ECONOMIC IMPACT OF TOURISM, WELFARE MATERIAL, PERSONAL BENEFITS, AND LIFE SATISFACTION OF LOCAL RESIDENTS

ABSTRACT Tourism development in many countries, especially in third world countries, biside to generating foreign exchange, also always produce negative impact on the economics of the local population. This study aims to determine the effect of the economic impact of tourism on the life satisfaction of local residents in the district of Ubud Gianyar regency of Bali Province.This research is a quantitative approach based on the principle of causality positivism. Variables in this study are the economic impact of tourism, life satisfaction, material well-being and personal benefits. The sample size of 120, the targets of the research are both locals working in the tourism sector and outside the tourism sector. The analysis is done with PLS program. The finding in this study is that the economic impact of tourism on the life satisfaction of local communities is positive and singnificant. The results provide information that indirectly influence of the economic impact of tourism on local people's life satisfaction is significant. This means that the material well-being and personal benefits mediate the association of the economic impact of tourism on local people's life satisfaction. Based on the description of respondents' perceptions of research variables, and analysis of the research models, it can be recommended that human resource empowerment of local people in tourism development is needed to improve the quality of life. SME entrepreneurship development programs and job training, especially for young workers is very recommended. KEYWORDS infact of tourism economics, material well-being, personal benefits and life satisfaction.