Tourism is increasing becoming an important phenomena for developing countries and as such it affects the livelihood of many poor people. According to Yunis (2004), tourism is growing much faster in developing countries than in developed countries. However, its potential for poverty reduction has been insufficiently recognized and exploited in developing countries (PPT 2004). The increasing importance of the tourism sector in developing economies obliges a greater investigation to ensure that tourism becomes embedded in poverty reduction strategies. Tourism is generally viewed as an engine of economic growth rather than as a mechanism for delivering on poverty reduction. It is normally argued that tourism is driven by foreign and private sector interests, and is therefore not well placed to contribute to poverty alleviation (PPT 2004). Tourism can indeed exacerbate poverty through increased local costs, loss of access to resources and social and cultural disruptions. However, tourism has the potential to change lives of the poor in developing countries as well.