Self-Help Groups as Catalysts for Sustainable Community-Based Tourism Development in Jammu & Kashmir: A Structural Equation Modeling Perspective

Abstract

This study explores the transformative role of self-help groups (SHGs) in fostering sustainable community-based tourism development in Jammu & Kashmir, employing a structural equation modeling (SEM) approach. Drawing on a stratified random sample of 150 SHGs across seven districts (Budgam, Srinagar, Pulwama, Kupwara, Baramulla, Samba, and Jammu), the research examines the mediating mechanisms through which community empowerment, financial inclusion, skill development, and social capital facilitate tourism engagement and generate sustainable livelihood outcomes. The proposed integrated model demonstrates that SHG-led tourism development operates through a hierarchical structure of first-order constructs (community empowerment, β = 0.78; financial inclusion, β = 0.72; skill development, β = 0.65; social capital, β = 0.81) converging into a second-order latent construct of SHG Tourism Development, which subsequently predicts income generation (β = 0.69), women empowerment (β = 0.73), and sustainable development outcomes (β = 0.68). The structural model demonstrates adequate fit (χ² = 245.32, p > 0.05; CFI = 0.94; RMSEA = 0.058) and explains 54% of variance in sustainability outcomes. Findings underscore that SHGs function as critical institutional mechanisms for democratizing tourism benefits, empowering marginalized rural women, and ensuring inclusive development aligned with the Sustainable Development Goals. The research contributes theoretically by advancing understanding of community-based tourism governance and practically by informing policy interventions for leveraging SHGs in tourism-led rural development within mountain destinations.