This study investigates the role of social capital in the development of ecotourism in Bangsring Underwater, Banyuwangi. This study uses a qualitative approach to explore the role of social capital in supporting ecotourism development. Social capital has a positive influence in the success of empowerment programs conducted to the fishermen in changing fishing patterns and preserving the marine environment. Lastly, a strong social capital in the community can reduce the transaction costs. Keywords: Social Capital, Ecotourism dan Transaction Costs     
                        
                        
                        
                        
                            
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