This study estimates the contribution of nature-based tourism in Zambia to economic growth and poverty reduction as well as to the sustainability of the management of the wildlife estate. The Zambian Government has identified tourism along with agriculture, mining and manufacturing as the most important sectors for economic development in its various planning documents, including the 2007 Fifth National Development Plan (FNDP). This report is organized into three sections: chapters two and three characterize the tourism industry and the economic impact of nature tourists. Using a variety of sources of information, the two chapters profile the tourism industry in Zambia and analyze the barriers to growth. The chapter four investigates the welfare of communities living in game management area (GMAs) around national parks. These communities are the most likely to suffer from wildlife conflicts and/or benefit from economic activities in and around the parks. A household survey compares the welfare of communities living in GMAs with ordinary rural communities. The chapter five analyzes the performance of Zambia Wildlife Authority (ZAWA) during its first five year of existence, and explores the current state of the management of the wildlife estate and its potential to contribute to economic growth through tourism.