This study explores residents’ perceptions of tourism development in the Mirandela municipality, Portugal. The research aims to understand tourism’s socio-cultural and economic impacts from the residents’ perspective, considering both positive and negative effects. The study employs a quantitative approach through the survey of 358 residents. Findings reveal that younger residents (< 30) have a more positive perception of tourism’s impacts, and those with undergraduate studies have less favourable perceptions. Rural residents have more positive perceptions than urban residents, and there is no significant difference in perceptions between those involved in tourist activities and those not involved. Residents who view tourism as beneficial showed higher mean scores across several items than those who view tourism as harmful or neutral. No significant differences were found regarding the increase in the cost of living. This research highlights the importance of involving local communities in tourism planning and development to ensure balanced and sustainable growth. The conclusions present several practical and managerial implications and provide actionable recommendations for policymakers and professionals in tourism, sustainable development, and community planning.