This paper analyses the evolution of the theory and practice of tourism development aimed at poverty reduction in less economically developed countries (LEDCs). It critically reviews two central early themes in this area: community-based tourism projects, and the focus on structural conditions and power relations between global players and local communities. The paper considers the potential strengths of tourism development for LEDCs and summarises the many new subject area developments. A review of papers within the Journal of Sustainable Tourism's special issue on tourism and poverty reduction follows and four main themes are explored: development agency strategies and approaches, governance and biodiversity conservation, the assessment of tourism impacts and value chain analysis and inter-sectoral linkages. Key potential topics for future research and action are outlined, including: (1) the use of new techniques measuring tourism impacts, (2) the roles of development agency governance and operational practices, (3) how inequitable power relations and weak governance can undermine efforts, (4) the importance of private-sector business practices that contribute to poverty reduction, (5) the value of multidisciplinary quantitative and qualitative research tools and (6) the need for linkages between academic research and practitioner interventions. Keywords: poverty reduction, sustainable tourism, governance, conservation, value chain analysis, development agencies.