Professional Documents
Culture Documents
Pradeep Randiwela, Vindana Hewage
Pradeep Randiwela, Vindana Hewage
ISBN : 9780974211428
Pradeep Randiwela1
p_randiwela@yahoo.co.uk
Faculty of Management and Finance
University of Colombo
Sri Lanka
Vindana Hewage
Vindana.fgs@gmail.com
Airport and Aviation Services (Sri Lanka) Ltd
Bandaranaike International Airport
Colombo Sri Lanka
ISBN : 9780974211428
Abstract
The world Tourism industry has emerged as one of the fastest growing single industries in the
world. At present, global tourism industry represents around 11% of the worlds GDP, around 8%
of global employment and around 9% of the global wages. It is also the largest single
employment generator of the world economy today. There is a straight and significant
relationship of Tourism with the Aviation Services in the business arena.
With the new Sri Lankan environment, after ending two decades old civil unrest/war,
opportunities are opened to capitalize on tourism as Sri Lankan destination is unique and salient.
Aviation services play a vital role among other services in the tourism industry throughout the
world. Hence, the main objective of this study is to find out challenges confronted with required
Aviation-Service level to leverage Tourism Industry in Sri Lanka. In this study, eight (08) major
determinants have been identified which are unified with Aviation Services and the Tourism
industry directly. These factors have been constituted into the conceptual framework, and those
factors are analyzed under the three major divisions such as: a) Sociological Impacts/Human Resources Management/Attitudes, b) Financial
Environmental
2| Page
June 27-28, 2012
Cambridge, UK
ISBN : 9780974211428
Introduction
The world Tourism industry has emerged as one of the fastest growing single industries in the
world. At present, global tourism industry represents around 11% of the worlds GDP, around 8%
of global employment and around 9% of the global wages. It is also the largest single
employment generator of the world economy today. There is a straight and significant
relationship of Tourism with the Aviation Services in the business arena.
With the new Sri Lankan environment, after ending two decades old civil unrest/war,
opportunities are opened to capitalize on tourism as Sri Lankan destination is unique and salient.
Aviation services play a vital role among other services in the tourism industry throughout the
world. Hence, the main objective of this study is to find out challenges confronted with required
Aviation-Service level to leverage Tourism Industry in Sri Lanka.
Policies/ Budgetary
Resources.
3| Page
June 27-28, 2012
Cambridge, UK
ISBN : 9780974211428
Technology
HRM
Attitudes
Experts
Aviation Services
Developments
Policies
Training &
Developme
nts
Environmenta
l
Impacts
Budgetary
Resources
Methodology
The study was primarily an interviewing research initiative, including literature and legislative
review and examination of Internet Resources. In the research tears mainly used qualitative
questionnaires to collect information directly; some interviews were conducted in person while
others were completed by telephone. The research steps included:
Development of Conceptual Framework & Questionnaires: the research tears developed a
conceptual framework that reflected the broad study parameters and elaborated the scope of
each parameter. Based on the Conceptual frame work, the tears then developed open-ended
questionnaires for each category of respondents.
4| Page
June 27-28, 2012
Cambridge, UK
ISBN : 9780974211428
Identification of key informants: the study stakeholders have been identified and cauterized
them, and identified potential respondents by stakeholder category in each division:
Sociological, Financial, and Economical.
Data Collection: Key informant interviews were conducted in each division of selected
Aviation Services providers on selected elements of the study. The research personnel
collected data using the questionnaires. Sample was 20 employees (not below the Junior
Executive levels) of Aviation/Tourism related entities. The research personnel collected and
reviewed legislative documents and implementation reports. The research personnel also
searched the Internet and reviewed and analyzed all information it.
Data Analysis: The research personnel analyzed the information it collected from the abovelisted sources; in three divisions and to be identified the most critical factor for the
development of aviation industry in Sri Lankan context.
Multi-Criteria Analysis(MCA): this method has been used to provide an understanding of the
drawbacks which are undertaken when implementing the developments or enhancing the
Aviation industry in Sri Lanka. The MCA incorporates sociological, financial, economic
analysis.
Scoring Criteria: The MCA is based on feedback received from the designed questionnaire
from the selected sample. A qualitative score is assigned, depending on the impact of aviation
developments on each criterion measured relative to the base case.
In
the
questionnaire,
negative
score
might
be
assigned
if
the
impact
is
5| Page
June 27-28, 2012
Cambridge, UK
ISBN : 9780974211428
Explanation
+4
+3
Much better
+2
Moderately better
+1
A little better
No change
-1
A little worse
-2
Moderately worse
-3
-4
Much worse
Very much worse
LITERATURE REVIEW
The review of existing empirical studies is divided in to four catagories.The first set related to the
relationship between tourism and economic growth. Next; empirical studies on the impact of
tourism reform on the export of tourism are outlined featuring the tourism exports nexus. The
third set of empirical studies focus on the aviation-growth relationship. Finally, some previous
analysis related to aviation reforms are noted highlighting the impact of airline privatization and
liberalization.
Many empirical evidences on the relationship between Tourism and Economic Growth have
emerged in the recent period. For; instance Oh, (2005) looks in to the casual relationship between
tourism growth and economic expansion in Korea using Eagle and Granger two-stage approach
and a beverage Vector Auto Regressive (VAR) model.
Chintaram,
Durbarry & Baum, (2004), use co-integration and causality tests on tourism and
economic growth in the case of Mauritius and finds that tourism has promoted growth. He
substantiate with further evidence that tourism had has a significant positive impact on the
economic development of Mauritius. Ongan & Demiroz, (2005), investigate the impact of
international tourism receipts on the long run economic growth for turkey.
The third set of empirical analysis focus on International Air Transport Services and economic
growth. Among the few studies in this area, (Button & Taylor 2000), examine the economic
6| Page
June 27-28, 2012
Cambridge, UK
ISBN : 9780974211428
benefits largely in terms of employment generation that communities in America obtain from
having direct access to international air services.
In another investigation, (Button & Lall, 1999), test the relationship between economic
development (measured by new economy employment) and airline hubs represented by hub
airports that link the international gateways in US.
The final set of empirical studies relates to the Aviation reforms/developments. Micco &
Serebrisky, (2004) assess the effect of change in the competition regime (implementation of a
series of open skies agreement)on air transport prices. Using cross section and panel data for all
countries in the world over the period 1990-2001 they find that an improvement in infrastructure
from the 25th to 75th percentiles reduces air transport costs by 14 percent. They also find that open
skies agreements reduce air transport costs by 8 percent.
FINDINGS AND ANALYSIS
Data gathering is an important area since the effectiveness of the recommendations for
improvement will depend on the analysis collected data. The used in analysis presented in this
report raw data gathered by conducting Interviews mainly and Secondary data has been collected
by using publications& World Wide Web.
ISBN : 9780974211428
The construction of an International Airport at Weerawila has raised environmental conflicts. The
conflict between the preservation of the environment and economic development imperatives has
been at the core of development debates in the last few decades. However the project has been
ceased and move to another place called Mattala in Hambantota district.
Due to Attidiya Birds Sanctuary, it is difficult to expand the Ratmalana airport runway for
landing the modern high capacity aircraft.
8| Page
June 27-28, 2012
Cambridge, UK
ISBN : 9780974211428
Thalangama Signal Receiving Station has been shifted away to the temporary location due to
establishment of Sri Lanka Army who have been moved away from the in front of Colombo
Galle face which were acquired for constructing Hotel Complex by Government.Hence,there is a
growing Technical problems of the required signal strength.
9| Page
June 27-28, 2012
Cambridge, UK
ISBN : 9780974211428
DATA ANALYSIS
Descriptive Statistics are recommended when the objectives are to describe and discuss a
primary/secondary data set more generally and conventionally than would be possible raw data
alone. They are routinely used in this Study which contains a significant amount of qualitative
data. Particularly in this study; collected data have been analyzed to find the sample Variance,
Sample Standard Deviation and the Sample Kurtosis.
10 | P a g e
June 27-28, 2012
Cambridge, UK
ISBN : 9780974211428
Sample
Size
Min.
Max.
Mean
Mode
Sample
Standard
Deviation
Sample
Kurtosis
20
-4
0.25
-2
2.447
2.63
20
-4
0.30
2.492
3.07
Authority delegation
Management
20
-4
0.35
2.475
2.88
20
-4
1.30
2.347
2.68
20
-4
1.25
2.278
2.9
Political involvements
process
20
-4
-1.20
-3
2.482
2.77
in
Aviation
to recruiting
Measures of Dispersion indicates how spread out the collected data around the mean. Measures
of dispersion are especially helpful when the data in accordance with drawback to Aviation
developments for the tourism sector in Sri Lanka as belows.The sample size was 20 in this study.
Working Experience position as to the Questionnaire; Less than 4 Years -02,5 to7 Years -03,8
to 10 Years -07,11 Years & Above-08
11 | P a g e
June 27-28, 2012
Cambridge, UK
ISBN : 9780974211428
Sample
Size
Min
Max
Mean
Mode
Sample
Standard
Deviation
Sample
Kurtosis
20
-3
0.55
1.910
2.00
The
responsive
Technology.
new
20
-4
0.35
-1
2.159
2.07
20
-4
-2.35
-2
2.376
1.81
Professional-Training
employees
20
-4
0.20
-1
1.711
1.82
Turnover of professionals
20
-4
8.00
-1
1.921
2.22
20
-4
1.00
-3
1.652
3.36
time
for
equipments
for
According to the analytical findings using the Descriptive Statistical methods, the sample
Kurtosis vales of each Gauges have been analyzed and graphically defined the concentrated
values reliability and the most critical area have been identified for enhancing Aviation services
for Tourism developments in Sri Lanka.
Measures of Kurtosis: describe how concentrated data are around a single value, usually the
mean. Thus, Kurtosis assesses how peaked or flat is the data distribution. The more peaked or
flat the distribution, the less normally distributed the data, and the less normal the Distribution,
the less Reliable the data. Three degrees of kurtosis are noted: Mesokurtic distributions are,
like the normal bell curve, neither peaked nor flat. Platykurtic distributions are flatter than
the normal bell curve. Leptokurtic distributions are more peaked than the normal bell curve.
Standard Deviation is expressed as the positive square root of the variance, i.e. F for populations
and s for samples. It is the average difference between observed values and the mean. The
standard deviation is used when expressing dispersion in the same units as the original
measurements. It is used more commonly than the variance in expressing the degree to which
data are spread out. According to the method for scoring scale that have been used to the study
not fit to the model. Hence, the taken Standard Deviation analysis has been ceased for this study.
12 | P a g e
June 27-28, 2012
Cambridge, UK
ISBN : 9780974211428
Assessment Criteria
Sample
Min.
Max.
Mean
Mode
Size
1
Sample
Sample
Standard
Kurtosis
20
-4
-1.65
-4
Deviation
2.128
1.02
20
-3
0.35
2.080
0.94
20
-4
-2.35
-3
1.492
0.25
political changing's
2
Updating of
Organizational
policies
Unnecessary
Political
influences
to
policies
4
20
-4
0.20
1 or-2
1.965
0.74
20
-4
0.40
2.010
0.82
20
-4
1.00
2.345
1.51
domestic airports
6
National
Budgetary
allocations
for
Aviation developments
Result
Distribution
values
through out the Graph
approximately
symetrical shaped;can
be approximation to
the bell shaped Normal
distribution.
Mesokurtic
distributions are, like
the normal bell curve,
neither peaked nor
flat. Hence, are the
collected
data
Reliable
for
the
Sociological Gauge.
June 27-28, 2012
Cambridge, UK
Result
Figure 2:values through
Distribution
out
the Graph are
Distributions
of scattered
and flat shaped; so cannot be
Kurtosis Values for
possibility of approximation
Financial
to the bellGauge
shaped Normal
Distribution.
Platykurtic
distributions
are
more
peaked than the normal bell
curve. Hence; collected data
13 | P a g e
are Not Reliable for the
Financial Gauge.
ISBN : 9780974211428
Result
Values throughout the graph
are scattered and little
symmetrical shaped; cannot
be
possibility
of
approximation to the bell
shaped Normal distribution.
Leptokurtic
distributions
are more peaked than the
Normal bell curve. Hence,
collected data are Not
Reliable for the Economical
Gauge.
The Reliability on the data related to the Sociological Gauge are higher than other data of
both Financial and Economical gauges.
ISBN : 9780974211428
Particularly in the Airport and Aviation Services(Sri lanka)Ltd,which is major responsible entity
for the development of Aviation Services inland has been highly analysed through out the study
due to the researchers working place as well more than 75% of sample space,covered by there
managerial personalities for this study.In accordance with the main Objective of the study Find
out the drawbacks to enhance the Aviation Services for Tourism Industry in Sri Lankan Context
is truly predictable through this study some extent due to the under mentioned limitations
throughout the Study. Similarly, for the other minor Objective of the study To identify the
critical success factors of Aviation Services for Tourism Industry in Sri Lanka is also adequately
emerging through this study.
Some of the conclusions are based on the estimates, assumptions, observations and
informal interviews.
This research study was based on the information gathered by interviewing the
top management personalities particularly in Airport and Aviation Services (Sri
Lanka) Ltd and related other Business entities in the Country as well gathered
electronically through different sources as well in Sri Lankan context among the
key informants contacted response rates were generally poor among the
governments and nearly nil from media agencies.
Due to the dynamic surroundings in the airport, the top management personalities were
busy at those interviewing moments.
Recommendations
This study has established that to enhancing the Aviation services in this country, there are lots of
drawbacks to be eliminated within very shorter time frame rather than long term planning due to
the dynamically changing and lots of innovations are being created by the competitors for set up
to the entire market in the aviation and tourism Industry. According to the findings of this study,
the
sociologically
drawbacks
(Environmental/HRM/Attitudes)
should
be
wiped
out.
15 | P a g e
June 27-28, 2012
Cambridge, UK
ISBN : 9780974211428
Environmental impacts are mainly considered whenever the planning stages and implementing
stages also. Sustainability of the country through aviation or tourism is important now days due
to the upward trend of global market. Hence, the sociological conflicts with the local government
to be minimized by the unbiased decisions rather than the burocrastic decisions.
REFERENCES:
Airport & Aviation Services (Sri Lanka) Ltd (2009), Annual Report 2009.Colombo: Copyline
Pvt.Ltd.
Airport & Aviation Services (Sri Lanka) Ltd (2010), Annual Report 2010.Colombo: Copyline
Pvt.Ltd.
Button, K., & Lall, (1999). International air transportation and economic development, Journal
of Air Transport Management, 6(4). Pp.209-222.
Chintaram, G. R., Durbarry, R., & Baum, T. (2004). Sustainable Tourism Development through
Community Based Strategies: The Case of Chamarel, The International Journal of
Environmental, Cultural, Economic and Social Sustainability, 5(6), pp.63-88.
Civil Aviation Authority, Sri Lanka (2009) Corporate Plan 2010-2012.Colombo.
Department of Innovation, Industry &Regional Development (2010) Evaluation of Regional
Aviation Developments.
Micco, A., & Serebrisky, T. (2004). Infrastructure, Competition Regimes, and Air Transport
Costs: Cross-Country Evidence, World Bank Policy Research Working Paper No. 3355.
Retrieved from http://ssrn.com/abstract=610399.
Ministry of Economic Development (2011) Tourism Development Strategy 2011-2016.Colombo.
Ongan & Demiroz, (2005), International Tourism, Higher Education and Economic Growth: The
Case of North Cyprus, Retrieved from http://onlinelibrary.wiley.com/doi/10.1111/j.14679701.2010.01304.x/abstract
Qasenivalu, Mosese (2008)The role & Impact of Services Sector on Economic Growth: Massey
University, New Zealand. search.ebscohost.com.
Sri Lanka Tourism Development Authority (2009) Annual Statistical Report of Sri Lanka
Tourism 2009.Colombo.
Sri Lanka Tourism Development Authority (2010) Annual Statistical Report of Sri Lanka
Tourism 2010.Colombo.
Srilankan Airlines (2009), Annual Report 2009.Colombo.
16 | P a g e
June 27-28, 2012
Cambridge, UK
ISBN : 9780974211428
United States Agency for International Development (2002) A Competitiveness Strategy for Sri
Lankas Tourism Industry. Colombo: Nathan Associates Inc., and J. E. Austin Associates.
Vermulian, Leopold (2009). Exploring the Equivalence of the Aviation Gender, The
International Journal of Aviation
Australia.
17 | P a g e
June 27-28, 2012
Cambridge, UK