RESEARCH ARTICLE Host–Guest Orientations of Community‐based Tourism Products: A Case Study in Bali, Indonesia Ni Made Ernawati 1 | Dale Sanders 2 | Ross Dowling 2 1 Politeknik Negeri Bali, Bali, Denpasar, Indonesia 2 School of Business and Law, Edith Cowan University, Joondalup, Western Australia, Australia Correspondence School of Business and Law, Edith Cowan University, 270 Joondalup Drive, Joondalup, Western Australia 6027, Australia. Email: d.sanders@ecu.edu.au Abstract This research provides a greater understanding of community‐based tourism products through an examination of the perceptions of the host communities and tourists. Using a survey, data were collected measuring community‐based tourism products through nine elements including attractions, travel services, transport, accommodation, food and beverage, souvenirs, packaging, amenities and people. The overall results indicate that there was considerable agreement on most product items. The tourists clearly identified their expectations and were supportive of a sustainable industry; however, they were also concerned about safety and hygiene. The host communities were aware of the intrinsic value of the tourist attractions in their villages but lacked the confidence to share them with visitors. KEYWORDS Bali, CBT community, CBT products, CBT tourists, community‐based tourism 1 | INTRODUCTION Community‐based tourism (CBT) is a constantly changing and evolving niche of tourism; therefore, a greater understanding is needed to assist communities to develop CBT in a sustainable way. The ideal outcomes of CBT are the preservation of culture and traditions as well as the natural and rural environments, while simultaneously embracing opportunities for community development and tourist satisfaction. For the host community, to retain its authenticity and develop at the same time requires the integration of contradictory factors, and in view of these challenges, host communities require a sound understanding of CBT to conduct operations sustainably. It is argued that the impacts of alternative tourism could be more hazardous compared to mass tourism (Butler, 1999; Wall & Long, 1996; Weaver, 2015) because alternative tourists permeate into the life of the community and their close contact with the natural environment could cause the deterioration of the ethnic culture and the rural environment (Butler, 1999). To mitigate this condition, some researchers recommend involving locals (Telfer & Sharpley, 2008) and building their knowledge and skills to maximize gains from tourism activities and minimize negative impacts (Moscardo, 2008). It is these suggestions that identified a need to conduct this study in order to assist the CBT community in Bali to gain a better understanding of CBT, especially its products and guests’ perceptions of the products. This study takes an emic approach in which Bali is viewed from the perspective of the local people (Agung, 2010). The lead researcher was brought up in Pohsanten village located in the Western part of Bali in the regency of Jemberana. Business operations are commonly oriented to customer’s needs and wants (Mill, 1996; Morrison, 2002). For the purpose of satisfying these needs and wants, and achieving an organization’s profitability, products are produced according to specification (Morrison, 2002; Wearing & Neil, 2003; Oelkers, 2007; Kotler & Armstrong, 2012), on the premises wherein the business has full control of their production process. Community‐based tourism operates on different principles. First, tourists are co‐producers during the consumption process (Frochot & Bata, 2013), and cooperation between the product/service providers and the consumers/tourists is vital for customers’ satisfaction. Second, production and consumption occur at the same time at a place which is a home to the community (Kotler, Bowen, & Makens, 2014), in which community is a part of tourists’ experiences (Lopez‐Guzman, Borges, & Castillo‐Cnalejo, 2011). Third, culture, the most important attraction element, is pre‐existing, and it is noted that environment and socio‐cultural components are valuable assets that must be appreciated (Picard, 2008; Krippendorf & Vielmals, 1993). Considering these factors, CBT operators cannot manufacture their products the way businesses commonly do. Therefore, for the sustain- ability of CBT, it is essential to identify the point wherein the opinions of hosts and guests are reasonably matched regarding the items offered as a part of CBT experience. Received: 8 July 2016 Revised: 1 February 2017 Accepted: 11 February 2017 DOI 10.1002/jtr.2119 Int J Tourism Res. 2017;1–16. Copyright © 2017 John Wiley & Sons, Ltd. wileyonlinelibrary.com/journal/jtr 1