The purpose of this article is to examine the residents' of Mykonos City perceptions towards the impacts of tourism. The research was based on the main assumptions of the social exchange theory in order to understand residents' positive or negative stance and to investigate the existence of reciprocal power-dependence relations between hosts and guests. Within this framework it was found that when controlling for personal benefits from tourism development, perceptions of its impacts were unrelated with sociodemographic characteristics except for education. Furthermore, brief reference is made to the interface that exists between economic dependency on tourism and cultural dependency.