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Waterfront development is acknowledged as being significant to urban tourism planning, and ideally, the involvement of local community should be required in the development program. Although the residents’ participation in many development projects has been widely discussed, it is found that there is little story of success concerning the implementation of residents’ participation in waterfront development. This research attempts to answer the question of what and how the residents' perceptions toward the waterfront development in the context of participation, impacts and tourism development in Manado, Indonesia. The principles of local participation are assessed in a situation in which there is tension between the achievement of socio-economic benefits and the protection of environmental quality. This research involved fieldwork comprising questionnaire surveys, interviews and on-site observations that used to provide evidences of waterfront development in Manado and decision-making process that preceded it. This study reveals that waterfront development is a key element which determines the future of the city. The Manado waterfront is the focus of trade and business, as well as tourism and recreational activities for residents and visitors. The importance of the initiative demands that all residents should have an opportunity to participate in making the decisions which will greatly influence their future. Thus, broader and deeper participation would have been and would still be desirable in the Manado case.
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