Abstract
Tourism not only has a great economic influence on destination communities, but also promotes the restructuring and regeneration of local capital through local culture. Economic and social impacts of tourism on destination communities are no longer separated but integrated. The present paper explores the characteristics of capital changes and interactions of residents in an ethnic tourism community chiefly through interview and observation. The paper finds that: 1) Villagers have got an increased economic capital while maintaining their social networks in tourism activities; 2) Villagers’ social capital is accumulating, or their life satisfaction decreases due to the conflict of values during the growth of wealth; and 3) There is a growing instrumental rationality in villagers’ social networking practices, which proves to be beneficial to gain economic capital. The key factors affecting capital interactions are personal competency, instrumental rationality, and recognition and practice of the Dai traditions.