The local economy depends mainly on
olive cultivation as well as
goat and
sheep farming. Most of the village's residents no longer live there and only return during the holidays; this emigration is caused by a lack of employment. Ksar Hadada remains strongly tied to the nearby town of Ghomrassen, as it is the seat of the municipality. Part of the
ksar has been turned into a hotel where tourists can stay. In June 1997, American film director
George Lucas used the area to shoot on-location scenes for
Star Wars: Episode I – The Phantom Menace (1999) to represent Mos Espa on the planet
Tatooine, the birthplace of
Anakin Skywalker. == Famous people ==