Hashfian Ardhana, Gunawan Prayitno, A.R. Rohman Taufiq Hidayat, Masamitsu Onishi, Christopher L. Atkinson
Rural tourism is highly dependent on local communities as well as natural and built environments. While tourism’s impact is widely studied, there remains a research gap in how the five livelihood assets interact collectively as a holistic system to influence community wellbeing, particularly in award-winning tourism villages. This study bridges this theoretical fragmentation by integrating the Sustainable Livelihood Framework with the subjective wellbeing construct to examine how these five types of capital (physical, financial, natural, social, and human) affect community flourishing. The research was conducted in Ketapanrame Village, which was awarded the title of Best Tourism Village in 2023 by the Ministry of Tourism of Indonesia. This study employs a quantitative approach using Structural Equation Modeling–Partial Least Squares (SEM-PLS) analysis to assess the condition of livelihood assets and their influence on community well-being. The findings reveal that tourism development in Ketapanrame Village significantly reshapes livelihood assets, where financial and social capital emerge as the primary predictors of life satisfaction and emotional wellbeing, with R-square values reaching 0.752 and 0.840 respectively. This suggests that the management of institutional trust and inclusive financial systems is more critical for community well-being in service-based tourism models than traditional natural resource extraction. ©2026 The authors.
Urban and Regional Planning Department, Faculty of Engineering, Universitas Brawijaya, Malang, 65145, Indonesia; Urban Management Department, Graduate School of Engineering, Kyoto University, Kyoto, 606-8501, Japan; Department of Administration and, Law - Public Administration Program, University of West Florida, West Florida, 32514, United States
