In China, many intangible cultural heritage tourism destinations are ethnic villages. Community participation in the protection of heritage tourism resources and intangible cultural heritage could be a very effective model. Through analyses of ethnic communities' participation in intangible cultural heritage based tourism development, the authors try to propose a basic paradigm and decision-making mechanism of tourism destinations by making a case study of Hainan Li village. Researches of the authors show that the establishment of an effective interest distribution mechanism may facilitate the community participation on environmental and ecological protection of intangible cultural heritages, thus, promote the sustainable development of tourism destinations in China.