Growing international debates surround the notion of inclusive tourism development. The objective in this paper is to examine the issues around inclusive tourism development in South Africa through a locality study. The analysis focuses on the small town of Dullstroom which has experienced considerable tourism growth over the past decades as a consequence of its rich tourism products of fly-fishing, agritourism and second homes tourism. Findings are reported from qualitative interviews with black (African) employees of tourism establishments in Dullstroom. The results reveal tourism development in Dullstroom provides a range of positive economic and social benefits for local residents and that this small town exhibits evidence of an inclusive trajectory of tourism development.