© 2018 Editura Universitatii din Oradea. All Rights Reserved.The objective of this study was to contribute to and expand the limited knowledge base of the ways in which tourism development impacts rural livelihoods. It traced the process of tourism-based livelihood development in the Cappadocia region of Turkey by using The Sustainable Livelihoods Approach (SLA) framework to provide the perspectives of those who chose to incorporate tourism as a major part of their overall livelihood strategy. The results showed that tourism development had a great impact on the locals’ livelihoods. In order to enhance the locals’ livelihood and achieve an environmentally, socially, and economically sustainable outcome for tourism livelihood, the recommendation is to support and encourage small local establishments versus large scale foreign investments, increase the number of overnight stays by promoting Cappadocia as a main tourist destination, take precautions to prevent fraud and forgery in locale handicrafts and souvenir shops, and enact a protection law that prevents harm to the environment caused by traffic, shops, balloons, and hydroelectric power plants.