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The effect of war and other factors on Sri Lankan tourism

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  • Saroja Selvanathan

Abstract

A number of articles have appeared in the literature analysing the factors that influence international tourism. This paper identifies the factors that affect tourist arrivals to Sri Lanka and the impact of the various disturbances due to the Tamils independence war (which commenced in 1983) and the introduction of the free-trade policy (in 1977) in Sri Lanka. It is found that the disturbances related to the war have led to a significant (about 21%) decline in international tourist arrivals to Sri Lanka. It was also found that the free-trade policy introduced in 1977 by the Sri Lankan government has had a significantly positive impact on increasing its international tourist arrivals. The results also show that the weaker the value of the Sri Lankan local currency with respect to the US dollar, the more attractive it is for international tourists. Furthermore, it was also found that the Sri Lankan consumer prices and world consumer income level have no significant impact on the number of international tourist arrivals to Sri Lanka.

Suggested Citation

  • Saroja Selvanathan, 2007. "The effect of war and other factors on Sri Lankan tourism," Applied Economics Letters, Taylor & Francis Journals, vol. 14(1), pages 35-38.
  • Handle: RePEc:taf:apeclt:v:14:y:2007:i:1:p:35-38
    DOI: 10.1080/13504850500425576
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    References listed on IDEAS

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    1. Witt, Stephen F. & Witt, Christine A., 1995. "Forecasting tourism demand: A review of empirical research," International Journal of Forecasting, Elsevier, vol. 11(3), pages 447-475, September.
    2. Christine Lim & Michael McAleer, 2001. "Cointegration analysis of quarterly tourism demand by Hong Kong and Singapore for Australia," Applied Economics, Taylor & Francis Journals, vol. 33(12), pages 1599-1619.
    3. Kulendran, N. & King, Maxwell L., 1997. "Forecasting international quarterly tourist flows using error-correction and time-series models," International Journal of Forecasting, Elsevier, vol. 13(3), pages 319-327, September.
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