Tourism is being promoted as an economic development strategy world-wide. It is seen as particularly suitable for creating employment in areas which lack alternative development options. This study examines the economic and socio-cultural impacts of tourism on Baunei, a community located on the eastern coast of Sardinia. The research shows that the type of tourism found in Baunei (i.e. locally controlled and small-scale) is providing benefits to local people without causing significant economic disruption or social conflict. The fact that residents are actively seeking to develop tourism in their area is perhaps the best indication that tourism is not acting as a disruptive force in Baunei.

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