This study aims to analyze the policy innovations implemented by the Pekanbaru City Government to enhance Local Own-Source Revenue (LOR) through urban tourism development. The research employed a qualitative approach using in-depth interviews, documentation, and literature review as data collection techniques. Data were analyzed using NVivo Pro through several stages, including word frequency analysis, word cloud generation, open coding, matrix coding, and project mapping. The theoretical framework adopted in this study is Rogers' Diffusion of Innovations Theory (2003), which consists of the stages of knowledge, persuasion, decision, implementation, and confirmation. The findings reveal that the Pekanbaru City Government has introduced various policy innovations through the development of tourism destinations, the organization of cultural events, the digitalization of tourism promotion, and collaboration with multiple stakeholders. Nevertheless, these innovations continue to face several challenges, including limited budget allocation, suboptimal inter-organizational coordination, inadequate human resource capacity, and low levels of community participation. This study proposes a Tiered Centrifugal Policy Innovation Model, which represents a phased innovation process driven by bureaucratic reform in the delivery of sustainable urban tourism services to enhance Local Own-Source Revenue. Keywords: diffusion of innovation; policy innovation; NVivo; urban tourism; local own-source revenue
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