This study focused on the social exclusion of residents that occurred in the process of the tourism destinations project of living spaces. In addition, an indicator was developed to enable social exclusion research in the field of tourism. In-depth interviews with residents, expert survey, and survey of residents were conducted. This study was conducted in Gamcheon culture village in Busan metropolitan city. The indicator development process was carried out in a total of 14 steps through the process of extracting initial items, developing indicators, and evaluating indicators based on previous research. A total of 24 social exclusion indicators have been developed. There are two major academic implications for developing indicators. First, it laid the foundation for studying the exclusion experiences of residents in the tourism development process. Second, measurement indicators supplemented the limitations of existing indicators in other academic fields by including a number of dynamic aspects and contents covered by objective and subjective indicators. This study presented two implications from a practical point of view. First, it provided a foundation for empirically measuring the social exclusion of residents when promoting tourism development projects. Second, the basis for policy diagnosis on the effects of tourism destinations projects in living spaces was provided. These practical implications can serve as an opportunity to examine the negative effects of future tourism development projects. In addition, the developed indicators can be found meaningful in that they can be used as basic data for policy inspection.