This research aims to analyze the gentrification process and its impact on the economic development of local businesses in Val'Quirico, Tlaxcala, Mexico, a high-profile tourist destination that has substantially transformed land use, commercial offerings, and the socioeconomic distribution of the area. This work assumes that gentrification creates tensions between attracting foreign capital investment and the displacement or closure of traditional businesses. The approach used was quantitative; the research was descriptive, explanatory, and cross-sectional. A survey was conducted among the owners, managers, and supervisors of local businesses. Principal Components Analysis (PRCA) presents the main results. These results show that gentrification has boosted tourism and investment, generating employment and economic benefits. However, profitability for traditional businesses has decreased. It has also had an impact on the increase in rent, services, and input prices, which reduces the permanence of small local businesses. In conclusion, gentrification in Val Quirico has had a negative effect, generating partial development, favoring high-income sectors and marginalizing traditional local businesses. This demonstrates an exclusionary and inequitable development pattern.