Sustainable Development as a Strategy for Enhancing Competitiveness in Tourism Business in Indonesia

Abstract

The growth of tourism in Indonesia has demonstrated significant progress; however, Indonesia's competitive position in the tourism sector remains below that of Singapore, Malaysia, and Thailand. Empirical studies have revealed a crucial fact: the existence of shifting demands in tourism and the emergence of green tourism. The objective of this research is to formulate a strategy for the development of the tourism industry in Indonesia, aimed at achieving competitive advantage. This study adopts a quantitative approach. Primary data were gathered through the use of questionnaires and interviews, and data analysis was conducted using the Analytical Hierarchy Process (AHP). The research findings indicate that the strategy deemed most essential and viable for achieving Green Competitive Advantage (GCA) within the Hospitality Industry is fostering, enhancing literacy/understanding, and raising GCA awareness among all hotel management personnel. This strategy aims to bolster the commitment and involvement of hotel management in implementing environmentally friendly and sustainable business practices. The most pivotal factors in attaining GCA within the hospitality industry companies are Dynamic Managerial Capabilities, followed by government policies, innovation capabilities, and environmental capabilities. The primary actors contributing to the realization of GCA are the government, community, company leader, and associations.