THE INFLUENCE OF GREEN FINANCE AND INSTITUTIONAL EFFECTIVENESS ON SUSTAINABLETOURISM: AN EMPIRICAL STUDY IN BALI
DOI:
https://doi.org/10.35814/nnncwf86Keywords:
Destination Governance, Green Economy, Institutional Capacity, Tourism Transformation, Environmental PerformanceAbstract
This study aims to analyze the influence of green finance and institutional effectiveness on sustainable tourism in Bali. The study is motivated by the gap between the increasing availability of green financing instruments and the suboptimal implementation of sustainability practices in the tourism sector. A quantitative approach was employed using an explanatory research design through multiple linear regression, mediation, and path analysis of data obtained from stakeholders in the tourism and financial sectors. The questionnaire was distributed to 106 people. The results indicate that, simultaneously, green finance and institutional effectiveness have a significant effect on sustainable tourism, with a coefficient of determination (R²) of 0.3041. However, partially, green finance does not have a significant effect, while institutional effectiveness has a positive and significant impact and emerges as the dominant factor. These findings suggest that the availability of green financing is not effective without strong governance support, including regulatory certainty, institutional coordination, and human resource capacity. This study provides empirical evidence on the importance of institutional factors in bridging the implementation of green finance toward sustainable tourism, as well as strategic implications for strengthening policies and destination governance.
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