Tourism in the Nusa Penida region has witnessed a substantial surge in visitor numbers since 2017, with a remarkable increase of 10.23% compared to the previous year, maintaining an average growth rate of 19.11%. Tourism development plays a pivotal role in generating income for the local tourist destinations and has a positive impact on the neighboring community. This study draws upon several foundational theories, including participation theory and community-based tourism theory (Perkins & Zimmerman, 1995). The study's findings reveal that the local community has taken the initiative to repurpose unproductive land into tourist attractions, diversify their livelihoods, engage in collaborative ventures, conserve both natural and cultural resources, and innovate in promoting the region's tourism potential. The community's involvement is at the Tokenism level, where communication between the government and the community is active. The community willingly participates in various businesses and workforce activities, requiring only infrastructure and financial support. Tourists have a favorable perception of the local community's involvement in innovating Nusa Penida's tourism development, categorizing it as highly participatory. This is evident in the community's effective contribution to transportation, accommodation, and service provision, which they have executed proficiently.
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