TOURISM VILLAGE DIGITAL TRANSFORMATION READINESS ANALYSIS: CASE STUDY IN TWO SUPER PRIORITY DESTINATIONS IN INDONESIA

The digital economy is increasingly vital to Indonesia’s development strategy and presents a major opportunity for enhancing tourism, especially in rural areas. However, there exists a significant disparity in digital readiness between urban and rural regions. This study aims to assess the digital transformation readiness of tourism villages located within two Super Priority Destinations (SPDs) - Borobudur and Mandalika - by identifying their strategic positions and formulating targeted development approaches. This research adopted a qualitative methodology using in-depth interviews with 26 tourism village leaders and two local government officials, supported by focus group discussions and direct field observations. The study developed and applied a contextualized Digital Transformation Readiness Index (DTRI) tailored to rural tourism settings, which encompasses eight dimensions: technology, customer, product, process, people, culture, strategy & investment, and governance. In addition, GE and portfolio matrices were used to map the villages to enable a strategic classification of readiness levels. The matrix dimensions was based on Digital Transformation Readiness assessment to measure internal capacity for digital adoption, and Future Traveler Journey Digital Alignment assessment to measure the extent to which village infrastructure supports digital tourist engagement. The study identified varying levels of digital readiness among tourism villages. While Candirejo (Borobudur) and Bilebante (Mandalika) exhibit strong digital maturity supported by infrastructure and leadership, many others remain in early or partial stages, constrained by limited digital literacy and investment. Notably, government classifications did not consistently align with actual digital readiness. Using GE and BCG matrices, villages were categorized into superior, average, and inferior groups based on readiness and market potential. This strategic mapping supports tailored recommendations in capacity building, infrastructure, and stakeholder collaboration. The findings highlight the importance of locally adapted digital strategies and contribute a scalable framework for rural tourism development in emerging economies. Valuable lessons are provided for other emerging economies grappling with comparable challenges in the digitalization of their tourism sectors. Moreover, this research presents opportunities for future investigations into the enduring effects of digital transformation on tourism vill ages.