Small and Medium Enterprises (SMEs) play a pivotal role in the economic growth of a country, especially in sectors such as tourism. SMEs, which include businesses with fewer employees and relatively lower revenue compared to larger firms, have become a critical component in shaping the economic landscape, contributing significantly to job creation, innovation, and the development of regional economies. In the context of tourism management, SMEs are essential players in providing services that contribute directly to the growth of the industry.

First and foremost, SMEs in tourism generate employment opportunities, which is one of the key ways in which they contribute to economic growth. They create jobs not only within their own enterprises but also stimulate employment in related sectors such as transportation, food production, and retail. In countries where the tourism industry is a vital part of the economy, SMEs like boutique hotels, guesthouses, local tour operators, and small restaurants are responsible for employing a large portion of the workforce. This employment, in turn, leads to income generation for households and boosts the purchasing power of the local population, driving further demand for goods and services.

Moreover, SMEs play an important role