Joint Moderating Effects of Government Policy and Financial Support on Destination Loyalty in National Strategic Tourism Area
Abstract
This study examines the joint moderating effects of government policy and financial support on destination loyalty in the Wakatobi National Strategic Tourism Area, Indonesia. Adopting a quantitative approach and PLS-SEM analysis, data were collected from 160 repeat visitors using purposive sampling. The results indicate that destination image does not directly influence destination loyalty (β = 0.063, p = 0.320) but has a significant impact on tourist engagement (β = 0.665, p < 0.001) and tourist satisfaction (β = 0.580, p < 0.001). Both tourist engagement (β = 0.416, p < 0.001) and tourist satisfaction (β = 0.350, p = 0.001) significantly affect destination loyalty and fully mediate the relationship between destination image and loyalty. Notably, the combined moderating effect of government policy and financial support significantly weakens the relationship between destination image and destination loyalty (β = -0.197, p = 0.025), suggesting that excessive government intervention may create image-reality gaps that hinder loyalty formation. The proposed model explains 80.7% of the variance in destination loyalty (R² = 0.807). These findings contribute to the literature on destination loyalty by highlighting the paradoxical effects of government intervention and offer practical implications for sustainable tourism development in priority destinations.
Keywords: Destination loyalty; Government policy; Financial support; Tourist engagement; Tourist satisfaction; Moderation effects.
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