Abstract
The paper aims at identifying how to upgrade ecotourism value chain and bring local economic development. This paper discuss the value chain of community-based tourism in the rural areas in Indonesia. Two tourist villages in Semarang District of Central Java Province, Lerep and Tegalwaton Village, were selected for case study. Four strategies for value chain upgrading were investigated in this research by examining current practices of ecotourism value chain among local communities, and identifying what potential to provide conditions for upgrading value chain leading to higher value products and services. Data was collected using semi-structured in-depth interview with related actors and stakeholders. The results of the research show that Lerep generally performed better practices in ecotourism value chain than Tegalwaton case particularly in improving market access, governance structure and partnership. The higher capacities of individuals, community, business groups and local government is able to tap into opportunities by upgrading value chain. This research found partnership become a key element to provide conditions for upgrading ecotourism value chain leading to higher value products and services. The partnership which meet ground rules for collaboration and transfer of knowledge to the community will have the greatest positive outcome for local economic development.
