Drawing on social exchange theory, Butler's tourism area life cycle model, and previous literature, this study empirically tests direct and indirect relationships among perceived impacts of China-Pakistan Economic Corridor (CPEC) infrastructural development, perceived tourism impacts, and support for tourism development. Using a sample of 800 questionnaires in structural equation modeling, the tested model explores that perceived impacts of CPEC infrastructural development as an antecedent, directly and indirectly influences residents' support for tourism development.However, contrary to our predictions, the study finding indicates a positive relationship between perceived tourism costs and support for tourism development. This relationship addressed that residents are more likely to support tourism even if tourism costs outweigh the benefits. KEYWORDS Butler's tourism area life cycle (TALC) model, China-Pakistan Economic Corridor (CPEC), infrastructural development, mediation effect, perceived tourism impact, social exchange theory (SET)