Prospects and Challenges in Promoting All-Inclusive Holiday Tourism in Sri Lanka with Special Reference to the Resorts in Kalutara

This study’s main objective is to understand the prospects and challenges in promoting All-Inclusive Holiday Tourism in Sri Lanka in considering the resort/hotel occupancy, revenue, and profitability. On the basis of the review of literature, the conceptual framework has been developed. There were four independent variables and one dependent variable in the Conceptual Framework. To test the conceptual model and comprehend the link between the independent and dependent variables, four hypotheses were established. The study’s null hypotheses assumed that four independent variables had no effect on the dependent variable’s variance, but the alternate hypotheses suggested that the independent variables do have an effect on the dependent variable’s variance. The population for the study consisted of all resort hotels in Kalutara District in Sri Lanka, whilst the sample population for the study consisted of 8 resort hotels located in the Kalutara district of Sri Lanka. A self-administered questionnaire consisting of 69 questions was the primary data collection instrument used in this study. The relationship between the independent variables and the dependent variable was examined using SPSS version 17.0. The correlation between the various holiday packages offered by resort hotels, occupancy, revenue, and profitability was analyzed using Pearson’s correlation, whilst linear regression was used to examine the influence of the independent variables on the dependent variable. Data analysis findings indicate that AI holiday package has a strong positive statistically significant correlation with resort hotel occupancy, revenue, and profitability and has a significant impact on the variance in the dependent variable. In terms of the other holiday packages, data analysis indicates that B&B and HB holiday packages have a statistically significant weak negative correlation with the dependent variables, whilst the FB holiday package has a weak negative relationship with the dependent variable, which is not statistically significant. In terms of the unique contribution of these three holiday packages to the variance in the dependent variable, the contribution of these three holiday packages to the variance in the dependent variable is extremely small (less than 14% in total). Based on the data analysis, it can be concluded that All-Inclusive Holiday Tourism contributes significantly to resort/hotel occupancy, revenue, profitability and are vital for the long performance and viability of these hotels.