This research paper tries to assess the multi-dimensional impacts of tourism in Axum which increasesrnfrom time to time as the tourist flow increase, identifying problems which hindered the tourismrnenvironment and examining the magnitude of the multi-dimensional linkages between tourism and thernlocal community.rnThe main objective of the study is to understand the socio-economic impact of tourism. To achieve thernobjective the researcher designed a proper methodology which includes both primary and secondaryrndata. The primary data collected through questionnaires, KII, FGD and observation from 208 totalrnrespondents. To support the primary data secondary data also collected and all were analyzed bothrnqualitatively and quantitatively.rnAs the finding indicates, tourism has a multi-dimensional impact in terms of economically, socioculturally,rnenvironmentally as well as politically. For instance the positive contribution of tourism are:rnsource of employment for 2389 peoples and the number of employed workers in business HHs alsornincrease by 11% every year, similarly the income of business HHs also increase by 8.8% every year asrnthe tourist flow increase. Similar to economic impact the sector has also socio-cultural, environmentalrnand political importance such as infrastructural improvement, preservation of attractions, creaternenvironmental awareness and encouraging power and librating effect of womenâ€™s are few among thernpositive impacts. In the contrary the sector has also negative impacts in terms of motivating begging andrndependence, seasonal unemployment and unstable income, aggravating prostitution and student dropout,rnloss of cultural identity, environmental and heritage degradation and taking of intelligence are fewrnamong the negative one but the positive impact of tourism is out weighted than the negative one.rnEven though, the sector has its own contribution in the town in multi-dimensional way the town cannotrngain from the sector as its potential of attraction endowment due to poor infrastructure andrnaccommodation provision, social related problem such as begging, theft and high entrance fee ofrnattractions, inadequate in quality and quantity service pervasion, Lack of awareness and promotionalrnworks, lack of coordination as well as geographical location are among the few factors for thernunderdevelopment of the sector in the town.rnFinally this paper recommended that participation and coordination of all concerned bodies and stake holder s is very imperative in supporting and expansion of infrastructures which helps to increase tourist flow and income earned from it and its consequences to socio economic befits by giving higher attention to minimize the negative impacts