How Sri Lankan tourism SMEs can achieve long-term survival

Wednesday, 11 February 2026 00:14 -     - {{hitsCtrl.values.hits}}

 


 

  • Landmark study now on to ascertain why innovation alone isn’t enough

 

Sri Lanka’s tourism sector is largely sustained by small and medium enterprises (SMEs), including boutique hotels, guesthouses, tour operators, travel agents, and tourism service providers. Over the past decade, these businesses have endured repeated disruptions, from global travel shutdowns to economic instability and climate-related events. Yet, many SMEs have kept operating, adapted, and endure.

This raises a key question: what allows some tourism SMEs to endure over the long haul while others find it tough, even when both innovate?

Emerging research indicates that innovation alone is insufficient.

Rethinking Sustainability in SMEs

In everyday business conversations, sustainability is often linked to environmental actions or corporate responsibility. However, for tourism SMEs, especially in emerging economies, sustainability is better seen as ensuring long-term survival and continuity. Survival, therefore, is not a one-time achievement but an ongoing process.

The key question remains: why do some SMEs survive while others do not?

Tourism SMEs in Sri Lanka are often owner-managed, resource-constrained, and highly exposed to external factors. In such contexts, do businesses that survive:

  • Have the most novel ideas?
  • Respond more effectively to unexpected disruptions?
  • Implement innovations that are timely and relevant rather than reactive?
  • Recover more quickly after periods of decline?
  • Balance short-term operational decisions with long-term business continuity?

The answers to the above questions will provide the foundation for practical insights for SME tourism operators. 

How can you contribute to this study at this crucial juncture in Sri Lanka’s tourism industry?

Tourism SME owners, managers, and operators are invited to take part in this research by completing a brief, confidential survey that explores how businesses adapt, innovate, and develop long-term survival strategies in changing environments. Sharing your experiences and insights will help generate practical understanding of the challenges faced by Sri Lankan tourism SMEs. Your involvement will improve knowledge of what supports firms to sustain operations over time and contribute to evidence-based insights for practitioners, policymakers, and researchers in the tourism sector.

If you are interested in participating or would like further information about the study, please contact [email protected].

(The authori is a PhD candidate researching Sustainable Dynamic Capabilities and their impact on innovation, resilience, and long-term survival of SMEs, with a particular focus on Sri Lanka’s tourism sector.)

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