This article proposes an alternative tourism development approach that we have termed ‘rebalancing’, which is based on tourism development adopting Community-based Tourism (CBT) principles and characteristics whose hallmark is to give local control of the tourism sector to disadvantaged members of society. The article is based on extant literature and uses Hanoi as a case study to articulate the role of CBT against a backdrop of the growth and presence of large international hotel chains in Hanoi following the adoption of the Doi Moi policy. The increase in international hotel chains poses a high risk of an increase in leakages. The accommodation sub-sector and food sector are essential in tourism in Hanoi, as they are elsewhere. These provide small businesses the opportunity to participate in the name of inclusivity, empowerment, and poverty alleviation. For the authenticity of Hanoi and respecting its traditions and values, we propose a model of growth for Hanoi that includes food street vendors alongside large international hotel chains, large national (privately owned) hotels (nationally/locally owned), small independent national hotels (locally owned), bed and breakfast/guesthouse (locally owned), backpackers (locally owned), homestay (locally owned), ‘Albergo Diffuso’ (locally owned), LCBT accommodation (locally owned), CBT (Independently owned structures under an umbrella organization), and CBT (community-owned structures). It also suggests the retention of traditional architecture for the diversity and uniqueness of Hanoi. It recommends that the government should not promulgate legislation and policies that attempt to limit the scope of food street vending but rather empower food street vendors to grow and prosper. This should be done alongside specific legislation that sets minimum standards related to hygiene on the streets for inclusive growth and poverty alleviation.