Admittedly, tourism is not merely aiming at encouraging the regional economy, but also preserving the surrounding environment and culture. In this context, the development of the homestay industry in tourist villages is essential. Homestay combines affordable lodging and authentic local cultural experiences and restores the Traditional Architecture of the Archipelago. Therefore, it is necessary to provide tax incentives as pull factors and economic, social, and political engineering to accelerate the development of the homestay industry in tourist villages. This study was conducted in Ubud, Bali's tourist village, employing a constructivist paradigm and collecting data through literature study, documentation study, FGD, and observation. This study concludes that a quintuple helix perspective is relevant to explain the urgency of providing tax incentives (to accelerate the homestay industry's development in tourist villages). Based on the quintuple helix perspective, as revealed by the study's finding, sustainable development is a primary goal. Thus, it is important to consider the long-term benefits of tax incentives comprehensively. Tax incentives shall certainly cause tax expenditure, either directly or subsequently, in a certain period. However, the lost potential of taxes shall be compensated through a multiplier effect in the form of not merely quantitative benefits, but also qualitative benefits such as cultural preservation, traditional architecture of the archipelago, local wisdom, and the achievement of sustainable development goals.
|Title of host publication||Proceedings of Tourism Development Centre International Conference|
|Publication status||Published - 31 Dec 2020|