The inscription of properties on the World Heritage List often places restrictions on existing livelihoods. In these contexts, tourism is widely held to be a panacea for the economic and social wellbeing of local communities. Ecotourism, in particular, is regarded as addressing both environmental and social needs of communities. However, existing research demonstrates that tourism seldom delivers benefits to Indigenous peoples or local communities in developing countries. This paper suggests that such limitations are equally problematic for local communities in developed nations such as Australia. Through ethnographic research including participant observation and interviews, this paper describes the impacts of tourism on the local community of Strahan, a small logging, fishing, and mining town that transformed into a tourism village following the World Heritage listing of Southwest Tasmania. We suggest that contrary to the widely held view that tourism created employment and economic growth in the town, locals experience diminished quality of life, limited opportunities, and reduced amenity and services. This suggests that ecotourism overlooks its responsibilities for local communities in developed countries, with profound consequences for social sustainability.