Abstract:
Most literatureprovides that tourism industry
positively contributes to economic growth of developing
countries. It is more important to identify the factors that
effectfor the growth of tourism industry performances;
tourist receipts. The general objective of this study is to
estimate the contribution of factors affecting for tourist
receipts in Sri Lanka. Existing literature suggests that
tourist arrivals, excursionist arrivals, tourist nights,
accommodation capacity & annual occupancy rate etc.
are affected on tourist receipts. Time series analysis
by using secondary data from 1977 to 2016employed
to answer the research question. There is a long run
relationship among all the variables. Among the factors,
there is a significant positive impact of tourist arrivals &
excursionist arrivals on tourist receipts in the short run
although accommodation capacity, annual occupancy
rate has asignificant negative impact. In addition, tourist
nights does not indicate any significant short-run impact
on tourist receipts. Hence, it can be concluded that there is
a positive impact of tourist arrivals & excursionist arrivals
on tourist receipts in Sri Lankan context. Therefore,
this study strongly suggested taking appropriate policy
actions to increase the tourist arrivals in order to acquire
thehigher tourist receipts.
