Agglomeration Strategy towards Rural Resilience: Perspectives of Homestay Tourism Operators in Sri Lanka as a Developing Tourism Economy

Abstract

Rural homestay operators are vital to Sri Lanka's tourism-driven socioeconomic development. However, remain disproportionately vulnerable to economic and environmental shocks due to limited resources, inadequate training, and weak institutional support. This qualitative study examines how agglomeration strategies (AS) can strengthen rural resilience (RR) addressing the limitations and opportunities of homestay operators in the Kandy District. Data was collected from 15 homestay tour operators registered in SLTDA using semi-structured interviews using purposive sampling method and analyzed through content analysis. Findings reveal that collaboration is constrained by relational, resource-based, and regulatory barriers, including communication difficulties, competition arising from inconsistent service standards, lack of a common vision, and complicated licensing procedures. However, significant opportunities emerge through mutual assistance, knowledge sharing, joint packages, and shared marketing and transportation, which enhance networking, reputation, and skill development. The study concludes that cooperative governance frameworks, capacity-building, and integration of homestay networks into regional tourism strategies are essential for transitioning operators from vulnerability to systemic resilience, offering practical implications for policymakers supporting and empower the Sri Lanka's rural tourism MSME sector.