Development of tourism, with increasing emphasis on the demand-centred model of international tourism, particularly luxury tourism, is an important component of India's new economic policy. Besides contributing substantially to foreign exchange earnings, the government expects tourism to provide employment benefits which, through the multiplier effect, can generate myrind other industries, and enable percolation of economic benefits to less developed areas. Goa is one such site, to be constructed as one of the premier beach resorts of India. Yet, such intensive tourist development necessitates marginalisation of the needs of the local population. Not only do the host communities lose control over their land and sea, which get increasingly exploited for tourist consumption, their share in the profits derived from tourist trade is minimal. Moreover, tourism often brings increased levels of crime, prostitution and drug use into local communities and effects the manipulation of their cultural traditions. In short, construction of tourist sites such as Goa is predicated upon a development ideology that defines local people's space as dispensible to the needs of national and transnational capital.