This paper examines the subjective definitions of tourism and its perceived impacts by the residents around a natural lake, Lake Bosomtwe Basin, in Ghana. Data were based on a survey of residents on their understanding of the term tourism in January, 2006. Although, residents demonstrated possessing an ample knowledge of tourism, a marked difference was found in their knowledge about the effects of tourism. For most residents, tourism is about travelling, provision of facilities, and interaction with tourists. It was concluded that the concept of tourism is not new in African societies, as there are valuable ideas and values which are compatible with tourism development.