Tourism development is often seen as a tool to empower rural and peripheral communities. Problems can arise if there is an imbalance in the power relationship between local communities and external actors promoting development, including investors and Non Government Organisations (NGOs). This chapter examines the issues of leadership and power related to a hotel project operated by a private company in a small rural town in Timor-Leste. While there was initially substantial support for the project, the private company leading the project failed to adequately engage with community leaders creating feeling of loss of authority. Moreover, the members of the community who were not directly associated with the project felt that there was a gap between promises made to the community and the actual outcomes.

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