Tourism capable packaged and managed well will be an asset for a region. Diversity of attractions in Gunung Kidul regency, especially its tourist villages can be used as one of the pillars of the economy and also can absorb the workforce so that human resources and natural resources can be utilized optimally to face the ASEAN Economic Community (AEC). Purpose of this study was to determine the strategy of local governments, especially the department of culture and tourism in Gunung Kidul regency in the potential development of tourism village, especially Nglanggeran village travel to face free competition in the ASEAN Economic Community (AEC). This study uses qualitative research methods to interview informants from the department of culture and tourism in Gunung Kidul regency, community and the tourists. The results of this research were the aspects that affect the increase in tourism in the tourist village especially Nglanggeran Tourism Village. Internal and external environment analysis aims to determine strategic issues department of culture and tourism in Gunung Kidul regency by using SWOT analysis (Strenghts, Weaknes, Opportunities, and Threats). Then the issues were analyzed in accordance with the tourism development strategy undertaken department of culture and tourism of Gunung Kidul regency.