This study makes two important contributions to the existing literature. On the one hand, it investigated tourism impacts as perceived by residents in two important historic cities in India (Puri and Varanasi). On the other hand, it analysed residents' perceived tourism impacts in relation to their evaluation of stage of destination development. A survey collected valid responses from 570 local residents, who display a high level of agreement concerning the positive economic and sociocultural contributions of tourism. Despite environmental concerns, respondents wish to attract more tourists and further develop infrastructure for tourism. Residents who perceive tourism to be in the development and full development/stagnation stages agree more strongly than those who consider tourism to be in the beginning stage that it increases employment opportunities and seasonality and stipulates cultural activities. In contrast, those who think tourism is in the beginning stage are more concerned about environmental pollution and thus advocate restrictions on the industry. Implications are suggested for tourism research, policy making, and planning.