Between paradise and pressure : rethinking sustainable tourism in Labuan Bajo

Abstract

Labuan Bajo, a coastal town in eastern Indonesia and gateway to the Komodo National Park, has rapidly emerged into one of the Super Priority Tourism Destination in Indonesia. Behind the rapid growth of this tourism, the region faces mounting pressures, regarding environmental sustainability, socio-cultural integrity, and economic equity. This thesis investigates the role of sustainable tourism in balancing these dimensions, with a focus on stakeholder collaboration to finding the gap in between this ecological, financials and social tensions. Triple Bottom Line (TBL) Theory, Stakeholder Theory, Collaboration Theory, Capacity Building Theory, Carrying Capacity Theory, and Theory of Change, study critically examines how tourism development can help to improve the sustainability of tourism with environmental protection and cultural preservation. Using a qualitative study approach, data were gathered through in-depth interviews with key stakeholders ranging from government, private, NGO, conservation actors in tourism, and local communities which also supported by field work observations and document analysis. The study reveals five persistent challenges: fragmented stakeholder coordination, the lack of baseline data, unadequate infrastructure, cultural marginalization, and the absence of sustainable financial instruments. Despite broad support for sustainability, gaps between policy and practice remain, and local community continue to struggle with access to finance and participation. The findings point toward the need for integrated governance, inclusive financing mechanisms such as green municipal bonds, and conservation fees for instance and the need of the stronger role for traditional communities in tourism planning. Labuan Bajo’s transformation holds critical lessons not just for Indonesia but for ecologically sensitive destinations worldwide which demonstrate that sustainable tourism is not a luxury, but a necessity for survival, equity, and long-term resilience.