2012 Cambridge Business & Economics Conference
ISBN : 9780974211428
ENHANCING AVIATION SERVICES FOR TOURISM DEVELOPMENT IN
SRI LANKA
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
1
Pradeep Randiwela is a Senior Lecturer, in Marketing, former Dean - Faculty of Management and Finance,
University of Colombo. Winner of the Best Professor of Marketing - CMO Asia, Best Be School
Award 2010.
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2012 Cambridge Business & Economics Conference
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 world’s 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
- Technology/ Training &
Developments/ Experts, and, c) Economical - Policies/ Budgetary Resources.
Survey data gathered using a questionnaire supplemented with in-depth interviews as a dominant
research strategy. The major determinant has been analyzed employing Multi-Criteria Analysis
(MCA) and this was supplemented with descriptive statistics to identify the reliability of them in
accordance with the limitations of the selected sample. By comparing the bell-shaped Normal
distribution with the Kurtosis distribution graph of collected data, it was found that the reliability
of Sociological drawbacks are with greatest significance than other two divisions called
Financial and Economical. Hence, for the development of Aviation services in Sri Lankan
context sociological related challenges should be emphasized and addressed with priority.
Key words: Aviation/Airline Services, Tourism Developments, Challenges, Human resources,
Management attitude.
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June 27-28, 2012
Cambridge, UK
2012 Cambridge Business & Economics Conference
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 world’s 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.
Objectives of the Study
The objectives of this study are two folds:
to find out the drawbacks that affect Aviation Services in order to enhance Tourism Industry in
Sri Lanka.
to identify the critical success factors of Aviation Services for Tourism Industry in Sri Lanka.
Design of the Study
It was developed a conceptual framework that reflects the broad study parameters and elaborated
the scope of each parameter. Based on the conceptual framework, and then developed an openended questionnaire mainly for each category of respondents. By collecting the primary and the
secondary data to be synchronized with the conceptual framework of the study, the analyzed to
be implemented by selecting a proper methods according to the scenario 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 -
Environmental Impacts/Human Resources Management/Attitudes, b) Financial
Technology/ Training & Developments/ Experts, c) Economical
-
-
Policies/ Budgetary
Resources.
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2012 Cambridge Business & Economics Conference
ISBN : 9780974211428
Figure 1: Conceptual Framework
Technology
HRM
Attitudes
Experts
Aviation Services
Developments
Environmental
Impacts
Policies
Training &
Development
s
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.
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2012 Cambridge Business & Economics Conference
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,
a
“negative”
score
might
be
assigned
if
the
impact
is
negative/undesirable/poor compared to the base case; a score of ‘0’ represents no impact, and a
“positive” score represents a positive/desirable/good impact. For the purpose of this analysis, a
scoring system of -4 to +4 has been used to measure the impact of aviation developments.
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2012 Cambridge Business & Economics Conference
ISBN : 9780974211428
Table 1: Scoring Scale for Assessment of Options
Score
Explanation
+4
Very much better
+3
Much better
+2
Moderately better
+1
A little better
0
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
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June 27-28, 2012
Cambridge, UK
2012 Cambridge Business & Economics Conference
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.
Findings related to Environment:
Aviation services directly interconnection with the travel and tourism sector. The natural
environment is an important resource for tourism. With increasing urbanization destinations in
both industrialized and developing areas in Sri Lanka are being threatened.
Seaplane plan project, which is part of a program for the development of tourism in Sri Lanka,
puts at risk the livelihood of the families of the villages around the Negombo lagoon, not taking
into account the severe environmental impact that it would cause.
Barbed wire now surrounds beaches and military patrol hotel and resort building sites. A new
mega project designed to boost the national economy could damage the local ecosystem and
harm the life of local communities.
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June 27-28, 2012
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2012 Cambridge Business & Economics Conference
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.
Findings related to Budget:
To improve Military airbases in to Domestic airports, the military bases adjoining to the airport
to be shifted away from the perimeter it costs millions.
MilitaryAirbases:Ampara/Anuradhapura/Batticaloa/Kankasanturei/Katukurunda/Koggala/Minn
eriya/Sigiriya/China bay
To expand the Colombo City Airport at Ratmalana as a Domestic Airport, additional land
acquiring is very difficult due to the highly congested general public in urbanized area as well
the compensation have to be implemented for each and every families. It costs millions.
To upgrade the Runway of Bandaranaike International Airport is utmost need. It has been used
nearly twenty (20) years without any major repairs. Hence the Runway path gradually increased
up to the major level of repair due to having only one International Runway in Sri Lanka.
Finding related to Policies:
National policies are dynamically changing with effect to the government changing. Hence the
started policies may vary and cease by the next government rather than continuing for the
betterment of the country.
Parking Charges/Bay charges to be updated for the flights in parallel with other countries in the
Asian region.
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2012 Cambridge Business & Economics Conference
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.
Finding related to Attitudes:
As a developing country, for implementing development services for the Aviation Industry are
related to the political background attitudes rather than implementing the actual requirements.
To materialize an International Aviation Hub Concept, the International language to be uplifted
intensively even top management to bottom line members in tourism related fields.
Findings related to Technology:
Aeronautical Information System (AIS) should be updated as per International Civil Aviation
Organization (ICAO).Sri Lanka is facing a difficult situation to comply with these requirements
due to high cost involved with the implementations.
Aeronautical Communication system conversion from Aeronautical Fixed Telecommunication
Network (AFTN) to Aeronautical Message Handling System (AMHS) is in Cabinet approving
stage. But it takes much time. During this period also the sophisticated technologies come to the
market. The responsive time period is much late in Sri Lankan context.
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2012 Cambridge Business & Economics Conference
ISBN : 9780974211428
Findings related to Training and Development:
Lack of fixed based training devices like procedure trainers and flight simulators makes it
necessary for trainees to proceed overseas to complete their training which is a drain on foreign
exchange resources of the country.
Non availability of a common well equipped aircraft maintenance organization for the country.
Findings related to Experts:
 Turnover of Trained & Experienced Aircraft maintenance Crew due to salary scale
comparison with regards to global market.
 Turnover of Air Traffic Controllers due to salary scale comparison with regards to global
market.
 Turnover of fire and rescue individuals due to salary scale comparison with regards to
global market
 Brain drain; after experienced with International Airport Services experts have been
migrating to the global market.
Findings related to Human Resources:
 Right persons not in right places/right divisions.
 Authority delegation still not in proper manner.
 Recruiting procedure is highly being affected by external parties.
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.
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June 27-28, 2012
Cambridge, UK
2012 Cambridge Business & Economics Conference
ISBN : 9780974211428
Table 2: Summary of Analyzed Data for Sociological Gauge
Assessment Criteria
Sample
Size
Min.
Max.
Mean
Mode
Sample
Standard
Deviation
Sample
Kurtosis
1
Environmental considerations are being
considered in Aviation improvement
programmes.
20
-4
4
0.25
-2
2.447
2.63
2
Social conflicts are being solved due to
Aviation improvements.
20
-4
4
0.30
3
2.492
3.07
3
Authority delegation
Management
20
-4
4
0.35
1
2.475
2.88
4
Recruiting procedure in Aviation sector
20
-4
4
1.30
1
2.347
2.68
5
Knowledge of International language in
Aviation/Tourism sector personalities
20
-4
4
1.25
3
2.278
2.9
6
Political involvements
process
20
-4
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
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2012 Cambridge Business & Economics Conference
ISBN : 9780974211428
Table 3: Summary of Analyzed Data for Financial Gauge
Assessment Criteria
Sample
Size
Min
Max
Mean
Mode
Sample
Standard
Deviation
Sample
Kurtosis
1
The modern Technology is being used
and updating the staff.
20
-3
4
0.55
1
1.910
2.00
2
The
responsive
Technology.
new
20
-4
4
0.35
-1
2.159
2.07
3
Aviation Training Centers' diversity in
Sri Lanka
20
-4
4
-2.35
-2
2.376
1.81
4
Professional-Training
employees
20
-4
3
0.20
-1
1.711
1.82
5
Turnover of professionals
20
-4
3
8.00
-1
1.921
2.22
6
Brain drain of the employees
20
-4
3
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 Gauge’s 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.
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Table 4:
ISBN : 9780974211428
Summary of Analyzed Data for Economical Gauge
Assessment Criteria
Sample
Min.
Max.
Mean
Mode
Size
Sample
Sample
Standard
Kurtosis
Deviation
1
Changing of National policies due to
20
-4
3
-1.65
-4
2.128
1.02
20
-3
4
0.35
1
2.080
0.94
20
-4
2
-2.35
-3
1.492
0.25
political changing's
2
Updating of Organizational policies
according to the global requirements.
3
Unnecessary
Political
influences
to
policies
4
Domestic Aviation Charges
20
-4
3
0.20
1 or-2
1.965
0.74
5
Military airbases to converted in to
20
-4
4
0.40
1
2.010
0.82
20
-4
4
1.00
2
2.345
1.51
domestic airports
6
National
Budgetary
allocations
for
Aviation developments
Figure 1: Distribution of Kurtosis Values for Sociological Gauge
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
Figure
2: peaked nor
curve,
neither
flat. Hence, areofthe collected
Distributions
data Reliable for the
Kurtosis Values for
Sociological Gauge.
Financial Gauge
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2012 Cambridge Business & Economics Conference
ISBN : 9780974211428
Result
Distribution values through
out the Graph are scattered
and flat shaped; so cannot be
possibility of approximation
to the bell shaped Normal
Distribution.
Platykurtic
distributions
are
more
peaked than the normal bell
curve. Hence; collected data
are Not Reliable for the
Financial Gauge.
Figure 3: Distributions of Kurtosis Values for Economical Gauge
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.
CONCLUSION AND RECOMMENDATIONS
The drawbacks to development of Aviation Services in Sri Lankan context,are skyrocketing due
to the globalization and the mushrooming of the competetors to the modern Aviation/Tourism
market day by day.Hence, it is time to have an analysis on this regard, actualy what kind of
barriers comes to know when palnning for the enhancement of aviation services focusing to the
growing trend of global tourism industry in Sri Lanka.
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2012 Cambridge Business & Economics Conference
ISBN : 9780974211428
The exports of the tourism and aviation services have shown an increasing trend as above
mentioned,the air services to be enhanced due to maintain the so-called supply- demand curve in
the Sri Lankan context.According to the designed Conceptual framework in this study,that has
been catogarised as above mentioned gauges(Sociological/Financial/Economical).After anlysing
those raw data by descriptive statistical method called “Kurtosis Distribution Analysis” it is
found that;

The Reliability on the data related to the Sociological Gauge are higher than other data of
both Financial and Economical gauges.

In the conceptual framework in this study,Environmental impacts during the aviation
developments to be minimized,HRM to be uplifted and Attitudes to be changed in
accordance to this study for the betterment to the country.
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 researcher’s 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.
Limitations of the 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.
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ISBN : 9780974211428

Sample size remains medium.

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.
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.
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2012 Cambridge Business & Economics Conference
Ministry of
Economic
Development
ISBN : 9780974211428
(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
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Srilankan Airlines (2009), Annual Report 2009.Colombo.
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