DIFFERENTIATION OF TOURISM PERFORMANCE IN RURAL AREAS: CASE STUDY OF DESA LESTARI, MALAYSIA AND DESA MANDIRI, INDONESIA

Rural tourism in Southeast Asia have leveraged the potential of rural tourism through a community-based approach by initiating a village-owned enterprise to strengthen the village economy based on the unique village’s characteristics. However, despite the importance of rural tourism, considerable differences in economic performance happened among villages. It raised a question of how rural tourism performance varies between villages and what factors determine the variation. Thus, this paper aims to examine the differentiation of tourism performance in rural areas between Desa Lestari in Malaysia and Desa Mandiri in Indonesia. A quantitative method was employed using a structured interview involving tourism-related stakeholders to understand the diverse potential and dynamic of rural tourism. The findings highlighted that village-owned enterprises in both countries have successfully boosted the village economy by optimising the village’s potentials, managed by the local community and supported by the government’s initiatives. Regarding factors of rural tourism performance, Ponggok Village demonstrates a strong linkage between tourism performance with cultural and environmental dimensions, While Peruas Village strongly links tourism performance with economic and social dimensions. Hence, this research serves as a reference in understanding the success factors in rural tourism performance in Southeast Asia.