Purpose: This study analyzes MSME development in the Goa Lawah tourism area, Klungkung, Bali, and formulates sustainable tourism management strategies based on local knowledge. It examines policy, governance, economic, social, environmental, and destination development aspects.
Methodology: This study employs a descriptive qualitative case study approach. Data were collected through interviews, observations, and document analysis involving key stakeholders. Data validity was ensured through source and method triangulation, while analysis followed the Miles, Huberman, and Saldaña interactive model.
Results: The findings show that MSME management in Goa Lawah is strengthened through collaboration between local government and traditional institutions, integrating formal regulations with local values. Tri-Mandala zoning balances commerce and sacred protection, while local supply chains and digital payments enhance resilience despite environmental, digital adaptation, and waste management challenges.
Conclusions: The sustainable development of SMEs in Goa Lawah requires an adaptive management model that integrates administrative collaboration, cultural preservation, economic empowerment, and environmental protection based on the Tri-Hita-Karana philosophy.
Limitations: This study has limitations because it employs a qualitative approach and is based on a single case study, which may limit broader generalizability.
Contributions: This study presents an integrated management model for SMEs in religious travel destinations that combines the principles of sustainable tourism, cooperative management, and strategies based on local knowledge.