The Policy on Tourism MSMEs in Indonesia and Algeria: Sustainability and Challenges


  • Uswatun Hasanah Faculty of Law, Universitas Trunojoyo, Madura, Indonesia
  • Bakhouya Driss Faculty of Law and Political Sciences, Ahmed Draya University of Adrar, Adrar, Algeria



Tourism legislation should encourage tourism MSMEs; otherwise, these enterprises are likely to remain local or go unnoticed globally. This study aims to investigate the emerging urgency arising from the interrelationship between MSMEs' legal policies and tourism legislation. This research belongs to normative research conducted by employing statutory and comparative approaches. The study reveals that adopting social capital as the foundation of tourism legislation enhances the role of tourism MSMEs in economic development. Furthermore, the legal policies enacted for running tourism businesses based on social capital seem to provide legal certainty for protecting and empowering tourism MSMEs and boosting their global competitiveness.

Author Biography

Uswatun Hasanah, Faculty of Law, Universitas Trunojoyo, Madura

Contrarius Scopus Camp Member


Abdelmadjid, Badri, and Taibi Boumedyen, ‘Empirical Analysis on the Contribution of Algerian SMEs in Regional Development-Study Territory" West Algeria’

Abouelmagd, Doaa, ‘Sustainable Urbanism and Cultural Tourism, the Case of the Sphinx Avenue, Luxor’, Alexandria Engineering Journal, 71 (2023), 239–61

Annamalah, Sanmugam, ‘The Role of Open Innovation and a Normalizing Mechanism of Social Capital in the Tourism Industry.’, Journal of Open Innovation: Technology, Market, and Complexity, 2023, 100056

Arcos-Pumarola, Jordi, Alexandra Georgescu Paquin, and Marta Hernández Sitges, ‘The Use of Intangible Heritage and Creative Industries as a Tourism Asset in the UNESCO Creative Cities Network’, Heliyon, 9.1 (2023), e13106

Arslanturk, Yalcin, Mehmet Balcilar, and Zeynel Abidin Ozdemir, ‘Time-Varying Linkages between Tourism Receipts and Economic Growth in a Small Open Economy’, Economic Modelling, 28.1–2 (2011), 664–71

Begum, Halima, A.C. Er, A. S. A. Ferdous Alam, and Nurain Sahazali, ‘Tourist’s Perceptions towards the Role of Stakeholders in Sustainable Tourism’, Procedia - Social and Behavioral Sciences, 144 (2014), 313–21

BENSEDIRA, Amor, Fares HABBACHE, and Messaoud Amir MAIZA, ‘Assessing SMEs Effectiveness in Growth and Diversification of the Algerian Economy through an Analytical Study during the Period (2015-2019).’, Journal of Economic Sciences, Management & Commercial Sciences (JESMCS), 14.1 (2021)

Boulhila, Sabrina, Mohamed Alouat, Mohamed A Rezzaz, and Serge Schmitz, ‘Towards a Development Model of Local Cultural Tourism through the Involvement of Local Actors (Province of Constantine, Algeria)’, GeoJournal of Tourism and Geosites, 40.1 (2022)

Cartwright, Anna, Edward Cartwright, and Esther Edun, ‘Cascading Information on Best Practice: Cyber Security Risk Management in UK Micro and Small Businesses and the Role of IT Companies’, Computers & Security, 2023, 103288

Chen, Ji, Jiayan Huang, Weihua Su, Dalia Štreimikienė, and Tomas Baležentis, ‘The Challenges of COVID-19 Control Policies for Sustainable Development of Business: Evidence from Service Industries’, Technology in Society, 66 (2021), 101643

Dai, Meiling, Daisy X.F. Fan, Rong Wang, Yanghong Ou, and Xiaolong Ma, ‘Residents’ Social Capital in Rural Tourism Development: Guanxi in Housing Demolition’, Journal of Destination Marketing & Management, 22 (2021), 100663

Dibra, Mirjam, ‘Rogers Theory on Diffusion of Innovation-The Most Appropriate Theoretical Model in the Study of Factors Influencing the Integration of Sustainability in Tourism Businesses’, Procedia - Social and Behavioral Sciences, 195 (2015), 1453–62

Douli, SOUAD, and ILYES Slimani, ‘Tourism Impact on the Social Development in Algeria’, Yuridika, 37.2 (2022), 433–56

Dragicevic, Marija, and Stijepo Letunic, ‘Diffuse Hotels in the Function of Creating Augmented Agricultural Households Tourist Offer Based on Innovations’, Procedia Economics and Finance, 32 (2015), 437–41

Feng, Yuyao, Xiaolei Sun, and Guowen Li, ‘Oil Price, Economic Policy Uncertainty and Tourism Development: Evidence from China’, Procedia Computer Science, 214.C (2022), 560–64

Handayani, I. G. A. K. R., Karjoko, L., Jaelani, A. K., & Barkhuizen, J., ‘The Politics Settlement of Land Tenure Conflicts During Jokowi’s Presidency’, Journal of Indonesian Legal Studies, 7.2 (2022), 487-524.

Hjalager, Anne Mette, ‘A Review of Innovation Research in Tourism’, Tourism Management, 31.1 (2010), 1–12

Irjayanti, Maya, and Anton Mulyono Azis, ‘Barrier Factors and Potential Solutions for Indonesian SMEs’, Procedia Economics and Finance, 4 (2012), 3–12

Jamin, Mohammad, Abdul Kadir Jaelani, and Reza Octavia Kusumaningtyas, ‘The Impact of Indonesia ’ s Mining Industry Regulation on the Protection of Indigenous Peoples’, Hasanuddin Law Review, 1.1 (2023), 88–105

Ji, Fengyi, Fang Wang, and Bihu Wu, ‘How Does Virtual Tourism Involvement Impact the Social Education Effect of Cultural Heritage?’, Journal of Destination Marketing & Management, 28 (2023), 100779

Karjoko, Lego, I. Gusti Ayu Ketut Rachmi Handayani, Abdul Kadir Jaelani, and Muhammad Jihadul Hayat, ‘Indonesia’s Sustainable Development Goals Resolving Waste Problem: Informal to Formal Policy’, International Journal of Sustainable Development and Planning, 17.2 (2022), 649–58

Kelfaoui, Amal, Mohamed A REZZAZ, and Louardi Kherrour, ‘Revitalization of Mountain Rural Tourism as a Tool for Sustainable Local Development in Kabylie (Algeria). The Case of Yakouren Municipality’, Geo Journal of Tourism and Geosites, 34.1 (2021), 112–25

Khaidher, Khenfri, Walid Safi, and Bilal Eneizan, ‘Small and Medium Enterprises as a Strategic Choice for Development Case Study of Algeria’, International Journal of Academic Research in Business and Social Sciences, 9.3 (2019)

Knollenberg, Whitney, Claudia Gil Arroyo, Carla Barbieri, and Kathryn Boys, ‘Craft Beverage Tourism Development: The Contributions of Social Capital’, Journal of Destination Marketing & Management, 20 (2021), 100599

Kusumaningtyas, Reza Octavia, Rahayu Subekti, Abdul Kadir Jaelani, Asron Orsantinutsakul, and Utkarsh K. Mishra, ‘Reduction of Digitalization Policy in Indonesian MSMEs and Implications for Sharia Economic Development’, Juris: Jurnal Ilmiah Syariah, 21.2 (2022), 157–71

Ladkin, Adele, Shelagh Mooney, David Solnet, Tom Baum, Richard Robinson, and Hongmin Yan, ‘A Review of Research into Tourism Work and Employment: Launching the Annals of Tourism Research Curated Collection on Tourism Work and Employment’, Annals of Tourism Research, 100 (2023), 103554

Lee, Tsung Hung, and Fen-Hauh Jan, ‘Can Community-Based Tourism Contribute to Sustainable Development? Evidence from Residents’ Perceptions of the Sustainability’, Tourism Management, 70 (2019), 368–80

Lei, Weng Si (Clara), Wantanee Suntikul, and Zhaoyu Chen, ‘Tourism Development Induced Social Change’, Annals of Tourism Research Empirical Insights, 4.1 (2023), 100088

Lin, Jinping, Bowen Zhang, Jiajia Feng, Zeyu Yi, Hao Zhang, Man Luo, and others, ‘Determining Food Tourism Consumption of Wild Mushrooms in Yunnan Provence, China: A Projection-Pursuit Approach’, Heliyon, 9.3 (2023), e14638

Liu, Yang, Azer Dilanchiev, Kaifei Xu, and Aytan Merdan Hajiyeva, ‘Financing SMEs and Business Development as New Post Covid-19 Economic Recovery Determinants’, Economic Analysis and Policy, 76 (2022), 554–67

Liu, Yiqing, Lei Cao, Dongdong Yang, and Bruce C. Anderson, ‘How Social Capital Influences Community Resilience Management Development’, Environmental Science & Policy, 136 (2022), 642–51

Lukiyanto, Kukuh, and Maranatha Wijayaningtyas, ‘Gotong Royong as Social Capital to Overcome Micro and Small Enterprises’ Capital Difficulties’, Heliyon, 6.9 (2020), e04879

Luthviati, Resti Dian, ‘The Role of Local Governments in the Defense of Leading Products Resti’, Jurnal Bestuur, 8.2 (2020), 121–28

Mandić, A., and J. Kennell, ‘Smart Governance for Heritage Tourism Destinations: Contextual Factors and Destination Management Organization Perspectives’, Tourism Management Perspectives, 39 (2021), 100862

Mangku, Dewa Gede Sudika, Ni Putu Rai Yuliartini, Ruslan Ruslan, Seguito Monteiro, ‘The Position of Indegenous People in the Culture and Tourism Developments: Comparing Indonesia and East Timor Tourism Laws and Policies’, Journal of Indonesian Legal Studies, 7.1 (2022), 57–100

Menaouer, Brahami, Sabri Mohammed, and Matta Nada, ‘The Impact of Business Intelligence and Knowledge Management on Sustainability Performance in the Tourism Industry in Algeria’, Indonesian Journal of Sustainability Accounting and Management, 6.1 (2022)

Messikh, Ayoub, ‘Does Entrepreneurial Risk-Taking Affect the Business Performance of Micro-Enterprises? Evidence from Skikda in Algeria’, Naše Gospodarstvo/Our Economy, 68.2 (2022), 65–77

Mihardja, Eli Jamilah, Sofia Alisjahbana, Prima Mulyasari Agustini, Deffi Ayu Puspito Sari, and T.S. Pardede, ‘Forest Wellness Tourism Destination Branding for Supporting Disaster Mitigation: A Case of Batur UNESCO Global Geopark, Bali’, International Journal of Geoheritage and Parks, 11.1 (2023), 169–81

Mishra, Sanjay Kumar, and Hemant Kushwaha, ‘Managing Litigation Risk through Business Legal Expense Insurance: Facilitators and Inhibitors for MSMEs’, IIMB Management Review, 2023

Mosbah, Aissa, and Rochdi Debili, ‘Development of Algerian SMEs in the Age of Globalization’, Journal of Business and Social Development, 2.1 (2014), 37–48

Mshenga, Patience M, and Robert B Richardson, ‘Micro and Small Enterprise Participation in Tourism in Coastal Kenya’, Small Business Economics, 41.3 (2013), 667–81

Nguyen, Van K., Joanne Pyke, Ancy Gamage, Terry de Lacy, and Gabrielle Lindsay-Smith, ‘Factors Influencing Business Recovery from Compound Disasters: Evidence from Australian Micro and Small Tourism Businesses’, Journal of Hospitality and Tourism Management, 53 (2022), 1–9

Novikasari, Siti Rahma, Duc Quang Ly, and Kerry Gershaneck, ‘Taxing Micro, Small and Medium Enterprises in Yogyakarta: Regulation and Compliance’, Bestuur, 9.1 (2021)

Odei, Samuel Amponsah, and Eva Hamplová, ‘Innovations in Small Businesses: Do Public Procurement Contracts and Intellectual Property Rights Matter?’, Heliyon, 8.9 (2022), e10623

Park, Duk Byeong, Kwang Woo Lee, Hyun Suk Choi, and Yooshik Yoon, ‘Factors Influencing Social Capital in Rural Tourism Communities in South Korea’, Tourism Management, 33.6 (2012), 1511–20

Paul, Justin, ‘SCOPE Framework for SMEs: A New Theoretical Lens for Success and Internationalization’, European Management Journal, 38.2 (2020), 219–30

Pham, Tien Duc, Son Nghiem, and Larry Dwyer, ‘The Determinants of Chinese Visitors to Australia: A Dynamic Demand Analysis’, Tourism Management, 63 (2017), 268–76

Phonsuwan, Seksan, and Voratas Kachitvichyanukul, ‘Management System Models to Support Decision-Making for Micro and Small Business of Rural Enterprise in Thailand’, Procedia Engineering, 8 (2011), 498–503

Prijadi, Ruslan, Permata Wulandari, Fajar Ayu Pinagara, and Putri Mega Desiana, ‘The Dynamics of Micro and Small Enterprises (MSE) toward Bankability with Coronavirus Pandemic Adjustment’, Journal of Open Innovation: Technology, Market, and Complexity, 8.4 (2022), 193

Ridwan Maksum, Irfan, Amy Yayuk Sri Rahayu, and Dhian Kusumawardhani, ‘A Social Enterprise Approach to Empowering Micro, Small and Medium Enterprises (SMEs) in Indonesia’, Journal of Open Innovation: Technology, Market, and Complexity, 6.3 (2020), 50

Rocca, Luz Helena Díaz, and Seweryn Zielinski, ‘Community-Based Tourism, Social Capital, and Governance of Post-Conflict Rural Tourism Destinations: The Case of Minca, Sierra Nevada de Santa Marta, Colombia’, Tourism Management Perspectives, 43 (2022), 100985

Rocha, Erick Ariel Gonzales, ‘The Impact of the Business Environment on the Size of the Micro, Small and Medium Enterprise Sector; Preliminary Findings from a Cross-Country Comparison’, Procedia Economics and Finance, 4 (2012), 335–49

Roudi, Samira, Huseyin Arasli, and Seyi Saint Akadiri, ‘New Insights into an Old Issue – Examining the Influence of Tourism on Economic Growth: Evidence from Selected Small Island Developing States’, Current Issues in Tourism, 22.11 (2019), 1280–1300

Sahoo, Bimal Kishore, Rasmita Nayak, and Mantu Kumar Mahalik, ‘Factors Affecting Domestic Tourism Spending in India’, Annals of Tourism Research Empirical Insights, 3.2 (2022), 100050

Santoso, Lukman, Agus Triyanta, and Jawahir Thontowy, ‘Halal Tourism Regulations in Indonesia: Trends and Dynamics in the Digital Era’, Ijtihad: Jurnal Wacana Hukum Islam Dan Kemanusiaan, 22.1 (2022), 73–94

Saputra, Rian, ‘Development of Creative Industries as Regional Leaders in National Tourism Efforts Based on Geographical Indications’, Bestuur, 8.2 (2020), 121–28

Sareen, Siddharth, Devyn Remme, and Håvard Haarstad, ‘E-Scooter Regulation: The Micro-Politics of Market-Making for Micro-Mobility in Bergen’, Environmental Innovation and Societal Transitions, 40 (2021), 461–73

Sari Hassoun, Salah Eddine, Khayereddine Salim Adda, and Asma Hadjira Sebbane, ‘Examining the Connection among National Tourism Expenditure and Economic Growth in Algeria’, Future Business Journal, 7.1 (2021), 1–9

Schönherr, Sarah, Mike Peters, and Kir KuÅ¡Äer, ‘Sustainable Tourism Policies: From Crisis-Related Awareness to Agendas towards Measures’, Journal of Destination Marketing & Management, 27.January (2023), 100762

Soluk, Jonas, Carolin Decker-Lange, and Andreas Hack, ‘Small Steps for the Big Hit: A Dynamic Capabilities Perspective on Business Networks and Non-Disruptive Digital Technologies in SMEs’, Technological Forecasting and Social Change, 191 (2023), 122490

Su, Lujun, Binli Tang, and Jeroen Nawijn, ‘How Tourism Activity Shapes Travel Experience Sharing: Tourist Well-Being and Social Context’, Annals of Tourism Research, 91 (2021), 103316

Su, Yan, and Chien-Chiang Lee, ‘The Impact of Air Quality on International Tourism Arrivals: A Global Panel Data Analysis’, Environmental Science and Pollution Research, 29.41 (2022), 62432–46

Suárez-Rojas, Chaitanya, Matías M. González Hernández, and Carmelo J. León, ‘Sustainability in Whale-Watching: A Literature Review and Future Research Directions Based on Regenerative Tourism’, Tourism Management Perspectives, 47 (2023), 101120

Suminah, Suminah, Suwarto Suwarto, Sugihardjo Sugihardjo, Sapja Anantanyu, and Dwiningtyas Padmaningrum, ‘Determinants of Micro, Small, and Medium-Scale Enterprise Performers’ Income during the Covid-19 Pandemic Era’, Heliyon, 8.7 (2022), e09875

Surya, Batara, Firman Menne, Hernita Sabhan, Seri Suriani, Herminawaty Abubakar, and Muhammad Idris, ‘Economic Growth, Increasing Productivity of Smes, and Open Innovation’, Journal of Open Innovation: Technology, Market, and Complexity, 7.1 (2021), 1–37

Szromek, Adam R., Krzysztof Herman, and Mateusz Naramski, ‘Sustainable Development of Industrial Heritage Tourism – A Case Study of the Industrial Monuments Route in Poland’, Tourism Management, 83 (2021), 104252

Thomson, Haidee, Naoko Tanaka, and Kyoko Morikoshi, ‘Tour Guiding Practice and Feedback in Guide Education: Lessons from London for Japan’, Journal of Hospitality, Leisure, Sport & Tourism Education, 29 (2021), 100287

Tiku, Oscar, Tetsuo Shimizu, and Djoni Hartono, ‘Tourism’s Income Distribution in West Papua Province’, Annals of Tourism Research Empirical Insights, 3.1 (2022), 100038

Tiwasing, Pattanapong, Matthew Gorton, Jeremy Phillipson, and Sara Maioli, ‘Rural Businesses and Levelling up: A Rural-Urban Analysis of Business Innovation and Exporting in England’s North and Midlands’, Journal of Rural Studies, 100 (2023), 103007

Van Truong, Nguyen, and Tetsuo Shimizu, ‘The Effect of Transportation on Tourism Promotion: Literature Review on Application of the Computable General Equilibrium (CGE) Model’, Transportation Research Procedia, 25 (2017), 3096–3115

Watson, Rosina, Kristian Roed Nielsen, Hugh N. Wilson, Emma K. Macdonald, Christine Mera, and Lucia Reisch, ‘Policy for Sustainable Entrepreneurship: A Crowdsourced Framework’, Journal of Cleaner Production, 383 (2023), 135234

Widiatedja, I Gusti Ngurah Parikesit, ‘FDI in Tourism and the Feasibility of Incorporating the UN Guiding Principles on Business and Human Rights in Indonesia’, Yuridika, 37.2 (2022), 433–56

Yousef, Ghada A., Mona A. Elazony, Amal Abdelsattar, Mohamed M. Sewailam, and Omnia H. Elsaid, ‘Applying an Integrated Remote Sensing-GIS Approach in the Documentation of Handicraft Centers at New Valley Governorate, Egypt’, The Egyptian Journal of Remote Sensing and Space Science, 25.3 (2022), 731–39

Zeffane, Rachid M, ‘Organization Structures and Contingencies in Different Nations: Algeria, Britain, and France’, Social Science Research, 18.4 (1989), 331–69

Zhang, Shuangyu, Jiayi Lin, Zhaoxin Feng, Yang Wu, Qianyi Zhao, Shen Liu, and others, ‘Construction of Cultural Heritage Evaluation System and Personalized Cultural Tourism Path Decision Model: An International Historical and Cultural City’, Journal of Urban Management, 2022




Citation Check