6b3ffd9b-9ed4-40f7-a25b-ffeb8c2d352820220405033458231wseas:wseasmdt@crossref.orgMDT DepositWSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS2224-28991109-952610.37394/23207http://wseas.org/wseas/cms.action?id=40161420221420221910.37394/23207.2022.19https://wseas.com/journals/bae/2022.phpMohammadAriefManagement Department, Faculty of Economics and Business Universitas Trunojoyo Madura, Jl. Raya Telang PO BOX 2 Kamal, Bangkalan, East Java, 69162 INDONESIARita IndahMustikowatiManagement Department, Faculty of Economics and Business Universitas PGRI Kanjuruhan Malang, Jl. S. Supriadi No.48 Malang, East Java, 65148 INDONESIAFathorA. SManagement Department, Faculty of Economics and Business Universitas Trunojoyo Madura, Jl. Raya Telang PO BOX 2 Kamal, Bangkalan, East Java, 69162 INDONESIAMuh.SyarifManagement Department, Faculty of Economics and Business Universitas Trunojoyo Madura, Jl. Raya Telang PO BOX 2 Kamal, Bangkalan, East Java, 69162 INDONESIATourism is a potential sector and can provide opportunities in improving the economics. One of the tourist attractions that can increase the tourist visits is the presence of SMEs. When tourists have an interest in tourist destinations, the tourism sector will have competitiveness. In order for tourism competitiveness to increase, SMEs must have an innovation. This study aims to provide a lessons about the SMEs innovative behavior in increasing tourism competitiveness in Madura. Primary data was collected through questionnaires to 33 SMEs in Madura Island who are engaged in the batik sector. The questionnaire design consists of 13 questions related with observed variables, namely innovation and tourist destinations. Secondary data were collected through observation and literature studies in which relevant to the research problem. Data collection techniques using surveys. The collected data will be analyzed with descriptive statistics. The results showed that the overall level of innovation of SMEs and tourist destinations on Madura Island was quite good. In addition, the results of statistical calculations show that the highest innovative behavior lies in the ability of batik SMEs to offer varied products and creating a product brand. Finally, the results of statistical calculations also show that the support from the community for the SMEs existence and the socialization of tourism objects has the highest value. Another finding from this study is that the existence of SMEs will have an impact on increasing tourist destinations.4520224520221008101888https://wseas.com/journals/bae/2022/b765107-1607.pdf10.37394/23207.2022.19.88https://wseas.com/journals/bae/2022/b765107-1607.pdf10.1016/j.sbspro.2014.07.305J. Kumar and K. Hussain, “Evaluating Tourism’s Economic Effects: Comparison of Different Approaches,” Procedia - Soc. Behav. 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