As a tourist destination, traditional villages and houses are not only places for socio-cultural and domestic practices but also facilities for tourists. This phenomenon is a paradox in the development of a cultural tourism area. Tourists expect a natural and authentic culture. On the other hand, the community hopes to participate actively in tourism activities and utilize their houses and village as economic resources. The participation of local people plays a vital role so that the success of developing a tourism destination depends on the level of the local communities' supports. However, people's participation in the tourism business has triggered local culture transformation since they have utilized their traditions, including their vernacular house and village, as tourist resources. To investigate this phenomenon, architectural examination and interviews are used as a method of investigation. This paper found that to sustain the tourism destination, it is significant to pay attention to its planning and traditional house transformation. In the transformation process, local communities must be encouraged to identify their own goals so that the development of tourism in the village can address tourist needs without polluting the traditional values. This participation model discusses the relationship between local traditions and practices, including traditional building practices and tourism. This model can be implemented in other tourism villages.