Indonesia is a country that has the potential to advance and develop in the tourism sector. Rural areas in Indonesia have development potential when viewed from various aspects of tourism. The development of tourist villages today has become an alternative to local economic development that has been implemented in various regions. However, to be able to develop as a tourist village, a comprehensive study of the determining factors of tourism village development is needed from the perspective of supply tourism and its contribution to the regional economy. This study analyzes the determining factors for the development of tourism villages consisting of natural resources and environment, built environment, operating sectors and the spirit of hospitality and cultural resources and their impact on the regional economic sector in Indonesia. From a micro perspective, it is continued with what components have contributed in measuring the Competitive Advantage Tourism (CAT) of tourism villages by carrying out case studies in Apar tourism village, Pariaman City. This study used data on Village Potential (Podes) in 2018, GRDP, Regional Original Income in the tourism sector, per capita income and HDI at the district level in 2018. The findings of this study show that the determining factors for the development of tourism villages are marine tourism, river tourism, the availability of places to eat and drink, the existence of cultural heritage sites, local wisdom at marriage events and the existence of tourism activities and programs. The impact of tourism villages on the Indonesian economy is on the Regional Original Income of the tourism sector, per capita income and HDI. The results of this study also prove that for the increase in Competitive Advantage Tourism (CAT) tourism villages obtained 25 indicator items that need to be considered
