Abstract:
Tourism, being a dynamic economic actor, is of utmost importance in influencing the lives of
rural communities in the developing world. This paper discusses how tourism activities affect
economic growth of the surrounding area, business entrepreneurship, the creation of employment
and poverty reduction among the rural population of Sri Lanka. With the main question
of how tourism programmes affect grassroots-level socioeconomic development, the study examines
the subtle discourse between tourism development and rural welfare. Drawing on sustainable
tourism and pro-poor development literature, the study adopts a quantitative approach,
using a survey of 310 respondents with a structured questionnaire developed from previously
validated studies. The results indicate that there is a close correlation (positive) existing between
tourism and increased income levels, employment generation as well as facilitating small-scale
business enterprises. The findings indicate that tourism does not simply cause an increase in
economic uplift but also fosters local innovation and cooperation within communities. Nevertheless,
issues such as a lack of digital skills, unsatisfactory infrastructure, and weak policy
implementation continue to hinder inclusive growth. The research proposes interventions which
would involve opening up of financing, training of tourism entrepreneurs, and the enhancement
of coordination of stakeholders. Tourism has the potential to be an effective means of achieving
equitable rural development, but it has so far been employed in ways that lack inclusive policymaking
and community-based planning. These findings contribute to the ongoing debate on
how developing countries such as Sri Lanka can strategically use the tourism industry to bring
about a transformative era of sustainable, long-term development at the village level.
