Economic and Health Impacts of Wellness Tourism in Sri Lanka: Evidence from Multi-Region Survey Data

Abstract

Wellness tourism, one of the fastest-growing segments of the global tourism industry, integrates physical, mental, and spiritual well-being through practices such as Ayurveda, Yoga, meditation, and spa therapies. Sri Lanka, with its rich heritage of traditional medicine systems and diverse natural landscapes, offers a unique setting for developing sustainable wellness tourism. Despite its potential, systematic empirical evidence quantifying the economic and health impacts of wellness tourism in Sri Lanka remains limited. This study aims to assess the economic contributions and health outcomes of wellness tourism in Sri Lanka, identify determinants of tourist satisfaction and loyalty, and provide evidence-based recommendations to inform policy and strategic development. A cross-sectional survey was conducted among 145 wellness tourists across six key regions: Kandy, Galle, Bentota, Pasikudah, Sigiriya, and Colombo. A structured questionnaire captured demographic characteristics, economic contributions, wellness activities, health outcomes, and satisfaction levels. Data were analysed using descriptive statistics, cluster analysis, reliability assessment (Cronbach’s α = 0.92), exploratory factor analysis, structural equation modelling (SEM), and mixed-effects modelling to examine regional differences and latent constructs. Respondents reported a mean expenditure of USD 940 with a standard deviation of 215, and a mean length of stay of 4.8 days (between 4 and 7 days) with a standard deviation of 1.1 days, reflecting substantial economic contributions, particularly in the regions of Kandy and Bentota. Health improvements were most pronounced for Ayurveda (M = 4.5, SD = 0.4) and Yoga (M = 4.4, SD = 0.5), both of which demonstrated significant positive correlations with physical and mental well-being (r = 0.65, p < 0.001). SEM further indicated that health impact (β = 0.72, p < 0.001) and economic impact (β = 0.45, p < 0.001) were significant predictors of tourist satisfaction, which, in turn, strongly influenced loyalty (β = 0.60, p < 0.001). Cluster analysis identified three distinct tourist segments, enabling strategic differentiation in marketing and service provision to optimise both economic and health outcomes. Wellness tourism in Sri Lanka generates significant economic value and promotes health benefits, with authentic wellness experiences serving as critical drivers of satisfaction and repeat visitation. Strategic investment in infrastructure, standardisation of service quality, promotion of culturally authentic wellness packages, and active engagement of local communities are essential to sustain sectoral growth and enhance economic and health outcomes.