The development of tourism villages in West Seram District, Maluku Province, has great potential in encouraging community economic growth through the use of tourism potential and strengthening Micro, Small, and Medium Enterprises (MSMEs). However, the development is not optimal because it still faces obstacles in the form of limited infrastructure, tourism facilities, digital promotion, human resource capacity, market access, and coordination between parties. This study aims to analyze the contribution of tourism MSMEs to economic growth as well as formulate a strategy for developing tourism villages based on sustainable development. A mixed methods approach with an Explanatory Sequential design was used, involving quantitative data from 50 MSME actors analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM), as well as qualitative data through interviews, observations, and documentation analyzed with SWOT. The results of the study showed that the contribution of MSMEs had a positive and significant effect on economic growth with a path coefficient value of 0.547 and a p-value of 0.001. The R² value of 0.517 confirms that MSMEs are able to explain 51.7% of the variation in economic growth. The SWOT analysis places West Seram District in Quadrant I, so the main strategy is Strength-Opportunity (SO), including ecotourism development, integration of MSMEs with tourist destinations, digital promotion, human resource capacity building, equitable distribution of facilities, and strengthening partnerships. This finding emphasizes the importance of integrating MSMEs and sustainable tourism villages in improving the welfare of local communities.
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