ABSTRACT
This paper discusses the context that provides understanding of the building blocks of the urban tourism concept in developing countries. This is based on the geographical and historical position of Melaka City as an example of such phenomena in developing countries. The themes focus on several considerations and issues from the perspective of geographical and historical position. The first is the initiative to develop Melaka City as a tourism destination while the second theme highlights the limitations of Melaka's position compared to other cities. The last theme continues the sequence of discussions with a focus on recent attention on urban tourism development and the future expectations of what tourism can contribute to Melaka City and the State. Implication of this study provide better insight into the concept of urban tourism and it significance as pictured by those responsible for urban development, as part of the need for cities in developing countries to expand their economic and physical boundaries.