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The paper seeks to examine nature‐based tourism (NBT) impacts from business managers' perceptions in economic, cultural and environmental aspects and understands the relationship among socio‐demographic characteristics, type and level of involvement and participants' perception of impacts.

The paper uses social exchange theory to explain costs/benefits in each aspect. Several indicators including social‐demographic characteristics, attitudes toward the government, types and level of involvement are used to analyze costs/benefits of tourism impacts.

NBT has a moderate impact on participants' business – contributing approximately 30 per cent of their annual sales and 31 per cent of customers. Business managers believe benefits to the social/cultural environment are the most apparent impact in I‐Lan, followed by economic benefits. Participants believe that county government does well in tourism planning, and they believe that they could influence county government's tourism planning.

Tourism related businesses are purposely chosen for this study. Thus, the findings cannot be inferred to a larger population.

The findings support the usefulness of social exchange theory in costs/benefits aspects. County government might change its role from top‐down decision‐making style to co‐partner with local business people.

The paper provides insights into understanding of business managers' perceived impacts. Therefore, county tourism planners and researchers can have a more efficient and holistic management of NBT in the region.