The role of local economic development in reducing poverty alleviation: Tourism development activity

Abstract

This study aims to examine the influence of tourism entrepreneurial activity, sustainable tourism development, tourism based on local wisdom, local economic development, and tourism resources/cultural resources on poverty alleviation. In addition, this study also examines the mediating and moderating variables of local economic development and cultural resources, respectively. Questionnaires were distributed online to 110 communities in Bali, Indonesia. Furthermore, the data were analyzed using Partial least squares (PLS). Based on local wisdom, local economic development, and tourism resources, the research findings demonstrate that tourism directly influences poverty alleviation. However, tourism entrepreneurial activity and sustainable tourism development do not affect poverty alleviation. Meanwhile, the relationship between tourism entrepreneurial activity, sustainable tourism development, tourism based on local wisdom, and local economic development is positive and significant. While the moderating variable proved negative in the relationship between the variables, the mediating variable showed the opposite result. This study can theoretically contribute to several factors that can be determinants of poverty alleviation, especially related to the development of tourism based on local wisdom, local economic development, and tourism resources or cultural resources.