Sustainable Tourism Practices and Financial Resilience: A Case Study of Tourism Destinations in Indonesia

Tourism is a strategic sector for Indonesia’s economy but remains vulnerable to global and domestic crises. This study aims to analyse the implementation of sustainable tourism practices and their relationship with the financial resilience of tourism destinations in Jakarta and West Java. Using a mixed methods approach, data were collected through surveys of 150 respondents (tourism enterprises, destination managers, and local communities) and in-depth interviews with stakeholders. The research instruments measured three dimensions of sustainable tourism (economic, socio-cultural, environmental) and five dimensions of financial resilience (revenue stability, diversification, cost efficiency, adaptation and innovation, institutional support). Results from Structural Equation Modelling–Partial Least Squares (SEM-PLS) reveal that sustainable tourism practices significantly and positively influence financial resilience (β = 0.62; p < 0.01). The economic dimension contributed the most, followed by socio-cultural, while environmental was positive but not significant. These findings highlight that sustainability not only addresses socio-ecological concerns but also serves as a key strategy to strengthen the financial resilience of tourism destinations. Theoretically, this study reinforces the Resource-Based View and Stakeholder Theory within the Indonesian tourism context. Practically, it provides recommendations for policymakers and practitioners, including strengthening policy support, diversifying tourism products, enhancing digital innovation, and engaging local communities. Thus, sustainable tourism practices can form a foundation for developing resilient and competitive destinations in the future.