Community benefits in local tourism: the mediating role of institutional trust in meeting needs and social integration

Purpose The global festival landscape, while significant for community cohesion and economic growth, lacks research focused on the complex dynamics of Latin America, where most studies remain concentrated in the Global North. In this context, the purpose of this article is to analyze the role of community benefits in promoting social integration and the fulfillment of individual needs within community-based tourism settings. Design/methodology/approach An exploratory-descriptive quantitative approach was employed, with data collected through an online survey administered to 3,040 residents of Blumenau who attended the Oktoberfest festival. Structural equation modeling was used to analyze relationships among community benefits, need satisfaction and institutional trust. Findings The results indicate that institutional trust serves as a link that enhances the transformation of collective benefits into social integration and well-being, underscoring the importance of legitimate institutions for the sustainable success of community projects. Originality/value Despite the recognized importance of benefits and institutional trust, there is a gap in the integrated understanding of how institutional trust mediates the relationship between community benefits and the perception of individual needs being met, limiting both theoretical and practical advancements in this field.