Sustainable Livelihood for Tourism: Moderating Role of Institutional Arrangements

Prihartini Budi Astuti, Suliyanto Suliyanto, Abdul Aziz Ahmad


The contribution of the tourism sector which can increase people's income, business opportunities, employment opportunities and reduce poverty has led to the emergence of a new approach to poverty reduction, namely sustainable livelihood for tourism (SLFT). The key players in the tourism sector are businessmen, society/community, government, media, and academia. The Ministry of Tourism usually refers to these key players as the penta-helix because they need each other and must collaborate and work together in supporting tourism development in destinations. Applying the sustainable livelihood framework for tourism, this study aims to analyze the effect of livelihood assets on livelihood outcomes moderated by institutional arrangements at the Pantai Menganti tourist destination using the Structural Equation Modelling-Partial Least Square analysis method. The results of the analysis show that human capital, economic capital, and institutional capital have a positive effect on livelihood outcomes, while institutional arrangements moderate the effect of economic capital on livelihood outcomes. From the results of this analysis, it can be concluded that the existence of Menganti Beach can become a source of sustainable livelihood for the surrounding community.

Keywords: human capital, natural capital; social capital; economic capital; institutional capital; institutional arrangements; livelihood outcomes

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