This paper tries to find out the contribution that tourism makes for the development of a backward region like Orissa, through its linkage with other sectors. To study the contribution of tourism to the state; direct, indirect and induced effect of tourism income has been estimated in this study. To collect information relevant for the study, domestic and foreign tourists, hoteliers, service providers, retailers, wholesalers and others directly and indirectly associated with tourism activity were interviewed time and again following a structured questionnaire. From this exercise, it was found out that tourism not only benefits those who are directly associated with it but also those who are indirectly associated with it by contributing to their income. It was also observed that Induced effect of tourism on income is also significantly high. But this contribution could have been much higher had there been no leakages. This happens as the state depends on other states for meeting most of its tourist requirements. KEY WORDS : Ratio Multiplier, Linkage of Tourism, Direct Income Effect, Indirect Income Effect, Induced Income Effect, Inclusive Growth