This paper explores the dynamic relationship between heritage tourism and local economic development in the historic town of Sivasagar, Assam, with a special focus on the areas surrounding the iconic Ahom-era monuments, Rang Ghar and Kareng Ghar. As the former capital of the Ahom dynasty, Sivasagar is a treasure trove of architecture, history and living culture. The study explores how increasing tourist interest has led to the organic emergence and growth of local enterprises, including tea stalls, fast food vendors and handicraft sellers near these monuments.

These small businesses have transformed the spaces around Rang Ghar and Kareng Ghar into vibrant economic zones that provide livelihood opportunities to local people—especially women, youth and artisans from nearby villages. Starting as informal stalls offering tea and snacks, many of these enterprises have now evolved into stable sources of income and community empowerment. Handicraft sellers have tapped into the demand for meaningful souvenirs, offering handmade products that reflect Assamese heritage through the use of bamboo, cane, clay and traditional weaving techniques. These crafts not only generate income but also help preserve endangered cultural skills and promote a sense of pride in local identity.

Furthermore, the paper highlights the multiplier effect of these businesses on the wider local economy. From sourcing raw materials and food ingredients locally to supporting transport providers, the growth of these micro-enterprises strengthens various sectors of the community. Educational tours, in particular, act as a catalyst for economic activity by creating regular, dependable demand for goods and services. Students and teachers contribute to the informal economy by purchasing snacks and souvenirs, thereby supporting the livelihoods of many small-scale vendors.

The paper also emphasizes the need for integrating these economic activities with heritage conservation and responsible tourism practices. When tourists engage with local culture through food, crafts, and personal interactions they develop a deeper respect for the heritage they are exploring. This enriches their travel experience and encourages them to promote and protect the site. With proper support from local authorities—such as designated vending zones, hygiene training and tourism awareness—these micro-businesses can become an essential part of sustainable tourism models.

The emergence of local enterprises around the monuments is a compelling example of how heritage tourism can foster inclusive, grassroots economic development. By weaving together cultural preservation, community participation and tourism-driven livelihood generation, Sivasagar sets a promising example of how historical monuments can serve not only as reminders of the past but also as engines of progress for the future.