Page 137 - RASAS 2025

10 Ruhuna Arts Student’s Annual Sessions (RASAS) -2025
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Socio-Economic Challenges Faced by Small-Scale Tourism Entrepreneurs: A
Case Study of the Hiriketiya Zone

L.G.N.A. Liyanage
Department of Public Policy, University of Ruhuna
liyanageanuruddhika@gmail.com

ABSTRACT

Tourism has been a major driver of economic growth and cultural exchange, closely linked to environmental,

social, and economic systems. In Sri Lanka's coastal areas, small-scale entrepreneurs play a crucial role in
promoting tourism development and generating local employment. This study aims to identify and analyse the

socio-economic challenges faced by small-scale tourism entrepreneurs in the Hiriketiya tourist zone of the
Dikwella Divisional Secretariat, Matara District. A qualitative research design was used. Primary data were
collected through purposive sampling and in-depth interviews with 10 small-scale entrepreneurs using a

structured questionnaire. Secondary data were gathered from relevant literature and official tourism reports.
Thematic analysis was applied to the primary data to identify key challenges. The findings reveal that small-

scale entrepreneurs encounter intense competition from larger and foreign-owned tourism businesses, which
threatens their survival in a competitive market. Their limited access to financial services restricts business
development. Additionally, insufficient entrepreneurial knowledge and poor English proficiency hinder their

ability to attract and serve international tourists effectively. Language barriers reduce communication quality,
impacting customer satisfaction and business performance. Furthermore, inadequate government support
through tourism policies, infrastructure development, and financial incentives exacerbates these problems.

Despite these challenges, small-scale entrepreneurs remain vital contributors to the local economy and
sustainable tourism development. The study recommends improving financial accessibility, implementing
capacity-building programmes, providing language training, and strengthening government interventions to

empower these entrepreneurs and promote inclusive growth in Sri Lanka’s tourism sector.

Keywords: Coastal tourism, Foreign ownership, Small scale entrepreneurs, Socio-economic challenges,
Sustainable tourism

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