An Investigation of Tourism Investment on Accommodation Sector of Tourism Industry of Sri Lanka

Abstract

The study is aimed at investigating the growth potentials and the challenges that are confronted with Sri Lanka Tourism of the present day. The study is focused on to investigate the literature on the tourism accommodation sector investment as it has been identified as the main challenge of today’s industry within the country. The problem statement was identified as what are the major determinant variables of the tourist accommodation sector of the tourism industry in Sri Lanka? The article intends to examine the major implications of the existing investment shortage in the tourism accommodation sector of Sri Lanka tourism industry. The main objective of the study was to identify the key determinants of the level of investment in Sri Lanka tourism accommodation sector with specific objectives being to understand the current situation of the investment in tourist accommodation sector of Sri Lanka and to stipulate policy reforms in the tourism investment promotions within the country for the next 5 years. The methodology adopted by the study is basically a desk review of the present literature on the hotel sector investments around the world. The objective is to identify the key determinants of hotel sector investments around the world, specifically within the Asian region. 266The study concluded with the identification of five major variables that affect the level of investment into the accommodation sector for tourism namely; the tourist attraction for a particular destination, the national output of the destination, the rate of inflation of the destination, exchange rates of the destination and the availability and the quality of human capital of the destination. This finding is useful for quantitative model building, testing casualty or even to conduct further exploration.