108,430 7.6 99,391 6.9
58,671 4. 44,163 3.1
37,094 -2.6 37. -506 2.6 31,069 2.2 28, 161 2
27,551 1.9 27,616 1.9
24,917 1.8 15,484 1.1
3O2, 18 21.3 289,122 20.1
1,419,565 OO 1,436,578 OO
pilation from Central Bank Annual Report (2009, 2010)
eign exchange ountry, tourism resents the sixth untry (Table 1). butes 2.6% to ge earnings as 6% from private xes, 26.2% from ents, 9.5% from
transportation % from rubber. However, the in of tourism ri Lanka's export p in coning years
growth pattern ka tourism after
Tourism O neration in Sri
2 field, the scope tourism sector in ensive, and most s are still largely many tourist eer opportunities d private sectors. actor, there are the directorates of tourism of the state as officers, istants, tourist alified tourism highly demanded actor with travel
Economic Review: Feb./March 2011
agencies, tour operators, airlines, hotels, transport and cargo companies, etc. In addition, opportunities for self employment and employment governmental organisations are available.
in Ω Ο Ω --
The tourism industry creates employment opportunities directly in tourism-related business establishments such as hotels and other accommodation units, restaurants, travel agents and tour operators, recreation and entertainment businesses, souvenir, handicraft and other shops, etc.
The contribution of tourism employment to the total employment of a country varies from country to country. In countries like Macao, China and the Maldives, tourism nakes a significant contribution (around 60%) to their total employment of the country. Table 2, clearly shows that the contribution of direct tourism employment to total Sri Lankan employment (0.63%) and its total contribution (1.27%) are very low compared other Asian and Pacific countries.
In addition, vario u s bu sin ess operations indirectly involve with tourism businesses. In general, indirect employment generated as

Page 13
a result of tourism is much Table 2: Tourism higher than direct employment. world in 2
Country Dire The tourism 1ndustry accounts aS a for nearly 1.3% of the total Australia employment in Sri Lanka. This Bangladesh can vary from 1.3% to 1.7% due China to the different performance of Fiji tourism industry on total India employment of Sri Lankan Indonesia economy (Table 3), more Japan specifically after post-war Korea period. Hotel and restaurant,
Laos travel agents and tour
- - - Macao, China
operators, airlines and tourist
Malaysia shops are some of the v Nepal important sectors in tourism employment of the country. New Zealand Hotels and restaurants plus oakistan tourist shops are the most PhilPPres labour intensive sectors of the Sri Lanka industry. Over three-quarters Thailand of the total direct employment World Average
is represented by hotel and restaurant of the industry. Travel agencies and tour operators, and airline companies also generate a considerable con tribution towards tourism employment in Sri Lanka (Annual Reports of SLTDA (Former Ceylon Tourist Board), 2008 and 2009).
In comparison to most of the other sectors of the economy, contribution of tourism to the total employment in terms of compensation (salaries, wages, staff benefits, etc.) is relatively high, but not for all categories of employments of the industry. An
Source:
Author's Ca Publication
even closer exa
structure of tour
reveals SeVe. characteristics. It Many Unskilled, L. and Too Feu High Employees, but betuveen These Tu
situation can b composition anc direct tourism e1 Lanka (Annual R Former Ceylon To 2010).
Table 3: Contribution of tourism to emplo
Sri Lanka in 2008 and 2009
2008
Tourist arrivals 438,475 Labour force (000) 8,081,70 Unemployment ratio 5.4 Total employment of tourism 123,134
- Direct 51,306 , - Indirect 71,828
in total tourism employment
Percentage of direct tourism employment 42
Percentage of tourism employment in the 1.27 labour force Ratio of employment to tourist arrivals 3.6
Source:
Compiled by Author from Annual Reports o
2009-2010; Annual Reports of SLTDA, 2009
- Economic Review: Feb./March 2011

Employment in some selected countries and in the
O08
ct tourism employment Total tourism employment
% of total employment as a % of total employment
4.7 1.O
3 3.2
2.4 8.1
9.3 24.7
2.7 6.5
2.O 6.5
4.O 10.1
2.1 8.
3.3 9.
37.6 7O.7
5.2 1.7
2.O 5.O
5.6 12.6
1.7 4.7
4.0 10.5
O.63 1.27
5. 1.3
2.8 7.9
lculations based on http://www.unescap.org/ttdw/ s, Central Bank Reports
O. O. ism employment al important is said that "Too
ow Paid Employees
Skilled, High Paid Feuer Employees vo Extremes”. This
e shown in the
i distribution of mployment in Sri eports of SLTDA, urist Board, 2009,
yment in
2009
447,890 2 8,073,668
5.8
124,970 52,071 72,899
42
179
3.6
f Central Bank, -2O1 O.
Mostly, the industry does not require highly academicallyqualified and skilled experts, but the greater demand is for more supervisors, clerical and allied staff and, operative and manual workers. In general, around 83% of total direct employment is represented by technical, clerical and supervisory, and manual and operative jobs of the industry. Of the total direct employment, 58.5 percent represent in the technical, clerical and supervisory grades, 25 percent represent in the manual and operative grades and the balance 15 percent in managerial
rades (SILTDA, 2010).
The total number of persons
employed directly in the tourism sector as at end of 2009 amounted to 52,071 and 51,306 recorded in 2OO8. Out of this total direct employment, around two-thirds of employees represent accommodation and catering sectors. Travel agents and tour operators accounted nearly for 14 percent while Airlines account for around 10 percent. Moreover, the share of technical, clerical and supervisory employment has
1.

Page 14
significantly increased for last few years. Most of the employment in the tourism industry, particularly in the hotel sector, is also temporary or seasonal. (SLTDA, 2010).
Tourism affects all communities directly or indirectly. It involves a huge range of businesses, from accountants and builders to hotels and supermarket workers. The tourism is one of the few intensive SeCtOrS Of employment. Furthermore, the employment impact of tourism goes beyond employment in sectors in which tourists directly spend their money, such as hotels, restaurants and airlines. The establishments which receive tourists also buy goods and services from other sectors that generate employment in those sectors through multiplier effect.
On the other hand, domestic resource intensive, small-scale tourism sector has generated more employment opportunities, outstripping the large-scale sector. This can be traced to the higher backward linkages of tourist shops, guesthouses and restaurants (Silva, 2002; United Nation, 1996). Moreover, these linkages, too, produce a considerable amount of indirect employment, which is significantly higher than the amount of direct employment of tourism in Sri Lanka (Table 3). Ratio between direct employment to indirect employment represents around 1:1.4 (SLTDA, 2009). On the other hand, for every 100 jobs created in the tourism sector, there
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000 5750C
500,000 ...
2 150524
v v1本 0 'i
-*-- No of Toul
Figure 2: Expec emplo Source: Way IF
will be 140 jobs supportive sectors industry.
Future Chall Increasing Tour Development in
After eliminatio terrorism, touris) reached a new development, whic seen for the last til Lankan history. expected to attr, tourist arrivals b require around 6 personnel for trav hospitality indust (Table 4). Increasin would lead to ir
income as well.
Along with expect als and anticipate expected tourism been forecasted frc
sonals in 2010 to
als in 2016, as sht
Table 4: Forecasted tourist arrivals from 201C
Category 2OO 2O1 2012 1. Arrivals 575,000 700,000 910,C 2. Employment
Direct Employment 62,739 68, 182 104.5 Indirect Employment 87,835 95,455 146,3 Total Employment 150,574 163,637 250,9 3. Avg. Duration (nights) 8.9 8.6 8.3 4. Rooms Capacity 14,932 15,000 21,96 5. Foreign Ex Earnings 506.1 6OO.O 98O.C
(US $ Mn) 6. Avg spending per
tourist per day (US $) || 90.3 97. O3.9
Source: Way Forward Report of SLTDA, 2010
12

2,500,000
700,000 850,990
33879 41.8450 .ൺ: 1 -مجھتاتھا 剪茄 35880 42840 48236 hswee ಗಾಳಿ; 曦 畿※ s 藤、
2{}11 202 2013 20贯4 25 2貌}狙6 ist Arrivals -m-Room Capacity ––Total Employment
:ted tourist arrivals, tourist receipts and tourism
oyment
orward Report of SLTDA, 2010
generated in the s to the tourism
On the basis of expected tourist arrival from 2010 to 2016 and required accommodation facilities, the annual growth rates of tourist
llenges arrivals, accommodation facilities isn Manpower and levels of employment can also
Sri Lanka
in of ruthless m industry has w era of its ch had not been hirty years of Sri As a result, it is act 2.5 million by 2016. It will OO,OOO trained vel, tourism and ry in Sri Lanka ng tourist arrivals mprove foreign
ed tourist arrivdi room capacity, employment has om 1,50,574 per600,000 personown in Figure 2.
be illustrated in Figure 3.
Number of employment required with tourist arrivals can be neasured either as a ratio based on number of tourists to the number employed or as the number of required employment per room. In general, 4 to 5 tourists can create one job (Silva, 2002; United Nation, 1996, 1993). Secondly, in tourism accommodation sector, on average, manpower requirement is 1.75 per room (SLITHM, 2010). This ratio can vary according to levels of star grade of these hotel rooms (Figure 4).
Along with the forecasted 2.5 million tourist arrivals, expected manpower for tourism industry can also be categorised into different
to 206
2O3 2O4. 2015 2O6
DOO || 1,183,OOO || 1,537,9OO || 1,999,27O | 2,500,OOO
545 140,908 177,271 213,634 250,000
363 197,271 248,179 299,088 350,000
O8 338,179 425,450 512,722 6OO,OOO 8.O 7.7 7.4 7.O
SO 28,920 35,880 42,840 49,8OO
) 1,360.0 1,740.O 2,120.O 2,500.0
110.7 117.5 124.3 13O.O
Economic Review: Feb./March 2011

Page 15
classifications by considering skill levels of employees. Figure 5 indicates that a large amount of technical, clerical and supervisory category employment are required for tourism industry by 2016.
In addition, manpower requirennent by different departments from 2010 to 2016 is shown in Figure 6. Food and Beverages (F&B) category of trained manpower will be the largest part among these categories. Generally, it represents around 24% of the total manpower requirement of the hotel and accommodation industry.
According to a newspaper-based job vacancy survey recently conducted by Sri Lanka Institute of Tourism and Hotel Management (SLITHM), several job categories in the hotel sector are highly demanded, but a very few trained persons are available for this categories jobs (Figure 7) (e.g. chef and executive chefs, management staff and trainee staff).
In addition to hotel and restaurant employees, more than 5,200 trained national guides and chauffeur guides are required for tourism industry by 2016 (Table 6) (SLITHM, 2010-2016).
On the basis of above analysis of future requirement of manpower development for tourism industry in Sri Lanka, major challenges in meeting the industry requirements are as follows:
i. Increasing trained and skilled manpower with high quality and good customer-care attitudes within a short time period,
ii. Meeting the demand for trained manpower by the industry with changing and churning due to the improvement of various new fields or segments in tourism and hotel management (such as spa management, event management, ecotourism, health and wellness tourism etc).
iii. Poor tendency of the youth to engage with tourism employment.
iv. Poor participation of women in tourism employment due to negative
- Economic Review: Feb./March 2011
120.00%
00.00%
80.00%
60.00% :
40.00% 8.70% A
2000%95%ర్గ
0.00% . . . .
2010-2011
-- No. of T
Figure 3: Growt and en
Source: Author
Employee
30 E 2.5 웅 2.5
ی 吕 20 ဒွိ 1.5 ဟွိ ဟား... 器, 霍 1.0 O.S
0.0 ...်..
5 Star
Figure 4: Emp
Source: Authc
SLIT
60000
50000
40000
30000
20000 489
భీళ్ళు 10000 oo
0 .451
2010 “Technical Clarica
Figure 5: Manpo Source: Way IF
response and attit of Sri Lankan s Survey, 2010).
v. Language and barriers to get en industry (e.g. youn highly demanded
vi. Lack of awal operation.
vii. High demand low-skilled jobs.

424.0%
సొు. 31.10%
%్కు
O%
2011-2012 2012-2013
ourist Arrivals Room Capacity “ Total Employment
/36% 290% "-20.50% 17.00%
29.20%
"హారాణయ్యి
༠་༧༠༠༠༠༠:88.༠༠༠༠༠་༠༠༦.༦༠ར་སྣང་
16.20% -s. 14.50% 1120%
9.40%
25%
2013-204 2014-2015 2015-2016
h rates of tourist arrivals, accommodation facilities,
nployment
's Calculation from Way Forward Report of SLTDA, 2010
es per Room by Classification of accommodation
2.2
8 .75
15 - - - - - - - - - - - ------ ........ . 13 12
4 Star 3 Star 2 Star 1 Star Unclassified Average
Classification of accomodation
loyees per room by the type of accommodation or's calculations from a Market Survey conducted by
HM
5625 45370
30457
2000 18455 بمصر 20638 一。一ー「 2389
8395 つー・一言。 -68_rrT0:T 3073 4875
434 S946 8776 2011 2013 2014 201S 2016 l & Supervisor (58.7%)“Manual Operationg (24.4%) " " Management (16.9%)
ower requirements by different categories
orward, SILTIDA 2010.
udes by many parts ocieties (SLITHM
i other technical hployed in tourism g and teenagers are by the industry).
eness of tourism
for low- paid and
viii. Highly seasonality and temporary basis of employment.
ix. Lack of private sector investments for hotel school services.
x. Lack of trained trainers for training manpower tourism industry.
xi. Emigration of kill manpower.
xii. Tendency of shifting educationalists to practitioners in the industry.
13

Page 16
Possible Strategies for M. a n p o w e r 25000 Development of Tourism Industry in 20000
у
Sri Lanka 15000
Tourism being a highly 10000 labour -intensive and
people-centric' industry, 50) friendly, efficient and professional services are O essential ingredients for tourism development in
2010
2011 2012 20
any country. Many tourist destinations in the world are presently facing greater challenges, often suffering from a lack of well-trained staff and a lack of locally-available training resources. This has adversely affected product quality, product consistency, and service standards of man power in travel, tourism and hospitality industry.
Source:
As the number of international visitors increase, the tourism sector must have even better skilled man power and profession als to meet, everincreasing demands in newlyenerging in global tourism. Therefore, the rapid development of a skilled workforce, capable of sustaining high levels of service and competency is crucial to the long-term viability of development of Sri Lanka Tourism.
The major challenge ahead before the tourism Industry in Sri Lanka is to bridge the gap of demand and supply of skilled workforce through attracting and retaining the talented skill to serve the industry.
Sri Lankan tourism industry still lacks the competent professionals. Education and training institutions have not yet been able to produce
Figure 6: Manpower requi
Way Forward, SL
professionals to meet the in dustry needs.
To become one of the
O S t so u g h t destinations in the world, welltra in ed
man power is a vital requirement. This can p r o v i d e m u c h valuable guarantee for tak global heights excellence in hospitality.
Human Resourc programs must
without delay f tourism develo suggestions in thi
i. Elevating the education program Institute of T
Table 6: Required National and Chauffer Gu
2OO9 2OO 2O1 2
Arrivals (Total) 447,890 575,OOO 700,000
Arrival growth rates 20.1%
Required 1,198 1,458 No. of Guides
14
 
 

o Housekeeping (l2%)
re. Front Office (7%)
s. F & B (24%)
exe Coockery (22%)
... Finance & Account (10%)
« Maintance(15%)
...e. Others(10%)
13 2014 2015 2016 2017
ements by different departments of the hotel industry TIDA 2010.
Super manager level (0%) Chart Titie Manager level (15%) 0% 0. Executive (11%) : 15% Office related (8%) Executive Chef (2%)
Chef (14%) Cooks (3%)
Housekeepers (1%) 5% Barman (1%) F & B (2%) 0%-
Waiters/Waitresses (1%) oz Receptionists (2%) 29Stewards (7%) Trainees (2%) Maintaince (4%) Guest relation (2%) Hostesses (0%) Supervisors (5%) Room Boys (2%) Others (17%) 2% '%3%
ure 7: Demand for different job categories in the
hotel industry of Sri Lanka
ing Sri Lanka to Management (SLITHM), which is of keeping the
the prime national training Sri Lankan
institute established in 1966 for
manpower training of tourism and
e development hotel industry in Sri Lanka be established or Sri Lankan pment. Some s regard are: universities to meet the global
(www.slith.edu.lk), and other
related organisations and
standards through curriculum present tourisrn
mes of Sri Lanka ourism Hotel of training methodology.
development and periodic revision
ides, 2010-2016
2012 "2o1з 2014 2O5 2016
210,000 1,183,000 1,537,900 1,999,27O 2,5OO, OOO
21.4% 29.2% 20% 25% 20%
1,896 2,465 3,204 4,165 5,208
Economic Review: Feb./March 2011 -

Page 17
ii. Develop1 ng new tourism
education programmes th cater to industry's emerging demands by addressing the local and global tourism industry's human resource requirements.
iii. Opening the more equal opportunities and fare share for all segments of the societies in Sri Lanka.
iv. Achieving wider expansion for tourism and hospitality training, developing partnership, collaboration and coordination with private and public Se C tOr organisations.
V. Promoting private sector
i.es in b managed educational institutions
while providing necessary national guidelines and monitoring.
vi. In addition to normal teaching methods, online learning such as E- and M-learning methods should be developed.
vii. International, regional and national improving product quality and establish educational standards through intériational accreditation and awards (e.g., Tourism Educational Qualification approved by WTO).
viii. Introducing national-level training and awareness programmes for Sri Lankan youth
while developing positive attitudes
to get engaged them with tourism.
employment. Some of the highlydemanding training areas are Front Office Operation, Professional Cookery and Culinary Arts, Food & Beverages, House Keeping, Travel & Tourism, Pastry and Bakery, Tour Guiding, MICE and Event Management, Community Based Tourism, Spa & Leisure Tourism, Human-, Resource. Management, Tourism Marketing and Advertising, Agro-tourism, Language Training and so on.
- Economic Review: Feb./March 2011
co-branding while
v111. Including
hospitality mä
subject for schoo
Conclusion
Tourism is curr world's largest i Lanka, it is on industries, witl harmony in the industry generate a large segment branching to for direct and indi unskilled, seaso
etc.
Moreover, wit globalisation an favourable to
cessation of ter. many opportuni Tourism develop expectation by th about 2.5 million Sri Lanka. To fulfi strategies need and policy refo implemented. T goals, present to
programs an development and of training meth be undertak
educational cel
established to int they should b language proficie! learning, new te needed for the One of the major context is lack of for manpower di Lanka. SLITHIM, t institute for man tourism and ho’ its (Ratnapura, Kan Коggala and Anu its maximum po
five prov
future challeng requirement of S development.
noteworthy to n

tourism and nagement as a
curricula.
ently one of the ndustries. In Sri of the growing 1 the prevailing Island. Tourism S employment for n the population, nal and informal, rect, skilled and nal and regular,
h the d the conditions Sri Lanka after
rapid
"orism, there are ties in Sri Lanka ment. Hence, our le year of 2016 is tourist arrivals to this demand, new to be formulated
rms have to be
'o achieve these
purism education
d curriculum periodic revision odologies have to C. Regional Intres should be ake rural talents, e updated with ncy and modern echnological tools tourist industry. constraints in this training facilities velopment in Sri he primer national power training for el industry, with încial colleges dy, Bandarawela,
radapura) is using
:ential to meet the es in manpower
Sri Lanka tourism
However, it is hention that still
expectations. Therefore,
private sector has not paid
sufficient attempt to train the
required manpower for tourism industry. It take the national
ru St
this requirement as the tourism
leadership in
industry itself is largely driven by the private sector and through its innovative product development. The tourism training programmes related employment should be coupled with the identification of
gap S positioning and marketing of
in planning, provision,
tourism products towards 2.5 million tourist arrivals in Sri Lanka
by 2016.
Furthermore, tourism is a multidimensional product. It inherently seeks nulti-stakeholders participation to satisfy tourists
- it is essential that all wings of the government (including all national and technical private sector and
universities colleges), voluntary organisations should become active and responsible partners in the endeavour of developing a well focused, competent, committed trained manpower for Sri Lanka tourism development.
Special attention is also required for increasing the employment of women in the tourism industry. Employers should set up programs and schemes to encourage women to move into non-traditional occupations, invest in women's training, appoint thern in managerial positions, and reappoint them after years of diminished involvement due to
family responsibilities.
Under Mahinda : · Chintana Development Framework, Sri Lanka must be an educational hub for Asia. This target can be achievable if a proper manpower training system is developed for tourism
Contd. on page 42
15

Page 18
Child Welfare
en we rejoice with the dawn of peace and the potential increase of tourism in Sri Lanka, we are bound to see an exponential increase in tourism in the next few years. We need to take into account not only the end of the war, but also the visible improvements in the economy, including increasing and likely foreign investments. Sri Lanka's potential to develop the tourist industry is not only related to the beauty of the country and the wonderful beaches, but also the ancient history and archaeological sites, wild life, hand crafts and the multi-cultural attractions, including dance and music. In short, the scope is enormous with un precedented potential contributions to the economy.
Sri Lanka has been well-known as
a tourist destination for about four
decades. Initial unrestricted inflow
of tourists in the seventies and the eighties and cheap accommodation as well as lowpriced flights led to the influx of undesirable tourists including "Hippies', drug addicts, sex tourists and paedophiles (those seeking sex with children). Very apon, Sri Lanka became a "paradise” for paedophiles, especially on the Southern Coast with beautiful beaches and new hotel complexes that came up with the flourishing trade. Although a majority of the tourists would not frequent the country for paedophilia, a certain amount would do so. It is important to realise that even if a small number of undesirable tourists came into the country, the damage caused to significant. Those identified previously were from Europe, mainly from Germany, Switzerland, the UK, and Scandinavian countries, Belgium, France and Holland. A few
early
society aay be
have been identif
and the USA. Du: and the early eig children was qui beaches and hote following new lav 1995 penal code protests by activi establishment of
Protection Auth statutory body incidence signific sone of these act
State. ranging from gue traffickers, paren drivers to official in many ways, sustained the op and continue to c
However
With the advento popularisation of sale of child. pornography on th to internet, even
in tourist areas, b menace. The in1
sites such as 'sex "gay teens Sri teenagers type ke teens + sex or G end up in sites lil be tempted to replying these mae by the paedophile may be tempting teen to go on with paedophile at th indicate that he t he may be a 5t Sometimes, the women just seeki and may not eve The man on the promise expensiv other benefits. parents themselv especially whe promises to s education for
parents cannot a
16

ind Tourism
ed from Australia ing the Seventies hties, the use of ite open on the ls. Subsequently, vs, especially the amendment and sts as well as the he National Child ority in 1999, a , reduced the :antly, but swept ivities to a 'covert , many people st house Owners, ts, three wheeler
s were benefiting
and therefore, erations covertly io so even today.
if the internet and
it resulted in the including e net. Easy access not so developed out, has become a ternet may have teens Sri Lanka, Lanka'. When ey words such as ray + teens, they ke these and may experiment by ils. The promises on the other side ; for the child or the dialogue. The e other end may oo is a teen, while )-year old man. y may write as ng companionship n talk about sex. : other side may 'e gifts, trips and Sometimes, the es may be fooled, 2n the person upport foreign children which fford to, and this
ren,
Prof. D.G. Harendra de Silva
Senior Professor of Paediatrics,
Faculty of Medicine, Ragата.
tourist may even take the parents along on trips, but abuse the child without their knowledge. Even outside the internet spectrum, paedophiles may build and renovate houses and is another ploy by him, since he would stay in the house with the family and continue to abuse the child with or without the knowledge of parents. Language is fortunately a limiting factor in the communication process, although middlemen, often traffickers, may get involved.
Unfortunately, the December 2004 Tsunami too struck these povertystricken previously frequented by sex tourists, naking the children more vulnerable. However, the National Child Protection Authority acted swiftly to prevent the objectives of some of these visitors.
area S,
There are un doubtedly many benefits of tourism to children,
especially, by improving the
economy of the community,
individuals and families. Through
improved economy, their standards
of living and hygienic conditions
would improve. The contribution to
their education and health would
be enormous. However, in the rush
for "gold' we cannot forget our precious and innocent children,
especially the poor children in the
surrounding communities such as
fishing villages.
In any country, another industry that goes hand in hand with tourism is the sex industry. Although a country may be able to
- 2011 Economic Review: Feb/March - ܝ ܝ - ܝ -- ܓ -- - ܝܝ ܝܝ

Page 19
minimise this aspect, it is almost impossible to eliminate it, since sex is one aspect of "enjoyment' expected by tourists. It is related to night clubs, night entertainment, such as strip tease, ending in prostitution. This would mostly affect the poorer villagers in the surrounding areas or far away rural places from where women may be trafficked on false pretence of employment, money and a better life. It may not be limited to women, but also to young men and adolescents for homosexual activity or rnale prostitution. However, unscrupulous adults would not stop at selling children for their monetary gain. This would also include trafficking of children and adolescents to the tourist areas into small guest houses and brothels.
When there is a demand from the tourists for sex, the supply line will get activated. Unlike in places like the Maldives, where the island resorts are isolated from the community, we have a disadvantage of being able to mingle with the tourists. There may be advantages, since the tourists will be able to understand the culture, religious practices and visit other places independently, while the locals may be also able to sell their wares to the tourists directly benefiting both parties. The tourists also will have another advantage of buying things, such as, Coke, fruits, etc. from shops, thus avoiding higher hotel rates. This process of mingling also opens another opportunity of being able to buy sex in the "open market' either through touts or direct access. It would be the tout who will promise safety from law, and be able to manipulate the system through bribes and other incentives. In this market of "flesh' trade, the profits are enormous without too much of investment and the risk is worth if the implementation of the law and
surveillance is in question.
- Economic Review: Feb./March 2011
However, this
activity is un likely tΟ happen in
places that are isolated such as
in island
resorts in the
Maldives.
Another evil
facet of tourism
is the trade and
L Se of narcotics. Again the demand would pull the drugs into the area and the people waiting to profit would get into the orbit. Here too, adolescents are mostly at risk, partly because of poverty, little scope for education, ignorance and the idealistic mind wanting to experiment. The culture of
some of these to fun, sex and drug often adolescents children, are obli these activities deprived of mon they do not accom term effects are
individual as community, unle steps are taken.
When this malicio and drugs is "Tarantula' ste sexually-transn including the p HIV(Human Im Virus)/AIDS Immunodeficienc
have to be consc
hazards that cor

Poverty H. Poor education Alcohol and Drugs Lack of future prospectus
Mothers in M.E.
Single Mothers Ignorance Domestic Violence
Domestic child sexual abuse
节
Trafficking for sex exploitation
4.
Money(+ to parents) Caps, Watches, T-shirts, Pens Repair of Houses "Adoptions"
Prospects of going abroad
etc.
Figure 1: Abject poverty in the surrounding fishing community villages and the vulnerable children with little education and not prospects for a future or jobs who are subjected to abuse, exploitation and
trafficking
urists encompass s, and the guides, s and sometimes ged to partake in , and may be etary benefits if modate. The longenormous to the
the ss precautionary
well as
us web of fun, sex spun another ps into spread nitted diseases, otentially fatal mu nodeficiency (Acquired y Syndrome). We ious of the health ne with the great
success of tourism and the ultinate negative results, especially on society, should not negate the positive aspects of tourism.
One of the main problems that lead to exploitation of children is the abject poverty prevalent in the areas. Figure 1 summarises the "push" and “pull” factors that contribute to the problem.
Why is that children or adolescents should not take part in sexual activity? The definition of sexual abuse makes it clear. Child sexual abuse is the involvement of a child in sexual activity that he or she does not fully comprehend, is unable to give informed consent to,
or for which the child is not
17

Page 20
developmentally prepared and cannot give consent. It includes:
The exploitative use of a child in prostitution or other unlawful sexual practices.
The exploitative use of children in pornographic performances and
materials.
Sri Lanka is a signatory to the United Nations Convention on the Rights of the Child (UNCRC) and is obliged internationally to safeguard the rights of the child. Under the convention, there are some articles related to tourism, sex trade and child rights, the State has an obligation to protect children from the following:
Article 33 Drug abuse
Article 34 Sexual exploitation
Article 35 Sale, trafficking and abduction of children
Denia:When incidents of child abuse stigmatise our society, neither the society nor the individuals would like to belong to that society, and it would be not surprising for them to reject reality. It is also easy to justify this denial because of the hidden nature of abuse. At the same time, this denial, which is also partly responsible for stigma, becomes an important factor that makes the issue a hidden phenomenon. There have been many justifications in society, especially concerning abuse of male children such as: "Ships do not leave tracks on water in relation to virginity while they also say "Boys do not get pregnant".
What are the ba di effects of
sexual abuse?
The major effect would be psychological, with loss of selfesteem (How you value yourself) that would affect their education with sudden deterioration of school work, and interactions with family members and friends. They may run
away from home suicide. They a tendency to get a In Ore withou ultimately leadin (female or male) likely to be attir tobacco and alcoh taking behaviour the victim to becon
on in life.
The issue of the
transmitted di including gonorrh HIV/AIDS, are hug of society. Juver (now referred to conflict with the l
are other detrim
society.
Considering the 1 on individuals especially the lo one should be extil in preventing ch abuse and exploit creating awaren levels, it is essent the legal process deterrent to the present laws in more than adequ implemented pro paedophiles.
How can wye rama
economic bene while safegu children?
Accountability to
is extremely impo. implementation of both the perpetra officers are acco territorial prosec Western countries
aWatten 6e SS &S W6 and cooperation services and the A Departments on extremely importa
Internet survei should be imple
18

or even attempt lso will have a
bused more and
resistance, g to prostitution . They are also acted to drugs, ol as well as risk
'. It also causes
he an abuser later
risk of sexuallyseases (STDs), oea, syphilis and ge in this segment nile delinquency
as children in aw) and violence ental effects on
malicious effects and society, ng-term effects, remely concerned hildhood sexual ation. Apart from ess at different ial to implement in making it a offenders. The the country are ate if the law is perly to prevent
ake use of the
fits of tourism
arding OUIT
the legal system rtant with proper f the law making tor and the legal puntable. Extra
cutions in most are possible and ell as sensitivity of the foreign ttorney General's both sides are
ant.
llance systems onented with the
Economic Review: Feb./March 2011
police and active physical surveillance of the tourist areas as
opposed to passive surveillance (Take action only when a complaint is made) is essential. The present law in Sri Lanka makes it possible for
to prosecute a violator
soliciting.
The most important would be education of the population of the long- and short-term evil effects of child abuse, especially sexual abuse. This can be done at national
level using the mass media and organisations, such as, the National Child Protection Authority (NCPA), the UN bodies like UNICEF (United Nations Children's Fund), WHO (World Health Organisation) and UNIFEM (United Nations Development Fund for Women) as well as local and international Non
Governmental Organisations (NGOs). However, grass roots-level awareness building is much more
NGOs
Community-Based Organisations (CBOs). School child Protection Committees can be used to impart
effective u sing and
this knowledge very effectively.
We have used CBOs funded by international NGOs by having drop in centres for children that would provide protection to them and facilitate knowledge and skills building to protect themselves. These are not residential institutions, but centres that would provide the facilities to the children to learn, enjoy and develop skills. Summary of some of the activities is described below:
(i) Use the centres as a focal point for psycho-social rehabilitation, using art therapy, music/drama, group therapy, etc. as a medium to address trauma of the traumatic
situations faced in life either before
Other
resource persons would conduct
or after the Tsunani.
the training.
Contd. on page 26

Page 21
Health Tourism and Impacts on Tourism
Abstract
his paper discusses the nature of the health tourism, a distinctive phenomenon in the making on the horizon of international tourism industry and examines its potentialities in the context of the international scenario and its impact on the tourism industry in Sri Lanka in the sphere of development strategies. Medical tourism, if properly utilised, could well be a great spur in the arena of local tourism industry, if one properly discerns the probable competitive advantages over the regional counterparts. Sri Lanka is endoued uith the necessary infrastructure, inclusive of the traditional healthcare system nurtured for centuries, for the development of the health tourism industry. The results of evaluation of the magnitude of Ayurvedha and its relevant disciplines in the context of tourism study and the potentialities of promoting as a salient feature in tourism industry in Sri Lanka are discussed. Also discussed is the inevitable aspect of regulatory measures uhich are necessarily embedded in a master development strategy in health tourism.
Introduction
Global travel is not a new phenomenon. Historically,
travellers embarked on adventures risking seas from the early to the middle 20th century. Then travelling became the privilege of the affluent few who could afford to the luxury of travelling abroad for the purpose of leisure. At present, it is open to a wide range of people.
Sri Lanka is strategically located connecting many sea routes and air
- Economic Review: Feb./March 2011
routes. The natu Lanka's tropical and landscapes, cultural heritage, famous tourist Lanka is famou ecosystem. The N ranked Sri Lank tourist destination National Geograp cited Sri Lanka a tourist destinatic Thus, Sri Lanka almost all p attractions exce and the industry exploit to its pote bounden obligati authorities to ex unexploited segn Appended are so be exploited i
programme.
i. Ayurvedha trea ii. Buddhist docti (retreat to find iii. Meditation as
of ailments wi. Ayurvedic Bea
Ayurvedha sys practised and nu to Sri Lanka as t is practised,
elegantly guar millennia from t sage Rishi Pula B.C.), the grandf who was invit international m held in Himalaya
Defining the Fe Touris
Tourism inher curiosity and in Tourist attractio) multifaceted,
basically dep apprehension a the people. On anxiety of touri:

its Potentials and Industry of Sri Lanka
ral beauty of Sri forests, beaches as well as its rich
make it a world destination. Sri s for its tropical 2u York Times has 2 as number one in the uorld, uhile hic magazine has mong the best 25 ons in the world. is endowed with ossible tourist pt winter sports, should be able to :ntial. So it is the on of the relevant ploit the hitherto nents of tourism. me of the areas to n a synergized
tnerat
ine and meditation
solace)
a healing process
uty Therapy
tem professed, urtured is unique he legend goes, it cherished and ded for many he days of great sti, (2668-26 16 arther of Ravana, 2d to chair the dical conference
ها
atures of Health
ently based on terests of people. ns are varied and which are also 2ndent on the ld the attitude of e such aspiring sts is the seeking
Nimal Shantha Lokupathirage
of medical treatment abroad. Industry should make every endeavour to attract tourists for health purposes as Sri Lanka is endowed with necessary potential for development. A burgeoning fact is the potential to develop health tourism to attract many tourists into Sri Lanka, as Sri Lanka could well be proud of its traditional healthcare system brought down for centuries. If cogently planned and masterfully guided, health tourism, with additional potentiality of exporting ayurvedic drugs, could definitely make a significant contribution to the tourist industry. If health tourism is properly propagated, Sri Lanka could be more a unique tourist destination.
According to the industry experts, the global medical travel industry has been projected to earn US$ 40 billion by 2010. (Horowitz, Michael D, Medical Insight International of US, "Why in the world Do Patients Travel for Medical Care?, Asia Pacific Biotech, Vol. 12, No.07 May 2008, p.24).
The term medical travel denotes several major patterns and could be enumerated as follows:
i. People receive medical treatments outside their own countries. This mostly involves with the Allopathic, the mainstream medical practice in the western world as rapid strides made by the system with the techniques and the technological innovations.
ii. The people of the developed countries who need immediate nedical treatment would resort to
19

Page 22
alternative measures, move to Asian and other countries to mostly undergo complex operations due to various reasons such as exorbitant financial implications exacerbate waiting list in their own countries and expertise found in other countries.
and
iii. The affluent patients in less developed countries continued to have poor access to expert medical services journeyed to have medical care in other countries
iv. Patients preference to secure traditional medical treatments in
Asian countries where confident
treatments are available for certain prolonged illnesses such as diabetes, hypertension, coronary problems, Parkinson disease, etc.
v. Traditional medicines in Asian
countries also offer treatments for obesity, excess level of cholesterol, beauty culture, 'stay healthy systems',
vi. People travel to Asian countries in search of mental solace in the form of Yoga exercise and meditation techniques.
As described by Michael D Horowitz of Medical Insight International of the USA, medical travel is driven and shaped by the complex interactions of myriad of medical, economic, social and political forces. Nevertheless, the reason for people to travel thousands of miles, frequently crossing national borders can be classified as follows:
i. Affordability of care,
ii. Timeliness of care,
iii. Availability of care,
iv. Patient preference to specific
providers,
v. Patient preference for special
geographical locations. .
Medical tourism is a new term, but not a new idea. Patients have long
travelled in sear Today, constraint lists at home cou
the ease of glol
health
appealing. Health refers to the ide or wealthy individ in Search of ef.
treatment. Profes
of the Harvard
predicts that "the industry is evolt prospective dyr similar to those other parts of So on the horizon.
Deloitte Consulti
firm in the US. August 2008,
medical tourism
USA could increa
the next decade.
Chronicle estil
Americans we
healthcare in 200
predicted that a
would seek healt
USA in 2011. The
that there is a market for health
touris:
Health tourism is practice of tri international bo
healthcare. Over identified medic
national industry trend in health somewhat jeopar potential tourist locate accredite
other measures
there are also r
issues that mak accessing medi controversial.
destinations
hazardous or ev
medical tourists. industry could v potential improved pragn campaign, exec Medical tourism opportunity fo:
situa
20

ch of better care. s and long waiting untries, as well as ball travel, make
E VE OISe n tourism usually a of middle-class luals going abroad fective, low-cost sor Tarun Khanna
Business School
a medical services ving quickly and amics in China
in India and in
uth-east Asia are .” A forecast by ng, a consultancy A, published in projected, that originating in the se by tenfold over The San Francisco mated 750, OOO nt abroad for )7, and the report million and a half
hcare outside the
statistics indicate huge potential tourism.
a rapidly-growing avelling across orders to obtain
50 countries have
:al tourism as a y. Present global tourism is in a
dised manner as
find it difficult to
di treatment and of quality, and isks and ethical
e this method of cal care highly
Also, some Inay bεCome en dangerous for Sri Lank tourist well exploit such ation with an
natic awareness uted effectively. presents a great r Sri Lanka to
Economic Review: Feb./March 2011
augment the growth by tapping the potential of the international patient market.
Prologue to Traditional Medical Treatments
Medical practice in the world is broadly categorised segments, namely, Ayurvedha, Siddha, Yunani, Allopathy and Complementary and Alternative Medicine. Heath tourismo generates medical treatment under two major segments of medical discipline. Western and
into five
1.e., Ayurved ha medical systems. Tourists, usually, are attracted for western treatment, particularly in seeking of complicated medical Surgeries in Asian countries due to high cost of treatment of their own countries. Nevertheless, Ayurvedic treatments are nostly sought as a reliable treatment for prolonged common sicknesses, such as hypertension, heart diseases, diabetes, paralysis, excess cholesterol level, orthopedic, etc. There are specific Ayurvedic schools (Family Traditions) specialised in particular diseases, which have nurtured and preserved the systern with a closely-guarded regime. In Sri Lanka, there are number of traditional Paranparika' (traditions passed down for Ayurvedha centres and sonne attend
centuries)
to incurable diseases with positive results.
In Ayurvedha, in a broader spectrum, diseases are divided into two categories, namely, the communal dise ases and noncommunal diseases and are based on the following four crucial stages during the course of treatment.
i. Adherence to a particular course
of food
ii. Adherence to a particular living
style
iii. Course of medicine
iv. Daily regime

Page 23
Hospital services, spa (massage clinic) and particularly treatment for prolonged illnesses, such as, hypertension, heart diseases, diabetes, paralysis, cholesterol level, orthopedic, etc. for which Ayurvedha system provides a highly confident course of treatment with prospective total recovery (subject to nature and other inherent symptoms and history). There was an instance in Sri Lanka that Parkinson disease was completely cured through Ayurvedha medical treatment, in this case, the symptoms have been detected early, a contributory factor in treatment.
exceSS
Ayurvedic traditional treatment has become an inseparable service in some of the hotels in Sri Lanka as Ayurvedha has, now occupied an important place in beauty care, Ayurvedha Herbal Remedy and Ayurvedic Beauty Care.
Historical Evolution of Ayurvedha system in Sri Lanka
Ayurvedha, the “science of life", is a system of traditional medicine native to the Indian subcontinent. In Sanskrit, the word ayurveda con sists of the words â yus, meaning “longevity”, and veda, meaning "related to knowledge" or "science". Hinduism and Buddhism have been an influence on the development of many of ayurveda's central ideas, particularly its fascination with balance, known in Buddhism 3S Ayurvedha stresses on moderation in food intake, sleep, sexual
moderation.
intercourse, and the intake of medicine. Balance in life is emphasised. Sri Lanka has been a centre of the Buddhist religion and culture from ancient times and is one of the few remaining abodes of Buddhism in South Asia with a highly acclaimed cultural heritage. Medical treatment forms part of this cultural heritage as the cultural fabric was closely
- Economic Review: Feb./March 2011
interwoven wit. traditions. “In spi Indian influer medical knowled on its own course of time, and we 1 distinctive feature out from other r (www.virtual.libra Sri Lanka is unie in its very sense
practice for mille:
Ayurveda was pl last three or four while the weste history of only centuries. Nume have been ma practices in Sri
very early day civilisation. The a are perhaps r introducing the co to the world. Prof. contends that the literary or otherw hospitals were kn the world before time of King Pandu to 367 BC). In a historical evide
recorded in chron and medicated gr and hospitals f convalescent h recovering fro! kumbalgeya or m villages and town: lived in Sri Lanka century BC) had of medicine. ' medicine practise physicians of Sri to many thousar these texts were
compiled by R complete including even surgery and an contain descrip instruments use
worl
The Mahauansa, t contains a numb hospitals and di

the religious e of the profound ce, Sinhale se e has developed with the passage ote a number of s, which mark it nedical systems” ry). Ayurvedha in ue and endemic and had been in
nnia.
actised over the thousand years, in system has a three or four
rous references
de to medical
Lanka since the s of the Aryan Encient Sinhalese esponsible for ncept of hospitals Arjuna Aluvihare re is no evidence, ise, to show that own elsewhere in and during the ukabhaya (437 BC incient Sri Lanka. nce is inten sely icles on medicines uels of physicians or the sick and omnes for those
in illness and aternity wards in s. The people who before Vijaya (5 their own systems The system of d by the Ayurvedic Lanka dates back nds of years, and said to have been ishis. They are is of science, the practice of atomy, and they tions of surgical i at that time.
he ancient chronicle, er of references of spensaries by the
kings of ancient Sri Lanka. Of these, the earliest is in the reign of Pandukabhaya in the 4th century BC. King Buddhadasa, the renowned physician, (340-368 A.C.), was adept in general medicine, midwifery, veterinary medicine and even carried out complex surgeries.
Polonnaruwa Council Chamber inscription refers to a rent paid to a hospital. (EZ 4. 1.44) The same inscription refers to a grant to the chief physician (Maha-Vedana) who was one of the principal functionaries of the State. The literature also refers to physicians, medicines and their methods of
The jealously guarded their reputation and also guarded their science as well. Whenever the medicines were prepared, they discreetly did the recipes themselves concealing the formulae from others.
treatment S. physicians
During the ancient period, Ayurveda is part of education of every Sinhala noble including monks. Medicine and surgery seem to have been rather widely studied, and the ayurvedic system of medicine, as it is known today, seems to have been in quite an advanced State. Medicine administered under the native practice took several forms, consists chiefly of oil and decoctions, pills and gruels internally taken, and poultices and pastes externally applied. Plants, roots, nuts and tubers are used in their manufacture which is carried out in accordance with a set of advanced formulas serving as prescriptions.
The ingredients for making nedicines were collected from the surroundings, and every person had a general knowledge of medicinal plants. Their nedicinal preparations were chiefly compounds of herbs, for which an innense number were employed. Plants were not the only ingredients applied to make native nedicine. In some instances,
21

Page 24
minerals were used. Strong minerals seem to have been used for exceptional cases by well experienced physicians.
Joao Ribeiro, the famous Portuguese soldier-historian who served in Sri Lanka from 1641-1658, has written in his reputed work “Fatalidad e Historia de Ceilao”. “They are great herbalists, and in case of wounds, tumors, broken arms and legs, they effect a cure in a few days with great ease. As for cancer, which is a loathsome and incurable disease among us, they can cure it in eight days, removing all viscosity from the scab without so much as leaving a mark anywhere to show that the disease had been there. I have seen a large number of soldiers and captains cured during my residence in the country, and the ease with which this was done was marvelous. In truth, the land is full of medicinal herbs and many antidotes to poison, which I have myself tried to learn as a remedy against snakebites.” Dr C.G. Uragoda asserts that a good deal of traditional Sinhalese medical concepts, practices and drugs have a sound scientific basis.
Challenges of Health Tourism
Sri Lanka reached a historical land mark with 600,000 tourist arrival in 2010, acording to Sri Lanka Tourism Development Authority. Infrastructure facilities, a sine qua non, have occupied the centre stage in the sphere of development efforts which would spur tourism as well. Optimistic sentiments are reassuring that the country can once again reach greater heights in tourism.
There is huge market potential in Asia for medical tourism due to high treatment cost, long waiting lists, strict security concerns and immigration regulation in countries like US and Europe and the potential patients are diverted towards Asia for treatment in the context of western medical treatments such as surgery, cosmetic surgery, etc. But, there seems a huge demand for
indigenous me Countries, as
illnesses, such quality of treatm found to be a key lO0,000 foreign visit Malaysia . Singapore and Inc positive growth in a result of t marketing initia Thailand leads region with abou patients each yea: Growth with Med Teh and
Synovate Busin www.synovated.c.
Many Asian Paci medical tourism ( most popular trea India by medic alternative medic transplant, carc surgery and hip ri is known, in par surgery, hip resu areas of advanced alternative me
treatinents are l western Inedical
tourism is a gr India. India's n sector is expected annual growth ra 450,000 foreignel treatment in India the case of indi treatment, India challenge over (http://www.indi
Prof. Rezvi Sheri Postgraduate Ins of the University interview conc National Televisio the 08th February that that they ci transplant operat in Sri Lanka foi enjoyed the privil over other countr due to expertis Affordability is th in the medical tou desire to have til Health tourism
established 2 phenomenon in t tourist industry. created an ideal
22

dicine of Asian well, for acute as diabetes. The ent was however determinant. Over medical tourists annually, while lia also experience patient visits as heir aggressive atives. However, the Asia-Pacific t 400,000 foreign r. (Supplementary lical Tourism, Ivy
Calvin Chu of ess Consultingom).
fic countries are lestinations. The utments sought in :al tourists are ine, bone-marrow liac bypass, eye eplacement. India ticular, for heart rfacing and other medicine. Except dicines, other usually based on surgery. Medical owing sector in nedical tourism to experience an te of 30%, Nearly 's sought medical in 2007. Even in genous medical
poses a greater other countries. anhealthcare.in.).
f, Director of the titute of Medicine of Colombo, in an lucted by the n of Sri Lanka on stressed the fact onducted kidney ions successfully foreigners who lege of preference ries in the region, e and low cost. e principal driver rism and also the mely treatment.
has steadfastly S al global he realm of global The situation has opportunity for
Economic Review: Feb./March 2011
South-Asian countries to exploit since indigen ou s Ayurvedic Medicinal system has established itself an unwavering conviction in its indelible position in the western world as a trustworthy method of treatment in respect of certain ailments and sicknesses.
i. Indigenous external treatments (Oil Baths, Panchakarma, etc.)
ii. Medication for serious diseases such as Hypertension, coronary ailments, diabetes etc.
iii. Orthopedic treatment
iv. Herbal beauty therapy
v. Massage and spa
The development of health tourism in a material and non-naterial dimension is a challenge confronted by the stakeholders of the tourist industry in Sri Lanka. This invites different dinnensional analysis of the situation to be considered in a broader perspective. Material dinnensions are inclusive of providing suitable environment for such industry and non- material dimensions are inclusive of expertise of the art of treatment with suitably adapted treatment systems for foreigners.
Marketing Potential
A major driving factor of seeking offshore medical treatment is the availability of care for respective ailments, and it is the onus of the strategists to make this factor known internationally.
Thailand, India, Philippines, and Singapore are the main Asian countries which po se a major competitive thrust in health tourism industry as a whole. In the wake of the intense competition, a comprehensive propaganda agenda must be initiated to encourage more tourists into Sri Lanka. In a latest development, with a view to woo more medical tourists, India and Philippines were making alternative arrangements in their visa issuance. The Philippines will introduce special medical visas for foreigners, as the country seeks to

Page 25
grab a bigger share of Asia's booming health tourism industry. The medical tourist visas, to be introduced later this year by the Bureau of Immigration of Philippines, will allow foreigners to stay in the country for six months without having to apply for extensions, and India has now exempted foreign tourists from the mandatory two-month gap to reenter the country for regular onward medical treatment.
In the international tourism arena, there is a huge potential market for medical treatments. According to a report, in North America alone, millions of people are awaiting medical treatments. There are four basic groups in North Americans who are mostly interested in medical tourism and the cost saving it provides. They are:
i. 47 million uninsured Americans
ii. 252 million insured Americans with restricted coverage due to preexisting conditions, resulting in out-of-pocket expenses
iii. 34 million Canadians receiving socialized medicine and enduring long waiting lists for many popular surgeries
iv. Potentially 330 million North Americans seeking elective cosmetic and/or dental surgery.
With the foregoing statement, it can be easily presumed of the demand from other western and Europeans countries for medical tourism as well. The major factors to be considered in a broader marketing drive are referral agencies, advertisement, internet marketing, word-of-mouth, medical breakthrough, premium mark-ups, fixed-price surgery. tax treatments, visa customs clearance, etc
Referral agencies play a higher profile in dissemination of information regarding the details of treatments packages available, since it is the practice of the potential medical tourist in the Western countries to get their all inclusive services. India has many websites which gives comprehensive details on health tourism and the treatments
- Economic Review: Feb./March 2011
available. Most . India for affordab
which is less tha: price quoted in same procedur reliable cardiac s emphasis on o tourism. There Indian servi established in th connect patient quality healthca surgical treatm growing demand sign for Sri Lanka Americans alo enormous US$4. surgical treatme Biotech, Vol. 12 N
Earnings from related to factors of stay of a touris of money a touri drinks, acconn recreation and sh the tradition expenditure of a tourist be awar services available expanded into h well. Medical tre a direct stimulati and they also ha the choice
destinations.
context, Sri Lanka novel approach more tourists in improving the segment and ma inescapable de sphere of health tourism could considerable per tourism in Sri Lae
Strategic He Development P
Tourism plannir component of nat planning. Healt occupy a great tourism plannin "Tourism Planni as the physic
resources on v based." In a b1 tourism plan only physical

Americans prefer le cardiac surgery in one tenth of the the USA for the and India has urgeons, a factor ffshore medical
seems so many Ce providers e USA where they to affordable topre in India. Nonents are also in which is welcome tourism. In 2007, one spent an 7 billion for nonnts. (Asia Pacific fo. 07 (2008)p.40).
tourism can be such as duration it and the amount st spend on food, nodation, travel, Lopping. These are all norms of tourist, and if the e of the medical :, this list could be ealth segment as atments could be ng factor to travel, ve an influence on of particular In the present a should formulate es in persuading to the country by health tourism king Sri Lank an stination in the tourism. Health contribute a centage of overall Lnka
alth Tourism
lan
g essentially is a ional development h tourism should er aspect in the g of the country. ng can be defined all planning of 7hich tourism is 'oader spectrum, ning is Ot
planning, but
encompasses a wide range of an integrated and interconnected development aspects, such as, economic factors, physical, industrial, social factors, infrastructure developments and other conventional segments of management planning. Tourism planning is a highly sophisticated process as the planning procedure take shape of different dimensions, such as, international competition in the international scenario and the threats posed by many developing countries inclusive of our own region, who are lucidly involved in sophisticated tourism planning. The tourism development should encompass the characteristics of a master plan with a series of overall guidelines, future projections, integration of all stakeholders, (tour operators, hotel owners, transport sector, airlines, etc.), identification of development opportunities, introduction of novel tourist attractions, such as, Ayurvedic treatments, Ayurvedic beauty therapy, meditation, con stant study and survey of development plans of other countries so that necessary adjustment could be made accordingly, and so many other factors which deemed essential.
After termination of the protracted conflict in Sri Lanka, prospects are provided with a favourable environment and an opportunity to accelerate the development strategies in no uncertain terms. Optimum utilisation of this unique opportunity must be apprehended, synergising possible resource at hand with distinctive professionalism culminating with integration of inputs needed to meet pre-defined objectives and a cohesive effort sans meandering approaches. Tourism has been identified as a prominent segment of the development strategies, and a considerable investinent has been allocated in the development of this sector with a master plan. It is of paramount importance to draw up a unique strategy to confront the inevitable regional competition and the complexities generated by global tourism to entice an extended tourist inflow
23

Page 26
to an un precedented level. Sri Lanka is endowed with all potential attractions that appeals to the tourism industry, inclusive of traditional healthcare system discreetly and conscientiously guarded for centuries. In a promotional campaign, instigating factors should be exclusive and explicit as against the other destinations so that prospective tourist would be attracted to such factors over other destinations.
Potential market for health tourism is naturally the developed countries in Europe, America, Middle East and Japan, mainly because of their large populations, affordability of expenses and lack of healthcare options locally. A recent case study of Harvard Business School describes that medical tourism is on the rise for everything from cardiac care to plastic surgery to hip and knee replacements.
Patients are now learning more and more about their own illnesses, and are most familiar with available treatment options. Patient marketing, such as, informative websites, transparent pricing schennes, O advertising placements, such as, within inflight magazines, have thus become- basic information and advertising platforms
In respect or neaun tourism, there should be highly compounded Destination Programme Management strategy to help patients navigate through the procedures and other requirements like pre-arranged hotel check-in, doctor consultation, transport, interpretation assistance, provision of emotional support, arranging excursions, assuring the customer comfortability, etc. Sri Lanka tourism industry should adapt to the international system of luring the potential tourists with the accepted norms of procedures by following the typical process. It is expedient to explore the possibility of developing a network of medical tourism providers and the travel agencies who could
disseminate the c O indigenou available.
Patient prefere providers is anot instigates fore medical advice physician or at í facility with the of explicit acumer Indigenous medic a high potent: exploited. Also, S better prospec geographic desti patients chose to abroad because ( to travel to exotic recover and va.
surroundings.
Regulatory St.
Medicines
International re imperative factor Traditional Medic confidence of t traditional medi
vital and signific resolute confider
medicine system realise the neces for Ayurvedic sy Health Organis 2005, conducted a compiled a Trad Strategy, for whi participator, t integration of Tra and Complementa Medicine into healthcare syste) of national policie are essential indi of integration o within a natio system. The use o is the most co traditional medic Regulation of he: a key means of efficacy and qu nedicinal produc currently have a Traditional Medic factor is that regi Inedicine must be international C ultinately patron
24

lominance factors
S tre atentS
nce for specific ther factor which igners to seek
by a specific a certain medical established fame h of the physician. cal system stands ial, if properly ri Lanka stands a it in terns of nation, as some have medical care of the opportunity locations and to tation in exotic
atus of Herball
cognition is an in practising the ine and to win the hose who seek cation, and it is ant to generate a ice in traditional s. With a view to ssary recognition 'stem, the World iation (WHO), in global survey and litional Medicine ch a Sri Lanka a o promote the ditional Medicine ury and Alternative
the national ms. Development is and regulations cators of the level f such medicine inal healthcare fmedicinal plants mmon form of cation worldwide. rbal medicines is ensuring safety, ality of herbal ts. Sri Lanka does national policy on ine. The imminent ulations of herbal recognised by the :ommunity who ise those services
Economic Review: Feb./March 2011
in terrns of health tourism. Patients' concern of the treatment system of indigenous medicine in treating countries, is a very salient feature to be considered in the context of healthcare tourism. In 2008, Ayurvedic Drug Minaufactiring Association of India has entered into an agreemetnt of cooperation with the American Herbal Products Association. Under the agreenent, each association would keep the other associations informed of the relevant information that may effect the functioning of the herbal ayurvedic industry. So, this would definetely be a huge thrust in the sphere of Indian prospects are concerned of health tourism which
would be beneficial in terms of patient confidence as both countries would regualite the herbal products reciprocaly. It is the duty of the Sri Lanka authorities to assuage doubts in minds of the Western community and inculcate the exquisite, eminent, accomplished and remarkable nature of the treatenent of traditional medical systems in Sri Lanka.
In Sri Lanka, the national policy on Traditional Medicine (TM) and Complimentary and Alternative Medicine (CAM) is currently in the development stages. Laws and regulations on TM/CAM were issued in 1961, and the national programme in 1982. The Department of Ayurvedha in the Ministry of Health was established in 1961. There is a national expert committee, and a national research institute on traditional medicine, complementary medicine and herbal medicines, established in 1962. Yet, no national laws or regulations on herbal medicines have been formularised. Herbal medicines do not have any regulatory status which are sold with medical, health, nutrient content and structure/function claims.
The national pharmacopoeia, the Ayurvedha pharmacopoeia, was published in 1979. The Compendium

Page 27
of medicinal plants containing 100 national monographs was published in 2002. The information contained therein is considered to be legally binding. Regulatory measures for manufacturing include adherence to requirements in the pharmacopoeia and monographs that apply to conventional pharmaceuticals. Yet no control mechanism exists for these requirements. There are no safety requirements.
There is no national registration system, nor are herbal medicines included on a national essential drug list. A post-marketing surveillance system is being planned. In Sri Lanka, herbal medicines are sold in pharmacies as prescription and over-thecounter medicines. Although Sri Lanka does currently have a national policy on Traditional Medicine, various other measures are imminent for due recognition in the sphere of medicinal practice. If the Ayurvedic system is under regulatory measures, the following practice of issuance of medicine which is a mandatory in internationally recognoised system, could be in place.
i. Prescription medicines: medicines/drugs that can only be purchased with a prescription (i.e., a physician's order). In some countries, the legal framework allows traditional practitioners to prescribe medicines.
ii. Over-the-counter medicines: medicines/drugs that can be purchased without a prescription from a physician.
iii. Self medication only: medicines/drugs permitted for self medication purposes only.
iv. Dietary supplements: a dietary supplement is a substance which contains, for instance, a vitamin, a mineral, a herb or other botanical or an amino acid. A dietary supplement may be intended to increase the total daily intake of a concentrate, metabolite,
- Economic Review: Feb./March 2011
constituent, extrac of these ingredier
v. Health food: hu be products that a specific health clai regulated differe: foods.
vi. Functional fo foods, functional products which a specific health clai regulated differe: foods.
vii. Other: prod differently fror mentioned catego
It is a mandatory factor for the
recognizes that A important segm development an pragmatic approac
(i) Ayurvedha shou as a sustainable i
(ii) A Regulatory E place for monitori
(iii) Maintain a database indicatin
Celties
(iv) Develop pharmacopeia for
(v) Establish regu herbal medicine
(vi)Secure recog medicine from regulatory bodies
(vii) increase investment on Bio
This pragmatic definitely augur t foreigners who int medical treatmen
is keen to elevate
the private sector

t or combination
tS.
alth foods could 'e presented with ns and therefore htly from other
ods: like health foods may be ure offered with
(ms and therefore htly from other
ucts classified
n the above
ries.
and obligatory authorities to yurvedha as an ent of national d to secure a
h.
uld be developed ndustry
3ody must be in ng the industry
comprehensive g local treatment
8. national
herbal medicine
latory status for
nition for local
other world
government medical research
approach would he confidence of
end to seek local s. If government medical tourism,
would definitely
analyse available opportunities in the sector, spearhead sectoral development, and formulate strategies to invest in Inedical their
tourism and improve
competitiveness.
Conclusion
The health tourism sector, as a whole is a booming quarter in the international tourism sector and the potential for development, both locally and internationally, is enormous. Even though it is leniently manifested in the entire arena of tourism industry with a the
development prospects of heath
less significant statu s,
tourism in Sri Lanka is vast and could take a dynamic turn in the
industry, if properly handled, with
a pragmatic approach by developing
the existing system with the formation of regulations and converting it into a system of workable proportions. Identifying the potential subdivisions in the health industry, which are ideally in existence and/or in an operational status, could be easily integrated into a development master plan with imperatively possible implementation plans on a priority basis. A steering committee with field expertise inclusive of local ayurvedic wisdom would be ideal in the formation of
a plan.
Acknowledgements
My profuse appreciation goes to Rev. Dr. Wijithapura Wimalaratana, a senior lecturer of University of Colombo and Dr. G. Jayewardene, a prominent traditional medical practitioner, of Mansuva Lanka (pvt) Ltd., Castle Street, Borella for their valuable contribution and for reviewing the text.
Contd. on page 43
25 -

Page 28
Сотtd.froт page 18
Child IYouth Development Centre
Attract
Beach Kids +Other Kids
DVDVCD,Sports, Music, Vocational Training
Formal/Nonformal Education on Child Abuse, Drugs, Alcohol,
Cigarettes, HIV/AIDS
CRC Education
Develop skills to protect yourself. And build self-esteem. Vocational training is another aspect
No stigma since all groups meet together
Figure 2: Concept of Child Protection
Definitions of some Selec
International Tourism: Temporary movement of people fr health, business or any other reason. Domestic Tourism: Travelling within own country, i.e., ti
Sustainable Tourism: Tourism that ensures development on the environment and local culture.
Cultural Tourisn: Tourism concerned with the culture of : in those geographical areas, the history of those people, t
Wildlife Tourism: Travelling to watch wild animals in th Medical Tourism (health tourism): Travelling across int. Sport Tourism: Travelling for either viewing or participa
Religious Tourism (faith tourism): Travelling people of or leisure (fellowship) purposes.
War Tourisn: Recreational travelling to war zones for pu
Sex Tourism: Travelling primarily for the purpose of effe residents at the destination.
Drug Tourism: Travelling for the purpose of obtaining or in one's home jurisdiction. Compiled with information fro
Eco Tourism: Responsible travelling to natural areas that local people. Compiled with information from ecotourism.o
Education Tourism or Edu-tourism: Travelling to a local learning experience directly related to the location. Con
26

(ii) Educate v u l n e r a b le children and youth in highrisk areas on the fo l l o w in g subjects: Sex e du c at ion, sexual abuse and exploitation, HIV/AIDS and other STDs, drugs, alcohol
and tobacco use.
(iii) Provide facilities to youth and
children so that they have access to educational material and entertainment, The facilities provided are instrumental in keeping the children/youth away from the risks of the en vir o n m e n t which they live in.
(iv) Provide resources for entertainment, play and leisure for children as a child right and
also attract these children and youth
through these
resources for formal, non-formal, sex and health education.
(v) Provide facilities for relevant vocational training educate and provide incentives for saving introduce concepts of investment
and entrepreneurship skills.
(vi) Address specific issues concerning individual children who have been abused or who are vulnerable to abuse, especially in relation to sexual exploitation both by locals and tourists and trafficking of children for
exploitation, especially sexual.
The above objectives contribute to the goal of em powering children/youth to deal with situations, which are a threat to their well-being. Figure 2 shows
this diagrammatically.
These programs could be started as Cooperate Social Responsibility (CSR) projects sponsored by the conpanies that benefit from tourism, such as, tour companies and Hotels. It is important that the project is monitored by knowledgeable persons. The companies should not take undue advantage of this project and tourist visitation should not be allowed; since it may lead to other issues. Previously, we have seen officials being part of an abusive process when tourists were allowed
inside orphanages.
Footnote:
Harendrasl (agmail.com
ted Categories of Tourism
om the resident country to another country for recreation,
avelling from one location to another within own country. of the tourism industry with minimum/no adverse impacts
a country or a region, specifically the lifestyle of the people heir art, architecture, religion(s), and other elements.
eir natural habitats.
rnational borders to obtain healthcare.
ting in a sporting event. aith individually or in groups for pilgrimage, missionary,
rposes of sightseeing and superficial voyeurism. cting a commercial sexual relationship by the tourist with
using drugs for personal use that are unavailable or illegal m wikipedia.org.
conserves the environment and improves the well-being of rg.
ion as a group with the primary purpose of ஐம8 in a piled with information from education-tourism-paul.
Economic Review: Feb./March 2011

Page 29
Conservation of Sustainability of the
Sri Lanka
Abstract
ri Lankans have a strong
traditional culture in the
conservation of nature. Sri Lanka is regarded as a strong hot spot in biodiversity. There are historical evidences to support the fact that the ancient rulers of Sri Lanka have taken steps to preserve the environment, including its flora and fauna. But today, the human activities pose a great threat to biodiversity of any ecosystem. Therefore, global attention is vital to preserve this invaluable gift of the nature. Tourism is a global economic activity dependent on natural ecosystems and its diversity. Therefore, conservation of natural eco-systems and their biodiversity is vital for sustainable tourism in Sri Lanka.
Introduction
Biodiversity or Biological Diversity is the variability of fauna and flora found on the planet. According to the Convention on Biological Diversity, biodiversity is "the variability among living organisms from all sources including, terrestrial, marine and other aquatic ecosystems and ecological complexes of which they are a part; this includes diversity within species, between species and of ecosystems”. Genetic Diversity within species is a heritable characteristic of an organism. Species Diversity refers to variation between species, or to the variety of life forms. Ecosystem Diversity means the variation among ecosystems.
Sri Lanka, a small island in the Indian Ocean, has an invaluable
- Economic Review: Feb./March 2011
diversity of flora topography, differ and prevailing we enhance her wond
The secret behin biodiversity is eco of forests and rel inlands, wetland marine traditior ecosystems and (
Biodiversity in :
Arthur C. Clark feeling about S: , . of Ceylon is a si contains as na culture, scenery some countries a size. But if you people, nature, hi things that really find as I have, tha enough” (Silva, 20
Flora Zelylanica is exploration in Sri ) done by Car Linnaeus in 1 (Pethiyagoda, 2C Sri Lanka is wonderful tot destination w every square mi rich in unique na properties in 65,61 O kimo territo paradise of flora fauna. Wi sanctuaries, fc
reserves, sanctuaries, wetl and mangroves, vegetation are major nat
Te S OU CEC S biodiversity in Lanka. So, Sri L has been identific the environn (

Biodiversity and Tourism Industry of
and fauna. The ent types of soils ’ather conditions er of biodiversity. id this wonderful systems diversity ated ecosystems, is, coastal and hal agricultural
colonial estates.
Sri Lanka
e expressed his anka. “The island mall universe; it ny varieties of
and climate as dozen times its are interested in story and art-all matter - you may ut a lifetime is not lO).
s the first natural Lanka, which was olus
974 )07).
S a
u rist
here
le is
tural
her
угу, а and
dlife
rest
bird ands and
the
ural
of
Sri anka ed by 2ntal
K.G.S.D.Gunasinghe
Sri Lanka Institute of Tourism and Hotel Management
activist group, Conservation International, as one of the 25 biodiversity hot spots in the world "Earth Angels”. For an example, Kumana wetland cluster is the fifth "7etland of international 1mportance.
Varied ecosystems in the country (Figure 1), support vegetation of
more than 3,368 species of
flowering plants, of which 26 percent are endemic and 314 species of ferns, of which 57 are endemic. The diverse ecosystems provide habitat for over 357 invertebrates, of which 41 are endemic. Among vertebrates, 65 fresh water fish species are
indigenous to Sri Lanka (Table 1) (Biodiversity Conservation in Sri Lanka, 1999).
A map of Sri Lanka showing its
hot spots of biodiversity
27

Page 30
Table 1:
Diversity of Fauna in Sri Lanka
Terrestrial mammalian
Bats
Rodents
Carnivores
Artiodactilylis
Shrews
Primates
Elephant Marine mammals
Invertebrates Number of
species
Inland waters
Rotifer 4O Crustacean 86 Mollusks 3. Mayflies Incomplete documente Marine
Corals More than 18O Crabs More than 200 Terrestrial
Arachnids (species) 4OO Butterflies 242 Mosquito 139 Carbide beetles 252 Land snails 266
Vertebrates Fresh water fish - indigenous 65 Fresh water fish - introduced 22 Amphibian 53 Reptilian
Crocodiles 2 Marine turtles 5 Tortoises 3 Snakes 92 Agamid lizards 14 Monitor lizards 2
Skinks 21
Avifauna
Birds 435
86 indigenous 10 introduced
3O
23
14
7. 6 4.
38
Source: Biodiversity Conservation in Sri Lanka, 1999.
Other than the aesthetic value of natural flora fauna, Sri Lanka ving a rich crop
than 2,500 indigenous verities of rice, which are tolerant to pests and diseases and adverse climatic and
soil conditions. Some of the varieties have been identified as having aromatic, medicinal and nutritional properties. Other than rice, pepper, cardamom, betel,
chillies, legumes, yams, citrus,
mango, bananaar
crops possess se
Biodiversity and
Tourism is the o growing industrie the existing dive ecosystems, flora diversity is a key f to the growth and tourism industry tourism industry developing countr
28
 

on what they possess unique
Number of endemic species
in their natural environments. Environment makes up the geographic location, climate
1
12
4.
127
2O
Half of it endemic
3
Half of it endemic
O
17
23
12
and Weather, land forms and topography and biological components like vegetation and wildlife.
Eco-tourism and nature
tourism are popular types of tourism highly dependent on nature and its diversity. Many definitions can be found in
literature regarding “eco - tourism” and "nature tourism”.
Many people use the same definitipn for both eco-tourism and nature tourism. The World
Tourism Organisation (WTO) has defined this activity at two levels; nature tourism is a form of tourism in which the
the
observation and appreciation of
main motivation is
nature while eco-tourism is a form with the characteristics of all nature-based forms of
tourism and is carried out in a
that
precautions for maintaining
way takes special
the natural environment of the
tourist destinations.
Eco tourism in Sri Lanka is defined as responsible travel to natural and cultural areas
that COn Serves the
ld many vegetable veral genotypes.
1 Τουιτίεπα
ne of the world's s associated with rsity in different
and fauna. The actor contributing sustainability of . Especially, the of tropical and ies highly depend
Economic Review: Feb./March 2011
environment of such areas and sustains the well-being of local people, with the objective of conservation and restoration of natural resources, promotion community involved tourism development, promoting investment on conservation of ecological resources and utilisation of ecotourism as a to ol for
conservation and rural development. Government of Sri Lanka has accepted ecotourism as a niche segment of Sri Lanka Tourism and guidelines for
ecotourism development have been

Page 31
formulated in three areas, i.e., location, site development and operations. Construction of ecoresorts and eco-lodges, identifying potential and available areas for eco-tourism programmes, and encouraging eco-tourism activities around privately-owned resources are prioritised areas to support the eco-tourism i objectives (Sri Lanka Tourist Board, 2003).
Today, the fashion of enjoying the sun and beach is fading away. The sun and beach is not sufficient to satisfy tourists and to maintain sustainability of the tourism industry. New travellers want to experience of the nature, culture and tourist activities to make their holidays more pleasurable and worthwhile. Most of the travellers want nature to be more prominent in their vacations. The World Tourism Organisation (1998) has estimated that twenty percent of the world's travel in this decade will be nature related. This is a great opportunity for Sri Lanka as a developing country to open doors to remote communities to gain benefits of booming tourism industry.
A Survey on foreign tourist arrivals to Sri Lanka (2009) revealed that the environment was the leading influential factor to visit tourists to Sri Lanka. The Highest proportion of tourists ranked the environment as their
Table 2:
Factor
Environment Culture Social Business Previous experi Promotion Education Other Source: Survey
Figure 2 shows th visitors to the wilc Lanka from 1986 revenue from fol wildlife parks ha nearly 98% from nearly 72% from 1 nearly 56% increa 2010. Table 2 pro on the contribu natural ecosystem national parks tov of tourism indust]
Sri Lanka Tourist provide evidenc tourists' interest tourism in Sri Lan. The government promote nature while curtailing th diversity.
Erosion of Bio-d
At the beginning human communit
first, second and third 2,50,000 influential factor (Table2). 2.25,000 Nearly 81% of tourists ཤང་ཤང་ཤང་ཤད་དང་ཤང་ཤང་ཤང་ཤང་ཤང་ཤང་ visited Sri Lanka to spend ' their holidays while about 1,75,000 13 per cent came for $1,50,000" -«-ev---------------et-et------v- business matters. Yala 2 1.25,000 sav------et-avis a = venational park was the E LSLSSLSLSLSSSSLLLLLSLSSLSLSSLSLSSSLSSLLSLSSLSSSSLSSqqSqqSLLSLLLLLSLLLLLLLSqqqLLLLLLSLLSSSLLSLLSSLLLLLSSASASqqqS most visited national 1,00,000 park, which was 57% 5 75,000-ידידי------ידי ד"ר ו" during the semester of s 50,000 2008 September to February 2009. Elephant 25,000 להידרודה "לשחרור was rated as the star of 0.
VO Q C GN YSr Sri Lanka's wild life by 密密888 nearly 62% respondents LSLSLS SLSLSS S LSSLSS LSSSLSS S SSLS while 1% were Figure 2: Revenues fr interested in birds. Source : Sri Lanka Tou
- Economic Review: Feb/March 2011
 
 
 
 

Ratings of influential factors to visit Sri Lanka
order of priority as a Percentage
1. 2 3
31.86 48.49 41.41
9.76 16.44 21.89 22.96 1997 5.49
9.7 O67 1.01
ce 3.04 3.86 5. OS 1.38 O.67 O.34
O.75 O.34 O 20.55 9.56 4.81
of departing foreign tourists from Sri Lanka, 2009.
e trend of foreign | life parks in Sri O 2010. The total eign visitors to as increased by
1986 to 1996, 996 to 2006 and
se from 2006 torí
rides more details tion of sixteen is, especially the wards the growth y in Sri Lanka.
| BOard Stat1StlCS :e for that the on nature based
ka has increased.
endeavours to
based tourism he erosion of bio
liversity
g of civilisation,
ies systematically
organised surviving patterns while utilising natural resources carefully which led to a sustainable community-ecology relationship. They identified the diversity within the same species of flora and fauna, as their medicinal, nutritional, aromatic properties and many more unique values. Those genotypes were utilised for the betternent of human beings, and at the same time, they were allowed to thrive in there natural habitats and protected for a sustainable ecosystem.
The use of natural resources for commercial farming and plantation agriculture, deforestation, land fragmentation, screening highyielding genotypes, trends in industrial development etc. have direct and increased impact on the erosion of bio-diversity and pose a threat to nature tourism. Tourism industry also causes environmental
Yala National Park
d co d S vid
on on C. Cd o a on on On Cn
Wilpattu National Park Kumana Bird Sanctuary Udawalawa National Park Others Total Revenue in Rs."000
Cod god C) yn ers Cs o ON ON
om Foreign Visitors to National Parks of Sri Lanka rism Annual Statistical Report 2010.
29

Page 32
pollution and greenhouse effects, especially when their levels exceed the carrying capacity of ecosystems due to over crowding. In future, this situation will be further accelerated by the heavy use of genetic modification technology in agriculture. There is a cumulative threat of all these factors to disappear most of the endemic fauna and flora rapidly which is an irreversible loss to the whole world.
Healthier ecosystems and diverse flora and fauna species can withstand climate change impacts better. The climate changes arise as a cumulative result of un planned human activities is another major threat for ecosystems and tourism development worldwide. Hence, the bio-diversity is considered as the most vulnerable asset of tourism.
Conservation of Biodiversity in Ancient Sri Lanka
Though the biodiversity and its conservation are broadly discussed worldwide as a new concept, safeguarding of fauna and flora has a long history dating back to over 2500 years. In the Buddhist history, there are many evidences of having bio-diversity conservation concepts;
for example, the Dheshana of the II held at Isipatha Baranasee, which of dears. Anothe example from Bu one of the highe (upasampada Seeli the destruction o the higher ordina
In Sri Lanka, con diversity is as old history of the coun shows, that there
of wildlife in def instance, King De affirmed an anima third century BC. for wildlife cor
sustainable use O King “Keerthi N proclaimed that in be killed within a Gau (One Gau is e of the sacred city O The conservation (
ancient Sri Lanka cultural and religi ancient rulers of special attention
preserved environ monarchs, sanctu. even “urban nata ancient Sri Lanka; those are the p.
Table 3: Revenues from Foreign Visitors in 201
Foreign Tickets Location No. of Revene
Visitors (Rs)
1. Yala National Park 73,580 123,850,) 2. Wilpattu National Park 912 1,503,6 3. Kunana National Park 4-OO 445,7 4. Udawalawa National Park 15,560 22,718,4 5. Horton Plains National Park 21,846 36,646,4 6. Bundala National Park 3,703 4,183,4 7. Wasgamuwa National Park 451 443,5 8. Minneriya National Park 13,479 22,602,9 9. Kaudulla National Park 13,085 14,679.5 10. Lunugamvehera National Park 2O 21,5 11.Gall Oya National Park 32 17,0 12. Horagolla National Park 1. 1,14 13.Maduru Oya National Park O 14.Angammedilla National Park O 15. Galwaysland National Park 29 135,6, 16.Lahugala National Park O −
Tot 143,198 227,249, Source : Sri Lanka Tourist Board, 2010.
30

> first Dhamma
ord Buddha was
na Migadaya at was a sanctuary r most interest
ddhist culture is r ordinate seela a) which prevents f trees (flora) by te monks.
servation of bio
as the recorded try. "Mahaluansa” was preservation ined areas. For vanampiyathissa lsanctuary in the Another evidence servation and if forests is, that issanka Malla
o animal should
radius of seven qual to 35.7 km) if Anuradhapura. of bio-diversity in was ingrained in ous aspects. The the country paid to protect those ments, such as, aries, forests and ure reserves” in in today's milieu, rotected areas,
(Biodiversity Conservation in Sri Lanka, 1999). Figure 3 shows ruins of an ancient monastery located in Ritigala forest; offering forest for religious purposes is also considered as a measure of conserving the nature.
Tammita Delgoda (1997) described 8 the conservation of biodiversity of Sri Lanka in detail, “the time of Sinhala Kings, forest and animal life were.
in “Sinharaja" about
an important part of the social fabric. For example, Udawatthakale, was a reserved forest where people were not allowed even to gather firewood. Forests were also owned by the king, and considered a Crown property or Rajasarithaka. Any kind of activity within these lands was strictly prohibited. In those protected areas, any kind of cultivation, felling trees, hunting or fishing were strictly prohibited, and severely punished, if not adhered to. A Kale Korala was appointed by the king to enforce laws regarding forest conservation. All elephants were regarded as the property of the Crown, and killing an elephant was considered 経1S al crime.
Conservation of fauna and flora was also a part of their way of life.”
O to Wildlife Parks by Location
Local Tickets Total No. Total No. of Revenue of Revenue Visitors (Rs) visitors (Rs)
O7 179,965 10,274,270 253,545 134,124,377 35 16,156 876,140 17,068 2,379,775 '50 19,201 820,516 19,601 1,266,266 83 46,752 2,536,968 62,312 25,255,451 OO || 144,892 7,763,760 166,738 44,410,160 37 5,920 228,7OO 9,623 4,412,137 OO 19,916 726,380 20,367 1,169,880 70 26,714 1,604,320 40,193 24,207,290 37 16,731 652,670 29,816 15,332,207 82 3,601 140,780 3,621 162,362 55 1,480 69,110 1,512 86,165 45 2,752 104,760 2,753 105,905 23 :5,600 23 5,600
1,712. 65,890 1,712 65,890
36 1271 47,590 1,400 183,226 17g 6,780 179- 6,780 239 487,265 25,924,234 630,463. 253,173,473
Economic Review: Feb./March 2011

Page 33
During the colonial era, dramatic change occurred in the lifestyle of Sri Lankans, which led to erode the biodiversity there in the country.
Current Trends in Conservation of Biodiversity
Conservation of fauna and flora is done by two methods: the first is ex-situ conservation, which is carried out only to a very limited extent in Sri Lanka. The plant gen etic resources centre at Peradeniya is the only institution established for this purpose. The second method is in - situ conservation, i.e., preservation of genotypes in their original ecosystems.
Conservation of biodiversity or wise management is a one of the Millennium Development Goals (MDGs), and it targets at achieving a significant reduction in the rate of bio-diversity loss by the year 2010. Sri Lanka, a rich biodiversity destination has dozens of laws and regulations focused at protecting her natural wealth, but their implementation is inadequate. Increased community involvement in conservation is vital in this regard. Eco-tourism would be the best strategy to increase the interest of community,
The Convention on Biological Diversity is an international body
Figure 4:
- Economic Review: Feb./March 2011
Trekking in Sinharaja rain forest
working ίΟΥ arresting the eros bio-diversity world
and catalyses responsible part play their rol
relation to this m In 1998, Sri L prepared a framew action for
conservation
biodiversity to pri natural flora and of the country wi involvement of Mi and Environment, facilitated by the
Biological Div government and r. agencies, incl
Department, Coas Department, L Wildlife Conser Environmental Department o Botanical Garden Gardens are inv their responsibilit the natural ecosy flora and fauna.
The identificatio) regions is i conservation. terrestrial bic demarcated basec geo-physical cla distribution patt fauna and biodiv different areas of
 
 

rards ion of wide, the
eS to e in
atter. anka ork of the
of
Seve fauna h the nistry of Forestry and the task was : Convention on
ersity. Many on-governmental uding Forest
stal Conservation )epartment of vation, Central Authority, and f Agriculture,
s and Zoological
plved in sharing ies of preserving 'stems with their
n of biodiversity
important for in Sri Lanka, ) - regions are
on climatic and ssifications, the ern of flora and ersity density of the country. The riteria used for e term in in g errestrial bioegions are, legree of threat, ) о р u 1 a t i o n e in s i t y , l e v e lo p m e n t
) r e s s u r e , biodiversity based In available data, с о n o m i c potential based in road network, orest coverage und watershed alue. Fifteen errestrial and :oastal bio"egions W Fere
Figure 3:
Ritigala Ancient Monastery
identified based on the abovementioned criteria.
There is a possibility of using tourism as a solution to loss to biodiversity due to human activities. This can be achieved through raising awareness of the en dan gered genotypes and by providing in centives for communities who are involving in conservation of these threatened areas (WTO, 2010). Ecotourism can be upgraded by habitat mapping, increasing availability of information, training naturalists, development of interpretation skills, designing hotel gardens and providing sustainable waste In anagement solutions. Sustainable eco-tourism projects should be promoted to protect species, manage and restore habitats and promote the sustainable use of natural resources. Dissemination of knowledge, setting standards and identifying tools for biodiversity conservation are the areas to be addressed to ecotourism culture
Sri Lanka still focuses on nature tourism rather than ecotourism. Ecotourism is the most appropriate type of tourism in Sri Lanka, where six sites have been designated as World Heritage Sites by UNESCO (United Nations Educational, Social and Cultural Organisation) Sri Lanka offers diverse opportunities for nature lovers to widen their experience through wildlife safaris, bird watching, hiking, trekking (Figure 4), photography, cycling, and many more. An ecotourism model for Sri Lanka should be formulated
3.

Page 34
to pronote tourism and protect important habitats by working with local communities and tourismrelated organisations.
Sustainable tourism can directly contribute tO biodiversity conservation by
(i) Introducing less destructive livelihood alternatives to local communities in buffer zones controlling intensive use of forestry and other natural resources, monoculture, hunting etc. For example, Kandyan home garden and, spice garden concepts avoid monoculture and those are strong tourist attractions in Kandy and Matale districts,
(ii) Providing an in centive for landowners in threatened ecosystems to permanently COri Ser Ve biodiversity-rich properties, and
(iii). Raising visitor awareness, motivating community involvement in conservation issues.
National Eco-tourism Policy emphasises the following areas:
(i) Tourism development and marketing should highlight the country's distinctive religious traditions, cultural and historic and attractions, and its natural beauty and diversity,
(ii) Tourism development should promote the conservation and enhancement of Sri Lanka's natural environment and its historical, social and cultural avoiding any harmful effects,
(iii) Tourism should result in optimal economic benefits to Sri Lanka's economy by way of maximum net foreign exchange income spreading of development through the country and creating significant employments for Sri Lankans, and
(iv) . A program of community education, consultation and active participation should be ensured (Sri Lanka Tourist Board, 2003).
To ensure longsustainable touris conservation, i innovative mana with special foc related uses of with capacity bui vital. A consulta key stakeholde facilitated to ens participation in su of their eco-sites,
Conclusion
Ecosystems with of flora and fauna functioning of glob systems. Su sta natural ecosy maintaining the major requiremen tourism. Touri recognised as a 1 dependent ind managed tourism of bio-diversity, w adversely affec industry. Touri developing cour affected by this conservation of
crucial for tourism has potential to pr biodiversity world of the tourism of contribution to number of peop tourism depends, on the conserva management of 1 which is the mos
of tourism of Sri La of sustainable te recognition, incon can provide a stri communities to natural ecosyst that, the distribut among local co1 directly contribute should be fair. Sri to maximise til tourism, such investment, job cr exchange C2 minimising nega environment degr
32

term impacts of m on biodiversity introduction of
gement systems cus on tourism eco-sites, along lding systems is tive process with :rs should be
sure their active
stainable tourism
different species are vital for the |al life-supporting inable use of
f Ster S while ir diversity are ts for sustainable
sm should be
natural resource u stry. Poorlyleads to erosion hich in turn will t the tourism sm industry in tries is highly situation. The biodiversity is , and the tourism omote preserving wide. The future
Sri Lanka and its
uphold large ble involving in to a large extent, ation and wise ner biodiversity, it valuable asset nka. The payback burism of social he opportunities, ong incentive for
protect their
ems. To ensure tion of incentives mmunities who for this process,
Lanka will be able
he benefits of
as increasing 2ation and foreign
nings, while tive effects and
adation.
Economic Review: Feb./March 2011
References:
Biodiversity Conservation in Sri Lanka (1999). Ministry of Forestry and Environment.
David A. Fenne (2003). Ecotourism: an introduction. Bell 8, Bain Ltd, Glasgow.
Magazine of the World Tourism Organisation (2010). UNWTO news, issue 31, 2010.
Ministry of Environment (2010). National clinate change adaptation strategy for Sri Lanka 2011 to 2016. Climate Change Secretariat, Ministry of Environment, Sri Lanka.
Rohan Pethiyagoda (2007). Pearls, Spices and Green Gold: an Illustrated History of Biodiversity Exploration in Sri Lanka. WHT Publications (Pvt.) Ltd.
Stefan D. Silva (2010). Sri Lanka-A way of life (A photographic journal of Sri Lanka). Samhwa printing company Ltd, South Korea.
Sri Lanka Tourist Board (2003. Ecotourism development strategv of Sri Lanka.
Sri Lanka Tourist Board (2003. EcoTourism development of Sri Lanka - National policy, regulations and guidelines.
Sri Lanka Tourism Development Authority (2009. Survey of departing
foreign tourists from Sri Lanka.
Tammita Delgoda (1997). Sinharaja. personal (information on "Conservation of Biodiversity in Ancient Lanka).
communication
Tourism Development Authority (2010). Annual Statistical Report (2010). I Sri Lanka - Tourism Development Authority, Ministry of Economic Development.
WTO (1998).Tourism Vision-2020, Madrid, Spain.

Page 35
Role of Alterna
Sustainable Rural I
Introduction
ourism is one of the largest industries, making a
significant contribution to socio-economic development in developing countries. Although, the contribution of conventional mass
tourism to rural socio-economic development in these countries is relatively small, rural tourism has been recognised (Frochot, 2005) as an alternative livelihood that could contribute significantly to sustainable rural development. The rural tourism conceptualises that countryside tangible and intangible resources such as pre-history, history, socio-culture, other anthropogenic aspects, traditional liveiihood, and un soilled atmosphere in the environment enable the rural communities to find their own capital. Further, the diversity of rural tourism generates many opportunities for micro and small entrepreneurs while providing exotic and contented holidays for the tourists. The significance of contribution of rural tourism to local economy has been well documented (Fleischer and Pizam, 1997; Page and Getz, 1997; OECD, 1994). the development of rural tourism should be in line with the existing
ecosystem and rural resources.
However,
Eventually, rural tourism should
6ISllI6 preservation and conservation of socio-culture, environment and economy while overcoming the existing developmental problems. As the majority of Sri Lankan population is in rural areas, well-planned and designed tourism would contribute significantly to rural development
in a sustainable manner.
- Economic Review: Feb/March 2011
Tourism in the
Process
Although tourism activity contrib well-being, toda accepted as a m developing both se environment.
tourism consists ( of enterprises
millions of emplo 2011), and ( government re exchange earni multiplier effec sectoral participa redistribution wit Thus, tourism he integrate the com knowledge, reval and appreciate an environment. Spe has been recogn means of econom developing count poor physical
resource availabil impacts of glob climate change c through tourism value maximis: paradigm and env concepts. Howe conventional Π1
failed to achie development goal impacts, such as leakage, poor l participation, lac and conservatier
and enviro Consequently, c. tourism is bein
alternative sust (Mouforth and Mu 2000) named as
tourism, agro

tive Tourism
in
Development
Development
had been a social uting to human ay, it has been ajor strategy for ocio-economy and As an industry, of a large number and generates yments (UNWTO, contributes to venue, foreign ng and in come :ts of different
Ltion and income
chin the country. :lps to unite and munities, expand ue socio-culture, d acknowledge the cifically, tourism ised as a viable ic development in ries due to their and monetary ity. Moreover, the all warming and ould be mitigated industry with its ation on green ironment-friendly ver, the existing ass tourism has
ve sustainable s due to negative foreign exchange ocal community k of preservation of socio-culture
nment, etc. onventional mass g replaced with ainable tourism nt, 1998; Sharma, ecotourism, rural
- tourism, geo
M.S.M. Aslam
Department of Tourism. Management, Sabaragamuuva University of Sri Lankca.
tourism, community-based tourism,
cultural tourism, in digeno us
etc. Many of these
tourisms are possible only in rural
tourism,
areas, where sustainable development is an inevitable
requirement.
Improving Sustainability in Marginalised Rural Areas
Whether in rural or urban setting, en su ring sustainability is the central issue in development. Sustainable development entails economic development while preserving the socio-culture and environment. Resuscitation of the declining socio-economies in rural areas is common challenge Ying and Zhou, 2007) for both developed (Dernoi, 1991; Hannigan, 1994; Pompil and Lavery, 1993; Williams and Shaw, 1991) and developing countries (Kinsley, 2000). Although, contemporary development approaches enable the urban community to improve the quality of life up to some extent, it is not so in rural sector. Communities in rural and peripheral areas face challenges for continuous economic development due to the collapse of primary and traditional industries (McDonald and Jolliffe, 2003), which have led to a vicious circle of economic decline and socioeconomic problems (Sharpley 2002). Collapse of traditional livelihood and outmigration of the rural
33

Page 36
community have made the situation worse. Gradually, the rural areas have largely been abandoned and ignored by the populace, even though communities and their residents
the
pioneers or “bread and butter of the country (Reichel et al., 2000). Although, rural sector contributes socio
rural agricultural
were once perceived as
immensely to overall economic development in any country, today, the rapid decline of natural resources and degradation of socio-culture and environment
have become alarming threats for sustainable development in rural
2S
Consequently, empowering local communities has become one of the most prioritised needs in rural their sustainable
Although many
areas for development.
and
governmental Ι Ο Υ --
governmental socio-economic empowerment projects have been initiated, they have failed to achieve the development goals or resolve the prevailing socioeconomic and environmental problems in rural areas. However, none of them has been successful or sustainable, though they have provided instant and temporary solutions for some problems related to their survival. They have been political salvation or social charity programmes. Further, as long as funding is available and benefits are generated, the projects display a success and community participation, but, when the funding is stopped, projects tend to be failed and discontinued. The implementation of the projects in top-down approach is the obvious reason for the failure, and hence, they are not consistent with the setting and
local resource
community perception. Consequently, poor socio-economic regeneration has led to poor
capitalisation and entrepreneurial
34
development. Ru their entrepreneurship
OW
line with the exis
and resource ava
the sustainat
development ofru use of local
alternative pur) inevitable to s
economies (Liu, important to cr sources of incor
economic vitality (Unwin, 1996) rath concessionary
The ci entrepreneurial
schemes.
process incorpc assessment of hu)
geography of ru resource iden
inventorisation of
participation in and development with an integrate rural region (Inn essential to rea development goal Furthermore, re-c
of rural resource
capital (Garrod, widely-accepted tourism developm
Countryside Cal Alternative Tou
In alternative 1 culture, environ and archaeologica and other humae geographical res areas are redis capital for rural t Meanwhile, ot industries, as t source of livelihoi generate capital f agriculture or resources in th
nevertheless
communities thriv
livelihood with t
tourism is consid

ral areas require capital and development in ting environment ilability to ensure bility in the rall areas. Making resources for
poses would be timulate rural 2005) and very eate alternative
ne to retain the
of the rural areas
her than providing packages or apitalisation and development brated with the
man and physical ral areas, local
tification and
local community decision making process together ed vision for the oides, 1995) are ch sustainable
s in rural areas. zonceptualisation s as countryside et al., 2006) is a strategy in rural
lent.
pitalisation for rism
..ourism, socioment, historical al, anthropogenic un and physical sources in rural
covered as the ourism industry. her traditional he substituting od, are ufhable to rom the declining other existing he rural areas,
the
re their traditional
hem. Alternative ered as an engine
rural
for rural economic growth (Hall and Jenkins, 1998); an effective catalyst of rural socio-economic development and regeneration (Sharpley, 2002); a complementary tool socio-economic regeneration in rural areas (Briedenhann and Wickens, 2004; Fleischer and Felsenstein, 2OOO; MacDonald and Jolliffe, 2003; Yinga and Zhoub, 2007); a means to counteract economic decline and forestall outmigration by the
for
indigenous population (Walford, 2001); a suitable form of economic development for rural areas; a tool to preserve the integrity of the countryside resource while enhancing the local economy and maintaining rural ways of life (Lane, 1994; Hall and Jenkins, 1998; Roberts and Hall, 2001; Garrod et al., 2006); and use the existing resources to achieve new economic growth (Seaton 1996). Moreover, cultural values would be a resource for socio-economic development in rural and peripheral communities (McDonald and Jollife, 2003). Alternative tourism would be a strategy to regain and retain the socio-economy and environment of the rural areas. Thus, it could make a value addition on the existing resources such as countryside atmosphere, tradition and preserved socio-culture, anthropogenic traditional livelihood and other human and natural geographical resources and improve the value chain of the rural tourism industry.
re SOurCeS,
Moreover, the rural tourism would em power the local community through their own capital and resources, while creating a competitive advantage for their
products in the global market.
Hence, small start-up cost, minimum risk, availability of 1996) and
cultural
resources (Seaton, environmental and friendliness (Iaonnoides, 1995) induce local communities to
participate actively in rural tourism
Economic Review : Feb./March 2011 -a-

Page 37
projects without any gender Unlike
tourism,
discrimination.
conventional mass alternative rural tourism is appreciated and carried out by the rural
WOIIl E community.
Furthermore, locally-owned (Innoides 1995) and self-generated (Khan, 1997) rural tourism is capable of supporting the local community to eradicate poverty and In the Sri
Lankan context, rural tourism
reduce dependency.
would benefit the government, since it would reduce the burden
of socio-welfare cost in rural areas. On the other hand, minimise the destruction of natural resources and socio-culture. Although Sri Lanka has not reached a notable development with rural tourism projects, we can witness some successful projects, such as Rekawa-Tangalle, Wallawe Nadee - Ambalanthota PadavigampolaRambukkana, Kudawa — Sinharaja
it would
community-based tourism initiatives, etc. However, local resources and community
perception would determine the products of rural tourism, which would vary according to human, physical and geographical settings.
Diversity of Alternative Tourism in Rural Areas
As rural areas or countryside are the geographical possessing various kinds of natural and man-made resources and portrayed as a container of traditional cultures, national identities, and “authentic” lifestyles (Kneafsey, 2001), tourism can be very widely diversified (Frochot, 2005). Countryside is capable of attracting and offering a variety of alternative tourism to satisfy various needs of tourists (Frochot, 2005) who discontented with typical sunbased holidays (laonnides, 1995). "The collective imagery of rural tourism based on different
locations
ae
- Economic Review: Feb./March 2011
elements, such (returned the valu environment), rura image of the rur quality and authe mobility and a changes in postchanges in touri tourist experience 2004), have led sellers to come fc rural tourisms. All intends to redis
aeaS 3S di destinations, segmentation of t (Getz and Page, 1 with a range of na 2002); soft touri tourism, agro to tourism, ecotourism, indig heritage tourism, volun-tourism, et
COTI
Cultural and her attracted by cul (Kneafsey, 2001) of preserved for (McDonald and Hence, tourism in the new concept tourism, which is distinct rural con own traditions, lifestyles, places,
and Zhou, 2 communities ar cultural tourism i.e., asan importe economic promo Zhao, 200 l) and purpose to pres culture (Ying ar Thus, cultural or contributes to
development in 1 preserving and co socio-culture.
Another widely-re for rural touris Agriculture-based named as agro-t farms, farm to agriculture is a r. many rural comm

as naturophilia es to the natural l roots, a positive all environment, ticity, increased cess, cultural modern society, st market, and (Canoves et al., he tourists and
rth with diverse
ernative tourism
cover the rural
tourist including ourism products 997), intimating mes (Scheyvens, sm, responsible urism, cultural unity tourism, genous tourism, olk tourism, and
C.
7 er Se
itage tourism is tural landscape rural community generations Jollife, 2003). dustry has found of cultural rural underpinned a hmunity with its heritage, arts, and values (Ying )07). e interested in for two reasons, int way for sociotion (Wang and as an essential rve local sociod Zhou, 2007). heritage tourism socio-economic
Rural
ural areas while inserving the local
cognised source n is agriculture. tourism would be ourism, vacation urism, etc. As lain livelihood of unities, downturn
of the traditional local economy, specially, in agrarian industries (Sharply, 2002) led communities to find another income source for their survival (Hjalager, 1996); supplement the declining of agricultural activities of both subsistence and commercial farms, and generate sufficient income (Reichel et al., 2000); provide a logical and appropriate avenue for the diversification for farners (Fennel and Weaver, 1997); reduce the out-migration of the young generation through providing additional jobs in service sector (Opperman, 1996). Hence, agriculture-based tourism in rural areas enables the communities to regenerate and restore the traditional livelihood while improving the quality of their life.
rural
Ecotourism, which is also an important segment of rural tourism emerged with peace and serenity of the existing ecosystem in addition to rural tranquillity, unsoiled atmosphere, unique fauna and flora, and simplistic and authentic rural lifestyle. Thus, it enables the community empowerment through managing natural resources (Scheyvens, 2002) and preserving environment (Ceballos-Lascurain, 1996). It the responsible interaction and utilisation of
natural resources in rural areas while contributing to the development. It supports the local community to attain
eph Sure S
and socio-cultural
local
social, environmental and economic goals required development in rural areas.
for sustainable
The contemporary sustainable rural development perspectives and negative impacts of conventional tourism have led the tourism industry to discover the abovementioned diverse alternative tourism concepts and products. Although different names and
35

Page 38
concepts are tagged with rural tourism, strong participation of local the development and decision- making process (Tosun, 2004) is inevitable.
community in
Socio-cultural and environmental fabric of the countryside determine the scope and significance of rural tourism, whereas local community should be
structure,
the main actor in development.
Design and Development of Rural Tourism Products
Although, rural tourism is recognised as a strategy for rural development (Sharpley, 2002, Scheyvens, 2002), identifying and selecting appropriate alternative tourism will determine the sustainability. Rural tourism is a fast-growing small sector in the world tourism (Lordkipanidze et al., 2005) and a suitable means of economic development (Fleischer and Felsenstein, 2000). Moreover, it can balance economic growth with environmental and socio-cultural concerns (Ioannides, 1995). Here, designing and development of tourism products in rural areas ensure the achievement of social, environmental and economic goals.
In the evolution of the rural tourism development, planning includes a number of activities (Reid et al., 2004), such as, physical and human geographical assessment, inventorisation of socio-cultural and natural
resources, analysis Of developmental gap, demonstration and awareness creation on rural tourism, capacity building, integration of different sectors and stakeholders, value clarification, establishing community-based tourism organisations (CBTO), incarnation of alternative tourism products, establishing facilities, and marketing and promotional campaigns. These should be carried out under the direction of the community. Community-centred
development ( process ensure rather interven government or pla rural area. It is w importance of
participation ir development of t Therefore, if the planned and d external institutio alone, alternative aven business giant:
it wou
resources unde community and
spite of contri sustainable deve
Ensuring Susta Rural Tourism
Ensuring sustaina requirement in ru As tourism is
sustainable deve and Aslam, 2009) tourism in rural this, in addition 1 conserving their environment. S locally-owned
entrepreneurship utilisation of th
cultural
resources in rura.
and
value to local re
alternative sou: regenerate tradit and employment increase women' local developn reduction of dis urban and rural and integration o would occur. Rur
be a vehicle for integrity of count enhancing the ru maintaining the (Lane, 1994; Ha 1998; Roborts a Garrod, et al., resource capitalis empowerment, ar socio-culture anc
rural areas.
-ടെ 36

Murphy, 1995) s sustainability tion of national unning agencies in ell understood the the community h planning and he rural tourism.
rural tourism is eveloped by an In or an individual
ld be an other
ue for the urban s to grab rural *r the labels of sustainability, in bu ting to local lopment.
inability with
ability is the major ural development. the key for the lopment (Jolliffe diversification of areas would fulfil to preserving and socio-culture and
in all-scale and
diverse development, and e existing Socioenvironmental
l tourism will add
sources, create rces of income, ional livelihoods for the youth and s contribution to
Further, parities between areas (Liu, 2005), f different sectors
all tourism would safeguarding the ryside resources, Ural economy and rural way of life all and Jenkins, and Hall, 2001; 2006) with local ation, community ld preservation of i environment in
ent.
Economic Review: Feb./March 2011
In tourists' point of view, visitor satisfaction can be enhanced and broaden through rural tranquillity, un polluted atmosphere, countryside amicable hospitality, simplistic and authentic lifestyle, exotic and unique natural and manmade attractions (Fredericks, 1993), environmental and biodiversity collectively (Sharpley, 1996) lead to continuous flow of tourists.
Alternative Tourism in Rural Development of Sri Lanka
Currently, alternative tourism is not a widely-accepted development strategy in Sri Lanka. Nevertheless, it has a huge potential for sustainable rural development. Development of rural Sri Lanka is the major political, social and economic perseverance since independence. Although sociowelfare-based economic policies enabled the country to reach a sufficient level in literacy and health, generally, they have not been able to overcome problems in rural development. Many community empowerment projects, such as household coupon, Janasavi, Samurdhi and other government concessionary packages were able to provide a temporary solution or political salvation rather than providing a sustainable solution. Further, development and decision-making process in the rural areas have ignored the
participation and followed the top
community
down approach. Tourism also has been no exception and lacks the socio-economically and environmentally balanced and diversified growth in Sri Lanka (Aslam, 2004). So, su stainable development in rural areas has not been entrenched by tourism. Some rural tourism ventures or enterprises have been commenced by privately-owned operators with eco or community tourism labels.
Alternative tourism has not been

Page 39
incorporated or absorbed as a rural development strategy, even though rural areas possess unique and diverse resources. As a result of inadequate and inappropriate capitalisation of local resources, sustainable development of rural areas has not been taken place. Tourism industry in Sri Lanka has failed to diversify the tourism in to benefit the countryside, nevertheless, there are possibilities for alternative tourism, such as, cultural/heritage tourism, ecotourism, communitybased tourism, agro/farm tourism, responsible tourism, home stay tourism, peace tourism, indigenous tourism, etc. Although, ending of the civil war pushes the tourist arrival considerably, industry is unable to widen the benefits to hinterland or countryside for development.
rural areas
tourism
sustainable
A few rural tourism development projects in the country witness the success of the endeavours. For example, Rekawa community-based tourism development through Rekawa Development Foundation; Padavigampola Homestay Tourism Village in Rambukkana; Kudawa Community-based Tourism at Sinharaja, Wallawe Nadee Community-based Tourism - Ambalanthota enabled the community to find alternative income sources, to generate new employment opportunities, to manage natural resources, to refrain from destruction of natural resources such as forests, mangroves, corals, habitats of turtles, etc, to regenerate the traditional livelihood while preserving the environment and socio-culture. Active participation of communities, integration of tourism with human, physical and geographical resources and bottomup approach development process substantiate the importance of alternative tourism in rural
sustainable development.
- Economic Review: Feb./March 2011
Accordingly, di alternative touris)
would ensure the prevailing socio environmental iss to improving the community.
Conclusion
Tourism is the l growing indust overcoming man socio-economic ar challenges in the rural areas are territories, where burning is sue immediate and ur improve the soci environmental Diminishing res decline in tradit sources, outmigral led the rural com:
for alternative
restructure and rural socio-ec preserving the se environment. Di
tourism in rural possible to ov problems to ens development. Altı intends to redis human and physi valuable Te S re conceptualise empower the soc environment ir
Whatever the na tagged with ru tourism products local socio-cultu and economy in1 Eventually, em powerment a development a inter related a
development pro be undertaken approach to atta successfully. As r major concern political and eco

7ersification of
n in rural areas
solutions for the
-economic and ues, in addition well-being of the
argest and fastry capable of y contemporary ld environmental world. Generally, the spacious development is a and they need gent attention to o-economic and well-being. ource capacity, ional livelihood tion of youth have munity to search
aV eThlu e S . . tO regenerate the :onomy while ocio-culture and
iversification of areas makes it vercome these ure sustainable
ernative tourism
cover the rural cal geography as OlCeS and as capital to io-economy and rural areas.
annes have been
ral alternative s, it should take re, environment o consideration. participation, nd sustainable re sequentially ctions in the
cess that should
in bottom-up in the objectives ural areas are the of the social, nomic will of Sri
Lanka, many rural community development or empowerment projects and packages were initiated and some were concluded
Yet, sustainable improvement of the
without any success.
socio-economic well-being of the rural community is the biggest
Sri
Diversification of alternative
challenge for Lanka.
tourism in rural Sri Lanka would help to overcome the development challenges while preserving the socio-culture and environment.
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Briedenhann and Wickens (2004). Tourism routes as a tool for the economic development of rural areas-vibrant hope or impossible dream? Tourism Management, 25(1): 71-79.
Bramwell, B. (1994). Rural Tourism and Sustainable Rural Tourism. Journal of Sustainable Tourism, 2:1-6.
Campbell, M. L. (1999). Ecotourism In Rural Developing Communities. Annals of Tourism Research, 26(3): 534-553.
Canoves, G., Villarinob, M. , Priestley K. G., and Blanco, A. (2004). Rural tourism in Spain: an analysis of recent evolution. Geoforum, 35: 755–769.
Dernoi, L. (1991). Prospects of rural tourism: Needs and opportunities. Tourism Recreation Research, 16(1):89-94.
37

Page 40
Garrod, B., Wornell, R. and Youel, R. (2006). Re-conceptualising rural resources as countryside capital: The case of rural tourism. Journal of Rural Studies, 22: 117-128.
Getz, D. and Page, S. J. (1997). Conclusions and implications for rural business development. In: S. J. Page and D. Getz (Eds.) The business of rural tourism: International perspectives London: International Thomson Business Press, pp 191-205.
Fleischer, A. and Felsenstein, D. (2000). Support for Rural Tourism: Does it Make a Difference? Annals of Tourism Research, 27(4): 10071024.
Fleischer, A. and Pizam, A. (1997). Rural tourism in Israel. Tourism Management, 18: 367-372.
Fennell, A. D. and Weaver, B. D. (1997). Vacation Farms and Ecotourism in Saskatchewan, Canada. Journal of Rural Studies, 13(4): 467-475.
Fredericks, M. (1993). Rural Tourism and Economic Development. Economic
Development Quarterly, 7:215-226.
Frochot, I. (2005). A benefit segmentation of tourists in rural areas: a Scottish perspective. Tourism Management, 26:335-346. Hjalager, A. M. (1996). Agricultural Diversification into Tourism, Evidence of a European Community development programme. Tourism Management, 17(2):103 - lll.
Hall, R. D. (1998). Tourism development and sustainability issues in Central and Southeastern Europe. Tourism Management, 19(5): 423-431.
Hall, C.M. and Jenkins, J.M. (1998). The policy dimensions of rural tourism and recreation. In: Butler, R., Hall, C.M. and Jenkins, J.M. (Eds.), Tourism and Recreation in Rural Areas. Wiley, Chichester, pp. 19-42.
Hannigan, J. (1994). A regional analysis of tourism growth in
Ireland. Regional 208-24.
Ioannides, D. (1 implementation tourism: the exper Cyprus. Touris 1 16(8):583-592.
Jollife, L. and A (2009). Tea Her Evidences from SI
of Heritage Tourisr
Khan, M. (19 Development ar Theory: Mass
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Kneafsey, M. (200 Economy: Touri Relations. Arina Research, 28(3):76
Lane, B. (1994). tourism? Journa Tourism 2.182): 7
Liu, A. (2005). T areas: Kedah, Mae Management.
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Mowforth, M. and Tourism and Sus
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Studies, 28 (2):
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Sharpley, R. (1996). Tourism and leisure in the countryside (2nd ed.), Huntington: ELM Publications.
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Contd. on page 43

Page 41
WTO: Trade Policy Revie
Prepared by the WTO, Co-published by th
Bernan, 2010, pp. 178.
efore the World Trade
Organisation (WTO) was
formed, a Trade Policy Review Mechanism (TPRM) of GATT (General Agreement on Tariffs and Trade) member countries was introduced on a trial basis in 1989. It became a permanent feature once the WTO was established in 1995. Under the TRPM, the trade policies of developing countries like Sri Lanka are generally reviewed every six years, although the time may vary according to the WTO schedules. The first review for Sri Lanka was completed in 1995 and the second in 2004, and the Report under review is the third one published in December 2010.
The objectives of the TPRM are to improve the adherence by all WTO Members to rules and commitments made under the Multilateral Trade Agreement, and where applicable in Plurilateral Trade Agreements, and thereby, increase transparency in trade policies and practices of member countries for the smoother functioning of the international trading system. It is not intended to serve as a basis for enforcement of obligations under the Agreements or to impose new policy commitments on members, but rather, to highlight the progress and concerns of a member country's trading regime in the context of the smooth operation of the multilateral trading system. The reviews are conducted using two documents, viz., a Policy Statement submitted by the Member Country (in the case of Sri Lanka, prepared by the Department of Commerce) and a comprehensive analysis of the member country trade regime prepared by the WTO experts. On
the basis of these a final Conclud prepared by the C WTO Trade Policy . the se three su included in the Re introductory sect has three key Framework and Trade Policy Regin and Practices by Trade Policies by
The Report first p for performing r despite major inte shocks after 2003 document, “Sri L Horizon Developr 2006-2016" (TYHD expresses Sa 1 mainstreaming tr. the overall econo. strategy of Sri La policy should development path advocated by ar. economists does in the WTO review positive feature. acknowledges til trade policy conti at achieving gre into the global e multilateral (W SAFTA South A Agreement and A Trade Agreement ISLFTA IIndia-Sr Free Trade A PSLFTA [Pakista Bilateral Free Tr; trading, throug regime geared exports and inv number of programmes t infrastructure.
- Economic Review: Feb./March 2011

w — Sri Lanka 2010
e WTO and
two documents, ng Renarks is hairperson of the Review Body, and bmissions are port. After a brief ion, the Report chapters, viz., Objective of the ne, Trade Policies 7 Measure, and Sector
raises Sri Lanka easonably well, rnal and external Examining the anka’s Ten-Year nent Framework F), the evaluation tisfaction Ο Ι. ade policies with mic development nka. That trade dictate the of a country as dent neo-liberal not carry favour r; this is indeed a The Report then nat Sri Lanka’s nues to be aimed ater integration conomy through TO), regional - sia Free Trade PTA Asia Pacific - and bilateral - Lanka Bilateral greement and n - Sri Lanka de Agreement - h an incentive to encouraging stments, and a development improve the
Reviewed by Dr. Saman Kelegama“
Executive Director, Institute of Policy Studies of
Sri Lankcaz.
The Report notes that Sri Lanka has been an active member in the WTO Doha Development Agenda (DDA) and has contributed to proposals/ debates on technical barriers to trade, geographical indicators, labelling of textile and clothing,
footwear and travel goods, preference erosion, trade facilitation, among others. Since
the last WTO review in 2004, Sri Lanka has not been involved in any disputes under the WTO rules.
Trade Policy Regime: Framework and Objectives
After highlighting the positive developments in the trade policy regime, the Report expresses concerns on a number of areas. The exports have grown over the years, but the performance is comparatively less impressive visa-vis competitors. For instance, in 1990, exports from both Vietnam and Sri Lanka amounted close to US$ 2 bn., but by 2008, exports of Vietnam amounted to US$ 61 bn. while Sri Lankan exports amounted to approximately US$ 8 bn. Moreover, Sri Lankan exports were less diversified, product- and market-wise. The Report while identifying these features of the Sri Lankan export sector, closely observes that the non-US and nonEuropean markets, in particular in Asia, are increasingly becoming important destinations for Sri Lankan exports (while these markets have been large sources of imports to Sri Lanka for many years). The Report cogently argues for consolidating Sri Lanka's links
39

Page 42
with Asian markets, in particular, the growing markets of India and China.
The Report states that the trade reforms since the last review show a mixed picture with new border charges which, on average, have increased trade protection, for instance, the average MFN (Most Favoured Nation) tariffs was 11.5% in 2010 as compared to 9.8% in 2003. The Report then goes on to say that trade policy has been guided, to a large extent, by revenue consideration. These points are debatable because the post-2004 economic policies are based on a mixed-economy model where import substitution and SMI (Small and Medium Industries) promotion have received equal priority as export promotion, thus enhancement of the MFN tariffs are as per the TYHDF, although may not be consistent with the spirit of WTO. Moreover, it was not only revenue, but a concerted effort for additional protection that has driven tariffs upwards. The most widely-used tariff rate of 25% was increased to 28% in August 2007 and again increased to 30% in June 2 Oi O after abolition of some nuisance taxes that were imposed on the border.
It is well-known that binding tariff levels under the WTO gives more predictability to the trade regime. In Sri Lanka, only 36.4% of tariff lines are bounded at rates ranging from O to 75%. In general, applied rates are lower than bounded rates with average bound tariff cf 32.7%. The Report notes that 103 HS (Harmonised System) applied rates exceeded the bounded rate. This is an area that needs policy attention.
On the positive side, the number of tariff bands has fallen from 11 in 2003 to 9 in 2009 and to 5 in late 2010. At present, the highest bands 100% and 250% are applied for a handful of products (mostly cigarettes and tobacco) and this is followed by the 30% band (mostly agricultural and food products, consumer goods, chemicals, and other intermediate goods manufactured locally), 15% band
(intermediate pro (semi-processed 0% band. Some 4 are on the zero b; the 15% band, a the 30% band.
have increase elimination of th and replacing it v
The Report also add-on taxes Commodity Expo (CESS), Social R (SRL), Ports Development Le Building Tax (NBT been highlighted in stance, in 2C CustonS revenue 8% of GDP (C Product) compar revenue amounti due to these addIsland, Business, Some of them, s were removed in t budget, but more to have a tr predictable borde: the Report goes frequent resort to imposition and discretion and c anong importe complex import Report commend the authorities t all import charge
Trade Policies a
easure
Sri Lanka has be from donor partn on WTO's Aid for
implement tradeMost Aid for TI focused on tra in proving cong investment clima to US$ 1.77 bn. b. 2008. Sri La implemented th Valuation Agr however the R concern on don permitting use of which is a depa rules, citing t reconditioned rmc
Non-automatic ir required for 5
40

oducts), 5% band raw material), and 4.4% of tarifflines and, 23.1% are on and 21.3% are on Zero-duty items di due to the e 2.5% tariff rate with zero duty.
refers to various at the border, it Subsidy Scheme esponsibility Levy and Airport vy (PAL), Nation T), etc., which have in the past. For ) O7, the overal increased close to Gross Domestic ed to import tariff ng to 2 % of GDP -on taxes (see The 30 August 2010). uch as the SRL, he November 20 O needs to be done 'an sparent and r trade regime and on to say that ad-hoc import tax removal, adds reates confusion rs. Despite the tax regime, the s efforts made by o make available s online.
nd Practices by
nefited somewhat ers contributions Trade initiative to related measures. rade has been de facilitation, petitiveness and te, and amounted between 2004 and nika has now e WTO Customs eement (CVA), eport expresses lestic legislation minimum values arture from CVA he example of otor vehicles.
nport licensing is OO tariff lines,
Economic Review: Feb /March 2011
although Sri Lanka's use of nontariff barriers is relatively limited. All 103 trade-related technical regulations of Sri Lanka have been notified, including 18 SPS (Sanitary and Phyto-sanitary Measures), to the WTO. The Report notes that the Anti-Dumping Bill that was debated in Parliament in 2005 is yet to be ratified. Whether to implement Anti-Dumping legislation or not could be debated (see Chapter 15, IPS SOE – 2004), but it was opposed in Parliament strangely by a political party representing the interest of the national economy, arguing on the misguided belief that anti-dumping legislation is pro-WTO and against the national interest Ever since this opposition, the Bill has been kept in cold storage.
The Report shows that the export taxes almost abolished in 1992, now apply only to some mining/ mineral items exported in raw form while an export CESS applies to a number of products in order to develop R&D (Research and Development) for those sectors. Since these CESS funds go to the Consolidated Fund, it is difficult to say how much of these funds actually goes for the development of those sectors.
With regard to the Consumer Affairs Authority (CAA), the Report highlights a major anomaly that has been highlighted in previous writings on the subject, i.e., the CAA Act does not empower it to conduct investigations on the existence of monopolies or fin examine mergers and acquisitions that have already taken place (Chapter 11, IPS SOE 2004 and others). Utilities that fall under the Public Utilities Commission and listed companies under the Securities and Exchange Commission will only be subject to investigation for mergers and acquisition, but all other companies outside this domain will not be investigated. It is high time that legislation in this area is enacted for promoting a more competitive and consumer-friendly environment.
The Report makes a number of references to the trade-investment

Page 43
nexus in Sri Lanka (investment follows trade and more trade follows from investment). In regard to the Board of Investment (BOI), the Report argues the case for streamlining all BOI incentives under the Inland Revenue Department, a recommendation which makes resonance with the Presidential Taxation Commission and various Reports of the International Monetary Fund (IMF). The Report emphasises that since the war is over and the economy is showing high growth rates, the case for extra incentives for Foreign Direct Investment (FDI) is not appropriate.
In order to comply with the TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement, Sri Lanka enacted new intellectual property rights (IPR) legislation in 2003. This Act covers copyright and related rights, industrial designs, patents, marks and trade names, layout designs of integrated circuits, geographical indications, etc. The terms of copyright protection has been extended to life plus 70 years (from 50 years earlier). Despite this legislation, the Report says that counterfeiting and piracy is a problem due to weak enforcement. The Report recommends training officers, building public awareness, and stricter enforcement as the way forward.
Sri Lanka faces important concerns in formulating IPR policies in agriculture. The major issues include: the implications of IPRs on the price of seeds; the rise of biopiracy; access of farmers to seeds; and the impact of property rights on biodiversity. Various countries in the South Asian region are currently attempting to evolve a twin strategy of granting both plant breeders' rights (a form of IPR for plant varieties) with farmers' rights (rights of farmers to engage in and benefit from their agricultural practices). The Report does not make any reference to the Protection of New Plant Varieties (Breeders' Rights) Bill of 2001. This Bill has been discussed in a number of seminars, but there does not seem to be any urgency in regard
- Economic Review: Feb./March 2011
to debating the enactment. In enacted legislatio
The Report reservations ol procedures. It government proc the abolition o Procurement A continues to be domestic supplie: which is contrar Moreover, notifica done to the WTC State-Trading Er Article XVIII of regard to the form not violated any Lanka has still notification in the Agreement on Procurement, anc to do so in th strengthen entrepreneurship grants price prefe: nanufactured go value addition materials and di The latter point is
Trade Policies b
The final sectio de als with tra agriculture, indu sectors. The Rep consistent trade p the agriculture changes to enco agriculture produ sanne time to gi price to the cons difficult exercise, hoc structure to a While more prot has been the pref policy, when Sup inadequate due t and infrastructu the government tariff reduction to low. The Report a consistent trade p in place with agricultural institutions suc chains, StO 1 transportation, e domestic suppo fertiliser subs agriculture

Bill and speedy dia has already n in this area.
makes strong n procurement notes that the urement, despite f the National gency in 2008, used to promote rs and products, y to WTO rules. ation is yet to be ) with respect to nterprises under GATT 1994 : In Ver, Sri Lanka has WTO rules as Sri not made any WTO Prilateral Government i is not planning he future. To domestic , the government
rences for locally- .
oods to promote to local raw
Ornestic bidders.
s of course valid.
y Sector
n of the Report de policies in stry, and services ort shows that a policy is absent for sector. Tariff ourage domestic iction and at the ve a reasonable umer have been a thus giving an adgricultural tariffs. ection to farner erred government ply responses are o internal shocks re inadequacies, has resorted to keep food prices Lrgues that a more solicy could be put developing the infrastructure/ >h as marketing age facilities, -tc. Rationalising ort (such as the idy), improving infrastructure,
implementing some reforms in the land market, and implementing a more consistent trade policy will increase agriculture productivity, says the Report. This is the correct way forward, but Sri Lanka did a mistake in the mid-1990s by binding agricultural tariffs at a relatively low 50% (compared to other South Asian countries) which triggered many ad-hoc tariff changes and lowered the productivity of the agriculture sector.
In regard to the manufacturing sector, the Report highlights that tariffs for manufactured products range from 0% to 30% with processed goods receiving a higher protection than semi-processed goods, and raw material are duty free. Average MFN tariff for manufactured products (WTONAMA [Non - Agricultural Market Access products) increased from 8% in 2003 to 9.2% in mid-2010 resulting from an increase of rates applied on all main industrial categories. The tariff structure basically reflected the government strategy of promoting value addition in manufacturing and the domestic industry's high dependence on imports of raw materials and intermediate goods, although adjustments of tariffs in June 2010 adversely affected some import substitution industries. Only 26% of manufacturing tariff lines are bound at an average bounded rate of 21.3%. Applied rates on 143 HS tariff headings exceeded the bound rates, and this matter needs addressing.
Incentives are the preferred policy instrument to promote manufacturing when exchange rate policy is restricted by debt management, cost escalation, and other issues. However, fiscal space for granting incentives are limited and the BOI incentives, as stated earlier, need streamlining, and in this context, maintaining flexibility and stability of the exchange rate becomes a vital policy issue for the growth and sustenance of the manufacturing sector.
In regard to services, the Report notes that it is the largest sector in Sri Lanka's GDP, however its exposure for international trading
4.

Page 44
has so far been limited. Sri Lanka has made commitments in three service sub-sectors, viz., tourism, telecommunication, and financial services. In its schedule of commitments in these sectors, horizontal limitation and conditions relating to commercial presence is described. Commercial presence with foreign equity in excess of about 40% is subject to case-by-case approval under the discretion of the BOI. Sri Lanka considers services liberalisation as an important tool to attract FIDI. The Report notes that Sri Lanka's actual market access conditions are more liberal than those stipulated in its GATS (General Agreement on Trade in Services) schedule of specific commitments. It also notes that under the DDA, Sri Lanka has considered the possibility of making further commitments in sectors, such as, tertiary education, retail trade, and professional services, where the initial offer has already been submitted.
There is a detailed description of these three sectors with special reference to the regulatory structure governing them. In tourism and financial services, the regulatory structures have made rapid progress to withstand further liberalisation of the sector. But in financial services, the presence of two large State banks is seen as an impediment for private sector
expansion, althou is disputed by claiming that th private sector by have increased si regulatory framew telecom has son
encourage more participation, a Report. The Tel Commission Pro Development Pla: identifies some of the sector as the li interconnection reluctance to sha facilities among o) of an effectiv mechanism to mo and insufficien powers in curr Since the go identified IT-enab. of service exports 25O Mn., in 2009 Business Proce (BPO) as an area o potential, it is imperative to shortcomings i regulatory framew possible.
In sum, the sec1 highlight some strengths and the the services sectol trading to gain opportunities fro scale.
Contal from page 15
industry. Most of South-Asian countries will be attracted for such training programmes in near future.
References:
Coccossis, H. and Nijkamp, P. ed. (1995). 'Sustainable Tourism Development, Ashgate Publishing Limited, UK.
http://www.sltda.gov.lk/statistics (March 2011). “Key Statistical Indicators: Sri Lanka Tourism - 2009.
http://www.unwto.org (March 2011), "International Tourism 2010: Multi-speed recovery', UN-WTO.
42
Michael, R., Adele (2002). “Tourisr Analysis and Pla View Publication,
Rosemary Ll "Employment R Hospitality を Industries', The United Kingdom.
Silva, D.A.C. (20 Based Sustair Development i University of C. Publisher, Sri Lau
Silva, D.A.C. (2 Tourism Sector
Tourism Develo Research Sympos Colombo, Sri Lan

gh this assertion he government 2 lending to the both these banks gnificantly. The 'ork vis-a-vis the le way to go to private sector cording to the com Regulatory posed Ten-Year n (2006 - 2016) the problems in ack of a seamless regime, the re infrastructure perators, the lack e surveillance nitor compliance, t enforcement ent legislation. vernment has led services (13% amounting to $ ),) in particular, ss Outsourcing ffering significant all the more address the n the telecom work as early as
tion on services of Sri Lanka’s 2 need to expose for international the maximum m economies of
Concluding Remarks
Despite the slow progress of the DDA, the WTO creates a framework within which local decision making Ca unleash important opportunities flowing from a rulesbased international system. Strong signals to the market can be given by 'locking-in the trade policy regime (while giving due policy space) under these rules by trade policymakers. This will also enhance the credibility of the country in multilateral forums.
The Report is very comprehensive and gives a broad brush scrutiny of the trading regime which is not normally found in economic reports produced on Sri Lanka. While welcoming the progress that Sri Lanka has made in trade policy, the Report has highlighted the major shortcomings that needs the attention of policymakers, in particular, hack of notifications and going beyond bounded tariff levels and not renegotiating these levels under Article 28 of GATT. The contents of the Report will have to be carefully examined and addressed by the government of Sri Lanka. Given the diversity of issues raised in the Report, the government may also have to seriously consider setting up an integrated approach to formulating trade policy in Sri Lanka in the near future.
* uUuUuŲ, ipS.lk
, L. and Edith, S,
n Employment:
nning, Channel
Australia.
CaS (2010). elations in the Lind Tourism Book Depository,
07). Community able Tourism n Sri o Lanka, plombo, Olanda nka.
O08). “Informal and Sustainable ment', Annual ium, University of ka.
Economic Review: Feb./March 2011
Silva, D.A.C. (2002). “Sustainable
Tourism Development in Sri Lanka, Vrije University, Amsterdam.
Sinclair M. Thea (1997). Gender, Work and Tourism', Routledge, Canada.
Sinclair, M. T. and Stabler, M. (1997). The Economics of Tourism', Routledge, London.
SLITHM (2011). “Five-Year Business Plan for Tourism Manpower Development - From 2010 to 2016, SLITHM, Colombo.
Sri Lanka Tourism Development Authority (2008, 2009, 2010). Annual Statistical Reports of Sri Lanka Tourism, Sri Lanka Tourism Development Authority, Sri Lanka.

Page 45
Contd. from page 25
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c
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