Tourism has become a tool for many developing countries to achieve economic growth and alleviate poverty. However, even though tourism is contributing to positive impacts, it also stresses infrastructure and changing local communities. For many African countries, tourism plays an important role, which is the case with the growing tourist destination Mozambique. This research is examining how tourism is affecting the local community in Tofo, and furthermore how involved they are in the development. The study is based on interviews, participant observations, questionnaire and documents. Findings show that the development is forced upon the community in Tofo, although leading to various economic and socio-cultural impacts, such as improved living standard, change in behaviors and infrastructure development, but the greatest impacts remain employment and income. The development is unplanned and do not involve the community to extent it should and could, leaving the residents powerless and dependent on foreign investors.