LAUSR

Abstract Nusa Penida is not only the leading diving destination in Indonesia but also one of the most famous diving points in Southeast Asia. However, it is not a mature tourist area due to its unsustainable tourism development. Furthermore, the problems experienced by diving tourism businesses in this area have rarely been studied. Therefore, this study aims to explore the challenges that affect tourism sustainability in the scuba diving tourism industry in Nusa Penida, from the perspective of dive operators. Drawing on qualitative data collected through 10 semi-structured interviews with diving operators, seven themes emerged from the study (i.e. environmental issues, lack of trained staff and guides, water sport activity, lack of enforcement, lack of government support, unhealthy competition, and irresponsible operators). These findings are expected to provide substantial theoretical and practical implications for researchers, diving business managers, and local governments in sustainable business management. Management implications • It provides policymakers with insights as to how to revise development plans and reinforce regulations for future tourism sustainability. • It aids managers of diving tourism businesses in gaining awareness and understanding the potential challenges in small diving business operations as well. • This helps prepare future diving entrepreneurs for the marketing and management aspects of their business. • This research could be applied by similar destinations to craft an effective business strategy that meets their desired outcomes.