Abstract:
Most countries in the world have gained economic advantages through tourism.
They have implemented plans systematically for both domestic and international
tourism sectors. In the recent world developed and developing countries have been
taking more economic contribution from domestic tourism rather than from
international tourism. Tourism industry in Sri Lanka is giving special attention to
international tourism, but less attention to domestic tourism. The main objective of
the study is to identify the recent salient features of the domestic tourism sector,
analyzing the income expenditure patterns and the examining the possibility of
introducing the tour package to the study area. The sample covers primary data
from 200 domestic tourists and 100 related enterprises. The data analysis using
simple regression analysis and it shows domestic tourists expenditure pattern has
been change with formalizing the sector. In addition regional development,
employment creation and income generation in the area was tremendously increased
