The predominantly rural area of the Transkei Wild Coast has a potential for local economic growth through tourism development. The area has been struggling to develop tourism because of a lack of visionary leadership, lack of resources, and effective strategies that prioritise tourism as central to economic development. This article argues for tourism as a key sector to sustainable economic development in the area. The Transkei Wild Coast and its local economy must be revived so that the quality of life of the people in the area can be improved in a sustainable manner. In this article, the Transkei Wild Coast is briefly described. This is followed by a discussion of Local Economic Development (LED), the local problems, and suggested strategies on how the tourism industry could be encouraged. It is concluded that LED cannot be realised if the local stakeholders are excluded from the process of tourism development.