Tourism continues to play a major role in the economic development of Asian and Pacific countries. However, tourism development is not without concerns. This article considers the economic and related consequences of international tourism for the Maldives. The Maldives, like many island developing countries has a narrow resource base, its main natural resources consisting of fisheries and a marine environment conducive to international tourism. The article pays particular attention to the ability of the tourist industry to absorb fisherman displaced by technological change. In considering the costs and benifits of international tourism, attention is given to such factors as the extent to which the tourist industry employs local inhabitants (as distinct from foreigners) and provides alternative employment opportunities for them; its possible consequences for the balance of payments and public finance; and competition and opportunity cost considerations.