ABSTRACT
Success in improving the tourism industry's performance depends on support system facilities and the role of stakeholders. However, the role of stakeholders in increasing tourism potential to support tourism industry activities, especially in a dynamic environment, still needs further elucidation. Therefore, the main objective of this study was to identify the factors that influence the improvement of the tourism industry and to produce strategies for the tourism industry. In this study, we conducted empirical research that elaborated the impact of support system facilities, stakeholders, and environmental dynamism on how the tourism industry achieves optimal performance in environmental dynamism. Support system facilities factors include telecommunication, power sources, transportation, waste management, location, clean water sources, supporting industries, spatial factors, hospitality, safety, and security. This research was based on data from 203 respondents from SMEs located around the tourist area of Rembang Regency, Central Java, Indonesia. This research shows that the tourism industry in Rembang Regency can achieve optimal performance by utilizing and improving spatial factors, clean water sources, and telecommunication. Therefore, stakeholders and SMEs will benefit from support system facilities that can improve their performance in a dynamic tourism industry environment.