cooperation. Empirical studies have shown that the three variables are cointegrated with a long-run stable relationship among the three. On the contrary, this paper aims to demonstrate, that even if economic benefits of tourism are undoubted, the same benefits do not necessarily have equal beneficial impacts on development.By discussing the Egyptian example, the paper demonstrates how tourism connects economic and political spheres. The paper presents a cooperation model from Sweden that could serve as a role model for the region to coop with the problem of local people not being involved in the process and as model for attracting more customers to the destination. The result is a lack of an adequate consideration of local socio-political power structures and their influence on development issues.