View AbstractIt has been widely recognized that tourism development is a double-edged sword for host communities. Not only does it generate benefits, but it also generates costs. Depending on the amount of benefits and costs that residents receive from tourism, they have different perception towards tourism’s development and its impacts upon their communities. In other words, when residents perceive the positive impacts of tourism, they are willing to support additional tourism development and vice versa. Consequently, residents are key actors in planning for tourism development and without them; negative economic, social, cultural and environmental consequences for local communities would likely be greater. Research has evidenced that these negative influences of tourism on residents can reduce the attractiveness of a destination which can adversely affect the income potential and employment opportunities for the local tourism industry. Therefore, in order to develop sustainable tourism community, support and thorough knowledge of how residents’ formulate their perceptions toward tourism development and its impacts is crucial. In view of this well-known belief, an attempt has been made in the present study to review the extant literature available on the residents’ perception towards tourism development and its impacts. Further, on the basis of existing literature available on the subject, various research gaps have been identified for future research.