This study examines how local community empowerment contributes to collective economic welfare in Sungsang IV Tourism Village, Banyuasin Regency, South Sumatra. The study responds to the growing importance of community-based tourism in Indonesia, while also addressing the persistent problem of uneven economic benefits, limited managerial capacity, and weak institutional integration in developing tourism villages. Using a qualitative descriptive approach, data were collected through in-depth interviews, participatory observation, and documentation involving village officials, community leaders, Tourism Awareness Group members, Village Forest Management Institution actors, and seafood-based MSME groups. The analysis draws on Putnam’s social capital framework, particularly bonding, bridging, and linking social capital. The findings show that empowerment in Sungsang IV operates through three main strategies: strengthening local capacity, enhancing community-based institutions, and expanding cross-sector collaboration. Bonding social capital is reflected in solidarity, mutual cooperation, and group-based production among women, youth, and MSME actors. Bridging social capital appears through collaboration with other community groups, private partners, and external support networks, while linking social capital is visible in the village’s access to government programs, tourism training, and the Indonesian Tourism Village Award network. These forms of social capital have supported product innovation, tourism promotion, women’s and youth participation, and broader community involvement in local economic activities. However, empowerment remains constrained by limited digital literacy, inadequate production facilities, weak product legality, uneven participation, and insufficient marketing capacity. The study concludes that collective economic welfare in developing coastal tourism villages depends not only on tourism potential, but also on the community’s ability to transform social cohesion, external networks, and institutional access into inclusive and sustainable economic governance.
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