Devadas, U.M., Jayasooriya S. S. W
Home stay tourism is popular, specially, in the ASEAN region, and Sri Lanka is also benefiting a lot from this industry. In the literature, the importance given to homestay tourism is skeletal within the study context of Sri Lanka. On this premise, the researchers intended to: explore the nature of homestay entrepreneurs, factors affecting the homestay entrepreneurs’ success, and the current challenges, faced by the homestay entrepreneurs that are affecting the continuation of homestay businesses in the southern coastal area in Sri Lanka. Researchers designed this study as a qualitative grounded theory study, valuing constructionist research paradigm. Researchers defined homestay entrepreneurs after identifying their nature and a set of personal and impersonal factor that have been critical in determining homestay entrepreneurs’ success. The researchers further identified a set of challenges in the areas of government involvement, financial challenges, human resource development, destination development and competition. The researchers concluded the study by defining homestay entrepreneurs and developing a conceptual framework that explain the phenomenon of home stay tourism entrepreneurs’ success that can be used for educational and policy making purposes. Researchers identified a set of implications and recommendations in the development of entrepreneurs, homestay business process and its context, and collaborations.