Circular Economy Business Model for Sustainable Practices in The Smart Tourism Village

Authors

  • Wahyu Rafdinal Politeknik Negeri Bandung
  • Lusianus Kusdibyo Politeknik Negeri Bandung
  • Chandra Budhi Septyadi Politeknik Negeri Bandung
  • I Gusti Ngurah Dwi Wiryawan Politeknik Negeri Bandung

DOI:

https://doi.org/10.58229/jcsam.v3i1.313

Keywords:

Circular economy business model, smart tourism, village tourism, sustainability

Abstract

This study aims to develop a Circular Economy Business Model (CEBM) based on smart tourism for tourist villages that can be effectively applied in the context of sustainable village tourism. The study adopts a qualitative and exploratory approach, focusing on a single case study of a popular tourist village in Indonesia, recognized in the Best Tourism Village list by UNWTO. Data collection involved a combination of systematic review and interviews. The findings demonstrate that implementing a circular economy business model utilizing smart technology can enhance the competitiveness of tourist villages and drive a sustainable and smart value-creation process. Practically, this study provides insights for managers and administrators of tourist villages in implementing a smart tourism-based business model in managing tourist villages. Socially, this study contributes to raising environmental and social awareness and enhancing the welfare of the local community. This study offers new insights into the application of a smart tourism-based circular economy business model in tourist villages, an area that has been limitedly explored.

References

Amir, S., Dura, N., Yusof, M. A., Nakamura, H., & Abu Nong, R. (2020). Challenges of smart tourism in Malaysia eco-tourism destinations. Planning Malaysia, 18(4), 442–451. https://doi.org/10.21837/pm.v18i14.844

Azis, N., Amin, M., Chan, S., & Aprilia, C. (2020). How smart tourism technologies affect tourist destination loyalty. Journal of Hospitality and Tourism Technology, 11(4), 603–625. https://doi.org/10.1108/JHTT-01-2020-0005

Baloch, Q. B., Shah, S. N., Iqbal, N., Sheeraz, M., Asadullah, M., Mahar, S., & Khan, A. U. (2023). Impact of tourism development upon environmental sustainability: A suggested framework for sustainable ecotourism. Environmental Science and Pollution Research, 30(3), 5917–5930. https://doi.org/10.1007/s11356-022-22496-w

Barna, C., Zbuchea, A., & Stănescu, S. M. (2023). Social economy enterprises contributing to the circular economy and the green transition in Romania. CIRIEC-España, Revista de Economía Pública, Social y Cooperativa, 107, 47. https://doi.org/10.7203/CIRIEC-E.107.21738

Bhuiyan, K. H., Jahan, I., Zayed, N. M., Islam, K. M. A., Suyaiya, S., Tkachenko, O., & Nitsenko, V. (2022). Smart tourism ecosystem: A new dimension toward sustainable value co-creation. Sustainability, 14(22), 15043. https://doi.org/10.3390/su142215043

Cai, G., Hong, Y., Xu, L., Gao, W., Wang, K., & Chi, X. (2020). An Evaluation of Green Ryokans through a Tourism Accommodation Survey and Customer-Satisfaction-Related CASBEE–IPA after COVID-19 Pandemic. Sustainability, 13(1), 145. https://doi.org/10.3390/su13010145

Calisto, M. D. L., & Sarkar, S. (2024). A systematic review of virtual reality in tourism and hospitality: The known and the paths to follow. International Journal of Hospitality Management, 116, 103623. https://doi.org/10.1016/j.ijhm.2023.103623

Camilleri, M. A. (2021). Sustainable production and consumption of food. Mise-en-place circular economy policies and waste management practices in tourism cities. Sustainability (Switzerland), 13(17). https://doi.org/10.3390/su13179986

Darvishmotevali, M., & Altinay, L. (2022). Green HRM, environmental awareness and green behaviors: The moderating role of servant leadership. Tourism Management, 88, 104401. https://doi.org/10.1016/j.tourman.2021.104401

Dastjerdi, M., Keramati, A., & Keramati, N. (2023). A novel framework for investigating organizational adoption of AI-integrated CRM systems in the healthcare sector; using a hybrid fuzzy decision-making approach. Telematics and Informatics Reports, 11(March), 100078. https://doi.org/10.1016/j.teler.2023.100078

del Vecchio, P., Malandugno, C., Passiante, G., & Sakka, G. (2022). Circular economy business model for smart tourism: The case of Ecobnb. EuroMed Journal of Business, 17(1), 88–104. https://doi.org/10.1108/EMJB-09-2020-0098

Dincă, G., Milan, A.-A., Andronic, M. L., Pasztori, A.-M., & Dincă, D. (2022). Does circular economy contribute to smart cities’ sustainable development? International Journal of Environmental Research and Public Health, 19(13), 7627. https://doi.org/10.3390/ijerph19137627

Dwyer, L. (2023). Resident well-being and sustainable tourism development: The ‘capitals approach.’ Journal of Sustainable Tourism, 31(9), 2119–2135. https://doi.org/10.1080/09669582.2021.1990304

Elshaer, A. M., & Marzouk, A. M. (2024). Memorable tourist experiences: The role of smart tourism technologies and hotel innovations. Tourism Recreation Research, 49(3), 445–457. https://doi.org/10.1080/02508281.2022.2027203

Flores-Crespo, P., Bermudez-Edo, M., & Garrido, J. L. (2022). Smart tourism in villages: Challenges and the Alpujarra case study. Procedia Computer Science, 204, 663–670. https://doi.org/10.1016/j.procs.2022.08.080

Gica, O. A., Coros, M. M., Moisescu, O. I., & Yallop, A. C. (2021). Transformative rural tourism strategies as tools for sustainable development in Transylvania, Romania: A case study of Sâncraiu. Worldwide Hospitality and Tourism Themes, 13(1), 124–138. https://doi.org/10.1108/WHATT-08-2020-0088

Gomezelj, D. O. (2016). A systematic review of research on innovation in hospitality and tourism. International Journal of Contemporary Hospitality Management, 28(3), 516–558.

Guan, H., & Huang, T. (2023). Rural tourism experience research: A bibliometric visualization review (1996-2021). Tourism Review, 78(3), 761–777. https://doi.org/10.1108/TR-03-2022-0147

Ho, H. C., Chiu, C. L., Mansumitrchai, S., & Quarles, B. J. (2020). Hedonic and utilitarian value as a mediator of men’s intention to purchase cosmetics. Journal of Global Fashion Marketing, 11(1), 71–89. https://doi.org/10.1080/20932685.2019.1682026

Hou, H. (Cynthia), & Wu, H. (2021). Tourists’ perceptions of green building design and their intention of staying in green hotel. Tourism and Hospitality Research, 21(1), 115–128. https://doi.org/10.1177/1467358420963379

Jahangiri, M., Raeiszadeh, F., Alayi, R., Najafi, A., & Tahmasebi, A. (2022). Development of Rural Tourism in Iran Using PV-Based System: Finding the Best Economic Configuration. Journal of Renewable Energy and Environment, 9(4). https://doi.org/10.30501/jree.2022.298089.1234

Jeong, M., & Shin, H. H. (2019). Tourists’ experiences with smart tourism technology at smart destinations and their behavior intentions. Journal of Travel Research, 59(8), 1464–1477. https://doi.org/10.1177/0047287519883034

Koo, C., Shin, S., Gretzel, U., Hunter, W. C., & Chung, N. (2016). Conceptualization of smart tourism destination competitiveness. Asia Pacific Journal of Information Systems, 26(4), 367–384. https://doi.org/10.14329/apjis.2016.26.4.561

Krstić, M., Elia, V., Agnusdei, G. P., De Leo, F., Tadić, S., & Miglietta, P. P. (2024). Evaluation of the agri-food supply chain risks: The circular economy context. British Food Journal, 126(1), 113–133. https://doi.org/10.1108/BFJ-12-2022-1116

Kusdibyo, L., Rafdinal, W., Susanto, E., Suprina, R., Nendi, I., & Abdurokhim, A. (2023). How smart are you at traveling? Adoption of smart tourism technology in influencing visiting tourism destinations. Journal of Environmental Management and Tourism, 14(4), 2015. https://doi.org/10.14505/jemt.14.4(68).13

Li, W. Z., & Zhong, H. (2022). Development of a smart tourism integration model to preserve the cultural heritage of ancient villages in Northern Guangxi. Heritage Science, 10(1), 91. https://doi.org/10.1186/s40494-022-00724-3

Lu, C.-W., Huang, J.-C., Chen, C., Shu, M.-H., Hsu, C.-W., & Tapas Bapu, B. R. (2021). An energy-efficient smart city for sustainable green tourism industry. Sustainable Energy Technologies and Assessments, 47, 101494. https://doi.org/10.1016/j.seta.2021.101494

Manniche, J., Larsen, K. T., & Broegaard, R. B. (2021). The circular economy in tourism: Transition perspectives for business and research. Scandinavian Journal of Hospitality and Tourism, 21(3), 247–264. https://doi.org/10.1080/15022250.2021.1921020

Mariani, M., Ek Styven, M., & Ayeh, J. K. (2019). Using Facebook for travel decision-making: An international study of antecedents. International Journal of Contemporary Hospitality Management, 31(2), 1021–1044. https://doi.org/10.1108/IJCHM-02-2018-0158

Mihai, F.-C., Gündoğdu, S., Markley, L. A., Olivelli, A., Khan, F. R., Gwinnett, C., Gutberlet, J., Reyna-Bensusan, N., Llanquileo-Melgarejo, P., Meidiana, C., Elagroudy, S., Ishchenko, V., Penney, S., Lenkiewicz, Z., & Molinos-Senante, M. (2021). Plastic pollution, waste management issues, and circular economy opportunities in rural communities.

Miles, M. B., & Huberman, A. M. (1984). Qualitative Data Analysis: A Sourcebook of New Methods. Sage Publications, Inc.

Obersteiner, G., Gollnow, S., & Eriksson, M. (2021). Carbon footprint reduction potential of waste management strategies in tourism. Environmental Development, 39, 100617. https://doi.org/10.1016/j.envdev.2021.100617

Pardillo Baez, Y., Sequeira, M., & Hilletofth, P. (2020). Local and organic food distribution systems: Towards a future agenda. Operations and Supply Chain Management: An International Journal, 336–348. https://doi.org/10.31387/oscm0430274

Paul, A., Shukla, N., & Trianni, A. (2023). Modelling supply chain sustainability challenges in the food processing sector amid the COVID-19 outbreak. Socio-Economic Planning Sciences, December 2021, 101535. https://doi.org/10.1016/j.seps.2023.101535

Paul, I., & Roy, G. (2023). Tourist’s engagement in eco-tourism: A review and research agenda. Journal of Hospitality and Tourism Management, 54, 316–328. https://doi.org/10.1016/j.jhtm.2023.01.002

Pearsall, H., Gutierrez-Velez, V. H., Gilbert, M. R., Hoque, S., Eakin, H., Brondizio, E. S., Solecki, W., Toran, L., Baka, J. E., Behm, J. E., Brelsford, C., Hinrichs, C., Henry, K. A., Mennis, J., Roman, L. A., Rosan, C., South, E. C., & Valletta, R. D. (2021). Advancing equitable health and well-being across urban–rural sustainable infrastructure systems. Npj Urban Sustainability, 1(1), 26. https://doi.org/10.1038/s42949-021-00028-8

Pongsakornrungsilp, P., & Pongsakornrungsilp, S. (2023). Mindful tourism: Nothing left behind–creating a circular economy society for the tourism industry of Krabi, Thailand. Journal of Tourism Futures, 9(3), 366–380. https://doi.org/10.1108/JTF-01-2021-0001

Rafdinal, W., Setiawardani, M., Raharso, S., & Hardiyanto, N. (2024). Brand loyalty model for halal fashion brands: Integrating quality-loyalty model, information sources and religiosity-loyalty model. Journal of Islamic Marketing, 15(12), 3543–3563. https://doi.org/10.1108/JIMA-08-2023-0244

Rafdinal, W., Wibisono, N., Setiawati, L., & Juniarti, C. (2025). Virtual reality (VR) meets religiosity: Introducing the Q-R CAT model to predict visit intention to religious destinations. Journal of Hospitality and Tourism Insights. https://doi.org/10.1108/JHTI-08-2024-0796

Ramkissoon, H. (2023). Perceived social impacts of tourism and quality-of-life: A new conceptual model. Journal of Sustainable Tourism, 31(2), 442–459. https://doi.org/10.1080/09669582.2020.1858091

Schneider, A. (2015). Reflexivity in sustainability accounting and management: Transcending the economic focus of corporate sustainability. Journal of Business Ethics, 127(3), 525–536. https://doi.org/10.1007/s10551-014-2058-2

Shafiee, S., Rajabzadeh Ghatari, A., Hasanzadeh, A., & Jahanyan, S. (2019). Developing a model for sustainable smart tourism destinations: A systematic review. Tourism Management Perspectives, 31, 287–300. https://doi.org/10.1016/j.tmp.2019.06.002

Strauss, A. L., & Corbin, J. M. (1990). Basics of Qualitative Research. Sage Publications, Inc.

Susanto, E., Novianti, S., Rafdinal, W., Fitriani, M., & Prawira, A. (2020). Visiting tourism destination: Is it influenced by smart tourism technology ? Journal of Indonesian Tourism and Development Studies, 8(3), 145–155. https://doi.org/10.21776/ub.jitode.2020.008.03.04

UNWTO. (2023). Nglanggeran—Best tourism villages. https://tourism-villages.unwto.org/en/villages/nglanggeran/

Vargas-Sánchez, A. (2021). The new face of the tourism industry under a circular economy. Journal of Tourism Futures, 7(2), 203–208. https://doi.org/10.1108/JTF-08-2019-0077

World Tourism Organization. (2019). International Tourism Highlights, 2019 Edition. World Tourism Organization (UNWTO). https://doi.org/10.18111/9789284421152

Yin, R. K. (2003). Application of case study research. Sage Publications, Inc.

Downloads

Published

2025-04-11

How to Cite

Rafdinal, W., Kusdibyo, L., Budhi Septyadi, C., & Dwi Wiryawan, I. G. N. (2025). Circular Economy Business Model for Sustainable Practices in The Smart Tourism Village. Journal of Consumer Studies and Applied Marketing, 3(1), 49–66. https://doi.org/10.58229/jcsam.v3i1.313

Issue

Section

Articles