This study aims to analyze the impact of tourism on the economy and people's welfare in the Labuan Bajo area. This research was quantitative research with primary and secondary data. The data analysis method used was multiple linear regression analysis with the first structural equation related to the community's welfare (business actors) and the second related to macroeconomic indicators. The research was conducted through a survey of 221 respondents and collecting quarterly data on financial reports. The results showed that the average level of income of business actors who opened a business in tourist locations was higher than those who opened businesses outside tourist sites. The variables of the average length of stay, inflation, and investment significantly affected Regional Original Income in West Manggarai. A business's characteristics were the main determinants of people's welfare and not the perpetrators' characteristics. These results contributed to developing an integrated tourism model that is relevant to the tourist area of Labuan Bajo. The conclusion was that tourism impacted the West Manggarai Regency's economy, including increased local revenue, employment, and gross domestic income.