FROM TRADITIONAL VILLAGES TO SMART RURAL ECOSYSTEMS: DIGITAL TRANSFORMATION FOR INCLUSIVE TOURISM AND ECONOMIC SUSTAINABILITY

Abstract

This study aims to analyze how digital transformation supports the transition from traditional villages toward smart rural ecosystems in promoting inclusive tourism and economic sustainability. Rural areas increasingly face challenges in adapting to digital development while maintaining local participation and economic resilience. A quantitative explanatory approach was applied using Structural Equation Modeling–Partial Least Squares (SEM-PLS) to examine the relationships among digital transformation, smart rural ecosystems, inclusive tourism, and economic sustainability. Data were collected from 200 respondents consisting of village tourism actors, village-owned enterprise managers, local business operators, and tourism stakeholders in selected rural tourism villages. The findings indicate that digital transformation significantly contributes to the development of smart rural ecosystems and inclusive tourism, while both variables positively influence economic sustainability. Trend analysis also reveals a continuous increase in smart village transformation over the observed period, reflecting gradual rural adaptation to digital systems. The study demonstrates that digital transformation functions not only as technological adoption but also as a socio-economic process that strengthens institutional collaboration, tourism participation, and local income generation. The value of this research lies in providing an integrated perspective on how digital transformation and tourism can jointly support sustainable rural development through ecosystem-based village innovation.