Utilizing Artificial Intelligence (AI) in the Tourism Industry: Enhancing Traveler Experience and Local Economies

Abstract

Local economic development is a participatory process that encourages partnerships between the private sector, communities and stakeholders in a particular area to undertake joint development by utilizing local resources to create jobs and stimulate economic activity. The tourism sector is one of the drivers of the local economy. The existence of rural tourism is very influential on the sustainability of livelihood community households as a means of survival. In reality, rural tourism has not been well developed in Indonesia and foreign tourists' perceptions of tourist destinations in Indonesia are still focused on Bali. For this reason, it is necessary to utilize Artificial Intelligence in digital tourism marketing to develop the local economy. This research uses the literature review method using 998 papers that are relevant to the topic and published during the period 2014 to 2024. The result of this study is the utilization of Artificial Intelligence (AI) in local economic development through the tourism industry has a positive impact. The findings show that the use of AI can increase memorable traveler experiences and be able to improve the welfare of communities around tourist destinations due to the high interest of returning tourists.

Keywords: Artificial Intelligence; Tourism; Traveler Experience; Local Economics