Abstract:
The main objective of this study is to examine the determinants of the positive economic
impacts of tourism sector and their relationship with the total impacts on the local community
in Panama region of Sri Lanka by using quantitative approach. Arugambay, Kottukal, Jalaldeen
Square, Kudakalliya, and Panama are the touristic destinations selected in the Panama Region
of Sri Lanka. In the quantitative approach, the questionnaire with five-Likert scale format is
used to collect the primary data in 2017/2018. The selected sample size is 530 which represent
of hoteliers, employees, and community members. Multicollinearity Analysis, Multiple
Regression Analysis, and Residual Analysis are the econometric techniques used to analyze
the data by employing SPSS v.20 software. The factors such as Savings & Investment,
Payment for Labour, Employment, Earnings of Business are the independent variables. The
most important independent variables are Payment for Labour and Earnings of Business. The
regression analysis assures and vividly confirms the significant effects of the positive economic
factors.
