The purpose of this study was quantitatively to examine the tourism economic benefits and its associated curses and qualitatively to assess the trend issues of the benefits, and their implication for development; at Arbaminch town and its surroundings for time frame of 2016/17-2020/21. The study approach was mixed, descriptive in nature and employed supply side approach. The study attempted to test the partial equilibrium model and the sustainable tourism development theory. Basically, 54(34 from tier 1 and 20 from tier 2) tourism enterprises were screened for the study. Due to the study time frame and condition of businessesâ€™ functionality, population sizes were differentiated for each year. Moreover, since the tourism businesses are small in number census method was employed. In this investigation, both primary and secondary data from tourism businesses are collected. Primary data was collected from managers and employees via amount/interval scale/ and percent tools while secondary documents of the respective businesses were explored. Finally, quantitative data was analyzed through simple descriptive statistics, seasonal range analysis (for seasonality impact) and Oka.s (2015) analytical framework (for leakage). To achieve the qualitative objectives of the study, data was collected via open-ended questions from key informants by conducting interview. Then the qualitative data was analyzed via thematic analysis. As the quantitative data indicated tourism generated a total of 188, 261, 157.4 birr, 2,524,365.99 birr, 21,559,143.96 birr, 9,184,959.35 birr, 15,393,019.48 birr and 6,521 amount of employeesâ€™ income, profit tax, value added tax, entrance fee, income tax and number of jobs respectively. The variation of the variables amountsâ€™ between high and low season is small. Except for entrance fee most result of the rest variables indicated as the variations set in the lower scales. Information on the leakage variable informed as the most managers selected the scales with lower values but the amount of money has been leaked from the country should not be understated. Result of qualitative aspect revealed that, the trends showed slight increase and the factors that affected them are mostly linked with tourism development issues. In relation with this, it was confirmed that tourism has important implication for development. Seasonality impact on the variables was seen due to determinants that are related with the tourist originating and tourist receiving places, which aligns with the thought of Butler and Mao (1997) framework. Thus, the study concluded that Arbaminch town and its surrounding has spare capacity of supply and hence the partial equilibrium model is accepted. Moreover, the sustainable tourism framework of community development through tourism is also accepted since the findings agree with the notion of the framework. At last, in order to increase tourism economic benefits and decrease its associated negative impacts, all the tourism stakeholders are recommended to work together, cooperatively and smoothly.