This paper delves into background information about development, tourism, and identity, then explores how the three factors interact in Yanque, a small town in Central Peru. By examining the narratives of Yanque residents, this paper reveals that tourism has negatively impacted the cultural identity of Yanque because identity is manipulated and defined from "above" through the national branding strategies of the country. This paper also identifies three negative impacts on cultural identity: 1) community members are marginalized; 2) culture is es-sentialized and commodified, and 3) traditions, customs, and values are negatively impacted.