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decade. It is an alternative means to empower Community for greater access to tourism activities and enhance local community livelihood. Commonly, CBT is perceived as a tool for poverty and for vulnerable groups. However, many CBT projects are ineffective. The main reason is the lack of community participation and financial viability. After months or years, when the fund used up, many CBT initiatives collapse. The purpose of this paper is to invoke the case of the CBT?s implementation in Karanganyar Village near the world heritage, Borobudur Compound in Central Java-Indonesia. Karanganyar Village has an excellent tourism potential indeed, which is supported by community run gallery and training center related to ceramic and jam production. In order to evaluate this tourism potentiality, the development of CBT thanks to fruitful collaboration between the local government of Magelang Regency, UNESCO and Australian Aid. Particularly, the objective is to determine whether the project led to empowering and facilitating the community participation in tourism activities. This evaluation could be done through analyzing the method of implementation and participatory process of the project. A deeper level of analysis will help to understand the challenges for the success of this initiative: the Product development with a focus to local resources and culture, the linkages between private sectors and local communities, the community?s participation, and the project evaluation process. In doing so, the research approach is by observations, interview with key informants and survey questionnaire were made with the local community during and after the launching of the project on May 2014. It has permitted to get information about local people involvement into the project. Unfortunately, the findings showed that the degree of local communities?participation during the project implementation needs to be improved. Apparently, some beneficiary outside the village like trainers is much more involved into it than the local residents. Moreover, raw materials for the ceramic and jam production are imported from neighborhood villages. In reality, however, participation is a continuum based on the start of the project and through its planning, management, delivery and evaluation. An active Community participation can enhance the project and may lead it to success. For better results, sustainable alliance between multiple actors should be developed. The challenge for CBT in Karanganyar is to identify the source of local community participation limitations into tourism activities. The paper concludes with the arguments that CBT should be developed for local communities and participation is the soul of an empowered community.
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