Porter Model for Tourism
Porter model for tourism industry in Sri Lanka:
Porter model plays significant role in Sri Lanka tourism industry and it provides good platform to tourism industry. Components of porter model for tourism industry in Sri Lanka are discussed as below:
1) Factor conditions: The factor conditions of porter model in Sri Lanka for tourism industry are divided in five categories. They are such as human resources, information resources, funds resources, physical resources and transportation. The factor conditions plays significant role in Sri Lanka for tourism industry because porter model checks and evaluates the factor conditions like human resources, knowledge resources and infrastructure are available or not and it also check quality of factors for support tourism in Sri Lanka by increasing competitive competencies of competitors. Physical resources check the environment and availability of tourism products which is related with natural and cultural attractions. Other side human resources improve the quality of tourism employees and workers for doing work in tourism industries. It also checks skills of tourism labors and services which are provided by tourism employees to travelers. Capital resources and transportation also provide assistance to tourism industry in Sri Lanka. Training is given by the management to workers of tourism for providing services to foreign travelers (Postelnicu & Ban, 2010).
2) Related and supporting industries: This factor maintain relationship with the help of related and supporting industries and it also maintain coordination and cooperation among tourism industries. It evaluate whether tourism suppliers available or not and it also checks that how tourism industry work simultaneously thus good coordination and reciprocal relationship encourage tourism in Sri Lanka. Suppliers also play significant role in tourism industries because they promote innovation. Now a day’s Sri Lanka is improving in tourism sectors by providing excellent services to travelers. Sometimes it provides support to other tourism firms and maintains good contacts with other tourism industries.
3) Demand conditions: It focuses on the demand of the travelers and it consist the environment of home market for providing services to foreign travelers therefore it measures and analyze the reasons of growing tourism industry and size and nature of the country market. A tourism industry can take competitive advantage in international segment if these segments are highly observable and sophisticated compared to the other nations. It emphasize on the travelers needs and satisfaction. It continuous focus on the development of tourism industries thus it satisfy and fulfill needs of travelers (Rouibah, 2008).
4) Firm strategy, structure and rivalry: It includes those factors which are related with tourism industries establishment and management and nature of the competition. It also indicates the production climate and course of actions. So it is assumed that if an industry wants to derive tourism business then it should focus on the environment, culture and competition. Different nation have different techniques of management which includes strengths of personnel, leadership and organization styles, coordination and relationship between employees and travelers. Although porter model is an assessment tool for tourism industry in Sri Lanka and it plays vital role for the improvement of services in tourism industries. Government also plays significant role in development of tourism industry in Sri Lanka (Hong, 2008).
There are some recommendations has been given to Sri Lanka for the tourism industries.
• It should develop a good marketing strategy and domestic tourism strategy for development of tourist industries.
• It should develop goods and services for increasing tourism industries in Sri Lanka and it should modify the organization culture development of tourism.
• It should increase coordination and cooperation between tourism and interconnected sectors and it should provide financial assistance for hotel owners and other professions in tourist industries so it will help in creating more employment opportunities.
• It should provide training to employees for tourism industries related with languages and culture in such way they can provide better services to tourist.
• It should improve the infrastructure facilities, water supply, accommodations services, airports ports and banking sectors.
• It should developed awareness programs for the development of tourism industries in Sri Lanka.
• It should focuses on the globalization, taxation policies and social issues for encouraging tourism industry in Sri Lanka.
In such way it can be said that all the above recommendations can help in increasing tourism industries in Sri Lanka (Hoyois, Scheuren, Below & Guha-Sapir, 2007).
Foreign direct investment in Sri Lanka Tourism industry:
Foreign direct investment refers as investment done by association and person from one country to another country for establishment of new business and acquires assets. FDI plays significant role in Sri Lanka tourism industry and it provides excellent base for the development of tourism in Sri Lanka. Although farming and manufacture sector considered better source for generating employment and income to people but now a day’s tourism sector also consider a good source for generating jobs and developing social culture. In such way it provides attractive activities such as transportation, hotels, foods and drinks facilities, cultural and sports activities (Barenstein & Leemann, 2012). Sri Lanka is beautiful place for tourism and it provides opportunities for jobs and investment. Investment is carried out by many companies in home country as well as foreign, thus tourism requires distribution and communication channels, capital, transportations and universal market. However, foreign direct investment plays vital role for providing financial assistance in development of airports, hotels and new technologies in tourism industries (Bayne & Woolcock, 2011).
The foreign investment advisory committee has been established in 1968 for the development of FDI in tourism industry of Sri Lanka and foreign investment act, has been made by the Sri Lanka government to attract FDI in tourism sector (De Mel, & Pathmalal, 2009). Sri Lanka continues increasing its overseas investment inflows thus as result of this foreign investment inflows government of Sri Lanka is adopting good investment policies (Mosedale, 2010). The main object of FDI in Sri Lanka tourism industry is to build long term relationship between foreign direct investment and growth of the nation.
Advantages of FDI
Advantages of foreign direct investment for Sri Lanka tourism are discussed as below:
1) Financial assistance: It provides financial support for the development of hotels, rooms, airports, managerial skills and technologies in tourism industry. In such way it helps in maintaining Sri Lanka attractiveness.
2) Economic growth: FDI provides financial assistance to Sri Lanka so it helps in expansion and development of economic thus it creates favorable environment for investors and provide benefit to home country and host country.
3) Employment increase: It provides greater employment opportunities to employees for doing work in tourism sector in such way people can use their skills and knowledge. Employees maintain good coordination and cooperation with tourist and they provide excellent services to tourist such as accommodations, rooms and food and beverages (Samarathunga, & Pathirana, 2016).
4) Increase Efficiency: In FDI different kind of facilities are provided by foreign investors so it helps in increase workers productivity in tourism industry.
5) Increment in country income: Increment in national income is the big advantage of foreign direct investment because it helps in to generate more employment and wages in Sri Lanka tourism industry.
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