Leveraging Digitalization in Mitigating Bureaucratic Red Tape and Enhancing Service Delivery among Tourism-Oriented SMEs

Abstract

The operational sustainability of tourism-oriented Small and Medium Enterprises (SMEs) relies heavily on efficient regulatory public services. To meet this demand, local governments have adopted digitalization as a strategic tool for reducing bureaucratic red tape. However, the extent to which digital transformation genuinely streamlines frontline governance processes for these tourism stakeholders remains underexplored. Anchored on the Technology Acceptance Model, this study investigates the practices and challenges of digitalization in public customer service delivery. An exploratory qualitative design was employed, involving one-on-one interviews with 20 government employees from Zamboanga City, Philippines, who directly engage in customer service operations such as processing business permits and compliance documents. Data were analyzed using reflexive thematic analysis to capture employees’ lived experiences with digital governance tools. Findings reveal that while digitalization simplifies bureaucratic procedures and enhances operational efficiency for tourism SMEs, challenges such as inadequate infrastructure, network instability, and the limited digital literacy of clients severely hinder optimal implementation. This study fills the empirical gap in understanding how frontline employees perceive and navigate digital governance reforms. The insights provided offer practical strategies for improving the resilience of digital platforms, ultimately arguing that robust, user-friendly e-governance is a prerequisite for a competitive, citizen-centered local tourism economy.