Community-Based Business Transformation in Rural Destination: Strategic Planning for Sustainable Tourism

Community-Based Tourism (CBT) is increasingly recognized as an effective strategy for sustainable rural tourism development. However, business planning in rural destinations often lacks local engagement, integration of digital innovation, and robust evaluation frameworks. This study presents the development and implementation of a participatory, digitally integrated business plan for Wae Lolos Village, West Manggarai. Using a mixed-methods approach field observation, semi structured interviews with key local actors, and participatory workshops this research maps local potentials, develops strategic business units, and formulates risk mitigation measures contextualized to the village’s social, economic, and environmental dynamics. Integration of digitalization manifests through an ongoing village website initiative, combining online marketing, digital reservations, safety information, and MSME e-marketplace within a single platform. The business plan operationalizes key frameworks such as the Business Model Canvas, PESTEL analysis, SMART indicators, and Logical Framework Analysis, ensuring the plan is both strategic and measurable. Results show: (1) enhanced digital marketing and community engagement, (2) diversified local income streams via the activation of eight business units, and (3) improved risk governance for sustainable economic resilience. This model offers practical and replicable lessons for rural destinations seeking to balance community empowerment, digital transformation, and sustainable business management.