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Nature-based tourism in protected areas of low-income countries can contribute to regional economies, reduce poverty, and help to develop rural areas. This study analyses the situation on Wasini Island, a peripheral island neighboring the Kisite Marine National Park on the southern coast of Kenya. An economic impact analysis was undertaken for the two island settlements of Mkwiro and Wasini village. Firstly, the difference in the participation in nature-based tourism is striking. For Wasini village, the results show an increased income from tourism, which has led to population growth and improved standards of living. Secondly, the comparison of two main tourism enterprises operating in Wasini village shows that tourism per se does not necessarily contribute to poverty-reduction; it is the tourist businesses' ties with the local economy that matter. Thirdly, the study finds that tourism has made other livelihoods, such …