This paper assesses the socioeconomic effects of tourism development in Komodo Island on the local communities of Labuan Bajo. Situated off the western tip of Flores, Labuan Bajo is home to Komodo Island, a conservation area established in 1980 to protect the endangered Komodo species. However, since its designation as a Super Priority Tourism Destination in 2019, Labuan Bajo and Komodo Island have experienced rapid growth in tourism; to facilitate this growth, subsequent injections in both government and private investment have encouraged tourism expansion. While tourism expansion has generated new income opportunities for local communities, it has also impacted economic inequalities, the displacement of local communities, and spatial restructuring. Interestingly, the findings suggest that although tourism has improved economic access for some residents, benefits remain uneven and often benefit corporations and external investors rather than the local population. Therefore, based on a literature review of academic studies, government policies and NGO reports, the paper contributes to broader debates on conservation, tourism and development by highlighting the need for more inclusive, community-centred approaches in protecting local economies of prioritised tourist destinations.