Tourism industries capacity to induce economic activities and enrich benefits to people in Sri Lanka.

Today trillions of people travel around the world. Consequently There is a meteoritic growth in tourism in post-war Sri Lanka. Arrivals in 2011 jumped 30.8 percent to 855,975 from a year earlier, higher than Sri Lanka's previous record of 654,476 in 2010 (SLTDA, 2012). Central bank data shows that, tourism revenue, which jumped 64.8 percent in 2010 to a record $575.9 million, has risen 46.7 percent in the first 11 months of 2011 from a year earlier to $735.7 million. Tourism can boost economic activities by earning foreign exchange. Tourism is one of the main foreign exchange earners for Sri Lanka's $59 billion economy along with remittances from expatriate workers, garments and tea. The foreign exchange earnings increased by 62.0% from Rs. 40,133.00 million (US $ 349.3 mn) in 2009 to Rs. 65,018.00 million (US 575.9mn) in 2010. According to the Central Bank Report- 2009 Hotel and Restaurant sector has only contributed 0.4 percent of the Gross Domestic Product in 2008 and 2009 respectively. HSBC Economic update -2009 report says that stronger growth in tourism would lift overall service sector contribution to GDP; Planned and ongoing investments and expenditure over the next few years, estimated at nearly 12.5 percent of GDP, are likely to create a structural shift in GDP growth. Projections for the state suggest growth in the tourism industry and to receive 2.5mn tourist arrivals by 2016 which ultimately further stimulate the economy of Sri Lanka in different ways. For example creating 500 000 direct and indirect employment, by attracting USD 3 000 mn as Foreign Direct Investment (FDI) to the economy within 5 years etc. When consider the employment formation, society will gain benefits from tourism in terms of employment and revenues as it create opportunities for employment not only in the industry, and also in the associated service industries such as transportation, airlines, cruise ships, taxi cabs, hospitality services such as hotels, resorts, guest houses and recreational and entertainment venues such as amusement parks, shopping malls, music dancing venues etc.. Further, farmers who supply rice, vegetables and fruits, fishermen, craftsmen who produce souvenirs and accessories, guides, chaffer drivers

who escort visitors, not only that, transport services, private coaches etc. also get the fruits of tourism industry. For example, trains now utilize only 30% of their capacity. It is expected to increase up to 70% with improved tourism movements. The government tourism administration, tourism education, defense, forestry, finance and insurance also get the benefits from tourism. As tourism grows, additional opportunities are created for investment, development, and infrastructure spending. Tourism can often contribute to the overall socio-economic development of a locale through induces improvements in public utilities such as the provision of telephones, water, waste disposal, electricity, sewer, sidewalks, lighting, parking, public restrooms, litter control, and landscaping. Such improvements benefit tourists and residents alike. Likewise, these facilities can, conversely, offer access and amenities to new tourism resources while communities can gain benefits such infrastructure development that comes to their area as a result of tourism development. Further tourism generates income and raise standards of living. Particularly in rural areas, the diversification created by tourism helps communities that are possibly dependent on only one industry. Tourism encourages improvements in transport infrastructure resulting in upgraded roads, airports, public transportation, and nontraditional transportation (e.g., trails). Tourism encourages new elements to join the retail mix, increasing opportunities for shopping and adding healthy competitiveness. It often increases a community's tax revenues. Lodging and sales taxes most notably increase but additional tax revenues include air travel and other transportation taxes, business taxes, and fuel taxes. New jobs generate more income tax revenues. Tourism can improve the quality of life in an area by increasing the number of attractions, recreational opportunities, and services. Tourism offers residents opportunities to meet interesting people, make friendships, learn about the world, and expose themselves to new perspectives. Experiencing different cultural practices enriches experiences, broadens horizons, and increases insight and appreciation for different approaches to living. Thus tourism has a remarkable capacity to induce economic activities and to enrich benefits to people in Sri Lanka.