LEGAL AND ECONOMIC IMPLICATIONS OF HOMESTAY TOURISM: A POLICY LEARNING STUDY FROM INDONESIA, MALAYSIA, AND THAILAND Ningrum Natasya Sirait, Rosmalinda, Robert, Azila Binti Azmi,Wachara Chaiyakhet
Faculty of Law, Universitas Sumatera Utara, Indonesia,
Faculty of Hotel and Tourism Management, Universiti Teknologi MARA - Pulau Pinang, Malaysia, Tourism Industry program, Hatyai University, Thailand
Abstract
Homestays adopting the Community-Based Tourism (CBT) approach have emerged as an important strategy for empowering local communities while preserving cultural and environmental values. However, the absence of specific regulations and community-oriented economic policies has resulted in many CBT homestays operating informally. This study examines two main issues: firstly, the legal implications of managing CBT-based homestays in Indonesia, Malaysia, and Thailand- and secondly, the supporting economic and governmental policies that influence the sustainability of the CBT model. Employing a normative legal research method combined with a comparative approach, this study analyses the regulatory frameworks of the three countries. The legal analysis is further supported by fieldwork involving in-depth interviews and focus group discussions (FGDs) with homestay operators. The findings reveal that each country applies different legal treatments to CBT-based homestays, particularly concerning the legal status of operators (individuals, groups, or communities) and their responsibilities relating to guest safety and security (liability), consumer and data protection, as well as environmental and cultural asset management. From an economic policy perspective, CBT homestays function as social enterprises that generate community benefits and create opportunities for women, youth, and local MSMEs in sectors such as culinary services, handicrafts, and tour guiding. The study recommends that the governments of Indonesia, Malaysia, and Thailand strengthen their roles in harmonising formal and customary laws within rural communities, particularly through fiscal policies that promote digitalisation and fair business competition
