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I the Potential of Agro-Tourism in Sri Lanka The Potential of Agro-Tourism in Sri Lanka: A Case Study of the Tea Industry S.I.A.U.K. De Silva A Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration in Hospitality and Tourism Management (International Program) Prince of Songkla University 2008 Copyright of Prince of Songkla University i Thesis Title The Potential of Agro-Tourism in Sri Lanka: A Case Study of the Tea Industry Author Mr. S.I.A.U.K. De Silva Major Program Hospitality and Tourism Management (International Program) Major Advisor Examining Committee: &&&&&&&&&&&&&&&& &&&&&&&&&&&&& Chairperson ( Assoc. Prof. Manat Chaisawat ) ( Mr. Pradech Phayakvichien ) &&&&&&&&&&&&&.. Committee Co-advisor ( Asst. Prof. Dr. Jutamas Wisansing ) &&&&&&&&&&&&&&&& &&&&&&&&&&&&&.. Committee ( Dr. Ilian Assenov ) ( Assoc. Prof. Manat Chaisawat ) &&&&&&&&&&&&..& Committee ( Dr. Ilian Assenov ) The Graduate School, Prince of Songkla University, has approved this thesis as partial fulfillment of the requirements for the Master of Business Administration Degree in Hospitality and Tourism Management (International Program) &&&&&&&&&&&&&&&&&. ( Assoc. Prof. Dr. Krerkchai Thongnoo ) Dean of Graduate School ii 23456789:;7<;=> /012345678149:;78<:=>2?<@A8<1BC9DE/9=F0814 19G=/H1B47ICJ4K199@4 ?@ABCD9; E42L0EM494MI94 7AE:94NAC 7O:P<F7 7PM42O QPR4<97 <M7 LAF?4 E:C:672: 149N0M149149S9A149TFO149:;78<:=>2? (KF01JPC9E4E4@4CA) FGH:IJKHL: 2551 M8NOP9Q5 149<MAE:48TFO149:;78<:=>2?DEXYNNIS0E<XZE1AN199R:48</9B[1AN:=>DK\;:=>JIM TFOJ]4Q0\:=>JIMDE^F1 <XZE7ICJ4K199RE]4TFO<XZE34Q</9B[1AN:=>1]4F08<CAS^C72;489?M<9_?DE9PX 678149N`4884E:0>?^F1 149:;78<:=>2?DE/9=F0814TJM8S:S4::=>J]4Q0\DE149901B4Q?4RR0>EQ8 :48149<8AETFO72P;DE70EM0S:=> 4 678:=>R4678TKF;8<8AEC94C;48X9O<:/ /9=F0814<XZE:=>9P`N0110EM=DE 9PXTKF;8:;78<:=>2? @42K4M ?0bEc99RTFOR9M1:48?0bEc99RTFOTKF;8:;78<:=>2?R?F@E :48<Fd71:=>1F;4?TF`?:=>5H>85A8CF4M:=><Q2R=R41;7E72;48R41TFO9PXTSS149:;78<:=>2?DEXYNNIS0E 149/H1B4eM`?A<Q94OKfgH8/012345678149J;8<J9AR7ICJ4K199R@4<XZE9PXTSS678hFAC30Gif149 :;78<:=>2?TFOJ;?E149CF4MDKR;<5d>750bE4/9=F0814DK`<XZETKF;8:;78<:=>2?@4 ^M25AN49G4gH8C94 2=>K`7:=><XZE:=>9P`N01R4TF`? j@4L=F7Ek X9O?0CA/4JC9f67874G4EAQR@4 3PRA:0/EfJ?E@470EJ?284R 3PRAX9O<:/:=><XZE<71F01BGf <XZEC`E ?0CgIX9OJ8Qf678149/H1B4<5d>7S;8@=lDK`<K_EgH8/012345 XY\K4TFOJA>8:`4:42DE 14950bE4149:;78<:=>2?@4 JA>87]4E?2Q?4RJOM?1:=>R=72P;DEXYNNIS0E S9A149TFOhFAC30Gif7d>ETFO XYNN027d>E:=>N]4<XZE<5d>7E]4@4<6`472P;DE149:;78<:=>2?TFO@IR@EJ4R49geM`X9O^2@Efh;4E34QJ;?E678 149:;78<:=>2?@4 149/H1B4eM`S;8@=lgH8hP`R=J;?EeM`J;?E<J=2<XZEX9O@419<5d>7149/H1B4?AN02 6 1FI;R TFOC4RM`?2149J0R34BGfTFO149D@`TSSJ7Sg4RhJRhJ4E<5d>7DK`eM`6`7RPF:=>N]4<XZE hF149 /H1B4@=lDK`<K_E?;4/9=F0814R=/012345TFO^714J72;48R41R42:=>NP8DNE01:;78<:=>2?C;48@4CATFO E01:;78<:=>2?DEX9O<:/<6`4X9O<:/h;4E149:;78<:=>2?@4 TFO6`7<JE7TEOKF4272;48<5d>750bE4 34QJ;?EE=lTFOeM`R=149S;8@=lgH8XY\K4:48J08QR7d>En 149/H1B4eM`S;8S71gH81Fe1TFO1F2I:cf?;4 149:;78<:=>2?@4J4R49gE]4<6`4<XZEJ;?EKEH>86781F2I:cf149:;78<:=>2?9?Rh;4ER4C9149<@;E149 50bE4hFAC30Gif 1491]4KEME^2S42TFOJ;8<J9AR149C0MJAEDN 50bE4hFAC30GifRPFQ;4<5A>RDE149 :;78<:=>2?@4 TFO:=>J]4Q0\6242hFX9O^2@EfeX208J08QR@IR@Eh;4EQ?4R<XZEKI`EJ;?EJE0SJEIE Q?4R241NE<5d>7S99<:4Q?4R241NETFO149/H1B4eM`<JE7TEO?;4Q?9R=149<Fd715dlE:=><5d>7 50bE4149:;78<:=>2?@4<XZE^Q98149:MF78 NR:ER:NOS 149:;78<:=>2?<@A8<1BC9 @4 149:;78<:=>2?@4 149:;78<:=>2?JE0SJEIEQ?4R241NE iii Thesis Title The Potential of Agro-tourism in Sri Lanka: A Case Study of the Tea Industry Author Mr. S.I.A.U.K. De Silva Major Program Hospitality and Tourism Management (International Program) Academic Year 2008 ABSTRACT Travel & Tourism is currently one of the worldrs largest and most important economic activities in the world. It is the leading industry and is the fastest growing economic sector in terms of job creation worldwide. Tourism in Sri Lanka plays an important role in the maintenance of financial stability and is ranked as the 4 th largest source of foreign exchange earner in the country. Sri Lanka has predominantly been known for its beach, heritage and culture oriented destination and a mass tourism destination. As an alternative to this and the heavy dependence on the traditional markets and the current forms of tourism, this paper investigates the potential to promote tea industry as one of the forms of the tourism product and a new market segment to develop Sri Lanka as a tea-tourism destination by considering the following established brand names jCeylon Teak, colonial tea history, beautiful tea landscapes, unique climate, etc. The objectives of this study are to identify the potential, problems and challenges in tea-tourism development, existing facilities, services & other products and other factors needed to incorporate tea into tourism and how community can get benefits through this tea-tourism sector. The study identifies six stakeholders as the target population of this research and follows a mixed method approach through questionnaires and interviews to acquire the necessary data. The findings indicate that Sri Lanka has tremendous potential and opportunities to attract foreign tourists and domestic tourists to the country through tea-tourism and various suggestions for the development of this sector and other social problems have been identified. The study also identifies mechanisms and strategies on how tea-tourism can be incorporated into the overall tourism strategy through measures such as product development, promotions and formulation of iv policy decisions, development of value added products in tea-tourism and more importantly in enhancing benefits to the local community through pro-poor partnerships to alleviate their poverty and the study recommends that selected tea plantation areas be identified where tea-tourism could be developed as a pilot project. Keywords: Agro-tourism, Tea, Tea-tourism, Pro-poor tourism, Sri Lanka v ACKNOWLEDGEMENTS The study of jThe Potential of Agro-tourism in Sri Lanka: A Case Study of the Tea Industryk as an assessment for Thesis was really challenging to me given the broad nature of the study area. To bring this task to fruition many have supported me in my endeavor and their cooperation is highly acknowledged. I would like to express my sincere appreciation to my advisor Associate Professor Manat Chaisawat, the Director of the MBA (International Program) and Dr. Ilian Assenov, co-advisor of this study who have both assisted and guided me to complete my thesis by giving their valuable contribution to the quality and the standard of my study area right from the onset. My sincere thanks are due to Ms. Watcharee Chamnina, the co-ordinator of the MBA (International Program) by giving her kind support to the study. My special thanks are also due to the Thailand International Cooperation and Development Agency (TICA) especially Mr. Manop Tangusaha, Director of HRD Bureau and Ms. Sudarath Unchaiya, Program Officer, TICA for their valuable support by offering this scholarship program to study at this university by representing Sri Lanka and also by facilitating me when I had a difficult situation. I extend my gratitude to the Chairman, Board of Management and its staff, Mr. George Michael, Secretary, Ministry of Tourism, Mr. Udaya Nanayakkara, former Chairman of the Sri Lanka Tourist Board, Mr. Dileep Mudadeniya, Managing Director, Sri Lanka Tourism Promotion Bureau, Mr. S. Kalaiselvam, Director General, Mr. M.B. Kiriella, Director, Ms. Pryshantika Dissanayake, Director/Human Resource Development who were all instrumental in helping me to fulfill my MBA degree. I also extend my gratitude to Mr. H.M.S. Samaranayaka, former Chairman of the Sri Lanka Tourist Board for his feedback on preparation of survey instruments. Finally, I am extremely special thankful for my parents who encouraged me to pursue my studies, my brother, sisters, my close friends Rathnayake, Kunzang, Tashi, Shabeer, Hanh, and my beloved family Samantha and Vishmi for their wonderful support and patience during my study period. For all those whose names are not listed here, I would like to express my sincere heartfelt thanks for your valuable assistance. vi CONTENTS Page Contents vii List of Tables xii List of Figures xvi List of Abbreviations and Symbols xvi Chapter 1. Introduction 1 1.1 Statement of the Problem 1 1.2 Related Literature 9 1.2.1 Concepts of Sustainability 9 1.2.1.1 Sustainable Tourism 10 1.2.2 Pro-Poor Tourism 11 1.2.3 Agro-tourism 13 1.2.3.1 Benefits of Agro-tourism 16 1.2.3.2 Overview of Global Agro-tourism Industry 17 1.2.4 Overview of Tourism Industry in Sri Lanka 19 1.2.5 Agro-tourism Industry in Sri Lanka 20 1.2.6 Tea Industry 23 1.2.6.1 History of Tea: World 23 1.2.6.2 History of Tea: Sri Lanka 23 1.2.6.3 Present Situation of the Tea Industry in Sri Lanka 24 1.2.6.3.1 Sri Lankars Perspective 24 1.2.6.3.2 Global Perspective 26 1.2.6.3.3 Potential to Develop Tea-tourism in 27 Agro-tourism 1.2.6.3.4 Current Position of the Tea-tourism in 27 Sri Lanka vii 1.3 Aim and Objectives of the Study 30 1.3.1 Aim 30 1.3.2 Objectives of the Study 30 CONTENTS (CONTINUED) Page 1.4 Significance of the Study 31 1.5 Scope of the Study 32 1.5.1 Scope of Time 32 1.5.2 Scope of Geography 32 1.5.3 Area of Research 33 1.5.4 Scope of Demography 33 1.6 Assumptions 34 1.7 Conceptual Framework 35 2. Methodology 36 2.1 Population of the Research 37 2.1.1 Selection of Stakeholders 37 2.2 Research Method- Design and Instruments 39 2.2.1 Questionnaire Design and Survey-International Visitors 40 2.2.2 Population, Sample Size and Sampling Technique-International 41 Visitors
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