Design strategies and willingness to pay for circular economy service policies in sustainable tourism

• Longevity, serviceability, reusability, and material recovery are all important for promoting a circular economy. • The willingness to pay for sustainable practices is a crucial factor in determining participation in circular economy activities. • Major barriers to implementing circular economy practices include cost concerns, lack of awareness, and limited incentives. • Government support and collaboration with local communities are identified as important factors. The transition towards a circular economy within the tourism industry is increasingly seen as essential to achieving sustainable development goals. This study explores the relationships between various design strategies, tourists' willingness to pay (WTP) for sustainable practices, and their participation in circular economy activities. Using Structural Equation Modeling (SEM) to analyze data collected from 640 tourists in Bali, the research identifies the critical factors that influence tourists' engagement with sustainability. The findings reveal that design strategies focused on longevity, serviceability, reusability, and material recovery significantly enhance WTP for sustainable practices. In turn, WTP is shown to be a key driver of participation in circular economy activities, such as purchasing recycled items and green purchasing behaviors. However, barriers such as cost concerns, lack of awareness, and limited incentives pose significant challenges to widespread adoption.