The goal of this research was to explore the development of ethnic neighborhood tourism in a Brazilian neighborhood in Oizumi town, Gunma, from a perspective of Japanese residents and to examine ways in which such tourism development influence the ethnic relationship between Japanese and Brazilian residents. The analysis of the data revealed a lack of enthusiasm about the ethnic neighborhood tourism development among Japanese residents and unequal distribution of the benefits from tourism. Overall, the analysis revealed that the tourism development strengthened, rather than mitigate, the ethnic tension of Japanese and Brazilian.