Tourism accounts for a higher share of world trade than cars or oil and is the main export for many small developing countries. Highly labour intensive, the sector provides vital employment for people with a wide range of skills, including unskilled. Critics, however, point out the cost of tourism to the environment, its presumed negative effects on ‘culture’ and argue that it is dominated by multinationals and large firms. Why is the industry neglected by government strategies and aid programmes? Attitudes to the pros and cons of tourism seem to be shaped by overly pessimistic or optimistic preconceptions that, given the widely differing impact tourism has from country to country, need challenging. Research from the Overseas Development Institute examines how these preconceptions stand up to scrutiny.