Impact of Tourism on Poverty Reduction: Strategies to Achieve Sustainable Development Goals Through Local Community Participation

Abstract

Objective: This article aims to examine the impact of the existence of tourist destinations on the welfare of households living around tourist locations in an effort to achieve the Sustainable Development Goals category ‘No Poverty (SDGS 1)’. Method: The data used is the results of the 2021 National Socioeconomic Survey (SUSENAS). The selected respondents are households in Sumenep Regency, Madura, Indonesia. The data analysis method used is Propensity Score Matching (PSM) to avoid bias. Of the approximately 3,000 selected respondents, 101 were identified as tourist respondents and 310 non-tourist households Results and Discussion: The results of different tests on expenditure variables and income per capita show that households in tourist areas are not more prosperous than other households with similar characteristics. It can be concluded that the existence of tourist destinations has not made a positive contribution to the welfare of the community around tourist destinations. Research Implications: This study has important implications. First, the development of a sustainable tourism sector has an impact on poverty reduction. Second, the significant impact of poverty reduction can improve the welfare of society in general. Originality/Value: The originality of this research is that the use of the propensity score matching method in tourism analysis is still limited. This is an initial research that uses the PSM method to analyze the impact of tourism on poverty.