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The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some countries are rich and others poor.

The author approaches the discussion using a theoretical and historical reconstruction based on published and unpublished materials.

The systematic, continuous and profound attempt to answer the Smithian social coordination problem shaped North's journey from being a young serious Marxist to becoming one of the founders of New Institutional Economics. In the process, he was converted in the early 1950s into a rigid neoclassical economist, being one of the leaders in promoting New Economic History. The success of the cliometric revolution exposed the frailties of the movement itself, namely, the limitations of neoclassical economic theory to explain economic growth and social change. Incorporating transaction costs, the institutional framework in which property rights and contracts are measured, defined and enforced assumes a prominent role in explaining economic performance.

In the early 1970s, North adopted a naive theory of institutions and property rights still grounded in neoclassical assumptions. Institutional and organizational analysis is modeled as a social maximizing efficient equilibrium outcome. However, the increasing tension between the neoclassical theoretical apparatus and its failure to account for contrasting political and institutional structures, diverging economic paths and social change propelled the modification of its assumptions and progressive conceptual innovation. In the later 1970s and early 1980s, North abandoned the efficiency view and gradually became more critical of the objective rationality postulate. In this intellectual movement, North's avant-garde research program contributed significantly to the creation of New Institutional Economics.

The impact of COVID-19 on tourism destinations has been severe, but a future crisis is never far away. How communities can better prepare for disasters to come in the near future continues to be researched. This research aims to understand the tourism community’s responses to the COVID-19 pandemic and present the Tourism Community Resilience Model as a useful instrument to help communities better respond to disasters in the future.

This research uses a qualitative research approach which seeks to understand phenomena, events, social activities, attitudes, beliefs, perceptions and individual and group opinions that are dynamic in character in accordance with the situation in the field. Research primary data is in the form of Kuta Traditional Village local community responses in enduring the COVID-19 pandemic conducted between January and May 2022. These data were obtained through in-depth observations and interviews involving informants based on purposive sampling, including traditional community leaders, village officials, tourism actors (i.e. street vendors, tourist local guides, taxi drivers and art workers) and tourism community members. We selected the informants who are not only directly impacted by the pandemic, but also some of them have to survive during the pandemic because they do not have other job options. The results of previous research and government data concerning the pandemic and community resilience were needed as secondary data, which were obtained through a study of the literature. The data which had been obtained were further analysed based on the Interpretative Phenomenological Analysis (IPA) technique, which seeks to make meaning of something from the participants’ perspective and the researchers’ perspective as a result there occurs a cognition of a central position.

Based on findings from Bali, Indonesia, this resilience model for the tourism community was created in response to the difficulties and fortitude shown by the community during the COVID-19 pandemic. It comprises four key elements, namely the Local Wisdom Foundation, Resource Management, Government Contributions and External Community Support. These elements are all rooted in the concepts of niskala (spirituality) and sekala (real response); it is these elements that give the tourism community in the Kuta Traditional Village a unique approach, which can inspire other tourism destinations in other countries around the world.

A tourism community resilience model based on local community responses has implications for the process of enriching academic research and community management practices in facing future crisis, particularly by involving local wisdom foundation.

A tourism community resilience model based on local community responses has implications for the process of enriching academic research and community management practices in facing future crisis, particularly by involving local wisdom foundation.

The existence of the resilience model strengthens local community social cohesion, which has been made stronger by the bonds of culture and shared faith in facing disaster. This social cohesion then stimulates the strength of sustainable and long-term community collaboration in the post-pandemic period. For tourism businesses, having strong connections with the local communities is an important condition to thrive.

The value of this research is the Tourism Resilience Community Model, which is a helpful tool to optimise and improve future strategies for dealing with disasters. Illustrated by this Balinese example, this paper emphasises the importance of adding social factors such as niskala and sekala to existing community resilience models. Addressing these local characteristics is the innovative aspect of this paper and will help inspire communities around the world to prepare for future disasters better and build more sustainable and resilient tourism destinations elsewhere.