Heritage tourism has impact on host community and their way of life. Preservation and appreciation of cultural heritage elements, both tangible and intangible have socio-economic values that could be promoted through heritage tourism. The study shall examine the potential cultural and economic impact of heritage tourism in Kampung Morten, Melaka, where local Malays living in the city provide homestay accommodation. The result of this study indicated that the majority of respondents agree that heritage tourism has affected their socio-culture through the display of culture in their daily life activities, however, the activities does not play significant role in enhancing micro-economy. A top down initiative in the form of funds from government agencies as well as training programmes are needed to strengthen this sector of the economy.