NONE 20260511050719415 wseas/wseas content-registration-form+ja@crossref.org content-registration-form WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS 1109-9526 2224-2899 Indawati Lestari Management Science Studies Program, Faculty of Economics and Business Universitas Medan Area, Medan, INDONESIA Nurul Khairina Management Science Studies Program, Faculty of Economics and Business Universitas Medan Area, Medan, INDONESIA Finta Aramita Management Science Studies Program, Faculty of Economics and Business Universitas Medan Area, Medan, INDONESIA This study aims to analyze the effect of augmented reality utilization as a virtual marketing innovation for local MSMEs on digital tourism attractiveness in Medan City, North Sumatra. This research method uses a quantitative approach through distributing questionnaires to 190 respondents who are active users of social media and have experience interacting with Augmented Reality (AR)-based MSME product promotions. The data analysis technique uses Structural Equation Modeling (SEM) with the help of SmartPLS. The results showed that the use of augmented reality (AR) significantly increased the attractiveness of digital tourism, both through direct and indirect effects with user experience and perceptions of innovation as mediators, while tourist visit intentions did not play a role in the influence mechanism. This research also supports the development of a resilient, innovative, and globally competitive locally-based creative economy ecosystem. 05 11 2026 05 11 2026 477 36 https://creativecommons.org/licenses/by/4.0/deed.en_US 10.37394/23207.2026.23.36 https://wseas.com/journals/bae/2026/a725107-3545.pdf Rialti, R., & Zollo, L. (2023). Digital Transformation of SME Marketing Strategies. Digital Transformation of SME Marketing Strategies. Https://Doi. Org/10.1007/978-3- 031-33646-1. Berman, B., & Pollack, D. (2021). Strategies for the successful implementation of augmented reality. 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