This study examines how cultural tourism, grounded in the indigenous philosophy of Tri Hita Karana, contributes to local economic empowerment in Kertalangu Cultural Village, Bali. Using a qualitative case study approach, data were collected through observations, in-depth interviews, and document analysis, including the 2024 Village Revenue and Expenditure Budget (APBDes). The findings reveal that the principles of spiritual, social, and environmental harmony shape tourism governance, community participation, and environmental sustainability. Village fiscal policies also support empowerment-oriented programs such as MSME development, tourism training, poverty alleviation, and infrastructure improvement. The study demonstrates that Tri Hita Karana functions not only as cultural heritage but also as a socio-cultural governance framework that supports sustainable tourism and local economic transformation. This research contributes to community-based tourism and sustainable development literature by emphasizing culturally embedded governance and participatory development. Practically, the study offers insights for policymakers and tourism planners in developing inclusive and culturally grounded tourism strategies. Kertalangu represents a replicable model for sustainable tourism development in rural and peri-urban contexts.
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