The consequence of the existence of regional autonomy, provides a considerable opportunity for a City Government to empower all its capacities and abilities. As a region that has been formed as a city of pariwsata and student city, Yogyakarta City Government developed one of them. The economy is built on the basis of the development of the tourism sector. One of them is the provision of residential or hotel. Investment in the field of hospitality is one form. Hotel development has a serious impact, both positive and negative impacts on surrounding communities and the environment. Massive and massive developments occur in 2012. Will the benefits gained from this regulation be greater or smaller than the impact ?. Good Governance becomes the main reference in the development process of Yogyakarta City. A balanced and fair public service aimed at the people of Yogyakarta City. With the foundation of Good Governance Yogyakarta City Government seeks to maximize the economy based on the welfare of its citizens