'Urban identity' is high on the policy agenda and pervades the discourse of the planning community on the value of historical city centres. Unfortunately, there seems to be, until today, no proposal in scholarly literature of any unified conceptual framework or any tools to make identity operational. 'Tourism' takes advantage of this process, by seeking the qualities of the place, its authenticity and its perceived uniqueness that is grounded on the physical features as well as on the presence of local communities -their way of living and investing in the place. The interdependence between identity as perceived by tourists (external observer) and the identity of the residents rooted in the relationship with the place (in-group) are key to addressing the identity of historic urban areas. These issues are addressed in the context of the growing attractiveness of Lisbon, Portugal, using a historic neighbourhood as a case study. The findings, which are on a set of interviews with different groups of users, showed the points of convergence and divergence between the different groups' views of the neighbourhood's identity. This actor-oriented approach is pivotal to understanding the process and to produce knowledge for informed action.