Abstract This article contributes to the continuing discussion about the community-based tradition of sustainability in small tourism enterprises. An analysis is made of cultural homestay enterprises at a UNESCO World Heritage town in Kiangan, Ifugao as it examines the standardized nature and the effect of the regionalized homestay identity of the Association of Southeast Asian Nations (ASEAN). The findings revealed that regional organizations in the ASEAN have focused on improving their competitiveness by marketing homestay tourism product globally. Homestay operations in the region which are holistic in strategy are the 'hard' factors that monitor and systematize the process, while closely related factors arising from culture are said to be the 'soft' elements. The subsequent overlap of the two affect the local enterprises as a whole and consequently promote further homestay tourism. An important implication from these findings are the three foundation variables of cultural tradition and heritage, cultural identity and infrastructure ventilation that is specific to the Philippines. The stronger, embedded and authentic these foundation variables are, the more successful and profitable these small tourism firms will be as this equates to tourist arrivals.
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