THE ECONOMIC IMPACT OF TOURISM ON SMEs IN THE BOROBUDUR TEMPLE TOURISM AREA

Abstract

Tourism is widely recognized as a key driver of local economic development, particularly through its impact on micro, small, and medium enterprises (SMEs). However, limited studies critically examine how tourism-driven growth contributes to sustainable SME development in emerging destinations. This study aims to analyze the economic impact of tourism on SMEs in the Borobudur tourism area while addressing structural challenges affecting their sustainability. This research employs a systematic literature review approach by analyzing relevant academic publications from the last decade. The findings indicate that tourism generates significant economic benefits, including increased income, job creation, and product diversification among SMEs. However, the study also reveals structural limitations, such as dependency on tourism demand, limited access to capital, and low managerial capacity, which may hinder long-term resilience. This study contributes to the tourism economics literature by extending the multiplier effect perspective with sustainability considerations and provides practical implications for policymakers in strengthening SME development in tourism-dependent regions.