Cultural vitality, defined as evidence of creation, dissemination, endorsement and support of arts and culture in people's daily lives, promotes the locality’s identity, reveals the inhabitants’ “sense of belonging” and reflects the distinctiveness and authenticity of the area. In recent years, it has risen to the forefront of international and European local development projects as a tool for urban renewal, regional development, and social cohesion. Local cultural heritage and creative capacity serve as valuable development tools for peripheral areas and could act as fundamental resources for community-based tourism (CBT) development, to local communities. The aim of this paper is to explore the common characteristics and the connection between CBT development and cultural vitality in peripheral areas, and to propose ways in which the growth of CBT can be linked to local cultural resources. This study is based on a research methodology that includes qualitative analysis techniques and primary field research survey through structured interviews with local tourism and culture stakeholders in selected settlements with population of less than 5.000 inhabitants over the Regional Unit of Rodopi in Northern Greece. More specifically, CTB attributes that have been thoroughly examined are: (a) welcoming tourists to the local community, (b) managing a tourism development plan within the community, (c) sharing profits/benefits fairly, (d) use part of the profits/resources for community development and/or conservation/protection of the community's cultural heritage assets and (e) engage the community in tourism planning, ongoing decision-making and development management. Research findings reveal a strong cultural potential (festivals, rituals, customs, local gastronomy, arts and crafts etc.) of the area, which could develop and promote CBT initiatives within local communities. However, there is need to educate residents about the basic principles of CBT and to develop a systematic management framework for local authorities.