Over the last few years there has been great interest in the potential of tourism for stimulating economic development, particularly in run-down inner city areas. It has been claimed that projects to promote tourism can lead to environmental improvements, a better image for the locations concerned and upgraded facilities for local communities. However, so far there has been little research on the subject. Based on an initial survey of all grant-assisted tourism projects set up in the last five years, this study looks at their impact on surrounding areas and the extent to which they achieved their objectives.