The natural potential can provide opportunities for tourism-based economic development. This provides an alternative to household businesses that predominantly rely on agriculture. The purpose of this study was to study participation level of local people and formulate strategies for developing Mengeruda hot springs. The survey research was conducted at Mengeruda Village, Soa District, Ngada Regency, East Nusa Tenggara. Interviews were conducted on 40 respondents randomly selected to explore variables of perception, level of participation and local potential of the tourism. The results showed that 55% of respondents perceived the benefits of the tourism services, although only 30% of respondents were directly involved. This finding is in line with community participation on the Arnstein's second ladder, or therapy in the non-participatory category. The most of the people do not actively respond to economic development opportunities for their welfare.