Supply-demand chain supply comparison to improve service quality on a dynamic tourism ecosystem development model

Abstract

The purpose of this study is to design a dynamic model of tourism development in Bali, Indonesia, and analyse the differences with the model in Penang, Malaysia. This study employs a quantitative design with a sample of 100 respondents from both the demand (tourists) and supply (stakeholders) sides. The sampling method is purposive, referring to tourists who have visited Bali and Penang. Primary data was obtained through a field survey using a questionnaire distributed online through Google Forms, and data analysis was carried out using the partial least squares (PLS) method. The study’s results indicate that the market’s role influences demand in Bali in fostering service loyalty and tourist trust. Destination and service loyalty are also affected by trust. Governance influences natural conservation, socio-economy, and cultural preservation on the supply side. Penang’s demand is driven by extrinsic factors, unlike Bali’s. Market demand affects service loyalty and visitor trust in Penang. The investigation reveals that trust significantly impacts both destination and service loyalty. In conclusion, extrinsic motivation increases market demand in Penang but not in Bali, resulting in distinct dynamic models for Bali and Penang