Harmonizing tourism and conservation through payment for ecosystem services: A case study of Gili Matra, Indonesia

Tourism activities on small islands are developed to obtain economic benefits. However, challenges due to limited land-carrying capacity often lead to environmental degradation. This study explores the potential of implementing a Payment for Ecosystem Services (PES) program in Gili Matra, North Lombok, Indonesia, to balance tourism and conservation. Utilizing a mixed method with both quantitative and qualitative research approaches, this study examines the demand, supply, and public policy interventions necessary for a successful PES program. The Contingent Valuation Method was employed to assess the willingness to pay and willingness to accept among international and domestic tourists, tourism entrepreneurs, and fishing households. The results indicate that domestic tourists are willing to pay an average of Rp 35,000 (approximately US$ 2.15) per visit, while foreign tourists are willing to pay US$21.46 per visit. Entrepreneurs express willingness to pay a monthly fee of IDR 52,000 (approximately US$ 3.2). On the supply side, fishing households are willing to accept Rp 1,326,000 (approximately US$ 81.51) per month for coral reef conservation efforts. The findings suggest the feasibility of adopting PES in small island tourism to contribute to sustainable tourism and support SDGs 14 and 15. The study recommends implementing a mandatory PES scheme through regional regulations and integrating fees into admission tickets via a digital platform for effective management.