Exploring the Dynamics of Rural Tourism in Jammu and Kashmir: A Structural Equation Modelling Approach to Understanding Socio-Economic Impacts

Background: Rural tourism has emerged as a critical component of sustainable development in regions like Jammu and Kashmir, where it holds the potential to significantly impact the local socio-economic fabric. This study investigates the intricate relationships between tourist experiences, their perceptions of local culture and environment, and the resultant socio-economic impacts on the local community. Objectives: The primary objective of this study was to explore how tourist experiences influence their perceptions and, subsequently, the social and economic impacts on local communities in rural tourism settings. Additionally, the study aimed to identify the existing challenges in rural tourism and the opportunities for improvement. Methodology: Using Structural Equation Modelling (SEM), this study analysed data collected through a structured questionnaire from 380 respondents in rural tourism areas of Jammu and Kashmir. The SEM approach allowed for a comprehensive examination of the hypothesized relationships between multiple constructs including tourist experiences, perceptions of local culture and environment, social and economic impacts, challenges, and opportunities for improvement. Findings: The findings indicated that positive tourist experiences significantly enhance perceptions of the local culture and environment, which in turn positively affect both social cohesion and economic benefits for the local community. The study also found that while economic impacts are effective in mitigating tourism-related challenges, social impacts are less influential. Recognizing challenges was seen as pivotal in identifying and leveraging opportunities for improvement. Conclusion: The study concluded that enhancing tourist experiences and perceptions could substantially benefit rural communities economically and socially. Addressing the challenges in rural tourism can unlock significant opportunities for sustainable development and strategic growth in rural areas.