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Purpose

Cross-cultural differences must be taken into consideration for tourism development. The purpose of this study is to shed light on the importance of cross-cultural differences in a location which is emerging from a dark period after a prolonged war caused by ethnic differences.

Design/methodology/approach

While the existing tourism models deal with the impact of cross-cultural differences, it is difficult to apply them in certain situations, such as postwar Sri Lanka. The study therefore adopted an inductive, qualitative approach where information has been obtained from all stakeholders.

Findings

The conflict in Sri Lanka in the North and East has been interpreted differently by many individual stakeholder groups. This study reveals how economic development can bring communities together. The project elaborated in this study represents an investment of over US$6m. Given that the location of Jaffna was a focal point of the 26-year long civil war from 1983 to 2009, the risk of failure would have been extremely high.

Originality/value

The study ascertained qualitative perceptions from a cross-section of perspectives: the investor, local residents and employees. The project is shown to be a viable example of how to address socio cultural differences in the creation of a profitable venture.

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