Impact of Agro-Tourism on Socioeconomic Development in Sri Lanka

Agro-tourism has emerged as an effective strategy for promoting sustainable rural development by integrating agricultural activities with tourism experiences. The increasing demand for authentic, nature-based, and experiential tourism has contributed to the rapid growth of the global agritourism industry. According to Fortune Business Insights (2026), the global agritourism market was valued at USD 9.18 billion in 2025 and is projected to reach USD 28.38 billion by 2034. Agro-tourism provides multiple benefits, including income diversification, employment generation, environmental conservation, community empowerment, and regional economic development. Sri Lanka possesses considerable potential for agro-tourism development due to its rich agricultural heritage, diverse agro-ecological environments, cultural traditions, and established tourism sector. Activities such as tea cultivation, spice farming, paddy cultivation, fruit production, and organic farming offer unique opportunities to create authentic tourism experiences. However, despite these advantages, agro-tourism remains underdeveloped and inadequately integrated into national development strategies. This study examines the impact of agro-tourism on socioeconomic development in Sri Lanka, focusing on employment generation, demand for local resources, and infrastructure development. A quantitative research approach was adopted using survey data collected from agro-tourism stakeholders across major agro-tourism regions. Multiple regression analysis was employed to evaluate the relationships between the selected variables and socioeconomic development. The findings indicate that employment generation, demand for local resources, and infrastructure development have significant positive effects on socioeconomic development. Agro-tourism contributes to income enhancement, poverty reduction, rural entrepreneurship, community participation, and regional economic growth. The study concludes that agro-tourism has substantial potential to support rural transformation in Sri Lanka. Strategic policy support, infrastructure development, stakeholder collaboration, and sustainable agricultural practices are recommended to maximize its socioeconomic benefits and promote inclusive rural development.

Agro-tourism, Socioeconomic Development, Employment Generation, Rural Development, Rural Communities

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