Addressing the Principal-agent Problem to Foster Community Participation in Sustainable Tourism Development
Year: 2024
Type: article
Abstract: Sustainable tourism development thrives on the active participation of local communities. Their involvement ensures that tourism not only bolsters the economy but also respects cultural heritage and preserves the environment. However, the Principal-Agent Problem, a concept rooted in economics, has emerged as a significant barrier to genuine community participation in this process. Understanding and addressing this issue is essential to building a sustainable tourism framework that benefits all stakeholders. The Principal-Agent Problem occurs when the goals and interests of the principal (policymakers, tourism authorities, or private developers) and the agent (local communities) diverge, often exacerbated by asymmetric information. In the context of sustainable tourism development, principals often devise top-down strategies, expecting communities to comply and contribute without addressing their specific needs, aspirations, or concerns. This disconnect stifles the potential for collaboration and mutual benefit.
Authors: Kuldeep Verma, Dr. Aditi Rawat
Institution: Hemwati Nandan Bahuguna Garhwal University
Language: English
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6911917974
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