Numerous claims have been made for tourism's efficacy as a force for peace. This paper evaluates these arguments in the context of an attempt to use tourism as a confidence building measure. Findings from ethnographic research in a village tourism project in Cyprus are compared with other conflict cases. Contrasting an anthropological approach with the psychological models most commonly referred to in the tourism and peace literature, the paper argues the need to address the wider structural factors determining the strength of civil society, in particular, the functioning of reciprocity, if tourism is to drive the peace dividend, rather than just profit from it.