Tourism and Economic Justice: Evaluating the Distribution of Economic Benefits from Tourism in Indonesia’s Remote Regions

Abstract

Tourism has become a major contributor to Indonesia’s economic development, yet the distribution of its economic benefits remains uneven, particularly in rural and marginalized regions. This paper critically evaluates how tourism revenue is distributed across Indonesia, with a focus on remote areas like East Nusa Tenggara, West Papua, and the Lesser Sunda Islands. The study investigates the economic structures that shape the flow of tourism income, including the role of local businesses, government policies, and global tourism operators. Using a mixed-methods approach, the paper analyzes income disparities between urban and rural areas, examining whether the economic opportunities created by tourism are equitably shared by local communities. The paper highlights the barriers that prevent marginalized populations from benefiting from tourism, such as limited access to capital, inadequate infrastructure, and the dominance of external actors in tourism operations. In conclusion, the paper offers policy recommendations aimed at ensuring more equitable economic outcomes, such as promoting local entrepreneurship, strengthening community-based tourism, and implementing fair trade tourism practices.