This paper examines the political economy of tourism development in islands and uses Gili Trawangan, Indonesia as a case study. A longitudinal study drawing from fieldwork contributes to the discussion of how different types of power shape community development, and how the effects of hosting international tourism play an explicit role. Analysis using Barnett and Duvall's Taxonomy of Power model reveals the interplay between the types of power over time and its effects on different actors.Results raise questions for Less Developed Countries, and particularly islands, concerning the social costs of using tourism for development.