Tourism is one of the largest and fastest growing industries in the world. It is an increasingly important source of income, employment and wealth in many countries. Its rapid expansion has, however, had detrimental environmental (and socio‐cultural) impacts in many regions. In this article, I examine the main economic benefits and environmental impacts of tourism, and review the development of the international sustainable tourism agenda. While much of international tourism activity takes place within the developed world, this article will focus on the (economic) development of the industry in developing countries I conclude that new approaches to sustainable tourism development in these countries should not only seek to minimize local environmental impact, but also give greater priority to community participation and poverty alleviation. I argue, in particular, that more emphasis should be given to a 'pro‐poor tourism' approach at both national and international levels. Keywords: Tourism, sustainable development, natural resource management, poverty reduction.