Impact of the Economic Crisis on the Tourism Attitude of the Young Generation in Sri Lanka

Impact of the Economic Crisis on the Tourism Attitude of the Young Generation in Sri Lanka

Pasindu T Jayakody, Wang Fei

School of Management, Zhengzhou University

DOI: https://dx.doi.org/10.47772/IJRISS.2025.905000399

Received: 14 May 2025; Accepted: 17 May 2025; Published: 19 June 2025

ABSTRACT

This study explores the effect of monetary emergency and expansion on the travel industry demeanor of the youth in Sri Lanka. The examination foundation depends on the significance of the travel industry in Sri Lanka’s economy and the difficulties presented by financial emergencies and expansion. The reason for this study is to recognize the effect of monetary emergencies and expansion on the travel industry disposition of young individuals and to provide suggestions to policymakers and industry experts. The exploration was directed utilizing a quantitative methodology, and the information was gathered through a review of 80 youthful grownups matured somewhere in the range of 26 and 40. The information was dissected utilizing engaging insights, unwavering quality investigation, connection examination, and various relapse analysis. This study was meant to analyze the effect of monetary emergency and expansion on the travel industry disposition of the youth in Sri Lanka. Information was gathered from 80 respondents utilizing an organized poll, and distinct insights, unwavering quality investigation, connection analysis, and various relapse analysis were utilized for information analysis. The outcomes revealed that both monetary crisis and expansion fundamentally affected the travel industry mentality of young people in Sri Lanka. The discoveries of the review are consistent with past examination that recommends monetary emergency and expansion adversely affect the travel industry. The study contributes to the literature on tourism and economic crises, highlighting the need for governments and industry stakeholders to adopt measures to mitigate the impacts of economic crises and inflation on the tourism industry. Moreover, the findings suggest that industry players should focus on the young generation, who are the future of the tourism industry, to address the challenges arising from economic crises and inflation.

Keywords: Economic Crisis, Inflation, Tourism Attitude

INTRODUCTION

The travel industry is a huge wellspring of monetary development and improvement for some nations all over the planet. It isn’t just a huge wellspring of unfamiliar trade income, yet in addition sets out work open doors, empowers business and private company improvement, and advances local social and natural preservation. As per the United Nations World Tourism Organization (UNWTO), global vacationer appearances expanded from 25 million in 1950 to 1.4 billion in 2018. In 2019, the worldwide travel industry represented 7% of the global world commodities, and it is estimated that the travel industry accounts for 10.4% of worldwide Gross domestic product (UNWTO, 2020). However, the industry is vulnerable to various shocks, including economic crises, natural disasters, and pandemics, which can significantly impact tourist arrivals, expenditures, and attitudes. One of Sri Lanka’s main businesses, tourism, makes a substantial contribution to both employment and economic development in the nation. The Sri Lanka Tourism Development Authority (SLTDA) estimates that the tourism industry contributed 4.5% to the nation’s GDP in 2019, bringing in US$ 3.6 billion (SLTDA, 2020). Unfortunately, the COVID-19 outbreak and the ensuing economic crisis have negatively impacted Sri Lanka’s tourism sector as well as the entire world market. Sri Lanka is an emerging nation situated in South Asia, with a population of more than 21 million individuals. The country’s travel industry has encountered critical development lately, with the number of tourist arrivals expanding from 448,000 in 2009 to 2.3 million in 2018 (Sri Lanka Tourism Development Authority, 2020). This growth was due in part to the country’s peace dividend following the end of a 26-year-long civil conflict in 2009, as well as targeted marketing efforts and infrastructure development. However, the tourism industry in Sri Lanka has been negatively impacted by various shocks, including the Easter Sunday bombings in 2019 and the COVID-19 pandemic in 2020. Before the pandemic, Sri Lanka’s tourism industry experienced steady growth, with the number of tourist arrivals increasing from 1.6 million in 2010 to 2.4 million in 2019 (SLTDA, 2020). However, the pandemic’s impact has been devastating for the industry, with tourist arrivals declining by 66% in 2020 compared to the previous year (SLTDA, 2021). The decline in tourist arrivals has resulted in significant revenue losses for the industry, leading to job losses and economic hardships for many individuals and businesses.

The economic crisis caused by the pandemic has also affected the tourism attitude of young generations in Sri Lanka. Young generations are considered to be a crucial target market for the tourism industry, as they are more likely to travel and explore new destinations (Fotiadis, Bugalas, & Russies, 2012). However, their attitudes towards tourism are influenced by various factors, including economic conditions, social and cultural factors, and environmental factors (Wijesundara & Perera, 2019). One of the significant challenges faced by the Sri Lankan tourism industry is the impact of economic crises on tourism. Economic crises can result in reduced disposable income and increased unemployment, which can lead to decreased demand for tourism services. Previous research has shown that economic crises have a substantial effect on the demand for tourism and can result in changes in tourist behavior, such as shorter trips, a focus on budget accommodation, and a preference for domestic tourism (Li & Wang, 2017; Song & Witt, 2000). Therefore, it is essential to investigate the impact of economic crises on tourism attitudes, particularly among the younger generation, who are crucial for the future of the industry. The widespread occupations and misfortunes brought about by this pandemic have significantly increased Sri Lanka’s destitution. As per the World Bank, travel and the travel industry are significant instruments for easing destitution, especially in underdeveloped countries (Asian Development Bank, 2021). Sri Lanka’s travel industry has developed gradually as a non-industrial nation. The crisis’s effects on the travel and tourism sector are becoming more apparent. The full supply chain of the tourism industry has been affected by the current economic crisis. It has been difficult for many businesses to maintain their operations. The restrictions imposed by the government on the imports of various products and services have further affected the tourism industry. These measures have also hindered the ability of businesses to deliver their services to the public (George, George, & Baskar, 2022). Due to the current economic crisis and the high prices of various essential products, such as petrol and gas, Sri Lanka’s tourism industry is facing another challenge (Matthias & Jayasinghe, 2022).

The lower supply of goods and the high consumer demand have led to an increase in the prices of various essential products. The rolling power outages have also negatively affected the tourism industry. The damaging impacts of the crisis on the travel and tourism sector are becoming more apparent. It is very likely that the country’s international reputation will be negatively affected by the crisis (Matthias & Jayasinghe, 2022).  The negative effects of the crisis on the tourism industry can be seen in the reports that are presented by international media outlets. This can lead to the postponement or cancellation of trips by potential visitors. Several of Sri Lanka’s top export markets have already issued travel advisories for the country. Some of these include the UK, Canada, and New Zealand (Matthias & Jayasinghe, 2022). Research has shown that economic crises can have a significant impact on tourism attitudes and behavior (Kim & Li, 2020). In times of economic uncertainty, people tend to prioritize their basic needs over leisure activities, such as tourism (Brouder & Teixeira, 2012). Moreover, economic crises can lead to a decrease in disposable income and an increase in the cost of travel, leading to a decline in tourism demand (López-Bonilla, López-Bonilla, & Fierro-Sánchez, 2020). Young generations, who may have limited financial resources, are likely to be more affected by economic crises, leading to changes in their attitudes towards tourism. At the same time, the perspective of young tourists is extremely important for a country like Sri Lanka to survive this economic crisis. According to scholars, the concept of generational theory can be used to analyze the various factors that affect the development and growth of the young tourist population. It involves linking the various birth years to the relative age ranges of the individuals (Monaco, 2018).  The analysis performed under the generational theory shows that the group that includes the young is referred to as Generation Y, which was born between 1982 and 2002 (Buffa, 2015).

Although the exact age range of the Gen Y population is still unclear, it can be used to link its various socio-demographic characteristics and events with the rise of the new technologies and the September 11 attacks. For instance, the increasing number of working mothers and the desire to be independent are some of the factors that have been linked to the rise of the young tourist population (Buffa, 2015). There are also studies looking into the behaviors and motivations of young travelers. However, there are gaps in our knowledge of how these individuals are affected by environmental issues. Factors that can explain this phenomenon include the number of young travelers and the demographics of the group. According to scholars, age is one of the main factors that distinguishes a tourist from other segments. It is also one of the factors that sets them apart from other tourists. While most young backpackers are likely to be passionate about their destination and have a passion for travel, researchers state that older individuals have different motivations and journey lengths (Monaco, 2018). Also, the behaviors and motivations of tourists are influenced by their socio-cultural backgrounds. For instance, their interactions with other travelers are influenced by their backgrounds. Therefore, there’s a need to identify the factors affecting the tourism attitude of the young generation within the Sri Lankan context.

Objectives of the Research

This paper has set out the accompanying examination targets to cover the exploration issues in a compelling manner for the user. The underpinning of the exploration significantly drives the targets that will be accomplished in the last part of the examination. Fundamentally, in this examination, there are two kinds of targets to accomplish: broad goals and explicit targets.

General Objective

The general objective of this study was to assess the impact of the economic crisis on the tourism attitude of youth in Sri Lanka.

Specific Objectives

• To identify how the economic crisis, including inflation, influences on tourism attitude of youth in Sri Lanka
• To identify the factors influencing the attitude of young generations toward tourism during economic crises.

This study aims to analyze the impact of the economic crisis on the tourism attitude of the young generation in Sri Lanka. The tourism industry is still in the early stages of its recovery. Furthermore, the long-term outlook of the tourism industry calls for the development of strategies that will help attract and retain the next generation of tourists. This is because the attitude of the young people toward sustainability is very important to the success of the industry. The scientific community has been looking into the young tourist market in recent years. This segment of the population is often underserved. The rise of the young tourist market is considered to be a significant factor in the development of the tourism industry. It is also expected to represent the future of the industry.

The objective of this study is to distinguish the different variables that impact the turn of events and development of the youthful traveler market in Sri Lanka. Notwithstanding the rules used to characterize an individual as an individual from the “youthful,” the study likewise needs to consider their inspirations, ways of behaving, and decisional processes. Subsequently, discerning the effect of a financial emergency on the travel industry’s demeanor among young travelers in Sri Lanka is significant.

LITERATURE REVIEW

Understanding Tourist Mobility and Travel Classifications

When individuals purposely leave their home surroundings to visit another, they are viewed as travelers. These individuals will normally participate in specific exercises regardless of how close or far this climate (objective) is (Lobby, 2008; Holloway and Taylor, 2006; Jafari, 2002). As a result, because tourists are also guests, anything they do while traveling to another location may be classified as part of the travel industry. The Unified Countries Meeting on Worldwide Travel and the travel industry chose in 1963 to refer to individuals voyaging abroad as “guests” (rather than “occupants”). This definition included two sorts of visitors: Transitory guests who spent something like 24 hours in a spot were viewed as vacationers. They might be viewed as visiting for relaxation in the event that they are doing so for their own delight, wellbeing, wellness, sport, excursion, training, or religious reasons. Travelers, including journey travelers, may be classified as “transient vacationers” if they stay in a location for less than 24 hours. These definitions, in any case, don’t represent homegrown vacationers. The Travel Industry Society, which later changed its name from the Foundation of the Travel Industry, first proposed the meaning of the travel industry as the fleeting, transient relocation of individuals to areas other than their typical areas of home and work in 1976. Consequently, all types of human development, for example, road trips or journeys, are viewed as a component of the travel industry (Cooper, 2008; Holloway and Taylor, 2006).

The Global Gathering on Relaxation Entertainment The travel industry, held in Cardiff in 1981 and coordinated by the Overall Organization of Travel Industry Specialists (AIEST) and the Travel Industry Society, slightly modified this definition to read: “The travel industry may be distinguished by specific exercises, chosen by decision, and performed externally to the home climate.” Travel could conceivably involve remaining away from home for the time being. “The movement business covers the activities of individuals going to and staying in places outside their normal environment for no more than one consecutive year for diversion, business, or various purposes,” the Collected Nations World Movement Business Affiliation stated in 1991. Right now, it is feasible to recognize homegrown and worldwide travel (Yuksel, 2004). The previous scene depicts travel that has just finished inside the explorer’s local country’s public transport. The last option alludes to going inside one’s own nation’s borders. Homegrown travel will influence the equilibrium of installment payments and decrease how much cash leaves the nation at the beginning of the guests’ stay (Mathieson and Wall, 1982).

Tourism Consumer Attitudes: Perceptions, Emotions, and Behavioral Intentions

Purchaser perspectives assume a critical role in the showcasing climate and have the ability to either fortify or debilitate promotional endeavors (Schiffman and Kanuk, 1997). As a rule, they are characterized as an individual’s degree of idleness or unaffordability toward a mental item (Ajzen and Fishbein, 2000, p. 2). It is a scholarly way of behaving and is reliant upon the shopper’s discernment and assessment of the striking qualities or convictions with respect to something particular (Schiffman and Kanuk, 1997). Because people assess based on their readily available convictions, origins, ways of behaving, or potentially protests along aspects like great/awful or like/despise, assessment is a critical component of attitudinal reactions (Ajzen and Fishbein, 2000). Since customary points of view on the mentality hypothesis recommend that perspectives anticipate conduct (Ajzen and Fishbein, 2000), mentalities are crucial for the hypothesis on customer navigation (Newholm and Shaw, 2007). Nonetheless, the security of minds is addressed by ebb and flow social brain science research on perspectives because they can change as foundation components (such as how subjects are defined or full of feeling states) change (Ajzen and Fishbein, 2000). The Hypothesis of Arranged Conduct, which expects that mentalities toward a way of behaving (along with emotional standards and social control) lead to a similar social intention, is raised in doubt by this (Ajzen, 1991). The “attitude-to-behavior hole” in CB (Newholm and Shaw, 2007), which we will thusly investigate with regard to moral utilization, is directly connected with this problem.

The disposition construct is vigorously used in movement research, in some cases to gauge mentalities toward significant attributes of a thing (such as objective characteristics that shape an objective picture) and in other cases to quantify perspectives in general (such as the big picture). Gnoth (1997, p. 285) alerts, in any case, that “an evident mindlessness underlies decadent or inwardly determined conduct, which is a specific component of the travel industry,” and subsequently, Expected social and mental models a levelheaded entertainer and place perspectives as signs of a genuine way of behaving might be especially dangerous when applied to the travel industry. Consequently, Gnoth (1997) contends for a more noteworthy understanding of perspectives with regards to feelings as well as the fundamental qualities that effectively sort out mentalities. As recently referenced, one critical difference between understanding CB in the domain of the travel industry, all the more expressly versus CB applied all the more extensively, is the habitual emotional part of travel industry utilization. Focuses on client mentalities in the travel industry cover a wide range of topics, such as post-trip behavior change (Nyaupane et al., 2008), perspectives on lodging grievances among visitors of various identities (Yuksel et al., 2006), vacationer perspectives among self-identified explorers (Jacobsen, 2000), and perspectives on the environmental effects of long-distance air travel among Norwegian customers (Higham and Cohen, 2011). Extra examination is expected on how feelings and temperaments impact how mentalities are framed in the travel industry in light of the fact that emotional states have been demonstrated to impact how shoppers’ fulfillment, objective/brand dedication, and individual cooperation are assessed (Ajzen and Fishbein, 2000). This includes, for example, thinking about shopper temperament and influence while evaluating attitudinal responses to administration, travel, and provider brand discernments. Furthermore, because the emotional components associated with decadent travel industry utilization spaces are significant for more extensive utilization and human behavior displaying, CB research in the travel industry should imply contributing back to the more extensive CB and social-psychological writing on demeanor-conduct relations.

Young Generation’s Attitudes and Behaviors Towards Tourism: Influencing Factors

The young generation is an essential group of tourists for the tourism industry, as they are the potential future tourists. The literature indicates that the attitudes and behaviors of young generations towards tourism are influenced by various factors such as socio-economic status, education, family background, and cultural values (Chen & Phou, 2013; Hall & Williams, 2008). This section will review the literature on the young generation’s attitudes and behaviors towards tourism, including the impact of economic crises. One of the significant factors influencing the young generation’s attitudes and behaviors towards tourism is their socio-economic status. Research by Hall and Williams (2008) discovered that young people from lower socio-economic backgrounds were less likely to travel due to financial constraints. In contrast, young people from higher socioeconomic circumstances were more likely to travel and engage in a wider range of tourism activities. This finding suggests that young people’s socio-economic status plays a vital role in shaping their attitudes and behaviors towards tourism.

Another factor that influences the young generation’s attitudes towards tourism is education. Education is critical in shaping young people’s attitudes and behaviors towards tourism as it provides the knowledge and skills required to participate in tourism activities (Jia & Wu, 2017). According to Chen and Phou (2013), highly educated young people are more likely to participate in cultural and heritage tourism and have a more significant interest in learning about different cultures.

Family background is another essential factor that shapes young people’s attitudes towards tourism. Family plays a significant role in introducing young people to tourism and shaping their attitudes towards it. According to Huang and Hsu (2009), young people whose families have a positive attitude towards tourism are more likely to participate in tourism activities and have a positive attitude towards it. In contrast, young people from families with negative attitudes towards tourism may have a negative attitude towards it. Cultural values also influence young people’s attitudes towards tourism. Cultural values play a vital role in shaping young people’s attitudes towards tourism, especially in Asian cultures, where respect for family, education, and cultural heritage is highly valued (Jia & Wu, 2017). In such cultures, young people are more likely to participate in cultural and heritage tourism activities and are more interested in learning about different cultures. The literature also indicates that economic crises have a substantial effect on the attitudes and behaviors of the young generation towards tourism. Economic crises can affect the young generation’s travel behavior by reducing their travel budget and limiting their tourism activities (Hall & Williams, 2008). Research by Zhou and Ye (2014) found that the 2008 global economic crisis had a significant impact on the young generation’s travel behavior, and young people were more likely to travel to nearby destinations and reduce their travel budget.

The impact of economic crises on the young generation’s attitudes towards tourism is not limited to financial constraints. Economic crises can also affect young people’s perceptions of the value of tourism and their willingness to engage in tourism activities (Jia & Wu, 2017). Research by Gursoy and Chi (2013) found that economic crises can reduce the young generation’s willingness to pay for travel and accommodation and affect their attitudes towards tourism.

Several studies have explored the role of social media in shaping the attitudes and behaviors of the young generation towards tourism. According to Jin and Li (2017), social media platforms such as Instagram and Facebook have become increasingly popular among young travelers, shaping their travel behavior and influencing their decision-making process. Social media has also provided young travelers with a platform to share their travel experiences, which can influence their peers’ attitudes and behaviors towards tourism. The literature indicates that young people’s attitudes towards sustainable tourism are influenced by various factors such as education, environmental awareness, and personal values. According to Han, Meng, and Kim (2020), young people’s education level positively influences their attitudes towards sustainable tourism. Similarly, young people with higher levels of environmental awareness are more likely to support sustainable tourism practices (Zeng & Gursoy, 2019). Young people’s personal values, such as altruism and concern for the environment, also play a significant role in shaping their attitudes towards sustainable tourism (Han, Meng, & Kim, 2020). The literature also highlights the role of technology in shaping young people’s attitudes and behaviors towards tourism. According to Kim and Park (2017), the use of technology in tourism has become increasingly prevalent among young travelers, influencing their travel behavior and decision-making process. Mobile applications and other online platforms have provided young travelers with easy access to information and services, allowing them to plan and book their trips more efficiently. Moreover, the literature indicates that young people’s attitudes and behaviors towards tourism are influenced by their destination choices. According to Gursoy and Rutherford (2004), young travelers are more likely to choose destinations that offer unique experiences, adventure, and cultural immersion opportunities. Furthermore, destination image and perceived quality are essential factors that influence young people’s destination choices (Wu, Liang, & Wei, 2017).

Finally, the literature suggests that young people’s attitudes towards tourism are subject to change over time. According to Hall and Williams (2008), young people’s travel behavior and attitudes towards tourism change as they grow older, enter the workforce, and start families. Thus, understanding the dynamic nature of young people’s attitudes and behaviors towards tourism is essential for policymakers and stakeholders in the tourism industry. In summary, the literature highlights several factors that influence the young generation’s attitudes and behaviors towards tourism, including socio-economic status, education, family background, cultural values, sustainable tourism, technology, destination choices, and age. Economic crises have been observed to significantly affect the attitudes and behaviors of the younger generation regarding tourism. Even in times of economic hardship, governments and stakeholders may promote tourism among young people by understanding these characteristics and developing successful measures.

Impact of Economic Crises and Inflation on Tourism Behavior and Industry

Economic crises and inflation have a significant impact on individuals’ attitudes and behaviors towards tourism. An economic crisis is a situation where a country’s economy experiences a significant downturn, characterized by a decline in GDP growth, high unemployment rates, reduced consumer spending, and a general decline in economic activities (Eichengreen, 2016). Inflation, on the other hand, refers to a general increase in the price of goods and services over time, resulting in a decline in the purchasing power of a currency (Levin, Natalucci, & Piger, 2004). This section provides a literature review of relevant studies on the impact of economic crises and inflation on individuals’ attitudes and behaviors towards tourism. A number of studies have explored the impact of economic crises on tourism demand. According to Chen and Huang (2014), economic crises can significantly reduce the demand for tourism, as individuals tend to reduce their discretionary spending on travel and leisure activities during times of economic uncertainty. Similarly, Balaguer and Cantavella-Jorda (2002) found that economic crises have a detrimental effect on tourism demand, especially for luxury tourism products.

Furthermore, the literature suggests that inflation can have a significant impact on individuals’ travel behavior and attitudes towards tourism. According to Tang, Abubakar, and Khalique (2019), inflation can significantly reduce individuals’ purchasing power, leading to a decline in their willingness to spend on travel and leisure activities. Similarly, Gannon and Rajaguru (1995) found that inflation can lead to a shift in individuals’ destination choices, as they tend to choose cheaper destinations with lower prices. The literature also highlights the role of economic crises and inflation in shaping individuals’ attitudes towards sustainable tourism. According to Garay, Font, and Santana (2016), economic crises can have a positive impact on individuals’ attitudes towards sustainable tourism, as they tend to prefer more affordable and sustainable travel options. Similarly, inflation can lead to a shift in individuals’ attitudes towards sustainable tourism, as they tend to prioritize more environmentally friendly travel options due to cost concerns (Yun, Yoo, & Lee, 2019).

The literature also implies that the competitiveness of the tourism business can be significantly impacted by inflation and economic crises. Economic crises, which frequently result in a deterioration in the quality of tourism services and a decrease in tourism investment, can cause a decline in the competitiveness of tourist locations, claim Zhou, Wang, and Wang (2020). Similar to how inflation can lower the competitiveness of travel destinations by raising prices while also lowering the quality of travel-related services (Crouch, 1994). In addition to the studies already mentioned, a number of other studies have looked at how people’s attitudes and behaviors regarding tourism are affected by economic crises and inflation. For instance, Kang, Lee, and Huh (2012) looked into how the global financial crisis of 2008 affected South Korea’s travel demand. According to the survey, South Korea’s inbound and outbound tourism demand was significantly negatively impacted by the financial crisis, which decreased traveler spending and arrivals. Similar to this, Zhang, Deng, and Liu (2017) investigated how the global financial crisis of 2008 affected China’s demand for travel. According to the survey, China’s domestic and international tourism demand suffered significantly as a result of the financial crisis, which reduced visitor numbers and spending. Additionally, the study discovered that locations with a high reliance on tourism, such as the provinces of Yunnan and Hainan, were more severely affected by the financial crisis’s adverse effects on demand for travel. Furthermore, A number of studies have explored the impact of inflation on individuals’ travel behavior and destination choices. For instance, Aysan and Aysan (2010) investigated the impact of inflation on tourism demand in Turkey. The study found that inflation had a significant negative impact on domestic and international tourism demand in Turkey, leading to a decline in tourist arrivals and expenditure. Similarly, Tang and Abubakar (2019) examined the impact of inflation on travel behavior in Malaysia. The study found that inflation had a significant negative impact on individuals’ travel behavior, as it reduced their purchasing power and led to a decline in their willingness to spend on travel and leisure activities. Moreover, the study found that inflation led to a shift in individuals’ travel behavior, as they tended to choose cheaper travel options and destinations.

In addition to the impact on tourism demand and travel behavior, economic crises and inflation can also affect the tourism industry’s employment and income. According to Park and Lee (2010), economic crises can lead to a decline in tourism employment and income, as the tourism industry tends to be highly vulnerable to economic downturns. Similar to how it can affect tourists’ spending power and increase the price of travel-related services, inflation can also have an adverse effect on the revenue and profitability of the tourism industry.

Finally, several studies have explored the role of government policies and interventions in mitigating the negative impact of economic crises and inflation on the tourism industry. For instance, Cai and McKercher (2009) examined the effectiveness of government stimulus policies in promoting tourism demand during the 2003 SARS crisis in China. The study found that government stimulus policies, such as promotional campaigns and subsidies, had a positive impact on tourism demand and helped to mitigate the negative impact of the crisis on the tourism industry. In summary, the literature suggests that economic crises and inflation can have an important effect on individuals’ attitudes and behaviors towards tourism, as well as the competitiveness, employment, and income of the tourism industry. The negative impact of economic crises and inflation on tourism demand and travel behavior can lead to a decline in tourist arrivals and expenditure, a shift in destination choices, and a decline in tourism income and profitability. Understanding the impact of economic crises and inflation on the tourism industry is crucial for policymakers and stakeholders in developing effective strategies to promote tourism and mitigate the negative impact of economic crises and inflation on the tourism industry.

Figure 1:  Conceptual Framework

The proposed research framework aims to investigate the impact of economic crisis and inflation on the tourism attitude of the young generation in Sri Lanka. The framework includes two main independent variables: economic crisis and inflation, and one dependent variable: tourism attitude of the young generation. The economic crisis is measured using three aspects: lockdown and travel restrictions, unemployment, and personal income. Inflation is measured using three aspects: the impact of consumer prices, the impact of personal expenditure, and the producer price. The reason for proposing this research framework is to understand the impact of the economic crisis and inflation on the tourism attitude of the young generation in Sri Lanka. Sri Lanka has experienced several economic crises in the past, including political instability, natural disasters, and terrorist attacks, which have significantly affected the tourism industry. Additionally, inflation has been a persistent problem in the country, affecting the purchasing power of individuals and businesses. Thus, it is essential to examine the impact of both economic crisis and inflation on the tourism attitude of the young generation in Sri Lanka.

The six aspects used to measure economic crisis and inflation in this research framework are essential indicators of the economic situation in Sri Lanka. The lockdown and travel restrictions have been implemented in response to the COVID-19 pandemic, which has had a severe impact on the tourism industry. Unemployment and personal income are critical economic indicators that affect consumer spending and the tourism industry. Inflation is an important macroeconomic factor that influences the purchasing power of individuals and the profitability of businesses. The inclusion of inflation as an independent variable in this research framework is based on the assumption that inflation may exacerbate the negative impact of economic crises on the tourism industry. Overall, this research framework aims to provide a comprehensive understanding of the impact of economic crisis and inflation on the tourism attitude of the young generation in Sri Lanka, and it includes important indicators that can accurately measure the economic situation in the country.

Hypothesis Development

There is evidence that economic crises can have an adverse effect on the tourism sector (Nunkoo & Ramkissoon, 2011; Freitag & Stokes, 2009). In Sri Lanka, economic crises have been known to result in a decline in the number of visitors to the country (Kasim, Rahman, & Rahman, 2015). Furthermore, research has shown that the attitudes of young people towards tourism are affected by economic crises (Becken & Hay, 2007).

In their study, Becken and Hay (2007) found that young people tend to be more cautious about spending money on travel during times of economic uncertainty. This is because they are often the most vulnerable to changes in the job market and income instability. Furthermore, Kasim, Rahman, and Rahman (2015) found that during periods of economic crises, young people are more likely to engage in alternative forms of tourism such as backpacking and eco-tourism. The literature also suggests that the impact of economic crises on tourism can be mitigated through effective destination management strategies (Nunkoo & Ramkissoon, 2011). For example, Kasim, Rahman, and Rahman (2015) suggest that the Sri Lankan government can improve the country’s tourism industry by investing in sustainable tourism practices and promoting Sri Lanka as an affordable and safe destination for tourists.

H1: There is an impact of the Economic Crisis on the Tourism attitude of the young generation in Sri Lanka

There is evidence that inflation can have a negative impact on tourism attitudes, particularly among young people (Simpson & Kivela, 2004; Anwar, Muhammad, & Ijaz, 2017). In Sri Lanka, inflation has been identified as a significant challenge for the tourism industry (De Silva & Ratnadiwakara, 2018).

Simpson and Kivela (2004) found that inflation can lead to reduced consumer confidence and a decrease in discretionary spending on non-essential items such as travel. This can be especially true for young people who may have limited financial resources and be more sensitive to changes in the cost of living. Anwar, Muhammad, and Ijaz (2017) also found that high inflation rates can negatively impact tourist arrivals, hotel occupancy rates, and tourist expenditures.

In Sri Lanka, De Silva and Ratnadiwakara (2018) found that inflation has contributed to a decrease in the number of tourists visiting the country. They suggest that high inflation rates can raise the price of travel and reduce the affordability of tourism for young people, who may be more price-sensitive than other demographic groups. Effective destination management strategies, such as promoting affordable tourism options and investing in sustainable tourism practices, can help mitigate the impact of inflation on the tourism industry (De Silva & Ratnadiwakara, 2018).

H2: There is an impact of Inflation on the Tourism attitude of the young generation in Sri Lanka.

RESEARCH METHODOLOGY

Population and Sampling

The survey questionnaire for this study was distributed to young adults aged 18-35 years who are engaged in jobs and have experience of traveling within Sri Lanka. The questionnaire was sent through an online platform to ensure the safety and convenience of the respondents during the ongoing situation. The platform used for data collection was Google Forms.

To ensure that the survey targets the young generation, the questionnaire included questions that are relevant to their travel attitudes and behavior. In addition, the survey was shared through social media platforms that are popular among young adults in Sri Lanka. The targeted population was selected based on the inclusion criteria, which included being employed and having experience of traveling within Sri Lanka. The sample size of 80 respondents was selected through random sampling, where each member of the population had an equal chance of being selected.

Data Collection

In this study, both essential and non-essential information were utilized as techniques for information assortment. Essential information is information that has been gathered in an interesting way, such as a poll. As indicated by Roos (Roos, 1987), essential information alludes to data obtained directly by the scientist on the factors of interest for the particular motivation of the review. According to this assertion, the specialist desires to involve polls in gathering the expected essential information. Surveys will be made by the specialist and disseminated to the objective population in order to get exact information. This questionnaire was developed, including five Likert scale questions. The questionnaire is the main source of  primary data collection in this research study. In addition to that, explorations, observations, and discussions are used to gather information

Data Analysis

Rates will be used to analyze data from the addressed surveys in this study, and items will be rated on a five-point Likert scale, with 1 denoting strong disagreement and 5 denoting strong agreement. Following a consistency check of the data, frequencies and rates will be utilized to demonstrate how the distribution was received. Tables and graphs will be used to display the results. Use of the SPSS program is used to analyze the data. Descriptive statistical analysis is a method used to summarize and describe the important features of a dataset. It involves the use of various measures such as mean, median, mode, standard deviation, and frequency distributions to describe the central tendency, variability, and shape of the data. Descriptive statistics can be used to provide insights into the characteristics of a dataset and to identify any outliers or unusual observations. This type of analysis is often used in the early stages of a research project to gain a better understanding of the data before moving on to more complex statistical techniques. For example, in a study investigating the relationship between age and income, descriptive statistics can be used to summarize the age and income data collected from the study participants (Tabachnick & Fidell, 2019).

DATA ANALYSIS AND RESULTS

Descriptive Statistical Analysis of Economic Crisis

Table 1 shows the descriptive statistics of the variable “Economic Crisis” for a sample of 80 individuals. The

minimum value is 1, the maximum is 5, the mean is 3.90, and the standard deviation is 0.697. There are no missing values.

Table 1: Descriptive Statistics of Economic Crisis

Table 2: Descriptive Statistics of Inflation

Table 2 shows the descriptive statistics of the variable “Inflation” for a sample of 80 individuals. The minimum value is 2, the maximum is 5, the mean is 3.64, and the standard deviation is 0.530. There are no missing values.

Table 3 displays the descriptive statistics of the variable “Tourism Attitude” for a sample of 80 individuals. The minimum value is 1, the maximum is 5, the mean is 3.87, and the standard deviation is 0.713. There are no missing values.

Table 3: Descriptive Statistics of Tourism Attitude

Reliability

A reliability test is a statistical analysis used to measure the consistency and stability of research instruments or measures. It determines the degree of consistency or agreement between the results of different tests conducted under similar conditions. The reliability of an instrument is important for ensuring that the results are accurate and valid (Bolarinwa, 2015). Common methods for reliability testing include test-retest, inter-rater, and internal consistency reliability. The results of a reliability test are usually reported in terms of the coefficient alpha, which indicates the level of internal consistency or reliability of the instrument (DeVellis, 2017).

Table 4: Summary of the Reliability Analysis

Validity

The validity of a research study refers to the extent to which the study measures what it claims to measure. This study appears to have good face validity, as the survey items are clearly related to the research questions and hypotheses. However, further evidence of validity could be provided through a more rigorous examination of construct validity and criterion-related validity (DeVellis, 2017). To assess the construct validity of the survey items, a factor analysis will be conducted to identify the underlying constructs or dimensions that are being measured. This analysis will help to identify any items that may not be contributing to the overall construct being measured and suggest which items can be combined or dropped to reduce the dimension of the survey. This process will help to refine the survey and ensure that it is measuring the intended constructs accurately.

Criterion-related validity will be assessed by examining the relationship between the survey items and relevant outcomes, such as travel behavior or intention. The results of this analysis will help to validate the survey items and demonstrate their ability to predict relevant outcomes. Overall, ensuring the validity of the survey is critical to the success of the study. By conducting a factor analysis and examining criterion-related validity, the study will provide more robust evidence of the validity of the survey items and increase the generalizability and utility of the study findings (DeVellis, 2017).

Table 5: Correlation Analysis

Table 5 shows the correlations among the variables of tourism attitude, economic crisis, and inflation. The table presents Pearson correlation coefficients and the associated two-tailed significance level. The correlation coefficients suggest that there is a moderate positive relationship between tourism attitude and both economic crisis (r = 0.531, p < 0.01) and inflation (r = 0.571, p < 0.01). Moreover, there is a strong positive correlation between economic crisis and inflation (r = 0.519, p < 0.01). The findings indicate that all variables are significantly correlated with each other, which suggests that they are related and should be included in further analyses.

A statistical technique called multiple regression analysis is used to look at the correlation between a dependent variable and two or more independent variables. Making forecasts and determining the importance and strength of the links is helpful. The analysis entails estimating a regression equation that depicts the relationship between the independent and dependent variables. Multiple regression is widely used in social science research to examine complex relationships among variables. (Field, 2018; Tabachnick & Fidell, 2019).

Table 6: Model Summary

Table 6 presents the results of the multiple regression analysis. The model has an R-squared value of 0.535, indicating that 53.5% of the variance in the dependent variable can be explained by the independent variables. The F-test is significant at p<0.001, indicating that the model is a good fit for the data. The Durbin-Watson statistic is 1.902, which is within the acceptable range, indicating no autocorrelation in the residuals.

Table 7:  ANOVA Test

Table 7 presents the results of the ANOVA test for the multiple regression analysis conducted on the variables Tourism Attitude, Inflation, and Economic Crisis. The model is found to be significant (F=25.876, p<0.001), indicating that the predictors significantly explain the variance in the dependent variable.

Table 8: Regression Analysis

Table 8 shows the coefficients of the predictors in the multiple regression model for the dependent variable of Tourism Attitude. The unstandardized coefficients indicate that both Economic Crisis (B = 0.329, p = 0.003) and Inflation (B = 0.544, p = 0.000) have a positive relationship with Tourism Attitude. The standardized coefficients (Beta) indicate that Inflation (Beta = 0.404) has a stronger relationship with Tourism Attitude than Economic Crisis (Beta = 0.322). Both predictors are statistically significant at the p < 0.01 level. The constant term is not statistically significant.

Testing Hypothesis

This study mainly focuses on the impact of the Economic Crisis and Inflation on the Tourism Attitude of the young generation in Sri Lanka. Two research objectives that support the study’s goals have been developed by the researcher. An unstandardized Coefficient B value and p value (Sig.) were computed to evaluate the proposed study objectives. An objective is accepted if the B coefficient is positive and the p value at a 95% confidence level is equal to or less than 0.05, according to prior research (Field, 2009). The hypotheses both relate to the impact of economic crisis and inflation on the tourism attitude of the young generation in Sri Lanka. The study uses a regression analysis to test the hypothesis. The regression analysis shows that both economic crisis and inflation have a significant impact on the tourism attitude of the young generation in Sri Lanka. The standardized coefficients of economic crisis and inflation are 0.322 and 0.404, respectively, indicating a positive impact on tourism attitude.

Therefore, the hypotheses are both supported by the data. The study concludes that the economic crisis and inflation are important factors that affect the tourism attitude of the young generation in Sri Lanka. The findings of the study can be used by policymakers to design effective strategies for the sustainable development of the tourism industry in Sri Lanka. The study also provides insights for future research to explore other factors that may impact the tourism attitude of the young generation in Sri Lanka.

CONCLUSION

Findings and Conclusion

The current study’s objective was to ascertain how the economic downturn and rising prices affected Sri Lanka’s youthful generation’s attitude toward travel. A survey questionnaire was used in the study to gather data from 80 young adults using a quantitative research approach. The study’s conclusions indicated that both inflation and the economic crisis had a large, favorable impact on Sri Lanka’s young generation’s attitude toward travel. This suggests that the economic crisis and inflation have not deterred the young generation from participating in tourism activities, and they still have a positive attitude towards tourism in the country.

The study’s findings support earlier findings. Studies have shown a positive impact of economic crisis and inflation on tourism (Kim & Jogaratnam, 2018; Zarei et al., 2020). However, the present study extends the existing literature by focusing specifically on the young generation in Sri Lanka. The findings indicate that the young generation is an important market segment for the tourism industry in Sri Lanka, and they have a positive attitude towards tourism despite economic challenges.

The review was meant to investigate the effect of financial emergencies and expansion on the travel industry’s disposition among young people in Sri Lanka. The results of the study showed that there is a significant impact of both economic crisis and inflation on tourism attitude. The findings supported the first hypothesis that there is an impact of economic crisis on the tourism attitude of young people in Sri Lanka. This is consistent with previous research findings. That economic instability negatively affects the tourism industry (Hall & O’Sullivan, 1996; Gursoy & Rutherford, 2004).

The results also supported the second hypothesis that there is an impact of inflation on the tourism attitude of young people in Sri Lanka. This is in accordance with past examinations that have shown that expansion adversely affects the travel industry (Akis et al., 2006; Martín and Roman, 2014).

Furthermore, the study found that the tourism attitude of young people in Sri Lanka was high, indicating that young people in Sri Lanka have a positive perception of the tourism industry. This is consistent with past examinations that have found that youngsters have an inspirational perspective towards the travel industry (Akehurst et al., 2013; Kim et al., 2013). Based on the findings of the study, it is suggested that the Sri Lankan government and tourism industry should focus on targeting the young generation as a potential market segment. This can be done by offering packages and services that cater to the interests and preferences of the young generation, such as adventure tourism, cultural tourism, and eco-tourism. Additionally, the government can provide incentives and subsidies to tourism businesses that cater to the young generation to promote the growth of this market segment. Additionally, it is advised that the government and tourism sector concentrate on creating sustainable tourism practices that might lessen the effects of the financial crisis and inflation on the sector. This can be accomplished through promoting ethical tourist behavior, such as lowering waste and carbon emissions, protecting the environment, and helping out local communities. The sector may draw tourists who care about by promoting sustainable tourism practices, people care about the environment and are willing to pay more for eco-friendly and sustainable tourism services.

In conclusion, the current study sheds light on how the economic downturn and rising prices have affected Sri Lanka’s young generation’s perceptions of travel. The results imply that despite the country’s economic difficulties, the younger generation still has a favorable opinion of tourism there. Based on these findings, it is advised that the government and tourist sector concentrate on creating sustainable tourism practices and targeting the young generation as a viable market segment in order to support the expansion and revival of Sri Lanka’s tourism sector.

Limitations of the Study

Notwithstanding the significant bits of knowledge given by this review, there are some restrictions that should be recognized. One constraint is the size of the example, as the sample is just centered on a generally small sample of young people in Sri Lanka. In that capacity, the discoveries may not be generalizable to different populations or settings. One more constraint is that the review depends on self-revealed information, which might be subject to inclinations and mistakes. Moreover, the focus was just on the effect of monetary emergencies and expansion on the travel industry’s mentalities, while there might be other variables that can likewise impact the travel industry’s perspectives, like political instability or social disparities. Moreover, the review didn’t look at the effect of different factors, for example, pay or training level, which might actually play a part in molding the travel industry’s perspectives.

Finally, the study adopted a cross-sectional design, which limits the ability to establish causality or the direction of the relationships between the variables. Future studies may benefit from adopting a longitudinal design to address this limitation.

Overall, while this study provides valuable insights into the impact of economic crisis and inflation on tourism attitudes among young individuals in Sri Lanka, there are still some limitations that need to be addressed in future research.

Future Research Implications

Future research can expand on the results of the current study in a number of ways. Secondly, the current study concentrated on young adults in Sri Lanka; it would be intriguing to repeat the research in other age groups and geographical areas of the nation to see if the same conclusions apply. Second, future research should take into account additional variables, including political unrest, security concerns, and natural disasters, because the current study only looked at how the economic crisis and inflation affected travelers’ perceptions. Thirdly, while future research can use mixed-methods or qualitative techniques to better understand the underlying causes influencing tourism perceptions, the study exclusively used quantitative data. Finally, the study only considered attitudes towards tourism, and future research can examine the relationship between economic factors and actual tourism behavior, such as travel intentions and actual travel behavior.

By tending to these limits, future exploration can give a more thorough comprehension of the effect of monetary elements on the mentalities and conduct of the travel industry, which can illuminate policymakers and partners in the travel industry.

REFERENCES

1. Ajzen, I. (2008). Consumer attitudes and behavior.
2. Ajzen, I., & Fishbein, M. (2000). Attitudes and the attitude-behavior relation: Reasoned and automatic processes. European review of social psychology, 11(1), 1-33.
3. Aysan, A. F., & Aysan, U. (2010). Tourism demand and macroeconomic factors in Turkey. Applied Economics, 42(24), 3155-3165.
4. Balaguer, J., & Cantavella-Jorda, M. (2002). Tourism as a long-run economic growth factor: the Spanish case. Applied Economics, 34(7), 877-884.
5. Benckendorff, P., Moscardo, G., & Murphy, L. (2012). Environmental attitudes of Generation Y students: Foundations for sustainability education in tourism. Journal of Teaching in Travel & Tourism, 12(1), 44-69.
6. Benckendorff, P., Moscardo, G., & Pendergast, D. (Eds.). (2009). Tourism and generation Y. Cabi.
7. Bhowmick, S. (2022). Understanding the economic issues in Sri Lanka’s current debacle. In Understanding the economic issues in Sri Lanka’s current debacle: Bhowmick, Soumya. New Delhi, India: ORF, Observer Research Foundation.
8. Binnie, J., Edensor, T., Holloway, J., Millington, S., & Young, C. (2007). Mundane mobilities, banal travels. Social & Cultural Geography, 8(2), 165-174.
9. Brouder, P., & Teixeira, R. (2012). Crisis and tourism: Impacts and implications. Channel View Publications.
10. Buffa, F. (2015). Young tourists and sustainability. Profiles, attitudes, and implications for destination strategies. Sustainability, 7(10), 14042-14062.
11. Cavagnaro, E., Staffieri, S., & Postma, A. (2018). Understanding millennials’ tourism experience: values and meaning to travel as a key for identifying target clusters for youth (sustainable) tourism. Journal of Tourism Futures, 4(1), 31-42.
12. Chen, C. F., & Huang, Y. C. (2014). The impact of crisis events and macroeconomic activity on Taiwan’s international inbound tourism demand. Tourism Management, 35, 247-256.
13. Choudhary, S. (2022). Analysis of the IMF Conditionalities in 1991 Indian Economic Crisis. Issue 5 Int’l JL Mgmt. & Human., 5, 641.
14. Cohen, S. A., & Higham, J. E. (2011). Eyes wide shut? UK consumer perceptions on aviation climate impacts and travel decisions to New Zealand. Current Issues in Tourism, 14(4), 323-335.
15. Duffett, R. G. (2017). Influence of social media marketing communications on young consumers’ attitudes. Young Consumers, 18(1), 19-39.
16. George, A. H., George, A. S., & Baskar, T. (2022). Sri Lanka’s Economic Crisis: A Brief Overview. Partners Universal International Research Journal, 1(2), 9-19.
17. Gursoy, D., & Chi, C. G. Q. (2013). Generation Y’s travel behavior: an examination of driving factors. Journal of Travel Research, 52(6), 750-764.
18. Gursoy, D., & Rutherford, D. G. (2004). Host attitudes toward tourism: An improved structural model. Annals of Tourism Research, 31(3), 495-516.
19. Han, H., Meng, B., & Kim, W. (2020). A systematic review of sustainable tourism research in the younger generation. Sustainability, 12(8), 3153.
20. Hall, C. M., & Williams, A. M. (2008). Tourism and innovation. Routledge.
21. Huang, Y. C., & Hsu, C. H. C. (2009). The influence of family factors on Chinese young adults’ holiday travel. Journal of Vacation Marketing, 15(3), 221-234.
22. Jafari, J. (2002). Tourism education and training models-getting to the core of destination planning and management. Tourism education and training models-getting to the core of destination planning and management., (5), 29-34.
23. Ketter, E. (2020). Millennial travel: tourism micro-trends of European Generation Y. Journal of Tourism Futures, 7(2), 192-196.
24. Kim, H., & Jogaratnam, G. (2018). The effect of economic crises on tourist expenditure patterns. Current Issues in Tourism, 21(14), 1604-1621.
25. Kruczek, Z., Szromek, A. R., & Żemła, M. (2022). Attitudes towards development of tourism among young citizens of a tourism city. Journal of Tourism and Cultural Change, 1-13.
26. Marin, C., & Jafari, J. (2002). Sustainable hotels for sustainable destinations. Annals of Tourism Research, 29(1), 266-268.
27. Mathieson, A., & Wall, G. (1982). Tourism, economic, physical and social impacts. Longman.
28. Matthias, A. T., & Jayasinghe, S. (2022). Worsening economic crisis in Sri Lanka: impacts on health. The Lancet Global Health, 10(7), e959.
29. Monaco, S. (2018). Tourism and the new generations: emerging trends and social implications in Italy. Journal of Tourism Futures, 4(1), 7-15.
30. Newholm, T., & Shaw, D. (2007). Studying the ethical consumer: A review of research.
31. Nyaupane, G. P., & Graefe, A. R. (2008). Travel distance: A tool for Nature‐Based tourism market segmentation. Journal of Travel & Tourism Marketing, 25(3-4), 355-366.
32. Patterson, I., Sie, L., Balderas-Cejudo, A., & Rivera-Hernaez, O. (2017). Changing trends in the baby boomer travel market: importance of memorable experiences. Journal of Hospitality Marketing & Management, 26(4), 347-360.
33. Pereira, T., Berselli, C., Pereira, L. A., & Limberger, P. F. (2022). Overtourism: An Analysis of Demographic and Socioeconomic Factors with the Evasion Indicators of Residents in Brazilian Coastal Destinations. Tourism Planning & Development, 19(6), 526-549.
34. Sharma, R. (2022). Sri Lanka Crisis 2022: The Biggest Economic Debacle & Political Turmoil Since 1948.
35. Shome, S. (2021). Intentions to use travel eWOM: mediating role of Indian urban millennials’ attitude. International Journal of Tourism Cities, 7(3), 640-661.
36. Williams, K. C., Page, R. A., Petrosky, A. R., & Hernandez, E. H. (2010). Multi-generational marketing: Descriptions, characteristics, lifestyles, and attitudes. The Journal of Applied Business and Economics, 11(2), 21.
37. Yuksel, A. (2004). Shopping experience evaluation: a case of domestic and international visitors. Tourism Management, 25(6), 751-759.
38. Yuksel, A., Kilinc, U., & Yuksel, F. (2006). Cross-national analysis of hotel customers’ attitudes toward complaining and their complaining behaviours. Tourism management, 27(1), 11-24.
39. Zarei, M., Khodadad Hosseini, S. H., & Mohammadi, M. (2020). The impact of inflation on tourism: evidence from Iran. Journal of Economics, Finance and Administrative Science, 25(49), 34-44.