Abstract:
1. Introduction
Ahangama, a popular Sri Lankan coastal town, attracts tourists with its
beautiful beaches and surf breaks. Foreigners have been increasingly
involved in accommodation businesses in Ahangama, through direct
ownership, co ownership with locals, and long-term leases of properties.
However, there is a dearth in research on the impact of the increasing
presence of foreign-owned hospitality businesses on the local
accommodation business community in Ahangama, Sri Lanka. The main
objective of this qualitative study was to explore the impact of the
foreigner’s intervention on the local accommodation business community
in Ahangama. The study contributes to the existing body of literature,
offering a valuable case study for other destinations facing similar
challenges.
2. Research Methodology
The study adopts an interpretivist philosophy to explore the subjective
experiences of local accommodation business owners, who are providing
short term lodging in Ahangama, Sri Lanka. An inductive approach was
used and particularly, case studies are chosen to capture rich, detailed
perspectives. Convenience sampling was used to select 9 participants, and
semi-structured interviews are conducted to gather data. Thematic
analysis was then used to identify and interpret patterns within the
collected data.
3. Findings and Discussion
The analysis revealed that foreign investment uplifts the economy.
However, local accommodation businesses struggle due to increased costs
and competition. Further, foreign intervention has created opportunities to
be innovative and identify niche markets.
4. Conclusion and Implications
The findings suggest positive and negative impacts on local
accommodation businesses.
