Philippine E-Journals

The relationship of rural tourism and poverty alleviation in Sri Lanka

Manjula Gunarathna | Janice L.H. Nga | Jennifer Kim Lian Chan

 

Abstract:

 

The article presents the relationship of rural tourism and poverty alleviation in Sri Lanka using secondary data. The data were gathered in periodical and annual reports from reputed institutions in Sri Lanka. To determine the trend and relationship, this study used empirical evidences and time series data via econometrics methods. The Pearson correlation and the multipleregression show size and direction of relationship between tourism and poverty alleviation. Findings of this study reveal that tourism and poverty are not discrete variables and both variables link with economic growth, political

stability and employment in Sri Lanka. However, the direct linkage is relatively low as compared to the indirect relationship. Despite the significant indirect relationship, the linkage between tourism and poverty alleviation has been under-valued by empirical evidences. Indirect relationship was not divulged by researchers. Therefore, this study focuses to measure both the direct and indirect relationships between rural tourism and poverty alleviation in Sri Lanka. We revealed weaknesses of previous poverty alleviation programs that were activated by the government of Sri Lanka.

When considering the authentic relationship, finally we concluded that rural tourism is an effective tool for poverty alleviation in Sri Lanka as compared to other poverty alleviation instruments. Based on analysis, we suggest that

direction of policy implementation should be planned through direct and indirect efforts. In fact, significance of this article is not limited to Sri Lanka. Accordingly, findings and suggestions of this study can be utilized to alleviate poverty through rural tourism development.