A Conceptual Model of Rural Tourism in Bali to Build Up Global Competitiveness

Abstract

Rural tourism, in the form of small-scale, locally owned tourism businesses, has become a priority that must be supported by the government to be more beneficial for the local community. The objective of this study was to develop a conceptual model of rural tourism in order to make rural tourism in Bali more competitive globally. This research was conducted in Bali during April–June 2020 by following a systems thinking approach. The methodology employed was a soft systems methodology and utilized interpretive structural modeling (ISM). Twenty persons were chosen purposively as key informants (experts). Data collection was carried out through focus group discussions (FGDs) and questionnaires. The results indicated that the goals of sustainable rural tourism are to improve local community welfare, to conserve the environment, and to preserve culture and heritage. Managing rural tourism requires efforts in destination quality, service excellence, hospitality, reasonable pricing, and ease of access. Finally, this paper proposes methods to support sustainable rural tourism in Bali.

1. Introduction

Tourism has long been considered to be an important source of income for Bali’s economy. However, the development of tourism in Bali has not been fully beneficial for Bali’s economy, due to tourism leakages [1]. Leakages can be defined as “losses to the direct re-spending chain” that occur when funds generated from the income flow are not re-spent in the local economy [2,3]. Leakages take place when resources are imported from other countries to support the growth of the local tourism industry. Suryawardani et al. (2016) found that the biggest leakage from the accommodation sector in Bali occurred in four- and five-star-rated chain hotels and that the lowest leakage was in non-star-rated hotels [4]. The study found that the sources of leakage were payments for imported food and beverages, foreign workers, foreign agents’ commissions, and other non-local expenditures. A further study on tourism leakage undertaken by Suryawardani and Wiranatha (2016) found that the priority strategies to minimize tourism leakage are (i) to develop agriculture, livestock, fisheries, and handicrafts; (ii) to optimize the potential of local products; and (iii) to empower the community. Based on these studies, the development of tourism should be focused on rural areas to optimize the benefits to the local community [5]. It seems that the development of small-scale and locally owned tourism businesses, such as those in rural tourism, should become a priority for government support in order to minimize tourism leakages and to provide greater benefits for the local community.

Tourists prefer something different from their daily lives as well as authentic experiences during their holiday that differ from those of mass tourism [6]. Today, tourism in Bali is not vastly different from common mass tourism in other countries, with visitors to Bali experiencing traffic jams at many tourist spots, such as at Legian, Seminyak, Canggu, and Ubud. Moreover, existing mass tourism in the long term can harm the natural environment due to the intensity of tourism development, which exploits natural resources and also produces waste and pollution. However, rural tourism allows people to experience rural areas for relaxation and leisure. Several traditional activities in rural areas have become increasingly popular, such as walking, horse riding, adventure activities, and bird-watching [7]. Activities in rural areas are considered by many people to be more enjoyable as a means of exercising to improve their life and health. The attractive landscapes of rural areas, including rivers, lakes, and traditional culture, provide the peace and quiet particularly suited to relaxation and recreation [8]. Rural tourism can also be viewed as a “medicine” that helps tourists to re-energize their mental and physical wellbeing by benefitting from the power of nature, the quiet and peaceful atmosphere, and the relatively low cost of taking a holiday in a rural area [9].

In the past decade, despite the COVID-19 pandemic, rural tourism has continued to develop in Indonesia. This can be seen from the development of rural tourism driven by the central government, through the Ministry of Tourism and Creative Economy of the Republic of Indonesia as well as by local governments. By August 2023, 4744 rural tourism areas had been designated, spread across various regions in Indonesia [10]. Tourism activities in these villages were considered to be a good alternative during the pandemic, as they have open spaces, which were believed could minimize the spread of COVID-19. This development was also reflected in Bali, and by the end of 2022, there were 238 rural tourism areas in Bali [11]. Among these, some were developed. Munduk, Jasri, and Penglipuran were three rural tourism areas that won the best rural tourism award in Indonesia in 2021. Moreover, up to year 2022, three rural tourism areas in Bali have been certified supporting sustainable village tourism, namely, Penglipuran, Pemuteran, and Taro. These rural areas have become popular tourism destinations, supported by the uniqueness of Balinese culture, local wisdom, and the friendliness of local people. However, some are still stagnant due to various factors, such as limited human resources and communities’ lack of commitment to developing rural tourism. Several other factors include the government’s lack of policies that support rural tourism and communities’ lack of funding for the development of amenities and ancillaries [12]. In fact, rural tourism in Bali has not been as popular as other kinds of tourism in Bali, such as cultural and nature-based tourist attractions, beach and marine tourist attractions, and entertainment and nightlife tourist attractions. Therefore, rural tourism in Bali has not been competitive yet. The main problem appears to be developing the global competitiveness of rural tourism in Bali.

The development of tourism in rural areas faces complex issues that require a systems approach to solving problems and generating strategies [5]. A system means a grouping of parts that operate together for common purpose, which can include people or physical parts [13,14,15,16,17]. As a part of tourism development, the goals of rural tourism are in line with the goals of tourism development, namely, to improve local community welfare, to conserve the environment, and to preserve culture and heritage. Efforts to manage rural tourism must be undertaken in terms of destination quality, service excellence, hospitality, and ease of access [18]. In view of the above research findings, it would be beneficial to employ a holistic systems approach for establishing a conceptual model to manage rural tourism, because the development of rural tourism faces complex issues that require a systems approach to solving problems and developing holistic strategies.

This article addresses an important and timely issue in alternative tourism, as rural tourism has significant potential to benefit local communities economically, socio-culturally, and environmentally; however, it also faces many challenges in achieving sustained global competitiveness. The objective of this study is to establish a conceptual model of rural tourism in Bali through a systems thinking approach to build global competitiveness. The use of the ISM methodology to develop a holistic conceptual model is considered as a novel application in the rural tourism context.

2. Literature Review

Rural tourism is tourism that takes place in rural areas. Rural tourism may be described as tourism in villages presenting life in the countryside, which offers an opportunity to visit rural areas, to enjoy the attractiveness of the areas, and to experience culture and heritage through the active participation of visitors [19]. This includes farm-based attractions, walking, cycling, climbing, heritage tourism, arts, bird-watching, adventure, educational tours, sport, and health tourism [7,20,21].

The objectives of developing rural tourism are to improve the economic welfare of the community through the utilization of local resources, to preserve the cultural heritage of the community, to encourage awareness of environmental conservation, to increase community participation in the development of rural tourism, to enhance satisfaction and happiness on the part of the tourist, and to minimize conflict in rural areas due to the negative impacts of tourism development [8,22]. Many developing countries have seen rural tourism as means to revive their economies [7]. Therefore, rural tourism should be developed not as a result of external forces but by giving a priority role to the local communities and businesses [21,23].

Community participation is a crucial factor in gaining successful development of tourism in rural areas [12,24,25]. It is because local communities are an essential part of tourism development; tourism attractions, such as ways of life, the environment, culture, and traditions often belong to them or exist around them. Moreover, community participation in tourism is vital for achieving sustainability goals, benefiting the local community, and conserving the environment [25,26]. Better community participation in rural tourism can be achieved through several measures, such as paying attention to the community’s participation, establishing a communication platform, and listening to the community. Participation in rural tourism leads to an enlargement of the project scale and increases the income levels of local communities [24]. There are several factors influencing community participation in tourism development, such as different views of tourism and lack of tourism knowledge [26]. Empowerment of local community through training, workshops, and education in tourism will be able to moderate the different views of tourism by the local community and improve their knowledge regarding tourism [12,24,25]. The role of community leaders is also important in community empowerment; community members cannot participate in tourism development initiatives until they have support from local leaders [27]. Tong et al. (2024) concluded that the empowerment of the local community brings about positive impacts on community participation, and it should be undertaken through well-structured systems, improving community participation competences, and eliminating the state of powerlessness [25].

Su (2011) said that tourism in rural areas have become more popular and beneficial not only for tourists looking for rest and relaxation but also for people living in the rural areas looking to earn income [21]. The benefits of rural tourism can include contributions to job opportunities, increased arts and crafts sales, preservation of rural culture and heritage, and environmental conservation [20], as well as a reduction in poverty in rural areas [19]. Sharpley and Jepsen (2011) found that there were several benefits from the development of rural tourism, such as the restoration of local wisdom, a positive attitude amongst local communities towards the re-establishment of traditional cultural practices, and the encouragement of socio-cultural regeneration in rural areas [8]. Furthermore, Ayazlar and Ayazlar (2015) stated that the benefits of rural tourism are as follows: (a) for tourists: lower prices, direct contact with nature and the local community, and education on agricultural activities and rural environments; (b) for farmers: extra income from rural tourism; (c) for rural communities: income that can be used to achieve better living standards, such as better infrastructure and the prevention of environmental degradation; and (d) for the region: rural tourism helps to preserve the region, through the regional economies, and preserve local traditions, as well as prevent social tensions [22].

Several important variables that influence tourism are, namely, quality of health and political stability. These two variables have become the main considerations for tourists in choosing their holiday destinations. According to Konstantakopoulou (2022), the health quality of a country significantly influences tourists’ decisions in choosing the country as a tourism destination; tourists are likely to avoid a destination with health risks [28]. It is because tourism is highly susceptible to health-related factors, particularly the spread of infectious disease [29,30]. Several health variables were found to have negative impacts on tourism receipts, such as tuberculosis death rate, mortality, and the lifetime risk of maternal death rate [28]. Furthermore, outbreaks of infectious diseases have more severe impacts on tourism. Several tourist destinations that are experiencing outbreak infectious diseases, such as MERS, Swine Flu, Avian Flu, and SARS may have travel restrictions, so that tourists avoid visiting these destinations. The impact of the MERS outbreak on tourism in the Republic of Korea during period of June 2015 to June 2016 correlated to the decline in foreign visitors by about 2.1 million [31].

Furthermore, the political stability of a tourism destination becomes a very important consideration for tourists, similar to health-related risks. The political instability in a tourism destination region will have negative impacts on tourism destinations. For example, in 2017, the political situation in Catalonia, an autonomous region in Spain, was characterized by mass protests, clashes, and deepening divisions between those in favor of Catalan independence and those supporting the unity of Spain. Perles-Ribes et al. (2019), who studied the impact of the political instability in Catalonia, found that tourist arrivals in the region decreased by 6.49% and expenditure by 0.95% during the final quarter of 2017. At the same time, other destination regions in Spain experienced increasing tourist arrivals by 5.56% and expenditure by 7.08% [32].

Another concern of tourists about political situations could be terrorism. Several tourism destinations have experienced the worst impacts of terrorist attacks. For example, the terrorist attacks via suicide bombings on September 11 in the United States had severe negative impacts on the tourism sector. The impacts of these terrorist attacks on the tourism sector was estimated to be vary depending on the crisis management policies. In the absence of crisis management policies, these events would lead to a decreasing GDP by about $30 billion, with the accommodation sector being particularly badly affected [33]. Bali as a popular tourism destination also had experienced terrorist attacks via suicide bombings in 2002 and 2005. Terrorist attacks in Bali in 2002 resulted in negative impacts on tourism in Bali; this was also experienced by several other tourism destinations in Indonesia, such as Jakarta and Yogyakarta. This event led to a very significant decline in foreign tourist arrivals, which had an adverse effect on the Balinese hotel and restaurant sectors that decreased by 7.7%. This situation then brought about an adverse effect on the livelihoods of Balinese people, particularly those whose businesses or employment were linked to the tourism sector [34].

Rural tourism development is also facing sustainability issues. Bramwell (1994) stated that rural tourism development should match the needs of host community, environment, local suppliers, and requirements of tourists [35]. Moreover, priority is given to the role of local communities and local businesses. Kantar and Svržnjak (2017) added that sustainable rural tourism integrates four dimensions, namely, ecological, economic, socio-cultural, and political sustainability [36]. Weng et al. (2021) suggested that sustainable development of rural tourism involves the dimensions of “human”, “machine”, and “environment” [24]. “Human” refers to rural tourism stakeholders, including tourists, local community, governments, and enterprises; “machine” refers to rural tourism projects, including the projects themselves and other resources; and “environment” covers ecology, social, economy, and policy. Moreover, Widawski et al. (2023) revealed that a sustainable approach to rural tourism development is expressed in an appropriate use of natural and cultural assets in rural areas that would not negatively affect these assets but bring benefits to the local community [37]. Furthermore, Hoa et al. (2023) pointed out the importance of innovation in sustainable rural tourism in enhancing economic, social, and environmental efficiency as well as in regenerating in tourism itself and tourists’ satisfaction [38]. An example of innovation in environmental sustainability and the tourist economy is organic wine production within wine tourism in Germany [39]. They found that in wine tourism operations, organic farming with organic certification was what gave the winery its attractiveness. In summary, rural tourism development should cover many aspects of sustainability, including socio-culture, economy, ecology, policy, education, and tourists’ satisfaction in order to enhance the benefits of tourism development for community welfare in rural areas.

In many cases, rural tourism has not been successfully developed: (a) a lack of attractions that meet tourists’ needs, (b) lack of visitors, (c) low occupancy rates of homestays due to lack of facilities and poor quality of services, (d) low levels of human resources in rural areas, (e) lack of awareness from rural communities about the government’s tourism awareness programs, and (f) marketing problems [7,20,22,40]. Rural tourism development is also facing a lack of funding [12,24,26]. A lack of support funding in rural tourism development needs to be resolved by various alternatives of financing methods such as financial support from government, financial institutions, and that involving private capital (public–private partnership) [24]. Government support funding, such as government financial grants, usually becomes main alternative. However, limited government funding availability will be insufficient for rural tourism development [12,24]. To be successful in developing tourism in rural areas, stakeholder collaboration involving the government, communities, and industries is a very important factor.

Studies have been conducted on rural tourism development, but most of them focused on details and were limited in scope. Rattanasuwongchai (1998) undertook research on the impact of rural tourism on rural communities through a case study at the Kanchanaburi Ecotourism Cooperative; it discussed both the negative and positive impacts of rural tourism on rural communities as well as the involvement of government and private programs in developing rural tourism [41]. This study placed emphasis on various aspects of tourism planning, including the assessment of the carrying capacity, the development of infrastructure, zoning, the involvement of local people, and the education of both local people and tourists. Sharpley and Jepsen (2011) and Okech et al. (2012) studied the financial aspect of rural tourism and found that there was a problem regarding financial sustainability in managing rural destinations [8,19]. Meanwhile, a study by Mjalager (2016) on the marketing of rural tourism found that rural tourists and rural destinations were the two main elements of rural tourism marketing [42]. The demand for rural tourism was found to be determined by the attractiveness of the rural areas and the enthusiasm of visitors to experience the rural features. As regards destinations, the rural tourism products should be managed to meet visitors’ needs. The destination organizer should promote the destination and choose the right segment according to the destination’s features. The quality of the attractions, accessibility, infrastructure, and good management of rural areas were deemed to be crucial in marketing rural tourism [42].

The implementation of systems thinking in a tourism context has been considered as an appropriate alternative method, as tourism is a system; a system is characterized as complex and dynamic, involving many elements connecting one another with feedback mechanisms. By using systems thinking, the cause–effect relationship between and among elements of the tourism system, including their feedback mechanisms, can be outlined into a causal loop diagram (CLD) that explains how tourism works [42]. This paper also creates a CLD for rural tourism development in Bali. By using a systems thinking approach, the goal of this study can be achieved in a holistic, integrated, and comprehensive way.

Previous studies that have implemented systems thinking by using interpretive structural modeling (ISM) in a rural tourism context include the following: Weng et al. (2021) determined the influencing factors of sustainable development of rural tourism by implementing the element event analysis method (EEAM) and composed hierarchical relationships among the various influencing factors via ISM [24]. In this paper, determination of the elements and sub-elements of the system was undertaken via focus group discussions (FGD), followed by an ISM analysis. Furthermore, Kumar et al. (2021) also implemented ISM to study rural tourism in India in order to obtain influencing factors and hierarchical relationships between factors [43]. The objective of the study was to ensure rural tourism’s holistic development in India. They found that infrastructure development, environmental integrity, local government, and community support, availability of government funding, and private sector involvement were the key driving factors for rural tourism development in India.

Other previous studies that implemented ISM in tourism contexts include the following: Wiranatha and Suryawardani (2018) undertook their study on community-based agritourism development at the World Heritage Site of Jatiluwih Rice Field Terrace in Bali, based on a systems approach [44]. Preservation of heritage sites faces many issues that call for a systems thinking approach to develop strategies; hence, the ISM method was implemented by classifying some elements to develop strategies to achieve the goal. The results showed that tourism development must create added value for the farmers and the local community. The role of government as a regulator and facilitator is important in order to achieve sustainable tourism through synergy between agriculture and tourism. This means that the development of tourism is expected to provide more benefits to the local community without damaging the value of the heritage site of Jatiluwih Rice Field Terrace. Based on the results of ISM, the involvement of the affected sectors was needed, such as the community, the tourism industry, and the government. Hence, intended changes were needed in terms of partnerships between farmers, the community, and the tourism industry.

A study by Efendi et al. (2019) on the urban tourism development strategy of the Kota Lama tourism area of Surabaya, Indonesia, found that there were three important components that act as key elements, namely, (i) the role of the city government, (ii) appropriate technology, and (iii) strategies to improve the quality of tourism human resources and stakeholder cooperation [45]. By using a systems approach, the study suggested strategies, i.e., improvement in the quality of tourist attractions based on history, culture, and local wisdom, improvement in tourism human resources, developing cooperation with stakeholders, and developing a better image of Surabaya as a tourism destination.

Susanti et al. (2019) formulated the Budakeling Tourism Village Development Strategy as a Spiritual Tourism Attraction in Karangasem Regency, Bali, Indonesia, by using an ISM analysis involving 10 experts through focus group discussions (FGDs) [46]. The results showed that development strategies for spiritual tourism include (1) optimizing the development of potential spiritual tourism, (2) increasing the participation of local human resources in its development, (3) increasing the role of the Karangasem Regency Government, (4) increasing the role of local entrepreneurs, (5) increasing its promotion with digital systems, and (6) increasing the role of educational institutions in developing human resources in this field. These results suggest that the involvement of educational institutions is very important, due to the lack of ability and the quality of human resources in the tourism sector at tourism villages.

Susanti et al. (2020) conducted research on the revitalization of Gianyar traditional markets into healthy art- and culture-based markets according to the Indonesian standard of healthy markets and Balinese cultural tourism [47]. The development strategy of this research was based on a systems approach, due to the complex issues faced by the traditional markets. Hence, this research implemented an ISM approach and generated strategies related to program goals, constraints, and needs; the affected sectors; the involvement of institutions; and possible changes in the program. The results suggested that the role of community leaders and community participation need to be increased to be able to generate a bottom-up strategy for revitalizing traditional markets. Umar (2022), however, focused only on one element of ISM in his study evaluating the suitability of marine tourism in the Mandeh archipelago, West Sumatra [48]. The results showed the lack of capital investment and professional staff for developing marine tourism in this area.

In summary, a systems thinking approach with the ISM method has been implemented in undertaking research in a tourism context, and some of them have also carried out in the rural tourism context. This paper did not only use ISM to determine the key factors influencing the rural tourism system in Bali, but also developed a CLD for rural tourism development in Bali to be more competitive.

3. Methods

3.1. Research Time and Location

This research was conducted in Bali. Bali is one of the popular tourist destinations in the Asia region because of its art, cultural attractions, and landscape views which are supported by various other tourist attractions, such as beach and marine tourism, spa and wellness tourism, and gastronomic tourism. Bali has also been awarded many world tourism awards, such as the world’s best island destination for the third consecutive year (2021, 2022, and 2023) by the TripAdvisor Travellers’ Choice Award, the third most popular travel destination in the world in 2023 by the World Tourism Organization, the world’s leading cultural tourism destination in 2022 by the World Travel Awards, as well as Asia’s leading island destination in 2023, and the ASEAN Tourism Award for best tourism destination in 2022. However, rural tourism as an alternative tourism development in Bali has not been well developed yet. Therefore, research on rural tourism development is considered crucial and useful for Bali’s future in tourism.

This research was undertaken in the period from April to June 2020, which was the beginning of COVID-19 pandemic. The first occurrence of COVID-19 in Bali was discovered on 11 March 2020; however, the President of the Republic of Indonesia only formally announced COVID-19 as a national crisis on 13 April 2020. Research was undertaken in 4 steps. Firstly, the focus group discussion (FGD), involving key informants, was conducted only once on 4 April 2020 for half a day via a face-to-face meeting in order to establish the elements to be included in the rural tourism system and describe each element by dividing each into their sub-elements. Secondly, the researchers themselves then developed a questionnaire for the ISM method in the following few days. Thirdly, a further research activity, namely, filling of the questionnaires by the key informants, was conducted by sending the ISM questionnaire to the addresses of the key informants via hardcopy or softcopy. This was undertaken to avoid face-to-face contact with the key informants. Lastly, an analysis of the ISM questionnaires was undertaken to obtain key sub-elements and the hierarchy relationships between the sub-elements within each element included in the rural tourism system.

3.2. Systems Thinking Approach

A systems thinking approach was used to meet the complexity of rural tourism’s elements, behaviors, and problems as considered in this research. In fact, rural development is faced with complex issues that require a systems approach to solve them. The reasons for this are as follows: (i) systems thinking is a holistic way of thinking about solving a problem, based on integrated and interconnected elements in the system [14,16,49]; (ii) systems thinking focuses on how elements interact with the other constituents of the system to produce behaviors; (iii) systems thinking is effective in addressing the most difficult types of problems, which involve complex issues [50]; and (iv) rural tourism is a type of tourism activity in rural areas in which the visitor enjoys experiences related to a wide range of activities. Therefore, the systems thinking approach was considered to be appropriate in this research.

According to Eriyatno (2012), the systems thinking process has three characteristics; it is (i) goal-oriented, meaning that the systems thinking process leads to a positive outlook and builds creativity to achieve innovative solutions in order to reach its goals; (ii) holistic, meaning that it is a comprehensive paradigm of thinking based on the idea of the system as a whole, which considers the importance of interrelationships among system components; and (iii) effective, meaning that it places priority on scientific processes, either conceptual or physical and that the results of these processes can be implemented [16]. Therefore, the systems thinking approach was considered to be appropriate for establishing a conceptual model of rural tourism development in Bali. This study employed a soft systems methodology by implementing interpretive structural modeling (ISM).

3.3. Determining Key Informants

ISM is a computer-based technique involving interrelationships between variables, using experts’ knowledge and experience to develop graphical representations of contextual relationships among variables of complex systems. ISM can be used to obtain qualitative data from individual cognitive structures. For this purpose, the key informants should be experts, selected purposively, who understand the contextual relationships between the variables regarding the problem under consideration [44,51]. For this study, the key informants selected were experts who understand rural tourism in Bali. According to Attri and Sharma (2013) and Reza et al. (2010), there is no requirement regarding the number of experts involved in this type of research, so long as (i) the researcher is convinced that the experts chosen are capable of analyzing the contextual relationships between the variables and (ii) the experts can communicate in a holistic sense regarding the elements and their relationships that define the system’s structure [51,52]. Twenty experts were selected for this study, representing the Bali Provincial Government, tourism stakeholders, community representatives, and academia. There were three government officials from government tourism offices, seven tourism stakeholders, seven community representatives who are involved in tourism in rural areas, and three academics from Udayana University Bali.

3.4. Constructing Elements

According to Hill and Warfield (1972) and Saxena et al. (1992), a systematic analysis of a program can be divided into nine elements: (1) affected sectors (T); (2) program goals (G); (3) program constraints (C); (4) possible changes in the program (M); (5) program needs (N); (6) objective measures to evaluate each objective (O); (7) the activities needed for the action plan (P); (8) activity measures to evaluate the results achieved from each activity (E); and (9) involvement of agencies (A) [53,54]. A key informants’ meeting in the form of FGD was held to determine the related elements of rural tourism from the nine elements of ISM. Every key informant (expert) was given a list of the nine elements above and was asked to choose six—up to maximum of nine—elements that they considered to be appropriate for inclusion in the analysis of ISM. The results are outlined in

Table 1. Elements of the systematic analysis of rural tourism in Bali.

Key Informants (Experts)	Elements
	T	G	C	M	N	O	P	E	A
Expert 1	x	x	x	x	x		x	x	x
Expert 2	x	x	x	x	x	x		x
Expert 3	x	x		x	x		x		x
Expert 4	x	x	x	x	x		x		x
Expert 5	x	x	x	x	x	x	x
Expert 6	x	x	x	x	x	x		x	x
Expert 7	x	x	x		x	x	x		x
Expert 8	x	x	x		x	x	x		x
Expert 9	x	x	x	x	x	x			x
Expert 10	x	x	x	x	x			x	x
Expert 11	x	x	x	x	x			x	x
Expert 12	x	x	x	x	x		x		x
Expert 13	x	x	x	x	x			x	x
Expert 14	x	x	x	x	x		x		x
Expert 15	x	x	x		x	x		x	x
Expert 16		x	x	x	x	x	x		x
Expert 17	x	x	x	x	x			x	x
Expert 18	x	x		x	x	x	x		x
Expert 19	x	x	x	x	x		x		x
Expert 20	x	x	x		x	x		x	x
Total	19	20	18	16	20	10	11	9	18

.

According to the results in Table 1, the key informants decided to use six elements in the systematic analysis of rural tourism in Bali, as follows:

• Program goals (G);
• Program needs (N);
• Affected sectors (T);
• Program constraints (C);
• Involvement of agencies (A);
• Possible changes in the program (M).

Then, the key informants, as the participants of FGD, proposed sub-elements which have contextual relationships with one another for each element. The contextual relationships between these sub-elements are outlined in

Table 2. Elements and contextual relationships between sub-elements in the systematic analysis of rural tourism in Bali.

Elements	Contextual Relationships
1. Program goals (Gi)	Gi contributes to achieving Gj
2. Program needs (Ni)	Ni supports Nj
3. Affected sectors (Ti)	Ti’s role influences Tj
4. Program constraints (Ci)	Ci causes Cj
5. Involvement of agencies (Ai)	Ai’s role supports Aj
6. Possible changes in the program (Mi)	Mi results in Mj

i,j = 1, 2, 3, … (i,j ≤ 10).

. During the FGD, the participants unanimously agreed that each element consisted of ten sub-elements describing each element. Ten sub-elements were considered sufficient to explain each element.

The subsequent process was an assessment of the contextual relationships between each of the sub-elements within each element by the key informants. The assessment was undertaken by filling the ISM questionnaire that was developed previously by the researchers based upon the sub-elements that resulted from FGD. In conducting the ISM research, 20 key informants gave their opinion regarding the levels of the contextual relationships between the sub-elements by filling in a matrix of the contextual relationships with the appropriate letter: V, A, X, or O. These four letters were used to denote the direction of a relationship between two factors (i and j), as follows [54,55]:

V for the relation from factor i to factor j (i.e., factor i will influence factor j)

A for the relation from factor j to factor i (i.e., factor i will be influenced by factor j).

X for a two-way relationship (i.e., factors i and j will influence one another)

O for no relation between the factors (i.e., factors i and j are unrelated).

3.5. Data Analysis

The data that were obtained by the questionnaires were analyzed using the computer program “Ever Vision” Software, dDSS Ver. 1.0.01. Data processing followed these stages [54,55]: (i) Data from all questionnaires that contained a pairwise comparison (coded as V, A, X, O) for each element were recorded in a structural self-interaction matrix (SSIM); (ii) The SSIM was transferred into an adjacent matrix (AM) by transforming codes designated in the SSIM into binary language (1 or 0); (iii) The AM was converted into a reachability matrix (RM); (iv) The data of the RM were analyzed to produce four categories of the sub-elements based upon driver power and dependence, namely, independent, linkage, autonomous, or dependent, and then, it was presented in a quadrant diagram; and the last stage was producing a structural hierarchy diagram that explains the relationship between sub-elements in each element.

4. Results and Discussion

4.1. Results of the ISM Analysis of the Element Program Goals

There were six elements included in the ISM analysis, as mentioned in Table 2. The first element was program goals. Program goals consisted of 10 sub-elements, as follows:

• Improvement in local community welfare (G1);
• Optimization of the use of local products in rural tourism (G2);
• Increase in business opportunities for the local community (G3);
• Increase in job opportunities for the local community (G4);
• Increase in regional income (G5);
• Conservation of the environment in the rural area (G6);
• Community empowerment (G7);
• Preservation of culture and heritage (G8);
• Improvement in cleanliness, health, safety, and environment (CHSE) (G9);
• Sustainable rural tourism (G10).

The results of the ISM for program goals show that these sub-elements are distributed into dependent, linkage, and independent quadrants. The dependent quadrant contains sub-elements which rely on other sub-elements. Improvement in local community welfare (G1) and sustainable rural tourism (G10) lie in the dependent quadrant. Meanwhile, the linkage quadrant contains sub-elements which have high influence on other sub-elements but also rely on other sub-elements. Sub-elements G3, G4, G5, G6, G7, G8, and G9 lie in the linkage quadrant. However, the independent quadrant contains sub-elements which have very high influence on other sub-elements. Optimization of the use of local products in rural tourism (G2) lies in the independent quadrant (Figure 1).

The results of the ISM hierarchy analysis show that the hierarchy comprised four levels. Sustainable rural tourism (G10) is at Level 1, and improvement in local community welfare (G1) is at Level 2. Both of these sub-elements have low influence and high dependence, requiring encouragement from other sub-elements. To achieve the goal, these two sub-elements need to be supported by other sub-elements, namely, G3, G4, G5, G6, G7, G8, and G9, which have high influence but also high dependence. The key sub-element of program goals is the sub-element optimization of the use of local products in rural tourism (G2). This sub-element has the highest driver power, which means that it has the highest influence, and it also has the lowest dependence. Therefore, optimization of the use of local products can play an important role in supporting the other sub-elements in order to achieve program goals. The structural hierarchy of program goals is shown in Figure 2.

4.2. Results of the ISM Analysis of Program Needs

The element program needs consists of 10 sub-elements, as follows:

• Qualified human resources in rural tourism (N1).
• Good management in rural tourism (N2).
• Participation of the local community in tourism planning and management (N3).
• Improved accessibility, attractions, amenities, and ancillary services in rural areas (N4).
• Promotion of local products as substitutes for imported products (N5).
• Development of handicrafts and creative industry (N6).
• Support funding for local investment (N7).
• Public and private business partnerships (N8).
• Government’s role in facilitating rural tourism (N9).
• Coordination between tourism stakeholders to support rural tourism (N10).

The results of the ISM for program needs show that these sub-elements are distributed into dependent, linkage, and independent quadrants. The sub-elements improved quality of accessibility, attractions, amenities, and ancillary services in rural areas (N4), promotion of local products as substitutes for imported products (N5), and development of handicrafts and creative industry (N6) lie in the dependent quadrant. These sub-elements, N4, N5, and N6, rely on other sub-elements within the element of program needs for rural tourism development in Bali. Sub-elements N2, N3, N7, N8, and N10 lie in the linkage quadrant. Meanwhile sub-elements qualified human resources in rural tourism (N1) and government’s role in facilitating rural tourism (N9) lie in the independent quadrant. These sub-elements, N1 and N9, have very high influence on other sub-elements; therefore, they are very important considerations for rural tourism development in Bali. The quadrants of the interrelationships between the sub-elements in program needs are shown in Figure 3.

The results of the ISM analysis show that the hierarchy comprised six levels. Levels 1, 2, and 3 all lie in the dependent quadrant, consisting of the sub-element improved quality of accessibility, attractions, amenities, and ancillary services in rural areas (N4) at Level 1, followed by the sub-element development of handicrafts and creative industry (N6) at Level 2 and promotion of local products as substitutes for imported products (N5) at Level 3. This means that the improved quality of accessibility, attractions, amenities, and ancillary service (sub-element N4) must be supported by the development of handicrafts and creative industry (N6), and the development of handicrafts and creative industry (N6) must be supported by the promotion of local products as substitutes (N5). Moreover, Levels 1, 2, and 3 in this hierarchy represent low influence and high dependence, necessitating encouragement from other sub-elements, namely, N2, N3, N7, N8, and N10 at Level 4. These lie in the linkage quadrant, meaning that they have high influence but also high dependence on other sub-elements. All of these sub-elements must coordinate with one another to fulfill program needs. They must also be supported by the sub-element qualified human resources in rural tourism (N1) at Level 5. At Level 6, the sub-element government’s role in facilitating rural tourism (N9) has the highest driver power. Hence, the government’s role has the highest influence and the lowest dependence and can therefore play the most important role in supporting the other sub-elements to fulfill program needs. The structural hierarchy of program needs is presented in Figure 4.

4.3. Results of the ISM Analysis of the Affected Sectors

The ten sub-elements of the affected sectors element are as follows:

• Local community (T1);
• Community leaders (T2);
• Community organizations (T3);
• Tourism industry (T4);
• Handicraft and creative industry (T5);
• Local businesses (entrepreneurs) (T6);
• Local employees (T7);
• Governments (local, provincial, and central) (T8);
• Academia (T9);
• Non-governmental organizations (T10).

The results of the ISM for affected sectors show that these sub-elements are distributed into the linkage and independent quadrants. Mostly, sub-elements lie in the linkage quadrant, namely, the sub-elements local community (T1), community organizations (T3), tourism industry (T4), handicraft and creative industry (T5), local businesses/entrepreneurs (T6), local employees (T7), governments: local, provincial, and central (T8), and non-governmental organizations (T10). These sub-elements have high influence, but also high dependence. This means that these sub-elements have high influence on other sub-elements, but they also rely on other sub-elements. Meanwhile, the sub-elements community leaders (T2) and academia (T9) lie in the independent quadrant. These two sub-elements have very high influence on other sub-elements, and they become very important sectors for rural tourism development in Bali. The quadrants of interrelationships between the sub-elements in affected sectors are presented in Figure 5.

The results of the ISM hierarchy analysis show that the hierarchy comprised three levels. There are eight sub-elements at Level 1, namely, local community (T1), community organizations (T3), tourism industry (T4), handicraft and creative industry (T5), local businesses/entrepreneurs (T6), local employees (T7), governments: local, provincial, and central (T8), and non-governmental organizations (T10). All of these affected sectors must coordinate with one another in order to support rural tourism development. They must also be supported by sub-element community leaders (T2) which is at Level 2. The sub-element academia (T9) is at Level 1, and it has the highest driver power, which means that it has the highest influence, and it also has the lowest dependence. Therefore, academia can play the most important role to support other affected sectors in rural tourism development. Hence, academia is the key sub-element that will be the most important for affected sectors in rural tourism development in Bali. The structural hierarchy of affected sectors of rural tourism in Bali is presented in Figure 6.

4.4. Results of the ISM Analysis of Program Constraints

The ten sub-elements of the program constraints element are as follows:

• Lack of capability and skill of local human resources (C1).
• Lack of quality and quantity of attractions, amenities, accessibility, and ancillary services (C2).
• Lack of availability and quality of local products (C3).
• Lack of quality of handicrafts and creative industry (C4).
• Lack of knowledge and resources for implementation of CHSE (cleanliness, health, safety, and environment) in rural tourism (C5).
• Lack of knowledge regarding environmental conservation (C6).
• Lack of knowledge regarding cultural preservation (C7).
• Lack of information and communications technology (C8).
• Lack of marketing capability and skills (C9).
• Lack of capital investment (C10).

The results of the ISM for program constraints show that these sub-elements are distributed into the dependent, linkage, and independent quadrants. The sub-elements lack of quality and quantity of attractions, amenities, accessibility, and ancillary services (C2), lack of availability and quality of local products (C3), lack of quality of handicrafts and creative industry (C4), and lack of marketing capability and skills (C9) lie in the dependent quadrant. The sub-elements lack of knowledge regarding environmental conservation (C6) and lack of knowledge regarding cultural (C7) lie in the linkage quadrant. Meanwhile, the sub-elements lack of capability and skill of local human (C1), lack of knowledge and resources for implementation of CHSE (cleanliness, health, safety, and environment) in rural tourism (C5), lack of information and communications technology (C8), and lack of capital investment (C10) lie in the independent quadrant. The sub-elements C1, C5, C8 and C10 have high influence on other sub-elements, and they become important program constraints that should be given priority for resolution. The quadrants of the interrelationships between the sub-elements of program constraints are shown in Figure 7.

The structural hierarchy of program constraints on rural tourism in Bali comprise four levels. Level 1 represents low influence and high dependence, requiring encouragement from other sub-elements. The sub-elements at this level are lack of quality and quantity of attractions, amenities, accessibility, and ancillary services (C2), lack of availability and quality of local products (C3), lack of quality of handicrafts and creative industry (C4), and lack of marketing capability and skills (C9). To be able to overcome these program constraints, the sub-elements at Level 2 must first be resolved. These sub-elements at Level 2 are lack of knowledge and resources for implementation of CHSE in rural tourism (C5), lack of knowledge regarding environmental conservation (C6), and lack of knowledge regarding cultural preservation (C7).

Sub-elements that represent high influence but low dependence lie in the independent quadrant. These are lack of information and communications technology (C8), lack of capital investment (C10), and lack of capability and skill of local human resources (C1). Of these, the sub-element lack of capability and skill of local human resources (C1) has the highest driver power and the lowest dependence, meaning that C1 is the key sub-element that plays the most important role in minimizing program constraints. The structural hierarchy of program constraints is presented in Figure 8.

4.5. Results of the ISM Analysis of Possible Changes in the Program

The ten sub-elements of the element possible changes in the program are as follows:

• Quality of human resources in rural tourism (M1).
• The availability and quality of local products in rural areas (M2).
• Improvement in the attractions, accessibility, amenities, and ancillary services in rural tourism (M3).
• Knowledge and resources in implementing CHSE in rural tourism (M4).
• Knowledge and resources in implementing environmental conservation and cultural preservation (M5).
• Improvement in the quality of information and communications technology in rural tourism (M6).
• Development of marketing management for rural tourism (M7).
• Technical assistance for handicrafts and creative industry in rural areas (M8).
• Involvement of traditional villages in rural tourism (M9).
• National investment policy or program for rural tourism (M10).

The results of the ISM for possible changes in the program show that the sub-elements are distributed into the dependent, linkage, and independent quadrants. Two sub-elements lie on the dependent quadrant, namely, the availability and quality of local products in rural areas (M2), and improvement in the attractions, accessibility, amenities, and ancillary services in rural tourism (M3). These two sub-elements rely on other sub-elements within the element of possible changes in the program. Most of the sub-elements of possible changes lie on the linkage quadrant, namely, M4, M5, M6, M7, N8, M9, and M10. These seven sub-elements have high influence, but also high dependence. It means that these sub-elements have high influence on other sub-elements but they also rely on other sub-elements. Only one sub-element lies in the independent quadrant, namely, quality of human resources in rural tourism (M1). The quality of human resources in rural tourism (M1) is the most important sub-element within the element of possible changes in the program for rural tourism in Bali. The quadrants of interrelationships between the sub-elements of possible changes in the program are presented in Figure 9.

The structural hierarchy of possible changes in the program for rural tourism in Bali comprised three levels. Level 1 represents low influence and high dependence, requiring encouragement from other sub-elements. The availability and quality of local products in rural areas (M2) and improvement in attractions, accessibility, amenities, and ancillary services in rural tourism (M3) are the sub-elements at this level. To be able to improve the sub-elements at Level 1, support must be provided by the sub-elements lying at Level 2, namely, knowledge and resources in implementing CHSE in rural tourism (M4), knowledge and resources in implementing environmental conservation and cultural preservation (M5), improvement in the quality of information and communications technology in rural tourism (M6), development of marketing management for rural tourism (M7), involvement of traditional villages in rural tourism (M9), and national investment policy or program for rural tourism (M10). Coordination between these sub-elements is essential.

Just one sub-element is seen to have high influence but low dependence (independent quadrant); this is quality of human resources in rural tourism (M1), which lies at Level 3. This sub-element has the highest driver power, meaning that it plays the most important role in achieving possible changes in rural tourism in Bali. The structural hierarchy of possible changes in the program for rural tourism in Bali is shown in Figure 10.

4.6. Results of the ISM Analysis of Involvement of Agencies in the Program

The ten sub-elements of the involvement of agencies element in the program are as follows:

• Local regency or city government (A1).
• The Government Tourism Office of Bali Province (A2).
• The Development Planning Agency of Bali Province (A3).
• The Ministry of Tourism and Creative Economy (A4).
• The Ministry of Public Works and Public Housing (A5).
• The Association of Tourism Organizations (A6).
• Research centers and NGOs (A7).
• The Ministry of Finance (A8).
• Traditional village organizations (A9).
• The National Development Planning Agency (A10).

The results of the ISM for involvement of agencies in the program show that the sub-elements are distributed into the dependent, linkage, and independent quadrants. There are five sub-elements in the dependent quadrant, namely, local regency or city government (A1), the Government Tourism Office of Bali Province (A2), the Development Planning Agency of Bali Province (A3), the Association of Tourism Organizations (A6), and traditional village organizations (A9). These five sub-elements have high dependence and low driver power. It means that these agencies rely on other agencies that are involved in tourism development in Bali. Four sub-elements lie on the linkage quadrant, namely, the Ministry of Tourism and Creative Economy (A4), the Ministry of Public Works and Public Housing (A5), the Ministry of Finance (A8), and the National Development Planning Agency (A10). These four agencies have high influence on other agencies, but they also rely on other agencies that are involved in rural tourism development in Bali. Only one sub-element lies in the dependent quadrant, namely, research centers and NGOs (A7). This sub-element is the most important sub-element within the element of involvement agencies in the program because it has the highest driver power and the lowest dependence. It means that research centers and NGOs become the most important agencies involved in rural tourism development in Bali. The quadrants of the interrelationships between these sub-elements are shown in Figure 11.

Sub-elements in the dependent quadrant lie at four levels, namely, the sub-element traditional village organizations (A9) at Level 1, the sub-element local regency or city government (A1) at Level 2, the sub-elements the Government Tourism Office of Bali Province (A2) and the Association of Tourism Organizations (A6) at Level 3, and the sub-element the Development Planning Agency of Bali Province (A3) at Level 4. Although all of these sub-elements were considered to have low influence and high dependence, thereby requiring encouragement from other sub-elements, the sub-element the Development Planning Agency of Bali Province (A3) was considered to have relatively more power to influence the sub-elements at Levels 1 to 3 (A9, A1, A2, and A6). Furthermore, it was considered important that the Development Planning Agency of Bali Province (A3) receives support from the sub-elements at Level 5. These were the Ministry of Tourism and Creative Economy (A4), the Ministry of Public Works and Public Housing (A5), the Ministry of Finance (A8), and the National Development Planning Agency (A10). Finally, at Level 6, the sub-element research centers and NGOs (A7) had the highest driver power, meaning that it was deemed to play the most important role in supporting other agencies in the development of rural tourism in Bali. The structural hierarchy of involvement of agencies in the program of rural tourism in Bali comprised six levels; it is presented in Figure 12.

4.7. Conceptual Model of Rural Tourism in Bali

The results of the ISM analysis were used to develop a conceptual model of rural tourism in Bali that depicts the relationships between the sub-elements in a holistic, integrated, and comprehensive manner. The conceptual model of rural tourism in Bali (Figure 13) shows the goals of rural tourism development in Bali, namely, to improve local community welfare, to conserve the environment, and to preserve culture and heritage in the rural areas. First, the improvement in local community welfare will be achieved by providing a better job opportunities for the local community and improving knowledge and resources in implementing CHSE in rural tourism. At the same time, improving knowledge and resources in implementing CHSE in rural tourism will support the provision of job opportunities for local community. Second, the environmental conservation in rural areas can be achieved better with support by improving knowledge and resources in implementing environmental conservation in rural areas and implementing CHSE in rural tourism. Third, preserving culture and heritage in rural areas is supported by improving knowledge and resources in implementing cultural and heritage preservation in rural areas.

Community empowerment has a crucial role in rural tourism development. It can improve knowledge and resources in implementing CHSE in rural tourism, environmental conservation, and cultural and heritage preservation in rural areas. It can also support the provision of job opportunities and increase business opportunities for the local community. Furthermore, successful community empowerment can be achieved via the involvement of the community organization (Desa Adat) and community leaders, as well as the use of more local products in rural tourism. Moreover, the quality of human resources in rural tourism will be able to support the optimization of the use of local products in rural tourism. Quality of human resources in rural tourism depends upon several variables, namely, qualified human resources in rural tourism, participation of the local community in tourism planning and management, support by community leaders, the government’s role in facilitating rural tourism, and the quality of accessibility, attractions, amenities, and ancillaries in the rural area.

Rural tourism development in Bali has experienced several challenges, such as lack of capability and skill of local human resources, lack of information and communication technology, and lack of capital investment (funding). Government involvement can help to resolve the challenges of rural tourism development, e.g., the Ministry of Finance can assist in capital investment (funding); the Ministry of Public Works and Public Housing can assist in accessibility, attractions, amenities, and ancillaries in the rural areas and in information and communication technology; the Ministry of Tourism and Creative Economy can assist in the participation of the local community in tourism planning and management, on the capability and skill of local human resources, and on the quality of accessibility, attractions, amenities, and ancillaries in the rural area, as well as on the qualification of human resources in rural tourism through the government’s role in facilitating rural tourism. Moreover, the National Development Planning Agency has roles in coordinating the government institutions to support rural tourism.

Furthermore, research centers and NGOs have very crucial roles in supporting all government institutions involved in rural tourism development and in assisting human resources in rural tourism. Lastly, academia has important roles in improving the capability and skill of local human resources, and the information and communication technology used for rural tourism in Bali.

5. Discussion

As can be seen from Figure 13, the goals of rural tourism development in Bali are to improve local community welfare, to conserve the environment, and to preserve culture and heritage in the rural areas, all of which are in accordance with the goals of sustainable tourism development, i.e., to be economically viable, environmentally friendly, and socio-culturally acceptable. According to Banjari et al. (2021), the success of rural tourism development will be achieved through the power of internal strength, i.e., community participation and increasing rural communities’ awareness about the importance of rural development, together with external support from the government [56]. The ISM results demonstrate how the internal strengths of rural tourism and external support from the government can create a powerful foundation for developing rural tourism. This can be explained as follows: The development of rural tourism creates business and job opportunities in the rural areas and provides economic benefits that result in the improvement in local community welfare. Economic sustainability also has to be maintained in the rural areas. According to the principles of economic sustainability, partnerships throughout the entire supply chain, from local businesses to multinational organizations, are an important factor in this. The provision of financial support for businesses in the rural areas is also needed in order to increase economic sustainability [18]. The principles of economic sustainability must therefore be implemented in the development of rural tourism.

For rural tourism to develop and become more competitive, it is important that local communities understand how the income that it generates can contribute to economic development in rural areas and that they acquire the necessary skills for this. In Bali, however, the local community lacks the relevant capabilities and skills. The competitiveness of rural tourism can also be improved through the diversification of products and services, by developing a wide range of tourist attractions with the use of local wisdom. The results of the ISM analysis also highlighted the importance of using local products in rural tourism. However, the availability of local products that meet the needs of tourists is still limited in terms of quantity, quality, and continuity. As agricultural products are characteristically bulky, perishable, and seasonal, there is a need to improve human resources in terms of research and development of agricultural products and postharvest technology, through better education and training. Qualified human resources are crucially needed in the rural areas and must be supported by governments, research centers, and NGOs through training and development programs. Assisting the community with training, product development, and marketing will also help them to create an awareness of business sense. Another obstacle to the development of rural tourism is the lack of information technology in rural areas. Therefore, strong support from the government in developing technological infrastructure is also crucial.

Lack of capital investment in rural tourism also hampers its development. For this reason, the roles of the Ministry of Finance, the National Development Planning Agency, the Ministry of Public Works and Public Housing, and the Ministry of Tourism and Creative Economy are particularly important, as they can provide external support in facilitating the construction of infrastructure in rural areas to help improve accessibility, amenities, and ancillary services in rural tourism. This study’s findings are consistent with those of Wiranatha and Suryawardani (2014), who found that collaboration between stakeholders is especially important in the development of tourism [57].

The results of the ISM also showed that health issues play an important role in the development of rural tourism. The COVID-19 pandemic, in particular, has had a devastating effect on all aspects of human life. Improvement in knowledge in implementing cleanliness, health, safety, and environmental sustainability is very important in order to minimize the spread of diseases such as COVID-19, so that economic development can synergize with health development.

In terms of environmental sustainability, the ISM results showed that conservation of the environment in rural tourism areas is important in order to achieve ecological sustainability. Rural tourism development must be compatible with the protection of biodiversity and biological resources. Regarding the principle of sustainable tourism, it is essential that sustainability principles be incorporated in the design, planning, development, and operation of facilities, so that precise guidelines for rural tourism operations, rural tourism impact assessment, and monitoring of cumulative impacts can be established [18,48]. These principles must be implemented in the development of rural tourism.

The ISM results also showed that community leaders play an important role in the development of rural tourism by empowering community participation, which can result in better quality of environmental conservation in rural tourism. As pointed out by Banjari et al. (2021), rural tourism activities are based on rural resources and are oriented towards outdoor recreational activities, which means that environmental sustainability is a major asset that must be considered [56]. Environmental impact assessments must therefore be carried out for the development of rural tourism in order to minimize any negative impacts that the development might have on the rural environment. In fact, the Balinese community has the philosophy of “Tri Hita Karana”, meaning the three causes of happiness, which are harmony between human beings and God, harmony between human beings and the environment, and harmony between human beings and the community. This philosophy guides the Balinese community in preserving the environment. However, education and improved knowledge about the desirable and proper use of natural resources, as well as acceptable behavior regarding environmental preservation, will give them more understanding of environmental conservation [58]. Responsible tourism behavior can be promoted by precisely identifying acceptable behaviors regarding environmental sustainability, thereby improving awareness among both locals and tourists. These findings are consistent with those of Banjari et al. (2021), Mjalager (2016), Sharpley and Roberts (2014), and Sznajder et al. (2009) [23,42,56,59].

Regarding cultural sustainability, the ISM results showed that the knowledge required to preserve culture and heritage in rural areas must be improved. It is also important to strengthen, nurture, and encourage the community’s ability and participation to maintain and use traditional skills. According to the principles of tourism development, tourism should be initiated with the help of the community [18,48], working actively with indigenous leaders to respect indigenous cultures and communities and to preserve the indigenous cultures in the rural areas. Furthermore, by utilizing local human resources, paying due respect to local culture and wisdom, and having a community that cares about tourism, the quality of rural tourism will be improved. Thus, education and training programs are needed to improve the community’s ability to preserve their culture and heritage. In addition, educating tourists regarding cultural preservation will improve their awareness and encourage responsible behavior. These findings are in line with those of the studies carried out by Efendi et al. (2019), Romanenko et al. (2020), Wiranatha and Suryawardani (2018), Wilson et al. (2001), and Putra et al. (2023) [12,44,45,60,61].

6. Conclusions

Rural tourism comprises tourism activities that take place in rural areas and are more oriented towards outdoor recreation, with the main objective of enjoying rural resources in the form of unique local cultures and natural landscapes, while utilizing local human resources and respecting local wisdom. The goals of rural tourism development are to improve the economic welfare of the community, to conserve the environment, and to preserve culture and heritage in the rural areas.

The development of rural tourism in Bali must consider both internal and external efforts. Internal efforts must be supported by utilizing local resources, improving the local community’s awareness regarding environmental conservation, preserving culture and heritage, increasing community participation in the development of rural tourism through strong encouragement from community leaders, and enhancing the happiness and satisfaction of tourists. Meanwhile, external efforts must be supported through collaboration between the Indonesian ministries and local governments in terms of funding and establishing a policy framework. The efforts of academics, research centers, and NGOs are also needed to improve the local communities’ knowledge, capabilities, and understanding of sustainable rural tourism development. To build up global competitiveness, efforts to manage rural tourism must be undertaken in terms of providing good-quality destinations, excellent services, admirable hospitality, reasonable prices, and easy access to rural tourism destinations.

Rural tourism could take advantage of the existing tourists visiting Bali by promoting the unique characteristics of rural tourism in Bali to them via information and communications technology (such as the internet and social media). Visiting and staying at rural tourism destinations can also bring advantages to the use of local products, thereby reducing leakage from the tourism sector in Bali.

7. Limitations and Further Research

This research was undertaken during the COVID-19 pandemic; therefore, there was no chance to obtain viewpoints from tourists in order to be more comprehensive in developing the model. This model could be modified by involving tourists’ viewpoints in future research.