CASE STUDY 8 Hainan Island, China: Coupling tourism and ecology Challenge: Growing pressure on nature Enablers used: Infrastructure; finance; technology and innovation; people and skills; policy and governance Hainan confronted the tension point of environmental degradation driven by rapid tourism growth, as the island evolved into a major domestic and international tourism hub. By 2021, Hainan was hosting more than 80 million tourists (domestic and international) and generating around RMB 138.4 billion ($20.4 billion) in tourism revenue, efforts that placed considerable pressure on coastal zones, urban infrastructure, wetlands and ecological systems.64 Unchecked growth threatened resident welfare, habitat integrity and long-term competitiveness. Policy-makers responded with a coupling–coordination model that treats tourism development and ecological protection as interdependent, deploying coordinated enablers. Infrastructure and land-use coordination integrated ecological corridors with resort zones and stricter zoning rules. Financial coordination reinvested tourism revenues in green infrastructure and supported community initiatives in low-impact agriculture and cultural tourism in inland areas. Technology and innovation deployed real-time monitoring systems to track visitor flows, waste and environmental indicators. People and skills coordination mobilized tourism authorities and environmental agencies to set development limits, enforce protected-area regulations and reduce pressure on coastal hotspots. The measurable outcomes point to emerging balance across dimensions. Economically, Hainan’s large visitor base and tourism revenue contributed materially to the provincial economy. Socially, inland communities gained alternative livelihoods via tourism-linked activities, reducing over-reliance on coastal construction. Environmentally, restoration and protection of mangroves and coastal wetlands have been stabilized in some zones, aided by funding from tourism revenues and stricter regulation. Coordination related to tourism and the ecological environment on Hainan improved from 2005 to 2019, transitioning from moderate imbalance to “good coordination”, although interactive stress began appearing after 2017.65 Hainan’s experience suggests that even high-volume destinations can adopt ecosystem coordination to better balance growth and sustainability. CASE STUDY 9 Indonesia: Building system resilience, from crisis to rebound Challenge: Global disruption Enablers used: Infrastructure; finance; technology and innovation; people and skills; policy and governance When the COVID-19 pandemic halted travel, Indonesia’s visitor economy faced collapse. Borders closed, revenues evaporated and tourism-dependent communities were left without income. As recovery began, destinations such as Bali experienced renewed strain from concentrated visitor flows, requiring a balance between growth and sustainability. Indonesia responded with coordinated resilience measures across all enablers. The Ministry of Tourism and Creative Economy launched the “InDOnesia CARE” programme, with national Certified Healthcare Simulation Educator (CHSE) standards for health, safety and sustainability, backed by certification and a public registry to restore traveller confidence.66 Technology platforms linked certified businesses to markets, while training programmes improved workforce competence and service quality. Financing came through the World Bank-supported Tourism Development Project67 and the rapidly expanded Tourism Village (ADWI) programme, which grew to more than 3,400 villages by 2022, diversifying benefits beyond urban hubs.68 Infrastructure investment focused on the five “super-priority” destinations, while Bali introduced an international tourist levy to fund conservation and cultural heritage.69 The results are increasingly visible. International arrivals have rebounded strongly,70 thousands of businesses are CHSE- certified, and rural communities are capturing new income streams through ADWI. In Bali, levy revenues are financing conservation and cultural projects at scale. Together, these actions demonstrate how Indonesia has turned a crisis into an opportunity to build a more resilient, inclusive and sustainable tourism ecosystem. Beyond Tourism: Coordinated Pathways to Inclusive Prosperity 18

Beyond Tourism Coordinated Pathways to Inclusive Prosperity 2025