Blockchain Technology To Enhance Integrated Blue Economy

sustainability
Article
Blockchain Technology to Enhance Integrated Blue Economy:
A Case Study in Strengthening Sustainable Tourism on
Smart Islands
Diaz Pranita 1 , Sri Sarjana 2, * , Budiman Mahmud Musthofa 1 , Hadining Kusumastuti 3
and Mohamad Sattar Rasul 4
1 Department of Tourism Business Management, Universitas Indonesia, Depok 16424, Indonesia

2 Department of Land Transportation, Politeknik Transportasi Darat Indonesia-STTD, Bekasi 17520, Indonesia
3 Department of Creative Business, Universitas Indonesia, Depok 16424, Indonesia
4 STEM Enculturation Research Center, Faculty of Education, Universiti Kebangsaan Malaysia,
Bangi 43600, Malaysia
* Correspondence: srisarjana@gmail.com
Abstract: Smart destinations require a management system that provides convenient real-time use of
digital technology in creating, communicating, and delivering value to visitors. Research related to
smart island destinations is still limited, let alone those that utilize blockchain technology to create
the smartness of the destination. This research is an empirical study that captures the perceptions of
stakeholders in the blue economy on smart islands and the use of blockchain technology in order
to build smart islands, a destination that consists of many islands that lack connectedness, such
as the Seribu Islands in Jakarta, Indonesia. Data were collected using qualitative and quantitative
approaches (mixed methods). Qualitative data were collected from scientific journal publications
and followed up with VOS viewer analysis, and quantitative data with the questionnaire survey
responses from 150 blue economy industry players in the Seribu Islands and structural equation
modeling showed that good digital literacy and blue economy management have significant influence
on blockchain technology and impact smart islands. This study indicates that, for islands that have
challenges in accessibility and connectivity, the presence of blockchain and smart technology is
Citation: Pranita, D.; Sarjana, S.; needed to integrate various resources from each stakeholder so that the blue economy in the islands
Musthofa, B.M.; Kusumastuti, H.; can be developed more effectively and efficiently, while at the same time ensuring the achievement
Rasul, M.S. Blockchain Technology to of sustainability.
Enhance Integrated Blue Economy: A
Case Study in Strengthening Keywords: smart destination; blockchain technology; blue economy; digital literacy; sustainable tourism
Sustainable Tourism on Smart
Islands. Sustainability 2023, 15, 5342.
https://doi.org/10.3390/su15065342
Academic Editor: Vasiliki Vrana 1. Introduction

Received: 18 January 2023
The rate of tourism developments and competitiveness today is highly dependent
Revised: 14 March 2023 and cannot be separated from technological innovations [1], which is multidimensional [2]
Accepted: 14 March 2023 and cannot be separated from the digital context [3]. Technological innovations not only
Published: 17 March 2023 enable tourists to be more flexible and co-create experiences with destination stakeholders
in all travel stages in real time but also integrate the stakeholders, allowing them to connect
to each other and collaborate in the smart tourism service ecosystem [1]. This enables
businesses to offer high-quality products and services, provide active interaction and
Copyright: © 2023 by the authors. communication within and across digital platforms, and get immediate response to the
Licensee MDPI, Basel, Switzerland.
needs of potential tourists [4].
This article is an open access article
Smart tourism is one of the technological innovations made in the tourism industry
distributed under the terms and
in the last decade. It emerges from the smart city concept and is supported by techno-
conditions of the Creative Commons
logical perceptions on massive and open data, new approaches of connectivity, and how
Attribution (CC BY) license (https://
knowledge is exchanged. The intelligent systems in the smart city have compressed the
creativecommons.org/licenses/by/
4.0/).
world into a giant village, enhanced communication, and integrated and shared data, as
Sustainability 2023, 15, 5342. https://doi.org/10.3390/su15065342 https://www.mdpi.com/journal/sustainability

Sustainability 2023, 15, 5342 2 of 24
well as interpreted and optimized complex analytical models [3]. In short, smart tourism
builds experience infostructure; improves interconnectivity and interoperability in tourist
experience platform; and reengineers processes and data to optimize stakeholders’ value
through service, products, and procedure innovation [1].
Both the smart city and smart tourism use dynamic networks to involve all suppliers,
parties, and stakeholders, including public sectors and consumers, in the co-production of
value within the ecosystem [5], thus making the offerings more effective and efficient in
meeting customers expectation. Smart tourism also increases inclusiveness and governance,
as required by the smart city; in addition, smart tourism emphasizes providing access to
attractions, amenities, and accessibility (the 3 A’s) in order to back up travelers and other
stakeholders through advancement of experience platforms with mobility, visualization,
audio, and reminders so they can cope with any barriers encounter during traveling [1].
As making a city and tourist destination smart becomes the goal for many cities and
tourist destinations, the initiative to develop smart islands was initially proposed by the
EU to achieve sustainability and digital connectivity in their islands. Despite the fact that
the term “smartification” refers to the same techniques, results, concepts, software, or data
applied to cities or islands, their application in the smartification process on an island may
be quite different for a group of cities or villages that are closely related, isolated from
the rest of the world, as they are connected only by sea and air routes or surrounded by
blue sea, making them different from an in-land city [6]. The initiative was inspired by the
smart cities and communities to improve life on islands through sustainable integrated
solutions to communicate the significant potential of islands to function as laboratories for
technological, social, environmental, economic, and political innovation. Despite the fact
that islands face intrinsic challenges deriving from insularity and seasonality—with regards
to energy production, transportation, natural resources management, access to markets,
and economic diversification—there is growing evidence that these inherent characteristics
can represent untapped potential for islands to develop a blue economy (BE).
BE is the sustainable use of ocean resources for economic growth, improved liveli-
hoods, and jobs while preserving the health of the ocean [7]. While the EU defines it as an
ocean economy, the sum of economic activities of ocean-based industries, together with
the assets, goods, and services provided by the marine environment to seek balance to
economic, social, and environmental objectives, is consistent with the Sustainable Develop-
ment Goals (SDGs). It is the recognition of the ocean as a driver for national and regional
sustainable development and innovation, as well as key principles to ocean health, sus-
tainability, equity, and resilience [8]. In short, the BE concept is to manage water resources
effectively and preserve them for current and future generations [9].
The Seribu Islands are a group of islands that are part of Jakarta Province that rely
mostly on ocean economy. The largest revenue comes from the tourism sector. It is the area
with the highest poverty rate in Jakarta. According to Central Bureau of Statistics (BPS)
data, the Seribu Islands encounter high social disparity compared to Mainland Jakarta;
climate-change-related natural occurrences, such as bad weather, increasing tides, and
rising of sea level; a decline of fishing grounds (whereas fishing is the primary economic
activity); finite water resources; the deterioration of nature and increase of pollution; and
low residential welfare. The percentage of the poor accounts for approximately 15.06%, the
highest percentage compared to the average of Jakarta’s poverty rate of 6.30%. The data
also show that, compared to other areas of Jakarta, the human development index of the
Seribu Islands is the lowest. The average HDI of Jakarta in 2019 was 80.76 while the HDI of
the Seribu Islands was 71.4. This picture indicates that the capacity of people in the Seribu
Islands is still low compared to other area because of a lack of education that consequently
affects their welfare [10].
Consisting of dispersed small islands, the Seribu Islands offer white beaches and
unique marine and cultural diversity that attract many tourists, especially as they constitute
the nearest getaway and the only nature attraction of the Jakarta Province; therefore, tourism
is the main industry generating income. Connectivity and mobility are the central issues of
the Seribu Islands. The transportation is limited to local boats or ferries. Although most of
the inhibited island is connected by the Internet, Internet stability is still a big challenge,
especially in the sea. There is a need to be connected to people and businesses globally.
Tanuwidjaja states that the sustainability level of the Seribu Islands is still low, based on ten
parameters: the density of population density, the arrangement of building lay-outs and
density, construction, ventilation, roads, drainage, freshwater consumption, wastewater
discharge, and waste management [10].
Additionally, Pricewater house Cooper (PwC) exposed that blockchain technology
(BT) would disrupt many industries, including hospitality and tourism industry, that
consequently should be anticipated immediately. BT represents the latest technological
innovations that would become the tourism and hospitality industry’s turning point in the
near future [4], and some scholars have considered it to be a further development in the
smart city [11] or smart tourism [4]. As some scholars believe that applying BE to manage
water resources effectively and preserve them for current and future generations [9] and
overcome sustainability issues in coastal and maritime area, the use of BT would ensure
the implementation of sustainability that is demanded by BE [12]. Therefore, to be able to
build smart tourism and develop BT in remote islands, digital skills are needed, as well
as proficiency in the use of advance technology, commercial business mindset, and basic
workplace skills of technical and professionalism [13], along with green skills [14].
A lot of research has been conducted to develop models of smart cities [11,15–18] or
smart tourism [3–5,19–23], while research on smart islands is still limited [24,25], especially
those that focus on managing the blue economy as islands’ valuable resource [25]. Moreover,
empirical research on the use of BT to create the model fits for smart islands’ development
is still very rare. Islands have become favorite tourism destinations for tourists around the
globe, but islands tourism development and management have more complex challenges
than do in-land destinations [26]. There is an urgent need to develop a smart islands
model which employs BT to ensure the responsible implementation of BE. Therefore, this
study aimed at developing a blockchain-based smart island model that can manage a
sustainable blue economy. There is still limited research development related to smart
islands focusing on managing the blue economy as islands’ valuable resources. In addition,
currently a lot of empirical research is needed, especially by utilizing BT to create a novelty
model that is suitable for the development of smart islands, which are rarely carried out
where research development opportunities like this have high potential to be developed
in archipelagic countries. To address this potential, our research objective was to develop
a blockchain-based smart island model that is directed at managing the blue economy
effectively and responsibly.
2. Literature Review
2.1. Smart City, Smart Tourism, and Smart Islands
The smart concept has been applied in city management in order to increase city
governance in the last two decades. Many scholars propose the smart city as the panacea
to solve city problems through innovation and improved public services that result from
the use of ICT and other city resources effectively and efficiently. The smart city is also
intended to improve engagement from stakeholders, thus leading to increased participation,
integration, and collaboration [24].
As most cities are also tourist destinations, scholars then proposed smart applications
in tourism and destination management in order to improve citizen and tourist experience,
especially in utilizing infrastructure and facilities [16]. Smart tourism destinations serve
as innovative tourist places of interest that offer conveniences, services, facilities, and
tourist activities [27]. They are built on advanced digital technology’s infrastructure that
guarantees sustainable tourist areas accessible to everyone, facilitates visitor interaction
and integration into their surroundings, offers different activities from different tourism
service providers [28], increases experience quality [29], and, at the same time, improves
residents’ quality of life [30].
Many favorite tourism destinations are islands, which usually face challenges in main-
taining a good quality of infrastructure, mobility, and connectivity. The challenges have
become more complex as the marine environment is fragile and can easily be destroyed.
That is why developing smart islands is assumed to be the answer to improve the economic
and social growth of the islands, while also enhancing sustainability and connectivity.
Smart islands are an integration platform developed through the ICT and other smart tech-
nology to engage and exchange with local stakeholders on innovative projects developed
locally, which create sustainable growth and job opportunities and competitiveness, whilst
respecting the environment and cultural heritage [6]. The use of smart technology enables
destinations to provide the co-creation of information and infrastructure [31], which is
supported by the development of smartphones and mobile devices that have changed the
way people communicate and interact [32]; and mediate the creation of tourists’ experiences
in all stages of travel [33]. While a variety of technologies, such as AI, Robotics, Cashless
Payments, augmented reality, and virtual reality, are already prevalent in many smart
destinations around the world and have caused disruptive changes, the massive use of big
data will bring Web 3.0 (semantic web) to support computer-to-computer interoperability to
link and integrate big data from various datasets that improve data management, stimulate
creativity and innovation, and encourage collaboration across the social web [34].
While the emphasis of smartness is to integrate stakeholders, in islands tourism, it is
also used to obtain easy access to information, attractions, available packages, transporta-
tion, packages, and amenities [35] that, in the end, would enhance tourists’ experience and
interaction with a destination [36].
The operational dimensions of smart islands in this study refer to the dimensions
proposed by [6,15], how the islands can encourage the emergence of smart economy and
provide smart mobility, as well as to develop a smart society and smart governance to
make smart living and maintain islands’ sustainability through smart environment in
order to improve local people’s well-being and enhance tourists’ experience when visiting
the islands.
Our focus was on the sustainability of resources; therefore, the dimension of the
smart city that focus on areas such as the smart economy, mobility, governance, life, the
environment, and society [15] was used in this study. Gretzel (2015) also mentioned the
same dimensions in smart destination; however, the stress was on how the resources were
valued by tourists [21].
2.2. Blockchain Technology in Tourism Industry

Initially, blockchain was acclaimed as the technology underlying cryptocurrencies,
which employs a peer-to-peer electronic cash system that can eliminate intermediaries,
including banks, as a trusted third party; increase the efficiency of transactions between
parties involved in the system; and conduct a more trustworthy and transparent business
without a central node of control. Blockchain is, in a nutshell, a digital decentralized and
distributed ledger that serves as an irrefutable absolute record keeper for a variety of
transactions. Transparency is provided through a transparent ledger for all network-based
transactions, but the secrecy of the persons involved is maintained by a cryptographic
protocol and encrypted messaging [37]. The second generation of BT entails the creation
of smart contracts for all economic, market, and financial applications, whereas the third
generation entails the application of BT to sectors outside of business, such as government,
health, and science [38]. These features define Blockchain as a novel, value-adding solution
for managing verifiable dependable and permanent data in blocks [39].
The adoption of BT is assumed to be a solution to improve island destinations’ per-
formance, as well as solving problems and challenges faced by the destination, involving
interconnectivity, businesses integration, and more efficient management; it is also assumed
that it can overcome sustainability issues in a more effective and efficient manner. As
BT is an insistent, transparent, distributed, affix-only ledger that records blocks and a
sequence of events that not only can be applied to financial transactions [40] but also could
easily be used to record supply chain [41], manage tourism and hospitality businesses
and membership [42], and ensure the implementation of sustainable practices [43]. In
the smart city, BT can be applied in smartization of healthcare, supply chains, mobility,
energy, administration and services, e-voting, housing, and education [11], whilst in the
destination, BT adoption can be used to build future ambient intelligence [44] and manage
supply chains’ loyalty and sustainability programs [45].
Erceg et al. [19] also noted that BT is distinguished by the elimination of middlemen
(dis-intermediation), security, automation, immutability, trust, cost-effectiveness, and trace-
ability characteristics [20]. Other BT potentials include an innovative loyalty program,
tracking and customization, an integrated management system, a validated rating and
review system, due diligence [19], and the creation of smart cities or smart tourism [20].
Treiblmaier adds the prospects for BT applications in inventory management, reservation
and ticketing, payment and tax compliance, tokenization, and credential management, as
well as coordination and competition [46].
In this study, the components of BT include decentralization, trust, efficiency, and
a creative loyalty program. Decentralization involves the equal participation of peers,
communication across digital networks, and collaborative consensus [19], thus enabling
supply and value chain traceability and governance [47]. BT promotes company trust by
integrating all parties and fostering a transparent environment. The BT platform is reliable
since it is a peer-to-peer system, can support multiple interfaces, and operates naturally and
autonomously. BT supports data flow optimization and traceability, real-time transaction
reconciliation, and network member collaboration. Transparency, influence, and control
are indications of business trust [48].
Businesses can design a reward-based co-creation process involving the distribution
and exchange of services, events, and offers by exchanging the tokens with retail partners
or other ecosystems. Customers could not only earn loyalty points for their platform
contributions, but they could also convert, buy, sell, or exchange reward points with
other network users. BT creates the foundation for the establishment of a C2C market in
which transaction possibilities overlay a wide range of loyalty-program components [20].
Additionally, BT could boost the analytical skills of travel companies and facilitate data-
exchange procedures. As a result of data and record management, a loyalty program might
become more exact and personalized. The BT-based reward system for tourism allows
businesses to increase goodwill and establish links between tourists and locations. In
addition, as modern travelers rely on prior customer reviews to confirm service quality
before making travel purchase decisions, BT enables these reviews to establish a new
form of social communication that facilitates information sharing among networks, such
as review website organizers and customers, and among consumers [49]. BT provides a
realistic solution for the online review system to guarantee potential passengers of the
authenticity, reliability, and fairness of online evaluations by implementing a decentralized,
trustworthy, impartial, and transparent review system. BT would help online reviews
operate in a more trustworthy, resilient, and high-integrity environment by preventing the
modification or removal of ledger entries.
Based on the significant contribution of BT to smart islands, the following hypothesis
is proposed accordingly.
Hypothesis 1 (H1 ). Blockchain technology has a significant effect on smart islands.
2.3. Sustainable and Integrated Blue Economy

The term “blue economy” (BE) was first mentioned officially in 2012 by the United
Nations at Rio +20, or the Earth Summit; however, it was first introduced by Pauli in
1994 [50]. The BE comprises ocean-based activities [51]; it is a broader green movement
in ocean governance [50,52] and part of blue recovery and blue growth strategy [53] that
covers fisheries, marine logistics, shipping and ports, coastal and recreational tourism,
renewable energy, offshore extraction of oil and gas, blue biotechnology, aqua culture, seas
and ocean surveillance, and marine research. The BE includes all economic acts which
correlate directly with the oceans, such as fishing, water transportation, shipbuilding, or
marine and coastal tourism. As oceans serve as a major geographic form of the earth,
credited with numerous variables which promote life on the planet, the emergence of BE
must be rooted to the sustainable-development concept [9].
The intention of BE is to ensure business growth and social welfare from the coastal
and marine industry development in a sustainable manner [50]; therefore, there is an
emerging need to preserve marine resources responsibly [53], implement a blue circular
economy [54], and recover coastal and ocean health from litter and pollution [55]. The
circular economy is a restorative and regenerative economy that intends to create value
through extending product lifetime and promoting zero waste for every activity in the
value chain [56]. In BE, marine litter is a cost to not only the environment but also public
finance, the economic sector, and social life. To the environment, it creates growing pressure
on marine biodiversity and the ecosystem; to public finance, it creates economic burdens
through clean-up costs and the potential loss of income from tourism and recreational
activities; and to the economic sector, plastic waste represents a loss of material value
and economic pressures on the shipping sector because of fouled motors, repair costs,
ghost fishing, etc. Socially, marine litter creates risks to human health; for example, it can
cause injuries and accidents through the release of chemical substances and the ingestion
of microplastics.
Based on the above consideration, marine resource preservation becomes the first
dimension of BE management through responsible fisheries, sustainable marine tourism
practices, non-polluted aquaculture, environmentally friendly sea transportation, and
renewable energy usage. The blue circular economy becomes the second dimension that is
indicated by the availability of laws to encourage bio-based materials, packaging regulation
to ban petroleum plastic, the practice of the circular economy based on waste management,
and economic incentive for circular economic practices. Marine-ecosystem health recovery
is gained by sustainable fishing culture, regular litter fishing, awareness campaigns, and
the responsible utilization of ocean resources. As BT can support business ecosystems in
ensuring the implementation of sustainable practices because of the peer-to-peer control
system, the following assumption is proposed.
Hypothesis 2 (H2 ). The blue economy has significant effect on blockchain technology in
smart islands.
A good BE management can support the development of smart island, as smartness in

island management not merely depend on the adoption of ICT and digital technology but
also in managing the islands’ resources and infrastructures, which are the building blocks
of BE. The preservation and responsible use of ocean resources as the basics of BE concept
are the important aspects of smart islands; consequently, the third hypothesis as follows:
Hypothesis 3 (H3 ). The blue economy has a significant effect on smart islands.
2.4. The Importance of Digital Literacy to Support Smart Destination

IT strives to understand consumer behavior by developing various activities, including
the collection, management, analysis, and interpretation of various data in order to support
travelers making decisions in planning potential tourist destinations. IT is also directed
to plan various stages of the travel process so as to make it flexible and simplify the
experience [57]. Having the ability to use digital gears as an urgent need for digital literacy
in using digital technology, as well as the ability to think critically and agility to adapt in
a digital environment that affects not only everyday personal, educational institution, or
professional lives [58]. Digital literacy describes the minimum level of ability in technology
and digital skills that can be embedded in the educational curriculum [59].
In the tourism sector, tourists experience needs more empowerment, trust, and owner-
ship, which are developed through tour packages that are expected to fulfill their expecta-
tions and needs through complete information; incomplete information in tourism products
can frustrate and discourage tourists when make purchasing decisions [60]. The rapid
development of digital technology enables the industry to obtain and share information
in various digital platforms in real time. That is why digital literacy is a very imperative
competence in today’s lives.
Digital literacy was first proposed by Gilster [61], who identified four key digital
literacy competencies: knowledge assembly, evaluating information content, searching the
Internet, and navigating hypertext [62]. It is important to find valuable information online
in an effective way; for that, digital literacy becomes a building block to expand economic
opportunities that can be directed at human development and poverty alleviation [63].
Digital literacy skills are needed in developing an entrepreneurial attitude [64]. Digital
literacy skills have tendencies related to various uses of technology to make it easier
for users in the process of finding, evaluating, managing, creating, and communicating
various information obtained and developing digitally through the use of technology in a
responsible manner [65]. The basic literacy includes basic computer skills, network literacy,
digital problem-solving, information literacy, and media literacy.
Saari et al. [13] mentioned that, according to World Economic Forum (WEF), 4IR is
developed through a combination of technologies that utilize digital, physical, and biologi-
cal systems that are expected to be able to change life patterns and working conditions for
sustainability in the future, where the skills to utilize digitalization include the ability to
optimize various digital devices, various communication applications, and network needs
for easy access and management information. Furthermore, Reference [66] mentioned that
a dimension of digital literacy is information literacy, media literacy, and ICT literacy. Some
of the skills needed in the development of information literacy consist of the ability to gain
access to information efficiently and effectively, to be critical in evaluating information,
and to be accurate in managing it. The building blocks of media literacy are understand-
ing the purpose for media messages’ construction, examining how individuals interpret
messages, and having an understanding of ethical issues that can be applied to media
use. ICT literacy includes the use technology as an information tool, the use of digital
technology as networking tools/social networks, the use of technology as a knowledge
economy function, and the understanding of ethical/ legal issues surrounding the use of
information technologies.
The use of digital technology has never been so dominant in the tourism industry as
it is today [51], not only to support a destination in achieving competitiveness but also
to connect its products and services to global markets, as well as enable it to integrate
the whole supply and value chains into the destination’s ecosystem [67]; therefore, digital
literacy (DL) is an essential competency to strive toward in the digital era [68]. It is
imperative for destinations and nations to improve DL amongst their people, so that they
can more easily adapt to the new and innovative technology later.
Various efforts are needed to propose digital literacy as part of a process that can focus
on developing the concepts of knowledge literacy, Internet literacy, and web literacy [68].
In the process of literacy, the various steps that are passed require digitization where dig-
ital literacy has now become a systematic part, especially in the development of various
technologies and mass structures. A conceptual model that develops the concept of digital
literacy in a comprehensive manner requires several skills that accommodate the cogni-
tive challenges faced, which include literacy in the form of photo/visual, reproduction,
branches, information, socio-emotional, and real-time thinking.
The digital literacy of islands’ human resources will therefore affect the success of BT
adoption, as well as support the development of smart islands. The resultant hypotheses
are as follows:
Hypothesis 4 (H4 ). Digital literacy has a significant effect on blockchain technology.

Hypothesis 5 (H5 ). Digital literacy has a significant effect on smart islands development.
2.5. Previous Research on Smart Destination and Blockchain Technology

Table 1 below shows the previous research on smart destination and blockchain
technology in the blue economy.
Table 1. Previous research.
Scholars Concept Similarity Difference

Smartness
Smart tourism as important part and practical attempt
of the smart city strategy that benefits from ICT as
Dimension of smart
digital dimensions of smart living, smart mobility, smart Concept exploration and
[3] destination that refer to
governance, smart people, smart environment, and empirical study
smart city
smart economy; thus, these dimensions can also be
applied directly in tourism destinations.
Smart tourism as a complex amalgamation of all
technological tools (soft and hard smartness) that
See smartness in
bridges digital and physical element of tourism Qualitative to
[5] destination of
destination and creates a dynamic network tourism mixed-methods research
tourist interest
ecosystem in order to co-create value and experience for
tourists and local people.
Smart sustainable island has the same meaning as the
Dimension of smart
term “smart sustainable city”, but it is applied to the
islands is smart economy,
entire region of an island, and that the entire island
smart resources use, smart Case study to
[6] follows all the good practices to preserve the sustainable
society, smart quality of empirical study
development and the protection of the environment,
life, and smart
natural and urban, including the culture heritage, in a
infrastructure
holistic and integrated manner.
Smart city is a city related with technology, people,
[15] Dimensions used Island as research object
and technology
Smart tourism destinations are applying different ICTs
in developing tourism processes, interconnecting all
stakeholders, co-creating experiences and personalized BT application in Conceptual paper to
[20]
services with customers, and supporting local people smart destinations empirical research
participatory and information governance for data
openness and privacy.
Smart islands are the insular territory that are
implementing smart and integrated solutions to the
Focus on identifying
management of infrastructures, natural resources, and
Empirical research on islands readiness to
[24] the environment as a whole, supported by the use of
islands destination develop smart
ICT to promote innovative and socially inclusive
islands model
governance in order to create sustainable local economic
development and a high quality of local people’s lives.
Smartness in smart city or smart tourism destination is Empirical research on
Considering smart city
the combination of hard and soft components. The hard island, while Boes et al.
concept could be applied
[33] smartness component is advanced technological analyzed case-study
to any type of
info/infrastructure, while soft smartness is ICT, mapping on smart cities
tourism destination
leadership, innovation, and social capital. in EU
Smart tourism destination is the management of
Conceptual paper to
destination through interconnecting multi-stakeholders Exploring smart
[36] empirical study to create
in a dynamic platform mediated by ICT to support a destination
smart islands’ model
prompt information platform.
Table 1. Cont.
Scholars Concept Similarity Difference

Blockchain Technology
• Conceptual paper on
BT is a distributed‚ replicated‚ and immutable digital • Application of BT for BT application in
ledger allowing different parties to conduct business in integrating and tourism industry to
[4] simplifying business
a more trustful and transparent manner without the blue economy
need for a central node of control. processes and control management model
in smart islands
Blockchain as digital, decentralized, and distributed Systematic literature

ledger in which transactions are logged and added in Blockchain for smart review to empirical
[11]
chronological order, with the goal of creating permanent city development research for BT-based
and tamperproof records. smart island model
BT is a new way of organizing‚ recording‚ and BT adoption case study to
[19] processing information in blocks, which are provable‚ BT adoption case study in BT-based smart islands
reliable, and long-lasting. model development
Blockchain is a new disruptive technology with an
Focus on BT processes
improved ability to verify and record the exchange
Demonstrating blockchain while other focus on BT
[20] of assets among an interconnected set of users while all
process acceptance in blue
digital events are performed and shared among all
economy industry
participating members.
Readiness and acceptance
Blockchain is a distributed digital transaction and data The potential
of BT implementation to
[69] management system in which all users of the system implementation of BT
empirical BT model in
have a common consensus. in Indonesia
smart islands
Conceptual paper on BT
Blockchain is a decentralized and immutable database
decentralization methods
storage that gives the peers in chain network equal roles Discussed decentralization
[70] to empirical model
and provides a decentralized communication and dimension of blockchain.
development in
transaction in its chain networks.
smart islands
3. Material and Methods

3.1. Research Area
The Seribu Islands are an administrative regency of Jakarta Province that is geographi-
cally located between 5◦ 390 46.4400 S and 106◦ 340 5.8800 E. With a total area of 4745 km2 , the
islands consist of only 8.76 km2 land, while the rest is water. It is a group of more than
110 small islands; the lowlands have an average elevation of ±2 m above sea level. The
territory of the Seribu Islands has a northern border with the Java Sea or Sunda Strait, the
east with the Java Sea, the south with the North Jakarta Administrative City, and west with
the Java Sea or Sunda Strait. Administratively, the territory of the Seribu Islands’ adminis-
trative district government is divided into 2 sub-districts, consisting of the South Seribu
Islands Subdistrict and the North Subdistrict, and 6 wards: Untung Jawa Island, Tidung
Island, Pari Island, Panggang Island, Kelapa Island, and Pulau Harapan [71]. Figure 1
below refers to the Seribu Islands’ administrative regency map.
The ocean economy is the main economic force of the Seribu Islands. The marine
tourism sector becomes the focus of economic activities in order to improve the welfare
of local residents, taking advantage that the location of islands that is closed to the capital
city of Jakarta and making the islands designated as one of National Tourism Strategic
Area [72]. The second economic sector is fisheries, as fishing is the traditional livelihood of
locals, while seaweed cultivation is a potential aquaculture, besides salt, crab-processing
industries, and home industries for souvenirs and local specialties. Some larger industries,
such as resorts, and ferry and fast boats rentals are also available to serve tourists [71].
Sustainability 2023, 15, x FOR PEER REVIEW 10 of 26
administrative district government is divided into 2 sub‐districts, consisting of the South

Sustainability 2023, 15, 5342 Seribu Islands Subdistrict and the North Subdistrict, and 6 wards: Untung Jawa Island, 10 of 24
Tidung Island, Pari Island, Panggang Island, Kelapa Island, and Pulau Harapan [71]. Fig‐
ure 1 below refers to the Seribu Islands’ administrative regency map.
Figure 1.
Figure 1. Seribu
Seribu Islands’
Islands’map.
map.
The ocean
3.2. Variables economy is the and
Operationalization main economic
Research force of the Seribu Islands. The marine
Paradigm
tourism
Basedsector becomes
on the the focus
literature reviewof economic activities
above, the dataset inonorder to improve
variables’ the welfare
dimensions and of
indica-
local residents, taking advantage that the location of islands that is closed to the capital
tors is operationalized in Table 2 below.
city of Jakarta and making the islands designated as one of National Tourism Strategic
Area [72]. The second economic sector is fisheries, as fishing is the traditional livelihood
Table 2. Operationalization of variables.
of locals, while seaweed cultivation is a potential aquaculture, besides salt, crab‐pro‐
cessing
Variable industries, and home industries for souvenirs
Dimension and local specialties. Some larger
Indicator
industries, such as resorts, and ferry and fast boats rentals are also available to serve tour‐
ists [71]. • Entrepreneurship
Smart Islands Smart economy • Sharing economy
3.2. Variables Operationalization and Research Paradigm• Global connectivity
• Innovation driven economy
Based on the literature review above, the dataset on variables’ dimensions and indi‐
cators is operationalized in Table 2 below. • Culturally vibrant and happy society
• Community inclusion in
Smart society
Table 2. Operationalization of variables. public-life activities
• Community creativity
Variable Dimension Indicator • Community motivation for
 long-life learning
Entrepreneurship
 • economy
Sharing Transparent government system
Smart Islands Smart economy
Smart governance • connectivity
 Global Participatory decision-making
 •
Innovation E-governance
driven economyservice
 •
Culturally Green building
vibrant and happy society
Smart environment • Green consumption
Community inclusion in public‐life activi‐
• Green destination planning
ties
Smart society • Environmental health
 Community creativity
• Efficient transport system
 Community motivation for long‐life
Smart mobility learning • Availability of ICT infrastructure
• Availability to various transport
mode (accessibility)
• Quality of living
• High tolerance community
Smart living • Social cohesion
• Adequate education and
culture services
Table 2. Cont.
Variable Dimension Indicator

Data transparency for stakeholders
Self-governed ecosystem
Blockchain technology Trustworthy digital network platform
Trust business
adoption • Provides full reliable protection to
customer information (tracking
capability/traceability)
Disintermediation in blue
economy activities
Efficiency Speed transaction processing among
geographically dispersed entity
Lowest cost transaction
Traceability over loyalty reward points
Reliable online review
Creative loyalty
Able to exchange points/rewards in digital
program
business ecosystem
Enhanced analytics (algorithm)
Trustworthy network that integrates all
parties in the business ecosystem
Traceability supply chain system
Decentralization Transparent transaction infrastructure to
ensure meeting law enforcement
(due diligence)
Compliance collaborative traceability
Responsible fisheries
Sustainable marine tourism practices
Blue economy Marine resources’ Non-polluted aquaculture
preservation preservation Environmentally friendly
sea transportation
Renewable energy usage
Laws to encourage bio-based materials
Packaging regulation to ban
petroleum plastic
Marine circular economy Circular-economy-based waste
management practice
Economic incentive for circular
economy practice
Sustainable fishing culture
Marine ecosystem Regular fishing for litter
health recovery Awareness campaign
Responsible utilization of ocean resources
Operate basic computer skill
(Microsoft Office)
Digital Literacy Basic ICT literacy
Ability to manage email
Ability to use Internet browser
Ability to utilize social media for business
Ability to utilize marketplace platform for
Network literacy business transactions
Ability to create e-community to
enhance business
Ability to access information effectively
Information literacy Ability to evaluate information effectively
Ability to use information
Understanding the purpose for which
media messages are constructed
Ability to filter messages from social media
Media literacy
(interpret messages)
Fundamental understanding of the ethical
issues on the use of media to create messages
Alfano believes that blockchain is today’s IT hype, for which cryptocurrency was the
first implementation, known as Blockchain Era 1.0 [59,60]. The inability to utilize blockchain
technology in Indonesia and the Seribu Islands is because the ICT infrastructure is not yet
evenly available, and there is a lack of ICT skill in the local human resource [73]. Those
premises, therefore, support the idea that digital literacy affects blockchain technology
application, as in Hypothesis 4. Ramadhan et al. mentioned that blockchain technology
becomes the gamechanger of sustainability and green practices as the technology enabler for
transforming green innovation, culminating sustainable economic practices, and business
models [69]. This statement can also apply in blue-economy practices, as it is a sustainable
practice in ocean economy. Furthermore, the research by Polas et al. supports the same idea,
as it argues that blockchain can be the answer for managing sustainability business [12].
These statements support Hypotheses 2, which states that good blue economy management
influences the success of blockchain application. Meanwhile, Tijan et al. [74] argued that
digital technology application will support the goals of the blue economy namely economic
use of the sea and oceans, preserving ecosystems, and improving the quality of life and
work or what we acknowledge as smart sustainable destination, as is in line with the base
thinking of Hypotheses 1, which states that blockchain technology will affect the smart
island. Blockchain technology influences smart tourism destination [20], smart city [11],
and industry, e.g., tourism [19]. Ref. [75] argued that digital literacy is one of the building
blocks to create a smart tourism village or destination as the basic, and this is the premise
for Hypothesis 4, while [25] proposed the smart strategy for blue and bio economy that
is the basic premise of Hypotheses 5. The model framework for this research is shown in
Figure 2 below.
H5
Digital Literacy H4
Blockchain H1
Smart Islands
Technology
H2
Blue Economy
H3
Figure 2. Research
Figure 2. paradigm in
Research paradigm in the
the development
development of
of smart
smart destinations
destinations on
onthe
theSeribu
SeribuIslands.
Islands.
The
The methodology
methodology forfor this
this research
research is
is sequential
sequential mixed‐method
mixed-methodresearch.
research.Qualitative
Qualitative
research was conducted initially to obtain the latest discussion on each variable,
research was conducted initially to obtain the latest discussion on each variable, which which
was later confirmed with the phenomena and previous research regarding each
was later confirmed with the phenomena and previous research regarding each observed observed
variable. The qualitative review describes scientific journals that have contributed greatly
variable. The qualitative review describes scientific journals that have contributed greatly
to the development of blockchain technology and the blue economy that allows it to be
to the development of blockchain technology and the blue economy that allows it to be
further enhanced, along with the development of science and technology to create smart
further enhanced, along with the development of science and technology to create smart
islands. Approaches that are applied qualitatively can be used through mapping as an effort
islands. Approaches that are applied qualitatively can be used through mapping as an
to increase the understanding of the constructs that will be developed in the future [76].
effort to increase the understanding of the constructs that will be developed in the future
VOSviewer was used for the analysis of knowledge mapping data in the form of scientific
[76]. VOSviewer was used for the analysis of knowledge mapping data in the form of
evolution results [77], and it was able to display the results of the research data analysis with
scientific evolution results [77], and it was able to display the results of the research data
an attractive and elegant visualization in the form of concept mapping [78]. VOSviewer
analysis with an attractive and elegant visualization in the form of concept mapping [78].
was also used to display the visualization of the results of data analysis originating from a
VOSviewer was also used to display the visualization of the results of data analysis orig‐
collection of scientific journals according to the research theme under study. The data were
inating from a collection of scientific journals according to the research theme under
obtained through a systematic search of a database of various scientific journals with the
study. The data were obtained through a systematic search of a database of various scien‐
theme of blockchain technology and blue economy in the 2016–2021 publication period.
tific journals with the theme of blockchain technology and blue economy in the 2016–2021
publication period.
The construct variable, dimension, and indicators become the output of the initial
qualitative research. After obtaining the construct indicators, empirical research on the
idea of managing the integrated blue economy through the adaptation of blockchain tech‐
The construct variable, dimension, and indicators become the output of the initial
qualitative research. After obtaining the construct indicators, empirical research on the
idea of managing the integrated blue economy through the adaptation of blockchain
technology in order to create smart destination was conducted. This involved a survey
for the business players in the blue economy in the Seribu Islands. There are 150 entities
representing the fishermen families, hotel and accommodation, restaurants, transports,
creative industry, and so on. The data were collected through the questionnaire circulation
and analyzed using structural equation modeling (SEM) to obtain the integrated blue
economy model for the Seribu Islands. An SEM analysis was used to test the hypothesis
of the influence between constructs, and it was carried out through direct or indirect
channels as mediation which are processed simultaneously [79] and then used to examine
the relationship between variables [80]. The analysis developed SEM (Lisrel) to determine
the effect between dimensions and variables tested as analysis to test data with high level of
complexity and carried out simultaneously [81]. The SEM was used to analyze constructs
together in the form of a structural model that examines the relationship between constructs
independently or dependently and a measurement model that examines the relationship
between indicators and constructs. Lisrel is more optimally useful if it is used to confirm the
tested construct. Figure 3 below shows the mixed method flowchart used in this research.
Methodology
Qualitative Quantitative
Research method Research Research
Publish or Perish
Data collection Survey to 150 BE
1,817 journal
industry
articles
Data analysis VOSViewer

Structural Equation
Modelling (Lisrel)
New construct
Findings Model Fit
indicators
Novelty
Smart Islands Model
Figure3.3.Mixed-method
Figure Mixed‐methodflowchart.
flowchart.
4.
4. Results
Results
4.1.
4.1. Qualitative
QualitativeMapping
MappingbybyUtilizing
UtilizingVOSviewer
VOSviewer
The
Theconcept
conceptofofblockchain
blockchaintechnology
technology and
andblueblueeconomy
economyis fully explained
is fully through
explained through
several visualizations presented in the form of a network, density, and classification of
several visualizations presented in the form of a network, density, and classification of
data obtained from scientific publications. The data refer to a collection of scientific
data obtained from scientific publications. The data refer to a collection of scientific pub‐
publications obtained by entering keywords based on the variables used in this study,
lications obtained by entering keywords based on the variables used in this study, includ‐
including blockchain technology, blue economy, smart tourism, and digital literacy. The
ing blockchain technology, blue economy, smart tourism, and digital literacy. The process
process of searching for articles is based on themes that are adjusted to research variables by
of searching
classifying for articles
publication is based
periods on themes
to produce that areinadjusted
mapping to research
developing variables
indicators. by clas‐
To produce
interesting and interactive quality mapping, it can be implemented in the form of networks in‐
sifying publication periods to produce mapping in developing indicators. To produce
teresting
and and
density interactive
levels, quality mapping,
using database it utilizing
analysis by can be implemented
VOSviewer. in the form of networks
and The
density levels, using database analysis by utilizing
visualization analysis shown refers to the database VOSviewer.
obtained through network
The visualization analysis shown refers to the database
visualization in journal publications between 2018 and 2021 on the obtained
conceptthrough network
of blockchain
visualization in journal publications between 2018 and 2021 on the concept of blockchain
technology shown in figure 4. The mapping results show several topics that have been
widely used and implemented in this period which can be identified in the form of nodes
with a larger size and a certain color type. The same color indicates that the node has same
technology shown in Figure 4. The mapping results show several topics that have been
widely used and implemented in this period which can be identified in the form of nodes
with a larger size and a certain color type. The same color indicates that the node has same
classification or belongs to one family. Cryptocurrency, challenges, IoT, bitcoin, transactions,
and security are some of the topics that have been widely developed in this publication.
Although some of these topics are still relevant to be developed in the diversification of
future research, it is also necessary to find some novelties on the topic to support the
continuity of scientific evolution. There are several topics found in the mapping that have
not been widely published and identified as having novelties, including big data analytics,
artificial intelligence, digital currency, cryptography, and convergence. For this reason,
topics that are found and have not been widely published need further research to develop
knowledge, especially in the development of smart tourism.
(a) (b)
Figure 4. Visualization of scientific publication data analysis on blockchain technology concepts: (a)
Figure 4. Visualization of scientific publication data analysis on blockchain technology concepts:
network visualization and (b) density visualization.
(a) network visualization and (b) density visualization.
Concepts
Concepts that that have
have an an important
important contribution
contribution in in supporting
supportingthe thedevelopment
developmentofof
smart
smart destinations in the tourism sector include the blue economy. In additiontotonetwork
destinations in the tourism sector include the blue economy. In addition network
visualization,
visualization, the the analysis
analysis results
resultspresentation
presentationalso alsoshows
showspatterns
patternsininthetheform
formofofoverlay
overlay
visualizations.
visualizations. The Theoverlay
overlayvisualization
visualizationisisshown shownininthethecolor
colordisplay
display(refer Figure5),5),
(refertotoFigure
with
with the
the identification
identification that that the
the color
colorisisbrighter
brighteror orshows
showsaayellow
yellowcolor,
color,sosothe
thepublication
publication
time
time is in the latest range, such as the concepts of performance economy,biomimicry,
is in the latest range, such as the concepts of performance economy, biomimicry,
SDGs,
SDGs, transformation,
transformation, marine marine tourism,
tourism, and andcoastal
coastalandandmarine
marinetourism.
tourism.Derivatives
Derivativesofofthe
the
blue economy concept are further investigated in an effort to find out variousindicators
blue economy concept are further investigated in an effort to find out various indicators
that
that can
can leverage
leverage the the development
development of of smart
smart destinations.
destinations.Several
Severalderivatives
derivativesofofthe theblue
blue
economy concept that have been widely published in various scientific
economy concept that have been widely published in various scientific publications include publications in‐
clude circular economy, fishery, strategy, ocean, policy, system, and industry.
circular economy, fishery, strategy, ocean, policy, system, and industry. In addition, there In addition,
there are several
are several derivative
derivative concepts
concepts that have
that have not been
not been widelywidely published,
published, so they
so they havehave
high
high novelty
novelty opportunities,
opportunities, including
including maritimemaritime cooperation,
cooperation, economic
economic performance,
performance, bio‐
biomimicry,
mimicry,
conservation, conservation,
and coastal andandcoastal
marine and marineThe
tourism. tourism. Theoftendency
tendency of the opportunity
the opportunity for concepts
for concepts that have a novelty to the blue economy
that have a novelty to the blue economy concept seems to have similarities concept seems to have similarities
between
between
scientific scientific journals published
journals published in the
in the latest latest timeframe
timeframe andthat
and journals journals that arepublished,
are slightly slightly
published,
as is indicated as isbyindicated by thesmall
the relatively relatively
size ofsmall size of the nodes.
the nodes.
(a) (b)
Figure 5. The concept of blue economy in VOSviewer visualization which is displayed in two pat‐
Figure 5. The concept of blue economy in VOSviewer visualization which is displayed in two patterns:
terns: (a) network visualization and (b) overlay visualization.
(a) network visualization and (b) overlay visualization.
4.2.Structure
4.2. StructureEquation
Equation Modeling
Modeling in
in the
the Development
DevelopmentofofSmart
SmartIslands
Islands
From the result of quantitative analysis (refer to Figure 6), it can be identified that the
From the result of quantitative analysis (refer to Figure 6), it can be identified that the
blue economy, digital literacy, and blockchain technology are the building blocks of smart
blue economy, digital literacy, and blockchain technology are the building blocks of smart
islands. Together, they account for 89% of the development of smart islands. This finding
islands. Together, they account for 89% of the development of smart islands. This finding
indicates that the blockchain technology adoption is still a new idea that will support the
indicates that the blockchain technology adoption is still a new idea that will support the
implementation of smart destination. The most significant dimensions of the smart island
implementation of smart destination. The most significant dimensions of the smart island
destination are the smart society and smart environment. The smart society is constructed
destination
by having are the smart
a vibrant societysociety,
and happy and smart environment.
community The smart
participation, societyand
creativity, is constructed
their in‐
bytention
having a vibrant and happy society, community participation, creativity,
for long‐life learning, while the smart environment consists of green building, and their
intention
Sustainability 2023, 15, x FOR PEER REVIEW for long-life learning, while the smart environment consists of
green consumption, green destination planning, and good environmental health. of green17 building,
26
green consumption, green destination planning, and good environmental health.
Figure 6.
Figure 6. The
Theresults
resultsofofdata
dataprocessing
processingin in
standardized solutions
standardized displayed
solutions through
displayed structural
through structural
equation modeling calculations based on variables tested.
equation modeling calculations based on variables tested.
The most significant dimensions of blockchain technology are the creative loyalty
program and decentralization that can be created through blockchain technology. The cre‐
ative loyalty program that can be created by adopting blockchain technology is real‐time
loyalty reward tracking system, reliable customer online review, and the opportunity for
exchanging rewards or points within the ecosystem and improving the accountability of
The most significant dimensions of blockchain technology are the creative loyalty
program and decentralization that can be created through blockchain technology. The
creative loyalty program that can be created by adopting blockchain technology is real-time
loyalty reward tracking system, reliable customer online review, and the opportunity for
exchanging rewards or points within the ecosystem and improving the accountability of
business algorithm analysis. Decentralization factors that are provided from blockchain
technology are an interactive platform that can integrate all active parties into the blockchain
ecosystem, the ability to track product source in a value chain system, the ability to track
all transactions in accordance with governance, and the ability to check the compliance
aspects of business collaboration.
Both digital literacy and integrated blue economy implementation influence blockchain
technology adoption, with a total contribution of 60%, while the other 40% is contributed
by other factors. The most significant dimensions of digital literacy are information literacy
and media literacy. Information literacy is formed by the ability to access information from
social media effectively, critically, and accurately, while media literacy is constructed by the
ability to understand message objective, the ability to screen messages from social and digi-
tal media, and the understanding of ethical issues for digital and social media’s messages.
The results can be determined to have a goodness-of-fit model if they have at least
three index criteria which conclude that a good fit is determined based on the results of
the multivariate test analysis carried out (refer to Table 3). Minimum requirements must
be met for the model being measured in order to obtain the suitability of the model being
tested. The model criteria measured using structural equation modeling analysis can be
categorized as a good fit if the index number is ≥0.9. From the results of testing the criteria,
there are five criteria that are stated as constituting a good fit, namely NFI, NNFI, CFI, IFI,
and RFI, while the other two criteria are stated as having a marginal fit.
Table 3. Goodness-of-fit index criteria.
Fit Index Criteria

Goodness-of-Fit Index Result Remark
(Cut of Value)
NFI ≥0.90 0.91 Good Fit
NNFI ≥0.90 0.94 Good Fit
CFI ≥0.90 0.95 Good Fit
IFI ≥0.90 0.95 Good Fit
RFI ≥0.90 0.90 Good Fit
GFI ≥0.90 0.83 Marginal Fit
AGFI 0–1 0.76 Marginal Fit
We tested the hypothesis by utilizing the influence value between variables, which
include digital literacy, blue economy, blockchain technology, and smart islands (refer
to Table 4). The results stated that five hypotheses tested were significant where the
values obtained exceeded standard value, which was greater than 1.96. Based on the
results obtained, it is stated that all hypotheses are acceptable and have a significant
effect on the variables tested. The results of the analysis state that digital literacy has a
significant effect on blockchain technology, the blue economy has a significant effect on
blockchain technology, blockchain technology has a significant effect on smart islands,
digital literacy has a significant effect on smart islands, and the blue economy has a
significant effect on smart islands. Significant study results have an important role in
encouraging tourism development in various areas that have the attractiveness of smart
islands that require the participation of information technology by developing a blockchain
system. In addition, the development of smart islands requires the active role of local
communities in the development of the blue economy and digital literacy supported by
optimizing the blockchain system to encourage increased knowledge of tourists so that
they are more familiar with tourist destinations on smart islands.
Table 4. Results of hypothesis testing are based on the influence between variables tested.
Hypothesis Significancy Value Standardize Solution

H1 = BT → SI 2.28 0.19
H2 = BE → BT 3.58 0.34
H3 = BE → SI 4.85 0.50
H4 = DL → BT 2.49 0.23
H5 = DL → SI 2.50 0.20
5. Discussion
The results of qualitative mapping by utilizing VOSViewer show that derivative con-
cepts of blockchain technology and the blue economy have novelties and important value
for the development of knowledge and technology in the future. Derivative concepts have
an opportunity to be followed up on for the development of knowledge evolution, includ-
ing cryptocurrency, IoT, security, maritime cooperation, biomimicry, conservation. The
resulting novelty needs to obtain high appreciation in order to encourage the development
of smart islands through efforts to utilize the latest technology and efforts to optimize the
economy based on sustainability efforts. The derivative concepts found have begun to be
widely studied by various parties, including efforts in developing cryptocurrency [82,83],
the optimal use of IoT [84,85], strengthening security systems [86,87], maritime coopera-
tion [88,89], biomimicry [90,91], and conservation [92–94]. The development of derivative
concepts that have novelty values is urgently needed in future studies to encourage the
strengthening of tourist attractions, especially in smart destinations, through increasing
our understanding of the variables studied.
The analysis from SEM shows that the smart society and smart environment are
the most important dimensions of smart islands, as the creative, motivated, happy, and
culturally vibrant society will have the spirit to learn about anything and something new,
as well as be happily participating in any activities to make their islands a better place and
help sustain the unique marine environment. These findings supports the idea that the
world now increasingly focuses on sustainability aspects and the development of smarter
human capital, as the techno and infrastructure focus is no longer enough [22]; moreover,
focusing on community well-being and quality of life becomes the central objective that
impacts not only social but also economic and environmental aspects in the smart city and
destination [30]. A similar notion is mentioned by [95] that there is a high pressure placed
on considering a more-than-human approach in regard to the environmental and social
aspects of the smart city as the result of climate and global-warming issues in smart city
development. What is surprising is the fact that, even though the local people of the Seribu
Islands are the poorest and have the lowest education level compared to other areas in
Jakarta, their perception complies with the global trend of moving from the smart city,
which mostly integrates IT and infrastructure into urban planning, to a super smart society,
which is more people centered [96] and becomes about knowledge.
BE accounts for 50% of the success of smart islands. It implies marine ecosystem
health recovery, the preservation of marine resources, and the marine circular economy.
It implies that protecting the blue economy as the input will become the fuel for smart
islands. This complies with the OECD report that the blue economy is a driver for urban
and regional development especially in coastal, delta, and fluvial cities that rely on marine
and freshwater resources [97], involving smart, sustainable, and inclusive economic and
employment. The BE, through emerging technologies that integrate and create value
chains, triggers the introduction of new forms of production, technologies, logistics, labor
processes, organizational relations, and networks [98].
Although the concept of BT is still in its early stage, it has the potential to create smart
islands and especially to support smart islands and community to create a loyalty program
that is able to trace and exchange rewards in a digital business ecosystem, create reliable
reviews, and enhance overall business analytics, as also mentioned by [42], as well as the
decentralization that makes the platform more trusted and transparent, as it can integrate
all parties in the platform, and all parties can control the activities with traceability in both
a support system and collaboration amongst parties [70,99]. The same opinions were also
conveyed by [12] that BT is a game changer for green innovation, as it can support islands
and destinations in implementing sustainability or green programs, and it can support
supply chain management and integration [41].
The current results also show that DL is very important to the success implementation
on BT [100] and smart islands or destinations [101]. These facts support the finding that DL
will lead to the better adoption of BT in the BE ecosystem [102] and be a building block of
the smart society [103] as the important dimension of smart islands [104].
Based on the research findings developed through the elaboration of variables, dimen-
sions, and indicators, this study produced a novelty called the smart islands model as an
effort to develop blockchain technology in achieving smart islands destination. One thing
that needs to be emphasized in developing the smart islands model is the importance of
considering the strengthening of smart destinations, which can be achieved by optimizing
in adapting blockchain technology. In addition, efforts to adapt blockchain technology
on smart islands need encouragement and the development of the blue economy and
digital literacy. The existence of attraction, accessibility, and amenities that have added
value and are unique is needed as an effort to develop smart destinations. For this reason,
the development of smart destinations requires involvement from various dimensions,
including the smart economy, smart society, smart governance, smart environment,
Sustainability 2023, 15, x FOR PEER REVIEW 20 of 26smart
mobility, and smart living (refer Figure 7).
Figure 7. Smartisland
7. Smart islandmodel:
model:efforts
effortsto
todevelop
developblockchain
blockchaintechnology
technologyininachieving
achievingsmart
smartdestina‐
destinations.
tions.
From the above model, it can be observed that attractions, amenities, and accessibilities
From
are the the above
building model,
blocks it can bedestinations
of island observed that attractions,
that should be amenities,
managed andinaccessibil‐
a sustainable
ities are the building blocks of island destinations that should be managed in
way by employing integrated blue economy approaches. In order to improve economic a sustainable
way by employing integrated blue economy approaches. In order to improve economic
growth significantly, islands should be smart, therefore improving digital literacy and
employing blockchain technology in regard to integrating all stakeholders and co‐creating
experience within the smart platform and ecosystem. The need directed at the develop‐
ment of blockchain technology is an important factor in the development of islands so as
growth significantly, islands should be smart, therefore improving digital literacy and
employing blockchain technology in regard to integrating all stakeholders and co-creating
experience within the smart platform and ecosystem. The need directed at the development
of blockchain technology is an important factor in the development of islands so as to create
smart goals that are carried out through trust business, efficiency, creative local programs,
and the growth of decentralization in the pattern of people’s lives. Several factors in the
effort to develop blockchain technology can be used as benchmarks to get target destinations
according to needs and improve the welfare of the lives for surrounding community.
In addition, blue economy development efforts have an important role in strength-
ening blockchain technology implementation and are also indirectly able to encourage an
increase in the quality of tourism destinations, especially with regard to the development of
tourist islands that lead to ecosystem sustainability. For this reason, the support of marine
resources preservation, marine circular economy, and marine ecosystem health recovery
has dominant value to elevate the quality of the economy, which is generally marked by
rapid technological developments, including in the blockchain technology scheme. The
contribution of digital literacy in driving the development of smart destinations is felt
indirectly through the development of blockchain technology. Basic ICT, digital networking,
information management, and media utilization are able to form the concept of digital
literacy in improving the quality of tourism in line with technological developments. Dig-
ital literacy and the blue economy are two concepts that have been confirmed to have
a dominant role in the development of the Seribu Islands as a smart tourist destination.
The optimal implementation of two concepts is able to encourage the improvement of
blockchain technology in forming smart destinations that are able to guarantee an increase
in the welfare of people living in the Seribu Islands.
Blockchain technology is the enabler of the smart destination in island destination, as
also mentioned by Tyan et al. [20]. Buhalis [1] even argued that blockchain technology is not
the only technological innovation that will enrich smart destinations in the upcoming future,
but other ambient intelligence (AmI) will take strategic places in smart destinations, such
as mobile devices, wearable smartphones and devices, 3D printing, and apps, along with
APIs, Cryptocurrency, sensor and beacon networks, pervasive computing, and gamification,
as well as robotics and AI or ML capabilities. The blue economy itself will become the
differentiator of the smart island destination [105], for which seven types of BE business
activities will considerably be the main business activities, while marine tourism is expected
to become the largest economy sector in the ocean economy of the islands [106,107]. As
smartness and blockchain technology depend on ICT and digital technology, digital literacy
becomes basic competence that should be owned by all stakeholders in the BE ecosystem.
The similar findings are also proposed by Yakovenko et al. [100] and Pranita et al. [101].
6. Conclusions
This study succeeded in building a relevant and suitable smart islands model to be
implemented in the Seribu Islands in which the central ideas are managing blue economy
potentials, including marine tourism as the largest industry in its BE ecosystem. The smart
islands model results from efforts to manage the 3 A’s of the islands destination as the core
industry that is supported by blue economy resources in order to create smart destinations,
while continuous development of blockchain technology is adopted in order to build a
more transparent, trusted, and efficient ecosystem that is supported by the high level of
digital literacy amongst stakeholders. The smart society, smart environment, smart living,
smart governance, smart mobility, and smart economy become the important parts that
form smart destinations that can be applied to build smart islands.
In further development of blockchain technology for the Seribu Islands, active involve-
ment in the development of digital literacy and integration of each business into the blue
economy can encourage the creation of important added value as an effort to optimizing
the use of blockchain technology. The creation of added value has an important meaning
in generating attractiveness and uniqueness that is different from what has been shown
before which can create interest for tourists to enjoy it. The development of digital literacy
and the blue economy can effectively drive added value radically toward the creation of
smart islands, which are widely known globally for their uniqueness.
A positive contribution is made through the smart island model to be implemented
in people’s lives through strategic steps in the form of business diversification, and the
use of the latest technology is expected to help improve the economic sector in which
people are living. In addition, the results of this study state that digital literacy and
the blue economy have a significant influence on blockchain technology and have an
impact on smart destinations. Information literacy is the dimension that has the highest
influence in shaping digital literacy, while the marine ecosystem health recovery has an
important impact on strengthening the blue economy. The creative loyal program and the
sustainable decentralization of marine ecosystems have contributed to optimally compiling
the adaptation of blockchain technology. The development of various aspects, including
digital literacy, the blue economy, and blockchain technology can participate in driving
the sustainability of the tourism industry. Furthermore, it is necessary to develop several
derivative concepts for sustainable tourism development in the form of future studies,
especially on the concepts of maritime cooperation, economic performance, biomimicry,
conservation, and coastal and marine tourism. The limitations of the study conducted
only apply to tourism development in the Seribu Islands region in order to achieve smart
destinations and support the concept of tourism sustainability. Limitations apply to the
constructs applied, including disclosure of the blue economy, digital literacy, and blockchain
technology, which are directly carried out by people who have businesses in tourism
development to further grow the economic sector and achieve business sustainability.
Author Contributions: Conceptualization, D.P.; methodology, D.P., S.S. and H.K.; validation, S.S.,
H.K., B.M.M. and M.S.R.; writing—original draft preparation, D.P. and S.S.; writing—review and
editing, S.S., B.M.M., M.S.R. and H.K. All authors have read and agreed to the published version of
the manuscript.
Funding: PUTI (Publikasi Terindeks Internasional) is Universitas Indonesia’s funding scheme for
research. The research grant number received by the authors is NKB-722/UN2.RST/HKP.05.00/2022.
Institutional Review Board Statement: Not applicable.
Informed Consent Statement: Not applicable.
Data Availability Statement: The data obtained come from a survey which was carried out directly
on the Seribu Islands, and the results of the data collection are in the form of scientific journals, which
are displayed in an attractive manner.
Acknowledgments: The authors express their gratitude to the Universitas Indonesia for its assistance
and contribution to completing this research.
Conflicts of Interest: The authors declare that they have personal relationships that may have
inappropriately influenced them in writing this article.
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sustainability

1 Department of Tourism Business Management, Universitas Indonesia, Depok 16424, Indonesia

Academic Editor: Vasiliki Vrana 1. Introduction

Sustainability 2023, 15, 5342. https://doi.org/10.3390/su15065342 https://www.mdpi.com/journal/sustainability

2.2. Blockchain Technology in Tourism Industry

Hypothesis 1 (H1 ). Blockchain technology has a significant effect on smart islands.

2.3. Sustainable and Integrated Blue Economy

A good BE management can support the development of smart island, as smartness in

2.4. The Importance of Digital Literacy to Support Smart Destination

Hypothesis 4 (H4 ). Digital literacy has a significant effect on blockchain technology.

2.5. Previous Research on Smart Destination and Blockchain Technology

Table 1. Previous research.

Scholars Concept Similarity Difference

Scholars Concept Similarity Difference

Blockchain as digital, decentralized, and distributed Systematic literature

3. Material and Methods

administrative district government is divided into 2 sub‐districts, consisting of the South

Variable Dimension Indicator

Data analysis VOSViewer

Sustainability 2023, 15, 5342 15 of 24

Table 3. Goodness-of-fit index criteria.

Fit Index Criteria

Hypothesis Significancy Value Standardize Solution

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