Objective - This research focused on local communities' involvement as SMEs in Batam City's coastal area tourism. This study is based on the argument that MSMEs offer welfare to local communities while simultaneously becoming an attraction in tourist destinations. Methodology - This research used a descriptive qualitative approach with primary and secondary data collection. Primary data was collected through focused group discussions, interviews with local governments, interviews with community MSME actors, and field observations in four coastal areas. Secondary data was gathered through the collection of related documents. Findings - The results of this study indicate that (1) local communities' involvement as MSME actors are still not optimal due to limited knowledge of when and how to exploit economic opportunities, (2) there is potential in developing culinary, crafts, and local culture by curating potential products and packaging local culture into a tourist attraction, (3) local communities have limited access to human resources training and service quality improvement programs provided by the local governments. Tourism awareness groups in observed areas have worked to mobilize and increase local communities' involvement. Novelty - Exploring the potentials of culinary, craft, and tourist attractions requires optimum local government involvement. The provincial government and communities join efforts to improve the quality of coastal tourism by developing local communities' role as SMEs in the tourism sector. This finding proves that coastal potential cannot be used sustainably if it is not developed through the involvement of local communities. Type of Paper - Empirical