Tourism immensely tends to be an important tool for the community development for many developing countries. There is a massive impact of tourism on the host community which often receives less concentration especially in developing societies where economic benefits appear to be the first priority. This study has reviewed the “Social Exchange Theory” to understand the existing knowledge on perceptions and interactions of the local community- followed by a questionnaire survey of 180 local people of Cox’s Bazar from different professions. The investigation has revealed that tourism is thriving in Cox’s Bazar with a significant impact on local economy through generating huge employment opportunities, having multiplier effects which enhanced the quality of life. However, some of the negative issues were also raised by the participants who were involved in this study. Among the negative impacts socio-cultural degradation and adaptation of the Westernisation were considered to be the significant issues in this geographical location. Therefore, this study is expected provide an insight to tourism literature as well as to tourism developer and practitioners to comprehend the understanding of the socio-cultural impact of tourism development in a developing society like Cox’s Bazar.

Keywords: community interaction, community perceptions, Cox’s Bazar, developing countries, impacts of tourism development, socio-cultural impacts, Bangladesh.