Abstrack:
Tourism is one of the largest and fastest growing industries in the world. It is often seen as a key element that can enable communities devastated by economic restructuring to regain and enhance their economic independence in regional and national economies, increasingly important source of income, employment and wealth in many countries. However, its rapid expansion has also had detrimental environmental and socio-cultural impact in many regions. This paper aims to examine the main economic benefits and review the development of the sustainable tourism at Karanganyar Village – Borobudur. Tourism economic benefit is important issue facing many local communities in Developing Countries and make tourism as an economic development strategy, local participation and empowerment especially for indigenous peoples, gender issues, ethical tourism, and cultural change. Questionnaires forms, interviews and direct observations are used to study the local community in the area. The local communities in Indonesia have the most invested in the sustainable tourism development on their culture, and that the success of this is encouraging other native groups. A sustainable development has to focus on the local community development, is not necessarily sustainable themselves, but can be used to empower local communities. Preservation of the local culture and local participation in tourism activities are being combined with the need to earn valuable tourism revenue. This will be achieved by emphasis and working partnership. There is a need to blending good profitable business, to emphasize the need for incorporating socio-cultural and economic considerations as well as to ensure true tourism sustainability in their area. As the government of Indonesia, Ausaid and UNESCO, showed help to Karanganyar Village on developing tourism activity in the area. Many local communities have lack of such opportunity especially in getting donor and other incentives from government and other stakeholders. These posed difficult questions, both for the international tourism industry and domestic who see tourism as a fast track to economic development. The research concludes that, to ensure new approaches to sustainable tourism development in Indonesia, we should not only seek to minimize local environmental impact, but also give greater priority to community participation and poverty reduction. It is important more emphasis should be given to a ‘pro-poor tourism’ market approach at both national and international levels. This paper is expected to provide awareness and brings to the forefront the potential that tourism has to promote new socio-economic opportunities and better livelihoods for local communities in Karanganyar Village while highlighting the critical role that community engagement has in advancing sustainable development.
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