ANALYSIS OF THE ECONOMIC IMPACT OF TOURISM ON THE LOCAL ECONOMY AND COMMUNITY WELFARE

Abstract

This study aims to analyze the economic impact of tourism on the local economy and community welfare in tourist destinations in Indonesia. Using a qualitative method with a case study approach, data were collected through in-depth interviews, participatory observations, and documentation. The results of the study show that tourism has a significant positive impact, including increasing people's income, job creation, and infrastructure development. However, tourism also brings negative impacts such as rising prices of local goods and services and excessive dependence on the tourism sector, which makes the local economy vulnerable to global fluctuations. To maximize the benefits and mitigate the negative impacts of tourism, a comprehensive management strategy is recommended, including diversification of the local economy, price regulation, and inclusive infrastructure development. This research provides important insights for stakeholders to formulate more effective and sustainable tourism policies.