Magical town designation is a distinction granted by the Mexican government to different areas that meet certain requirements that favor tourist activities. Some of these magical towns, as in the case of San Sebastian del Oeste, in Jalisco, have had different outcomes because of this distinction, and a very important one is the quality of life (QOL) of the local inhabitants, who have modified their traditional lifestyles oriented to rural activities by including tourism and all that it implies. For this reason, it is necessary to ask the following question: What has been the impact of tourism on the QOL of the local inhabitants of San Sebastian del Oeste? To answer this question, a qualitative–phenomenological methodology was used, based on interviews with local inhabitants to identify the impact of tourism on their QOL. This study found that tourism has answered some of the needs of the local population, such as economic and public services, but it is not the solution for all areas considered in QOL.