Marine ecotourism and Small–Medium Enterprise (SME) digitalization are increasingly seen as key drivers for coastal community welfare, yet their combined impact, particularly through local economic empowerment, remains underexplored. This study aims to examine whether marine ecotourism (ME) and SME digitalization (SD) influence local community welfare (LCW), mediated by SME empowerment (SE), and moderated by government support (GS). A quantitative, cross-sectional survey was conducted with 312 marine tourism entrepreneurs in North Minahasa, Indonesia, and data were analyzed using Partial Least Squares Structural Equation Modeling. The results show that ME and SD have a significant positive effect on SE and LCW. However, ME and SD were found to be insignificant on LCW. Crucially, SE fully mediates the relationship between both ME and SD on LCW, indicating that empowerment is the primary mechanism for welfare improvement. Furthermore, GS was found to significantly strengthen the positive relationship between SE and LCW. This study concludes that empowering local SMEs is the critical bridge for transforming ecotourism and digitalization into tangible community welfare, and this process is significantly amplified by a supportive institutional environment provided by the government.
Walewangko et al. (Tue,) studied this question.