Strategic Management Challenges in a Living Cultural Tourism Destination: Case of Penglipuran Village, Bali

Abstract

This study examines strategic management in the development of community-based sustainable
tourism within a living cultural destination, using Penglipuran Village, Bali, as a qualitative case
study. The research addresses how strategic management operates in tourism contexts where cultural
values, collective governance, and customary institutions fundamentally shape strategic choices, with
the objective of analyzing the interaction between environmental pressures, strategic orientation, and
institutional governance. The study employs a qualitative document analysis of village regulations,
development plans, and tourism-related governance documents, interpreted through strategic
management and tourism governance frameworks. The results indicate that community-based tourism
in Penglipuran functions effectively as an institutionally grounded approach to sustainable
development, in which environmental and competitive pressures are not translated into market-driven
strategic adaptation but are selectively managed through customary governance mechanisms.
Strategic orientation emerges as value-driven and collective, prioritizing cultural continuity, social
legitimacy, and spatial order over competitive growth, while institutional constraints shape strategic
decision making through consensus-based and culturally embedded processes. These findings
demonstrate that active community involvement and strong local governance play a critical role in
sustaining destination quality, managing tourism competition, and supporting long-term community
welfare and environmental preservation in cultural tourism destinations.

Keywords: community-based tourism; strategic management; sustainable tourism; cultural
destination; local governance