Tourism is regarded by policymakers as a leading sector for the economic development of north Australia. Several key destinations in the Northern Territory are located on Aboriginal land and the culture is used to market the region. Tourism is frequently presented as the only option available to remote Aboriginal communities to both improve their marginal economic status and to reduce their high dependence on the welfare state. The paper, based on data collected at four locations, argues that while recent ownership of important destinations gives Aboriginal interests increased economic leverage, tourism will not provide an instant panacea. Economic, political, and sociocultural reasons for tourism's limited development potential are discussed.