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The purpose of this study is to determine the effects of the privileges of Yogyakarta Special Region to the development of the local tourism potentials. Soon after the House of Representatives passed the Bill of Privileges for the Special Region of Yogyakarta into Law, the people throughout Yogyakarta celebrated the historical moment with enthusiasm, because it marked the end of the many years long dispute on its political status. The people expressed their gratitude and thankfulness in different ways, showing the richness of local traditions in the region. Some held special prayers at the Tugu Monument. Others made devotional visits to the ancestral graves of the Mataram Kingdom in Kotagede and Imogiri areas. Such events clearly show that Yogyakarta has preserved its traditions and its culture. Besides the democratic privilege of determining its Governor and Vice Governor, another privilege for the Special Region of Yogyakarta as stated in the law is about culture. Yogyakarta is rich in culture and traditions, especially those related to local wisdom values. Such authority in our culture has to be applied manifestly in order to keep, maintain, and preserve the values, knowledge, norms, customs, objects, arts, and noble traditions rooted in the history and people of Yogyakarta. In other words, Yogyakarta tourism can without doubt get many benefits from these local potentials as well as from the variety of other tourism potentials in order to increase the tourism levels and position of Yogyakarta Special Region as the centre of education, culture, and a leading tourist destination in South East Asia by 2025 in an advanced, independent, and prosperous society as stated in the Long Term Development Plan (RPJP) of the Yogyakarta Special Region. Keywords: Yogyakarta Special Region, Priviledges, culture, tourism potentials