Tourism has been regarded as a tool for development and poverty alleviation over many decades. Yet tourism research on poverty to date largely focuses on the income-based poverty analysis and does not fully consider the multidimensional nature of poverty or the views of poor people. Applying the capability approach, this paper examines the opportunities provided by tourism development and their contribution to achieving well-being from the perspectives of people living in poverty. The study was undertaken in a small coastal tourist destination in the Northeast of Brazil using a mixed-methods approach that combined quantitative value chain analysis and qualitative interviews with photoelicitation. The findings show that participants value opportunities associated with both monetary and non-monetary tourism resources and these opportunities help them achieve diverse aspects of well-being. This study demonstrates how the capability approach can help investigate the impacts of tourism development on poverty reduction and well-being of poor people in a more holistic and nuanced way by considering the plural and relative nature of poverty and well-being.

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