Leveraging Local Value in a Post-Smart Tourism Village to Encourage Sustainable Tourism

Abstract

Post-Smart Tourism Destinations (PSTD) need a sense-of-place approach based on uniqueness and thematic differentiation to deliver authentic and valuable experiences. Information and communication technology (ICT), digital technology adoption, sustainable development, community empowerment and local wisdom, and destination uniqueness are keywords that will be further explored in the development of tourism villages in Kenderan as the most important tourism destination development at the village level. The development of smart tourism, proof of the disruption of digital technology in the tourism sector, has become the objective of almost every tourism destination in the world today, be it an urban or rural area. Since its initial emergence, the smart concept in tourism development has evolved. In the beginning, it focused on ICT and the adoption of digital technology. Along with the pressure of the global requirement to apply sustainable development, the focus of smart tourism later included sustainability in the application of smart technology, which made smart tourism development (STD) become smart and sustainable tourism development (SSTD). The post-smart tourism concept arose because many critics suggested that destinations tend to place too much focus on technology adoption and lack attention to local wisdom, inclusivity, and local indigenous aspects of destination development. Applied research implemented mixed methods in the form of qualitative research through expert judgment and quantitative research through structural equation modeling analysis. The results of this research show that creative events for the local aspects of a tourist village, digital competence, and sustainability practice are the building blocks for a post-smart tourism village, while digital competence and sustainable practice have a significant mediating effect of locality on post-smart tourism villages. To ensure a tourism village possesses sustainable competitive advantages, the village must explore and promote its locality aspects to differentiate itself as a tourist village by identifying its valuable, rare, inimitable, and non-substitutable tourism resources. The implication of this research is that to develop wise and distinctive smart tourism destinations, tourist villages should explore their local values and resources, embed them into their basic components and core resources of tourism, and co-create, distribute, deliver, and promote them to the global market through technology adoption and global sustainability value.

1. Introduction

A smart tourism destination (STD) is believed to be an important tool to gain destination competitiveness [1,2,3]. It focuses on fulfilling tourists and other stakeholders’ needs through an innovative combination of digital technology, tourism, and smart city management [4] to create the ultimate digital and physical experience for tourists, local communities, and businesses [5]. Although some scholars believe that sustainable practices are predecessors of smart tourism [6,7], some argue that smartness and sustainability should go together as an integral part [8], and some even propose smart, sustainable tourism destinations (SSTDs) as a new concept for tourism development [9,10,11]. The extension of STD implementation that includes a high level of sustainable value adoption shows the enhanced competency of destinations to achieve a better-quality natural environment and other sustainability aspects in general [11,12,13], which become the groundwork of SSTD concepts [10,14]. Furthermore, Coca-Stefaniak [15] proposes more humanistic, people-centered, wiser destinations and encourages them to show and explore their unique personality and local wisdom, in addition to adopting tech-savvy and sustainable practices.

With the proliferation of the concept and practice of STDs and their derivations, many scholars and destinations try to activate this concept at the village level [16,17,18,19,20]. This consideration is based on the fact that villages and rural areas, with their uniqueness of natural and cultural resources, can be capitalized upon to create regional identity, improve local people’s welfare, accommodate the fulfillment of tourists’ needs for unique services and local development in response to the need for modern society entertainment [21]. Thus, rural tourism development can improve tourist service provision, a community’s work diversification, the preservation of rural culture and heritage, protection of natural environments, and can improve living and working conditions. It can also be used to support the development of underdeveloped areas, increase household members’ exercise of invisible exports and the placement of domestic products, and preserve traditions, customs, and crafts [22].

Several issues that need to be studied for improvement include memorable tourist experiences that involve active interactivity and personalization of tourism resources and smart tourism technology at STDs [23]. Smart technology is needed to enrich the travel experience that leads to STDs through optimizing informativeness and interactivity as mainstay attributes [24]. Many other problems are faced regarding the STD concept, which is considered difficult to improve due to its complexity, which is aligned with managerially relevant knowledge, so methodology development is needed to improve stakeholders’ understanding [12]. Apart from that, various sources of information are also needed, which are aimed at meeting the needs and preferences of visitors in achieving tourist shopping journeys (TSJs) optimally through developing STD strategies and services [25]. Smart facilities and services need to be developed in the creation of STDs by offering optimal environmental stimulation to tourists, which is carried out through physical and psychological stimulation, encouraging the level of tourist arousal and experience [26].

The development of tourist villages has become important for the national rural development strategy, especially since there are 83,981 villages in Indonesia overall that need access to development [19]. A report from the Ministry of Tourism and Creative Economy of the Republic of Indonesia states that during the COVID-19 pandemic, the number of visitors to tourist villages experienced a significant increase of up to 30% [27]. Although it was still far below the number of tourist visits before the pandemic, it still had the power to stimulate the villages’ stagnant economy. This was because traveling to rural areas was considered to fulfill four aspects of the new normal tourism practices, namely having more pollution-free air (hygiene), being able to reduce direct contact (low touch) with other people to avoid transmission of the COVID-19 virus, staying away from crowds (fewer crowds), and the fact that tourists could only travel to destinations in proximity to where they live (low mobility). Post-pandemic, the development of tourist villages will experience many changes that must be anticipated, such as aspects of good health and sanitation protocols, digitalization disruption, sustainability requirements, and other aspects that are the demands of rural tourism destination’s competitive advantages.

The development of tourist villages is believed to be a promising method to address poverty and underdevelopment problems through a people-centered approach and inclusion in tourism development at the village level. The village alone is a significant topic in the current context, as villages face numerous challenges such as economic crises, health crises, or migration [20], and specifically, how to adapt to the disruptive environment [28]. Therefore, a smart tourism village becomes the panacea that allows local people to integrate and share their resources, use digital technology, and improve tourism infrastructure to cater to and create high-quality personalized products and services for tourists’ needs. This enables the village to provide a high quality of life, conserve natural resources, promote a more holistic life and sustainable practices, and stimulate innovative and productive rural entrepreneurship [20]. Kenderan Village, renowned for its religious traditions and located in Gianyar Regency, Bali, Indonesia, aims to develop a competitive and distinctive tourist village. Despite the widespread fame of pioneer and leading tourist villages in Ubud and other areas, known for their unique nature and Balinese culture, Kenderan Village seeks to differentiate itself. Since Bali has become a world-class destination, the development of a tourist village in Kenderan Village must have a differentiated and distinctive concept with global value to stand out from the competition. This way, the tourist village can be immediately introduced and attract the potential market.

As a religious village, the life of the local community in Kenderan focuses on participating in Hindu ritual activities and traditions at the temple. The people claim that they implement Hindu culture in their daily lives and even manifest their lives through living culture and traditions that reflect the philosophy of Tri Hita Karana. Tri Hita Karana is the Balinese philosophy of life that encompasses the relationship between man and God (Parahyangan), fellow human beings (Pawongan), and nature (Palemahan), the three elements for establishing balance and harmony. As the main living cultural product, they developed their temple’s tradition to become the highlight of tourist village products, namely living culture festivals held twice a year. Therefore, this study intends to explore and develop a tourism village model that not only respects local wisdom and values but also complements the new generation’s post-smart and wiser tourism destination development. This development should focus not only on technology adoption and sustainability values but also on respecting the uniqueness of each tourism destination, adopting a more holistic and humanistic approach [15] that is more fitting to Balinese living culture. Sustainable tourism development can be leveraged through the effectiveness of community empowerment to improve local welfare in the form of thematic empowerment programs [29]. Sustainable development and community empowerment are the next aspects that will be further explored in the development of Kenderan Tourism Village by employing circular economy practices in their religious temple’s daily lives. This includes zero waste and energy-saving concepts as novel values integrated and packaged in a living culture festival, serving as a lifestyle highlight in periodic ritual events. Therefore, in Kenderan Village, the uniqueness of the destination lies in the culture, which becomes tradition and festivity and is reflected in the daily life of the people in Kenderan Village. This study aims to identify whether digital competence, the adoption of a circular economy, and creative festivals are forms of local wisdom that are more humane in creating smart and competitive villages.

2. Literature Review

2.1. Smart Tourism Destination, Smart Tourism Village, Post-Smart Tourism Village

The term “smart tourism destination” (STD) originated from the global acceptance and application of the smart city concept [30]. Although STD and smart cities have a different focus, they complement each other [31]. Pranita et al. [6] used the smart city’s dimensions to determine smart tourism, with tourism components becoming the core attention. Bulchand-Gidumal [32] explained that the difference between a smart city and STD was the smart tourists’ dimension, which became the focus of attention. Tran, Huertas, and Moreno [31] proposed an intelligence focus on tourism destination components, namely smart attractions, smart accessibility, smart facilities, smart ancillary services, smart activities, and smart packages. The smart concept in tourism was used not only in cities or complex tourism destinations but also in tourist villages [17,18]. Smart tourism was considered a subset of smart villages that used the Internet of Things (IoT), big data, and data analytics techniques. IoT was a concept to expand the various benefits of continuous internet connectivity [33].

The EU initiative’s concept of smart tourism destinations focused on four aspects, namely sustainability, digitalization, cultural heritage and creativity, and accessibility. These aspects provided tourism destinations the flexibility to adjust each smart tourism emphasis. It allowed smart tourism development to strengthen tourism-generated innovative development, increase destination attractiveness, foster economic growth and job creation, and establish a framework for the exchange of best practices between cities and destinations [34]. The World Tourism Organization defined smart tourism (ST) as the provision of clean, ecological, ethical, and high-quality services at all levels. Similarly, Gretzel et al. [35] considered that this type of tourism included all experiences that allowed tourists to generate closer communication and interaction with citizens, tourism organizations, local government, and the environment/tourist attractions in the areas visited.

Smart tourism, according to Gretzel et al. [36], was perceived as a logical progression from traditional tourism, laying the foundation for innovation and technological orientation of the industry and consumers with the widespread adoption of information and communication technology (ICT) in tourism. For example, global distribution and central reservation systems, integration of web-based technologies, and the emergence of e-tourism. The definition of smart tourism was broadly interpreted according to the objectives to be achieved in the design of the information system. The use of information technology was also not just an avenue of promotion; data processing regarding tourist objects or places will produce information for greater attractiveness. The adaptation of the concepts of green and smart tourism can support the achievement of several aspects and objectives of the program that will or are being implemented. The sustainable tourism development model Pecsek [37] included aspects of economic, social, and cultural sustainability, as well as local wisdom, focusing on the experience and achievement of community social welfare in Kenderan Village. Sustainability considerations aimed to ensure profitability, avoid foreign exchange leakage, ensure environmentally friendly investments and activities, manage carbon footprints, and extend the length of tourist stays. Carbon footprint was implemented through a carbon tax to achieve a reduction in carbon emissions [38]. The local wisdom aspect aimed to develop local gastronomy, culture, and businesses and empower local human resources. The social welfare aspect aimed to include the community in consensus decision-making, reduce urbanization, promote welfare growth, and foster harmonious community life (community cohesion). However, tourist destination development also needs to focus on quality tourist experiences, indicated by personalized and non-standard products, selective attractions, active programs, and supportive collective experiences.

Post-Smart Tourism Destination (PSTD) was implemented through an approach to tourist destinations having a sense of place related to unique resources and thematic differentiation. This allowed the provision of authentic, valuable, and rare experiences that were difficult to imitate or irreplaceable experiences to promote a better quality of life [39]. For this reason, PSTD was applied as a guideline in managing STD to optimize development efforts into a more humanistic concept and encourage the exploration of local values by promoting the uniqueness of the destinations experienced. As STD adoption in smart village development has spread, many scholars have argued that being smart is not enough, but sustainable aspects, especially environmental concerns, should also become every destination’s consideration, including rural and village areas [20]. After the acceptance of the emergence of smart, sustainable concepts in tourism destination development [7,16,19], post-smart or wise tourism destination was introduced by Coca-Stefaniak [15], allowing local wisdom and uniqueness of the destination to be considered and applied in the tourism destination. Even though STD intersected with culture tourism destinations, technology was often considered a disruptive factor to the cultural preservation and authenticity of a place [40,41]. Referring to Veerasamy and Goswami [42], the presence of smart tourism in a region enabled greater and coordinated efforts for innovation, quality of life, and sustainable tourism through a rich data infrastructure within the scope of a particular destination. Fundamental to the traveler experience was an aesthetic obsession with authenticity, allowing the diversity of smart technologies to be applied to the cultural and spiritual experience in tourist villages at the granular level, where religion becomes a bonding tourism destination. To encourage the development of the traveler experience, it is necessary to understand the evolution of concepts in smart tourism destinations.

Table 1. Evolution concept of STD.

Experts	Concepts
[1]	Current and future practices comprised various activities, including (1) waste sorting, (2) nature tourism such as hiking, cycling, and outdoor holidays, (3) transportation consisting of cycling, walking, trains, and other forms of movement, (4) accommodation, (5) sharing, and (6) reusing materials.
[43]	Smart tourism evolved as a social phenomenon, originating from the convergence of ICT with tourism experiences. This evolution was supported by concerted efforts to collect and use data from various sources, including physical infrastructure, social relations, government, and the human mind. The integration of advanced technology played a crucial role in transforming these data.
[14]	Smart tourism represented a logical evolutionary step beyond traditional and e-tourism. It served as the foundation for technology-driven innovation, obtaining inspiration from the smart city concept. Innovative tourism destinations were constructed on modern technology infrastructure, fostering sustainable and accessible development in tourist areas. The objective was to enhance tourism experiences, improve the quality of life for residents, support businesses, and establish a smarter platform for the distribution and collection of destination data.
[5]	STD included assembling a tourism ecosystem through a web-based application. This aimed to enhance destination efficiency and address the evolving expectations and needs of both tourists as well as residents. The focus was on holistic innovations comprising all stakeholders in the tourism ecosystem while also promoting the responsible use of environmental and social resources.
[44]	Examined key parallels between the concepts of smart cities and smart tourism destinations, traditionally dominated by technology-based approaches. However, a new generation of smart initiatives was evolving with a more human-centered focus.
[45]	Smart tourism, as a branch of smart cities, aims to address tourists’ travel-related needs, enhance travel experiences, and improve the competitiveness of destinations.
[46]	STD used tools, techniques, and technology to co-create tourist experiences. This included adopting tourism platforms to integrate services and other tourism resources.
[15]	Offered insights into wiser tourism development, exploring avenues for a more humanistic and local value context in STD. This method ensured that each destination retained unique characteristics.
[10]	Smart sustainable tourism includes the incorporation of ICT, smart technology, and various applications to adapt the services provided to tourists.

describes the evolution of the concept of STD as put forth by several researchers.

Based on the above concepts, as well as a decade of exploration and implementation, a re-evaluation of STD was necessary, aiming for a more thoughtful and human-centered method. This motivated local content development as post-smart tourism, with a focus on the distinctiveness of each tourism destination, either a country, urban area, or community.

2.2. Digital Competence in Smart Tourism Community

Digital competency (DC) is a concept that describes technology-related skills, encompassing skills and competencies in the use of digital technology, such as ICT skills, information technology skills, 21st-century skills, information literacy, digital literacy, and digital skills [47]. To improve digital competence, it was necessary to seek specific knowledge for each new competence [48]. Digital tourism motivated the strengthening of consumption patterns in the form of tourism experiences to fulfill lifestyles [49]. The concept of smartness included the vast use of technology to improve day-to-day activities, information management, real-time service offers, connect all local institutions, and improve efficiency in services. To become smart, tourism needed to use an appropriate technological platform that integrated information from local natural and heritage resources, tourists, actions, and consumption habits. This engagement with stakeholders allowed tourists to act proactively and directly in the dynamic use of these technologies in the joint creation of the tourism experience [50]. In STD, ICTs were heavily involved in promoting the competitiveness of tourist destinations and generating new development and growth projects in the areas visited. It required the use of a technology platform consisting of three fundamental components: cloud computing services, IoT, and end-user devices [15]. Smart tourism was the new buzzword describing technological, economic, and social developments fueled by technologies relying on sensors, big data, open data, new ways of connectivity and exchange of information (IoT, RFID, and NFC), as well as abilities to infer and reason. It was not so much the individual technological advances but rather the interconnection, synchronization, and concerted use of different technologies that constituted smartness. The smart concept exploited operational, near-real-time real-world data, integrated and shared data, and used complex analytics, modeling, optimization, and visualization to make better operational decisions [43]. Creative tourism was a tourism development strategy that integrated and optimized arts and culture [51]. Creative tourism could be developed through various new services, the need for quality human resources, and strengthening creative work based on talent, knowledge, and skills [52].

Digital competence has become a primary need in the tourism industry [53], and the combination of big data technology and technological innovation for data analysis [54], with specific applications in the tourism industry, has become the “new normal” in every aspect of life. This approach has been embraced in smart tourism [55], along with digital marketing, online market research, and social networking. Concerning digital skills for smart tourism destination development, the success indicators were the ability to acquire and use digital information for image-building, including the creation of digital business platforms [53]. Additionally, the application of smart tourism data-mining technology could improve foreign exchange income (FEI) in urban tourism, increase employment in tourism, and drive the development of tourism-related industries by more than 70% within ten years [56]. Several previous studies on the concept of digital competence in smart tourism destinations were needed to deepen the theory of digital skills.

Table 2. Previous studies on digital competence in smart tourism destinations.

Experts	Concepts
[57]	The smart destination was synonymous with wise tourism, serving as a destination founded on an advanced technology infrastructure capable of ensuring sustainable development. Instruments for such features included ICT infrastructures (cloud computing, IoA, IoE, and IoM), mobile devices, virtual reality, and services based on the user’s location.
[58]	ICT evolved from the digital revolution, allowing stakeholders and destination authorities to efficiently access knowledge and information regarding the components of the tourism industry and travelers’ experiences, which were then evaluated.
[50]	ICT served as a crucial tool to enhance processes and introduce smart concepts, including smart tourism. This intelligent concept operated on the socio-technical paradigm, treating technology and individuals as collaborative actors to co-create value in the included sectors’ economic, social, and environmental prosperity.
[12]	The evolution of the smart tourism concept was closely related to digitalization. In smart tourism, ICT plays a role in supporting the marketing and delivery of goods and tourist services, along with the development of technological infrastructures.
[59]	The technological capabilities of smart tourism destinations enhanced the efficiency of resource management and sustainability, providing opportunities for interactive activities. This increased competitiveness, leading many regions to undergo modernization.

provides an overview of previous studies on digital competence within smart tourism destinations.

Based on the significant contribution of digital competency to PSTD, Hypothesis 1 was proposed below.

Hypothesis 1 (H₁). 

Digital Competence had a significant effect on Post-Smart Tourism.

2.3. Circular Economy in Smart Tourism Village

Prieto-Sandoval, Jaca, and Ormazabal [60] asserted that the concept of circular economy (CE) had been popularized by policymakers in China and the European Union as a method of reducing environmental damage done by countries, companies, and consumers. Elements found in CE were said to be older than the concept itself, with no fixed information on its birth. However, the promotional work of the Ellen MacArthur Foundation, which had also contributed to the transition from a linear economic system, served as the primary factor in the spread of this concept. CE, an environmental economics-based economic model, was commonly agreed to have adopted a regenerative approach in material usage by reducing the amount being used and instead maintaining the value of resources as much as possible through a closed-loop development, therefore building resource productivity and eco-efficiency [61]. Kaszás et al. [62] proposed that CE would apply to tourism due to its economic development with a focus on nature conservation. The application of CE also had extensive opportunities in tourism development as the tourism sector was interlinked with key industries such as agriculture, construction, supply of essential resources including water and electricity, and transportation [63]. Rodríguez, Florido, and Jacob [61] pointed out the linear economy model for its depletion of natural resources due to lack of material optimization by reusing or recycling was a primary contributor to the environmental degradation caused by the tourism industry [64].

Renfors [63] states that a circular economy provides essential tools for solving environmental problems caused by tourism, and it contributes to the well-being of individuals and communities. Circular business models in the tourism industry improve environmental performance in tourism, and simultaneously, they generate cost savings and the growth of revenue and help create local jobs. The circular economy is also connected to the long-term post-COVID-19 recovery of the tourism industry, which will be influenced by the speed of the transformation of the current linear production system to a circular one. The application of CE in smart tourism would help enable sustainability in material usage while also minimizing environmental damage. Villages and rural areas offer natural and cultural resources that can be capitalized [21], and the minimization of environmental damage provided by CE’s model would be beneficial to its preservation without having to risk hindering economic development [63]. Green and smart tourism are concepts that can be used to support digital-based sustainable development in tourism. Green tourism is the answer to improving the competitiveness and ecological sustainability of tourism and also the policies of the United Nations (UN) and the European Union (EU) because it contributes to a smaller ecological footprint, fulfills nature protection objectives, increases competitiveness and market resilience, creates new business opportunities, is widely used to increase profits and benefits the local economy.

In a broader and holistic context, green tourism evolved as a concept applied in the development and management of CE. This method focused on how businesses could integrate sustainable production principles across the entire tourism value chain, including co-creating tourism experiences with tourists (co-creation of experience). The integration was designed to contribute to a tourism system that actively supported environmental sustainability [65]. According to Girard and Nocca [66], circular tourism was not only green tourism but was also more aimed at efforts to limit the consumption and waste of non-renewable energy sources. CE referred to a restorative economy that seeks to develop renewable energy and resources to limit waste by recycling products, components, and resources for longer use, therefore applying the 3Rs approach, namely Reduce, Reuse, and Recycle. Conversely, traditional tourism operated on a ‘take-make-waste’ logic, contributing to environmental impacts through travel reliant on readily available resources, resulting in solid waste, wastewater, and other environmental issues.

Implementing a CE system in tourism was complex, requiring a dedicated commitment from its managers as tourism included different interdependent, complementary, and competitive nature of various sectors, with a predominant focus on hedonic consumption. However, the development of a circular economy in Kenderan Village was a strategic step to create a competitive advantage for the destination that was expected to directly differentiate it from other tourist villages in Bali to accelerate its delivery to global tourists. The concept of circular economy was an effort to respond to the consequences of the scarcity of various resources and was taken as a step in encouraging transitional behavior towards sustainable economic development [67]. This direction was aimed at enhancing environmental performance by capitalizing on new opportunities. Therefore, the government was motivated to adopt early detection instruments in this pursuit. To deepen the circular economy concept, several previous studies in developing smart tourism destinations were presented in

Table 3. Previous study on circular economy in STD.

Experts	Concept
[63]	CE was an economic system that altered the standard of interaction between humans and nature at a system-level production to conserve resources, reduce waste, and improve efficiency. It could be implemented at the company, tourist, and destination levels to transform the loop of production and usage, influencing how resources are used and reused.
[68]	CE comprised two conceptual strands originating from industrial ecology. One strand addressed the flow of materials within an economy, while the other focused on the factors influencing the direction of the flow.
[69]	CE repurposes materials at the end of the service life into resources for others, minimizing waste.
[70]	CE functioned as a strategy for sustainability, addressing ecological deterioration and resource shortages. It used the principles of the 3Rs, namely reduce, reuse, and recycle in material management.

.

The potential application of CE to enhance the sustainability of smart tourism was considered, leading to the proposition that a significant influence was exerted on post-smart tourism. This indicated the critical role of CE in shaping the evolution of smart tourism towards a more sustainable paradigm.

Hypothesis 2 (H₂). 

Circular Economy (CE) had a significant impact on PSTD.

2.4. Leveraging Creative Festivals to Improve CE, Digital Competence, and the Attractiveness of Smart Tourism

Tourism or tourist villages were long-established rural communities that safeguard ethno-folkloric values and traditions and have a rich historical background. Additionally, the communities functioned as hosts and providers for visitors, accommodating tourists on extended leisure stays or participating in itinerant tourism programs, whether meals were provided or not [20]. Organizing festivals post-pandemic faced numerous challenges, evolving as an urgent subject, especially in exploring pro-social, responsible responses and sustainable festival tourism alternatives considering the COVID-19 crisis. Festival organizers should consider various aspects during the planning stage, including the distribution of safe and healthy travel guides and the raising of visitor awareness, specifically regarding pro-social norms and practices. Specific service regulations were formulated for online reservations and ticket purchases, using technologies such as robots or drones to enhance efficiency. Visitors were to be reminded to adhere to safety measures, including wearing masks, maintaining distance, and using sanitizers. Additionally, crucial measures such as temperature monitoring were implemented to ensure the safety and well-being of the visitors. Collaborative efforts between stakeholders for supervision and joint prevention were considered necessary in this context.

The European Union (EU) initiated the development of STD projects for its member countries, reiterating the unique characteristics of each destination [34]. For instance, Dubrovnik showcased its smart tourism development by hosting events such as the Dubrovnik Festival, while Gdynia pursued creative initiatives, namely beach theatre. Although events and festivals have been used to expedite smart tourism destination development [71], studies focusing on how these events enhance smart tourism destinations remain limited. In 2019, the World Tourism Cities Federation (WTCF) recognized smart tourism as an innovation initiative comprising not only digital transformation but also intelligence in physical, social, institutional, and economic infrastructure [43]. This initiative aimed to create a better experience for both city residents and tourists, fostering a competitive, sustainable, and inclusive environment that contributes to the welfare of local communities in a sustainable environment. Smartness was a new paradigm that included broader stakeholder engagement and the collection and processing of relevant data using innovative technology. Smart destinations also formulated strategies to enhance competitiveness by sustainably leveraging natural and cultural resources.

Events and festivals were a social phenomenon that occurred in almost all human cultures and were defined as times of sacred celebration characterized by special events performed either indoors, outdoors, or in virtual spaces. These events had various management structures, ranging from public sector provision to non-profit organizations and private enterprises. Festivals were organized by the smallest communities to large-scale events and could have a global reach, be diasporic, or be rooted in local traditions and religions. Festivals made a significant contribution to the global tourism industry and served as a key driver of the tourism sector. Events can be part of a destination’s total cultural offering or a phenomenon encountered by visitors. Tourists attended festivals for various motivations, including escaping from everyday life, socialization, family togetherness, or building personal identity, specifically when festivals offered transformational experiences. Furthermore, festivals contributed to the strengthening of social and communal identity, satisfying the human need for enjoyable interaction and fostering cultural and social capital. It further played a role in making cities smarter by addressing the livability and productivity of citizens through efforts to improve mobility, connectivity, healthcare, and public safety [43].

The development of smart festivals could certainly be related to the development of smart destinations, whose main principles were to engage tourists and share and co-create their tourist experiences online [71]. This included the provision of more intelligent platforms for collecting and distributing information within destinations, facilitation of the use of resources to gain value, integration of a large number of actors to distribute benefits to everyone, and generation and use of data at a much higher level through an integrated smart system [71]. Cimbaljević et al. [71] asserted that smartness constituted interconnection, synchronization, and concerted use of different technologies. Several previous studies related to this theory, which are explained in the development of smart tourism destinations, are shown in

Table 4. Previous study on creative festivals in STD.

Experts	Concepts
[72]	Organizing cultural festivals and other events comprised crafting a smart experience, enhancing the attractiveness of STD, fostering discussions and engagement of STD, implementing a new business model to facilitate dynamic connections with external stakeholders, and enhancing the interconnectedness of the business ecosystem.
[73]	Festivals and other social innovations negatively affected the cognitive function of the human brain in processing emotions and memory and storing life experiences in the context of technology. However, STDs demanded creativity, innovation, and intelligence in destination branding, along with the preservation of authenticity through a unique destination approach centered on the ecosystem.
[71]	The evolution of smart technology enhanced the tourist experience, and smart festivals could be related to smart tourism destinations. A smart festival was an event contributing to cultural life and constituting a tradition for the destination.
[74]	Festivals were tourist practices associated with emotion, shaping tourism experiences and memories, which became the active response of visitor responses even in smart tourism destinations.

to explore the concept of creative festivals or creative events.

Based on Table 4, creative festivals influenced the development and enhancement of PSTD, as reflected in the following hypothesis statements and Figure 1.

Hypothesis 3 (H₃). 

Creative festivals had a significant effect on post-smart tourism destinations. While some experts believed that technology contributed to events or festivals being smart and sophisticated [75,76], festivals also influenced technology innovation [77].

Hypothesis 4 (H₄). 

Creative festivals had a substantial impact on digital competence. Events or festivals could transform the circular economy into a circular society [78]. Creative events were motivated by a level of knowledge affiliated with disciplines and expertise that required competence for leverage [79]. Digital competency is related to proficiency or skills in using digital devices through mastery of the Internet, digital storage, and cloud to foster creativity and independence, better preparing individuals for global competition [80]. This condition then led to the fifth hypothesis as follows.

Hypothesis 5 (H₅). 

Creative festivals had a significant effect on the circular economy. Examining the connections between variables, the research framework in this study is outlined below.

3. Materials and Methods

A comprehensive understanding of the research problem was achieved by combining qualitative and quantitative methods through mixed-method research (MMR), leveraging the strengths of both approaches. This complex method integrated both quantitative and qualitative data in a single study, using follow-up studies to explore intricate research questions and test relationships between different variables [81]. The integration was achieved through post-positivism and interpretivism frameworks [82]. MMR method included implementing data collection and analysis, integrating both types of research within a study. Specifically, the study adopted triangulation research, comprising three methods to ensure a thorough exploration of the research problem. Qualitative research used expert judgment through in-depth interviews and focus group discussion (FGD), including representatives from government sectors, village leaders, the Kenderan tourism group, tourism businesses, local environmentalists, and others. Quantitative research aimed to test hypotheses and determine relationships and causality among variables to interpret and analyze the smart tourism model according to the hypotheses tested in this study. The research observation followed a cross-sectional or one-shoot time coverage, collecting information or data obtained from 2022 to 2023.

The qualitative research included expert judgment, with information collected from in-depth interviews with ten Kenderan Village stakeholders. All opinions and statements were clustered and deduced, while the results were discussed and confirmed through an FGD. The output was a qualitative research model, which was subsequently compared with the quantitative model. Quantitative research was comprised of distributing questionnaires to Kenderan Village visitors from December 2022 to March 2023. The Likert scale was adopted to identify visitors’ perceptions and structural equation modeling (SEM) (Lisrel) was used to test hypotheses and evaluate the model fit. After obtaining both qualitative and quantitative models, the frameworks were combined and synthesized into the final proposed model for the new smart tourism village. The research methodology used in this study is described in Figure 2 below.

Primary data were directly obtained from questionnaires filled out by respondents, constituting information acquired from the source based on the research variables [83]. Systematic random sampling was used to select the sample across all tourism business units in Kenderan Village. This technique included dividing the population into parts and randomly selecting samples in each part, with distribution being proportional to the population size of each business unit. Quantitative data collection included distributing questionnaires directly to respondents or via Google Forms for electronic data. Simultaneously, qualitative data were obtained through interviews and FGD. In-depth interviews with leaders of tourism business units in Kenderan Village were conducted to obtain data and information directly from primary sources.

Respondents evaluated question items from the indicators of each variable, categorizing the responses into five alternative answers using an ordinal scale that depicted the responses. The Likert scale, ranging from a score of 1 (never) to a score of 5 (always), was adopted in this study to measure attitudes, opinions, and perceptions about social events or symptoms [84]. Riduwan further explained that the Likert scale translates variables into dimensions, which are subsequently broken into sub-variables and further translated into measurable indicators [84]. These indicators served as the basis for creating instrument items in the form of statements or questions for respondents. The collected questionnaires were subjected to validity and reliability tests to ensure the usability of the data in addressing research problems. The operationalization of variables and indicators, as outlined in this study, served as a reference in formulating the questionnaire, as detailed in

Table 5. Operating variables and indicators.

Variables	Indicators
Digital Competence [85,86,87,88]	Information Handling Skills Social Networking Capability Content Creation Skills Safety Concern
Circular Economy in Tourism [6,89,90,91]	Resources Product/Service Production Tourist Practice Logics of Ownership Waste Environment
Creative Event [92,93,94,95]	Tangible Environment Social Connection Novelty of Tourism Product Sense of Professionalism Local Wisdom Special Performances
Post-Smart Tourism [18,96,97,98]	Smart Experience Smart Business Ecosystem Technological Support Interactive Real-time Information

.

The validity test gauged the measuring instrument’s correlation with the desired measurement, indicating higher accuracy for effective estimation of the intended target. A test was considered to possess high validity if the measurement function or results correlated with the research test’s meaning and purpose. Construct validity was used, correlating the scores of each item (question or statement) with the item score, and the total score represented the summation of all item scores. SEM, a statistical method based on variants or components, was used for data analysis. SEM analysis interpreted relationships or influences among variables [99], estimated multivariate interactions through measurement and structural models [100], explored dependency relationships between factors [101], and analyzed direct and indirect impacts [102]. Additionally, studies using SEM can handle high levels of complexity data and ensure model suitability [103]. SEM analysis was selected due to the complexity of the causal relationship formulated in this study, such as greening smart tourism within a circular economy.

The analytical tools traditionally used in quantitative research, such as multiple regression, factor, and discriminant analysis, were considered limited in addressing the multidimensional aspects of the model. Primary data obtained from the research sample through distributed questionnaires were analyzed with SEM, using Lisrel 8.8 and SPSS 25. The Lisrel program was selected for its ability to show structural measurements and test hypothesis models. This excelled in estimating known coefficients from structural linear equations, accommodating models with latent variables and measurement errors, and handling simultaneous reciprocal warnings and interdependence. According to Hair et al. [104], SEM allows the simultaneous analysis of a series of relationships, providing statistical efficiency.

4. Results

4.1. Stakeholders’ View on Living Culture Festival, Circular Economy, and Smart Tourism Village

Kenderan Village, located in Tegallalang District, Gianyar Regency, Bali Province, covered an area of approximately 7.18 km², resting at an altitude of around 600 meters above sea level. The community was enriched with diverse potential, including agriculture, cultural arts, tourism, and economy, particularly in the form of artificial resource potential. Throughout the management of the tourism sector, Kenderan Village experienced several problems. These included challenges related to the physical condition of the community resources, the seasonal calendar, and local institutional matters. Based on the problems, potential challenges, and identified limitations, a vision for Kenderan Village Development for the period 2015–2020 was formulated, namely “The realization of a Just and Prosperous Kenderan Village Based on Agriculture Imbued with the principles of Tri Hita Karana”. The qualitative research data, derived from efforts to explore problems, potential challenges, and limitations during the focus group discussion (FGD), were summarized in

Table 6. FGD Results.

Stakeholders	Expert Opinions	Focus
Head of Rural Area Empowerment, Department of Village Community Empowerment (VCE), Gianyar.	To support Kenderan Village, the local residential government provided policies and budget allocations, with a particular focus on waste management, enhancing the welfare of individuals, and facilitating the growth of Small and Medium-sized Enterprises (SMEs).	Supporting tourism village.
Secretary of Cooperative Office	Foster events that activate local participation in SME businesses and suggest the concept of the Temple becoming the central hub for various activities within the local community.	Use Temple to support local businesses and SMEs.
Digital Ambassador of Gianyar Region	Provide digital access for community business and facilitate coordination.	Digital Accessibility
Religious Leader	The potential of the temple to serve as a catalyst for change, a focal point for religious, economic, socio-cultural, and conservation activities, and a pilot program for the development of a smart and circular economy tourism village.	Improve the role of the temple in the community’s daily productive lives.
Community Leader	Tourism villages strived to establish excellence and uniqueness to succeed in the competition.	Focus on economic and welfare gain from tourism or creative industry.
Tourism Group Leader	Tri Hita Karana philosophy, circular economy, and living culture festival served as avenues for differentiating tourist destinations.	Local wisdom and events for developing thematic tourism.
Environmentalist	The lack of sustainable awareness and practices among the community prompted the initiation of a campaign against plastic usage and the promotion of sustainable practices in Tegallalang. During the pandemic, collaborative efforts with donors and local philanthropists were established, facilitating an exchange program where 1 kg of waste could be exchanged for 1 kg of rice.	Sustainable awareness for destination preservation.
Tourism Business Group Leader	The integration of local wisdom, locally produced items, and creativity was considered essential, with a pressing need for tourism packages that also incorporate local businesses.	Local business enhancement.
Creative Industry Leader	Promote sustainability by adopting the practice of planting one tree for every use of one log.	Sustainable practice to increase business.
Village-owned Enterprises (BUMDES)	Leverage local festivals as a platform to stimulate, advertise, and enhance the informal economy and small and medium-sized enterprises (SMEs).	Improve business and local welfare.

.

Based on Table 6, Kenderan Village recognized the crucial role of the tourism sector in contributing to the welfare of the people. The community acknowledged the potential of religious practices, unique culture, and way of life as valuable tourism assets. Locals believed that religious activities could be transformed into creative festivals, showcasing living traditions and creating an events calendar that would appeal to international tourists, indicating the authenticity of the tradition.

Recognizing the significance of environmental conservation and waste management, community leaders initiated various conservation activities, such as exchanging household waste for rice, following the Tri Hita Karana philosophy. This philosophy reiterated the importance of respecting the three pillars of life, namely, the relationship with Gods, man, and the environment. Despite these efforts, the temple continued to be a source of waste, with locals disposing of it into the creek. Through the insights gained from the FGD, the locals expressed a strong belief that implementing a circular economy could position and brand the village. The locals envisioned the temple becoming an agent of change, with religious leaders leading efforts to alter waste management practices and return to the Balinese philosophy of Tri Hita Karana. This shift was particularly focused on respecting the next generation and the living habitats. The FGD discussions also expressed the community’s aspiration for the temple to serve as the focal point and pilot for CE implementation, leveraging festivals as an avenue to communicate and promote commitment to an active sustainable development program in the community. Global tourism destinations widely adopted events and festivals for economic development, destination marketing [105], enhancing tourist experience [106], and promoting sustainability [107].

During the FGD data collection, achieving success as a smart tourism village in Kenderan went beyond relying solely on technology innovation; technology served as an enabler or tool to enhance accessibility and co-create experiences within the tourism community. To establish Kenderan as a smart tourism community, the local context was identified with a focus on Tri Hita Karana, correlating with the value of sustainable practices. Tri Hita Karana, rooted in the way of life and philosophy of the Balinese citizens, represented three key elements fostering prosperity, life balance, and happiness. These elements comprised preserving harmony between humans and God (Narayanan), between humans and another (Pagan), and between humans and the environment (Palemahan), along with all facets of business or life, without exception [108]. The unity of these components was crucial, with the belief that maintaining harmony and balance contributed to human prosperity. Conversely, an unbalanced relationship will jeopardize human flourishing. Hinduism, enriched in indigenous symbols with deep symbolic value [109], reiterated the importance of Tri Hita Karana teaching the concept of prioritizing devotion to God, fostering a tolerant attitude through a character education process [110]. Tri Hita Karana served as a life philosophy aimed at preserving cultural diversity and the environment, showing interconnected relationships with fellow humans, the natural environment, and God [111], as well as the teachings about the correlation between humans and God, man, and nature [112]. Practical implementation of THK included adhering to neat and polite clothes, obeying existing instructions, and maintaining a clean environment [113].

Tri Hita Karana’s principles were considered global, applicable to all religions, and possessed spiritual flexibility, making the concept suitable for introduction worldwide while remaining rooted in local wisdom and values. A post-smart tourism qualitative model was developed through the analysis of FGD data, considering digital competence, CE, creative festivals, and smart tourism as crucial variables. This comprehensive framework for Kenderan Village’s development as PSTD (Figure 3) was built upon the principles of Tri Hita Karana, indicating the importance of harmonizing human relationships, nature, and spirituality. The strengths of Kenderan Village were its strong community connection and commitment to implementing the CE. Additionally, the integration of digital competence played a crucial role in enabling Kenderan Village to fully realize its potential as PSTD.

In ensuring the diffusion of ideas among the locals, obtaining collective acceptance, and fostering inclusive support, Kenderan Village designed its temple as the generator and agent of change. This method aimed to provide a profound sensory experience of tourism village differentiation for all individuals, with technology adoption serving as a new digital accessibility avenue for tourists and stakeholders to collaboratively create the desired experience. The concept correlated with the notion that developing sustainable tourism destinations, particularly in rural areas, should be rooted in each destination’s unique attraction resources and local wisdom [114,115]. Simultaneously, technology played a supportive role in the tourism value chain ecosystem [35,36,116,117].

Several strategic steps were undertaken to transform Kenderan Village into an inclusive and innovative tourism destination. First, a diverse team with various skills and expertise was assembled to plan and execute the village’s transformation. Subsequently, a feasibility study was conducted to assess the potential and needs of the village, leading to the formulation of a strategic plan including short-term and long-term objectives and the avenue to achieve the aims. The active engagement of local communities, regional government, business actors, and other stakeholders in the planning and decision-making process was crucial for the village’s development. Infrastructure and services in the community were tailored to meet the needs of all visitors, including tourists with physical limitations. This included ensuring accessibility, providing disability-friendly accommodations, and implementing training programs for local communities. To enhance the technological literacy of local communities, training and support initiatives were implemented, covering the use of smartphones, online booking platforms, and other digital tools to enable engagement in the digital tourism industry. Marketing efforts used social media, websites, and online booking platforms to showcase Kenderan Village, ensuring that information about attractions, accommodations, and activities was readily available online. Interactive activities facilitated tourist engagement with local communities, providing insights into the culture through activities such as craft workshops, lectures on local history, and other cultural events. Through these comprehensive steps, Kenderan Village seized a significant opportunity to become an agent of change, seamlessly integrating tourist village differentiation with technology adoption to create distinctive and inclusive tourism destinations.

4.2. Quantitative Analysis

The research model showed an excellent level of absolute fit, as indicated by the root mean square error of approximation (RMSEA) value of <0.05. Additionally, the goodness of fit indices (GFI) and adjusted goodness of fit index (AGFI) values exceeding 0.80, along with RMSEA and RMR values smaller than 0.05, affirmed that the research model correlated with empirical conditions. The chi-square value, in conjunction with degrees of freedom and a p-value > 0.05, indicated a very good fit for the research model according to the chi-square index [104]. The measurement model explained the relationship between each construct and the indicators where the values were used to test validity and reliability. This analysis was explained by the value of discriminant validity, loading factor, construct validity, and composite reliability. Construct validity, specifically represented by the factor loading value, played a crucial role in this analysis. Composite reliability and Cronbach’s Alpha were adopted to measure the reliability levels of dimensions in measuring research variables. Analysis of the relationship between indicator and latent variables, referred to as the measurement equation, was displayed in

Table 7. Measurement model testing results.

Variable	Indicators	Code	Standardized Loading (L)	t	Prob.	Construct Reliability (CR)	Average Variance Extracted (AVE)
Creative Events	Tangible Environment	CE1	0.87	9.6	0	0.96	0.78
	Social Cohesion	CE2	0.9	9.98	0
	Innovative Novel	CE3	0.89	9.78	0
	Concept
	Sense of	CE4	0.88	9.73	0
	Professionalism
	Local Wisdom	CE5	0.89	9.85	0
	Content
	Special Performance	CE6	0.87	9.62	0
Tourism Circular Economy	Preservation of	TCE1	0.69	-	-	0.93	0.73
	Resources
	Green Technology Adoption	TCE2	0.89	6.03	0
	Environmental Stewardship	TCE3	0.78	5.6	0
	Waste Management	TCE4	0.94	6.16	0
	Sustainable	TCE5	0.95	6.19	0
	Environment
Digital Competence	Information Handling	DC1	0.89	-	-	0.95	0.81
	Social Networking	DC2	0.89	7.3	0
	Content Creation	DC3	0.92	7.48	0
	Safety Concern	DC4	0.91	7.45	0
Post-Smart Tourism	Digital Experience	Smart1	0.82	-	-	0.93	0.74
	Smart Business Ecosystem	Smart2	0.88	7.2	0
	Technological	Smart3	0.87	7.15	0
	Infrastructure
	Interactive	Smart4	0.85	7.04	0
	Communication
	Real-Time	Smart5	0.87	7.18	0
	Information

, presenting the results of the measurement model testing.

The results presented in Table 7 outlined the outcomes of first-order construct measurement for variables, where the factor loading (λ) exceeded 0.50 with prob < 0.05. This implied that the indicator possessed sufficient validity to explain the latent construct effectively [118]. The analysis showed that six variables indicated valid dimensions and indicators, surpassing the t table count at α = 0.05. The Construct Reliability (CR) value indicated a high consistency for all dimensions and indicators, with values exceeding 0.7. Discriminant validity, assessed by the square root value of the average variance extracted (AVE), surpassed the recommended threshold of 0.5. The obtained findings indicated that the AVE consistently exceeded 0.5, suggesting that the indicators and dimensions accurately reflected all latent variables. The t-statistics used for hypothesis testing on the operational variables showed significant impacts of all antecedent variables, namely digital competence, circular economy (CE), and creative events, on the independent variable, post-smart tourism, with consecutive values of 0.044, 0.270, and 0.300 as presented in

Table 8. Hypothesis testing.

No	Hypothesis	Coeff.	Standard	t-Stat	Prob.	R2
		Estimate	Error
1	DC → PST	0.440 *	0.12	3.8	0	0.194
2	TCE → PST	0.270 *	0.11	2.39	0.018	0.073
3	CE → PST	0.300 *	0.13	2.24	0.026	0.09
4	CE → DC	0.660 *	0.095	6.93	0	0.436
5	CE → TCE	0.690 *	0.12	5.9	0	0.476
6	CE → TCE → PST	0.186 **	0.083	2.257	0.025	0.186
7	CE → DC → PST	0.290 **	0.09	3.243	0.001	0.29

* Significant in $\propto =0.05$ (t table = 1.98), ** Sobel test.

below.

Detailed findings of each hypothesis testing were provided in Table 8. Hypothesis 1 (H₁) examined the impact of digital competence on post-smart tourism. The direct coefficient for digital competency was 0.440 and was found to be significant in post-smart tourism with a probability of 0.000, which was less than α (0.05), therefore accepting Hypothesis 1. The positive effect of digital competence on post-smart tourism was estimated at 0.440, indicating that when the digital competency increases by a unit, post-smart tourism will also rise by 44%. An R2 value of 0.194 indicated that 19.4% of the variance in post-smart tourism was influenced by digital competence, with the remaining affected by other variables.

Hypothesis 2 (H₂) explored the impact of tourism circular economy on post-smart tourism, with CE having a direct coefficient of 0.270. The result was significant with a probability of 0.018, less than α (0.05), leading to the acceptance of Hypothesis 2. The positive effect of tourism circular economy on post-smart tourism was estimated at 0.270, signifying that when CE increases by a unit, post-smart tourism also rises by 27%. An R2 value of 0.073 indicated that the tourism circular economy influenced 7.3% of the variance in post-smart tourism, and the rest was affected by other variables.

Hypothesis 3 (H₃) focused on the significant effect of creative events on post-smart tourism, with creative events having a direct coefficient of 0.300. This result proved to be significant with a probability of 0.026 less than α (0.05). Therefore, Hypothesis 3 was accepted, showing a positive effect of creative events on post-smart tourism, estimated at 0.300. This implied that when creative events increase by a unit, subsequently PSTD also rises by 30%. An R2 value of 0.090 suggested that creative events impacted 9% of the variance in post-smart tourism, while the remaining was influenced by other variables.

Examining Hypothesis 4 (H₄), which explored the significant effect of creative events on digital competence, the direct coefficient was 0.660. This result was significant with a probability of 0.000, less than α (0.05), leading to the acceptance of Hypothesis 4. The positive effect of creative events on digital competence was estimated at 0.660, suggesting that when creative festivals increase by a unit, then digital competency would also rise by 66%. An R2 value of 0.436 indicated that creative events influenced 43.6% of the variance in digital competence, and the rest was affected by other variables.

Finally, Hypothesis 5 (H₅) explored the significant effect of creative events on the circular tourism economy. The direct coefficient was 0.690 and was found to be significant in the tourism circular economy with a probability of 0.000 and less than α (0.05). Therefore, Hypothesis 5 was accepted, showing a positive effect of creative events on the tourism circular economy, estimated at 0.69. This implied that when a creative event increases by a unit, then the tourism circular economy also rises by 69%. An R2 value of 0.476 indicated that 47% of the variance in the tourism circular economy was affected by creative events, while other variables impacted the remaining.

The structural analysis presented in Figure 4 showed that this study assessed four influencing variables, namely creative events, tourism circular economy, smart tourism, and digital competency. The test outcomes affirmed the significance of all hypotheses, indicating that a tourist village with a creative event had a direct impact on three variables, namely tourism circular economy, smart tourism, and digital competency. Significantly, tourism circular economy and digital competency exerted substantial influences, with each variable contributing to 69% and 66%, respectively. Conversely, the impact on the post-smart tourism variable was comparatively lower at 30%. Mediating effects of tourism circular economy and digital competence on post-smart tourism were identified. The indirect coefficient of creative events was 0.186 and was significant to smart tourism through tourism circular economy with a probability of 0.025, less than α (0.05). The Sobel test confirmed that the tourism circular economy can mediate the effect of creative events on smart tourism because the observed t-statistic of 2.257 exceeded 1.98 (t table) with an indirect effect of 18.6%. Similarly, the indirect coefficient of creative events was 0.290 and was significant to smart tourism through digital competency with a probability of 0.001 less than α (0.05). The Sobel test was conducted with a t-statistic of 3.243, indicating that digital competency can mediate the impact of creative events on smart tourism due to t-statistics of 3.243 exceeding 1.98 (t table), with an indirect effect of 29%.

Considering both direct effect and indirect impacts, the total effect of creative events on PSTD through the tourism circular economy was calculated as 0.300 + 0.186 = 0.486, representing a 48.6% influence. Similarly, the total influence of creative events on post-smart tourism through digital competency was determined as 0.300 + 0.290 = 0.590, representing a 59% impact. Analyzing the direct and indirect impacts showed that digital competence had the most significant influence on post-smart tourism. Digital competence also influences the implementation of creative events and the circular tourism economy. Within the four indicators of digital competence, as indicated in Table 7, content creation skills showed the strongest relationship at 0.92 or 92%, influencing the organization of creative events, tourism circular economy, and post-smart tourism.

Further exploration of residents’ satisfaction with sustainable tourism could be conducted, reiterating the role of digital competence as an enabling factor in promoting the unique tourist village of Kenderan. The application of the Tri Hita Karana concept in daily life, with local values and the implementation of a CE, contributes to visitors’ satisfaction with sustainable tourism. The distinct local experience offered by Kenderan Tourism Village sets it apart from other tourist villages in Bali.

5. Discussion

The study explores creative events, tourism circular economy (CE), digital competency, and smart tourism concepts into a model aiming to generate diverse initiatives that promote tourism development. The triangulation of qualitative and quantitative research shows the significance resources of exploring and developing tourism core resources and destination components. The study reiterates the importance of incorporating local values, uniqueness, and differentiation aspects into the post-smart tourism model, leveraging locality and sustainability practices to ensure the development of a competitive and sustainable smart tourism destination model (Figure 5).

The model proposed correlates closely with Coca-Stefaniak’s [15] post-smart tourism model. In Kenderan, the local value, embodied in the spiritual ideology Tri Hita Karana, serves to reinforce sustainable development by advocating for a balance between God, man, and nature. Digital competence functions as an enabler, making the destination accessible to tourists and facilitating stakeholder co-creation experiences. The presence of creative events serves as a catalyst, including various parties and stakeholders, to contribute to the acceleration and activation of tourist villages. This not only leads to the creation of smart tourism destinations but also motivates the implementation of digitalization and a CE, forming an ecosystem that considers natural, human, and social capital as essential components for developing sustainable local and planet-friendly destinations. A prime example is the Kendra Living Culture Festival 2022, which includes diverse groups showcasing agricultural and carving products, local arts and cultural performances, and the participation of environmental communities, academics, local village governments, and neighboring communities. The persistence of Kenderan Tourism Village is crucial for realizing a resilient and sustainable CE Ecosystem. However, as mentioned by CE360 Alliance, the transformation into a village embracing CE principles is an iterative project that requires support, starting with a trial-and-error process and progressing through continuous improvement [119]. Successful changes must consider the business context, external trends, desired market position, target customers, and the core capabilities, strengths, and weaknesses of the village. In line with the CE definition by CE360 Alliance, reiterating a socio-economic system inspired by natural systems promotes regenerative human and natural capital for long-term benefit to all stakeholders. The significant influence of creative events is driven by external trends, responding to the preferences of today’s travelers seeking tranquility, comfort, and meaningful experiences. According to CE360 Alliance, modern travelers desire transformative, participatory trips with specific purposes, such as Melukat spiritual tourism, which gained popularity during the pandemic. When connected to smart tourism and digital competency, this trend correlates with the self-existence of millennial and Gen Z tourists. This generation prefers trips that can be showcased to peers or followers on social media, reiterating the importance of information accessibility and the aesthetic appeal of tourist attractions. A tourist destination’s “Instagrammable” and “taggable” qualities are crucial, specifically when manifested through attractive events. Promoting local values and locality aspects provides the village with a sustainable competitive advantage in placemaking for tourism.

To ensure the support and active community participation in events, Kenderan Village can support the temple to not only serve as a center hub for community activities but also as an agent motivating empowerment in cultural preservation. Additionally, the temple can be a catalyst for implementing the philosophy of Tri Hita Karana in the daily lives of residents while simultaneously promoting the diffusion of CE innovations, including the initial adoption of renewable energy. The prevailing influence of creative events correlates with evolving demand trends mentioned by CE360 Alliance [119]. Significantly, there is an increased interest in domestic travel post-pandemic, driven by a desire to explore local attractions and culture in less crowded destinations. This shift increases the satisfaction of travelers who can indulge in local experiences more privately and discreetly. Therefore, when organizing creative events, it is essential to consider not only targeting a large audience but also catering to value privacy and being willing to pay more for exclusive experiences.

6. Conclusions

In the context of testing and analysis, this study adopted four main variables, including digital competence, circular economy, creative festivals, and smart tourism. The findings indicated that all the hypotheses tested had a significant influence with positive impacts. Digital competence, tourism circular economy, and creative events were found to significantly affect post-smart tourism. Furthermore, creative events significantly influenced digital competence and the circular economy of tourism, therefore exerting a significant impact on post-smart tourism. Elements of locality, comprising local values, cultural and natural heritage, and creative events or festivals, were explored in conjunction with circular economy or other sustainability practices, and digital competency or other novel technologies as the building blocks of PSTD and villages. Creative events evolved as effective tools for promoting post-smart tourism implementation, stimulating the adoption of digital technology, and fostering the implementation of a CE, all supported by sustainable local values in making the travel experiences memorable. In instilling sustainable competitive advantages in tourist communities, comprehensive exploration and promotion of the society’s local aspects were essential. This included identifying valuable, rare, inimitable, and non-substitutable tourism resources. Ensuring sustainable competitive advantages by focusing on local aspects required the identification of unique natural, cultural, historical, and human potential and resources. Local communities should be included in the management and promotion of tourist villages, ensuring support, participation, and the preservation of authentic local aspects.

Identifying resources prompted the need to develop tourism products or experiences that not only excelled but also added value to visitors. Engaging local communities in the management and promotion of tourist villages was crucial to ensure support and participation while also providing authentic local aspects. Tourism activities needed to be executed with a focus on sustainability, including environmentally friendly practices, conservation of natural resources, and community engagement in environmental management. A strategic approach included integrating various elements of the tourism experience into a cohesive package, enhancing added value for visitors, and enabling exploration of diverse aspects of the village. The research underscored the need for tourist villages to explore local values and resources comprehensively. This exploration needed to be embedded into the basic components and core resources of tourism, and the process should include co-creation, distribution, delivery, and promotion to the global market through technology adoption and global sustainability values. The study boundaries included the research location, which was conducted in Kenderan Village in Bali, with a focus on prioritizing the four main concepts developed, including digital competence, CE, creative festivals, and smart tourism. Therefore, future studies should aim to broaden the concept of post-smart tourism, considering various aspects that foster tourism sustainability and the integration of blockchain technology in tourism development.