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The development of tourism around Wolong Nature Reserve changes the local communities' ways of life. This study discusses how ecotourism affects the households' use of their capitals, the livelihood strategies as well as illustrates the impact on the habitats in the reserve through Department for International Development’s (DFID) Sustainable Livelihood Framework (SLF) with data collected during fieldwork.

The study focuses on (1) Calculating Livelihood Capital Index. (2) The effects of livelihood capitals on livelihood strategy were calculated by multinomial logistic regression.

The study has yielded the following results: (1) In general, tourism promotes people's livelihood capitals. The growth in different types of households under tourism settings is ranked as full-time tourism operators > part-time tourism operators > traditional living households. (2) Tourism development mainly shifts livelihood strategies in two ways. Firstly, travel operating replaces some traditional practices that make livings; secondly, increased needs for potherbs and herbs from tourists let households enter into the hills to pick the plants more actively, which intensifies the destruction of giant panda's habitats. (3) Nine types of livelihood capitals indicators, namely farmland quality, distance between house and roads, number of laborers, average housing area, average income per person, whether family members being village cadres, and ever having received skills training shape livelihood strategies in different levels.

Three discussions are drawn from the study: (1) Enhancing the exploit for tourism resources to form a diversified competition. (2) Introducing herb growing to fulfill tourists' needs and improve people's livelihood in the meantime. (3) Optimizing the tourism surveillance and management system and improving the rules and regulations.