This study investigates the residents' perceptions of tourism's socialrnand cultural effects on the community of old town Harar. Data wererncollected by means of, Survey, in depth interviews and observationsrnu sing social exchange theory and Doxey's Irridex. Results suggestrnresidents recognize many positive and negative consequences ofrnh eritage tourism.rnThe study reveals that respondents were slightly divided in theirrnperceptions of the effects of tourism on the host community. Thosernwho received economic or employment benefits from tourism generallyrnviewed its socio-cultural impacts positively . Conversely, others whorndid not receive these benefits tend to view tourism's social costs asrnserious concerns ..rnResidents also blame the Regional State governmen t who, theyrnclaimed, has n either afforded residents the opportunity forrnparticipation in decision- ma king relating g to tourism planning andrndevelopment in the old town, nor offered the r equisite funding or skillsrndevelopment support.rnAnalysis of tourism effects can therefore h elp government planners,rnlocal decision-makers, tourism promoters and managers identify realrnconcerns and issues inorder for appropriate policies and action to bernintroduced.