This chapter provides a critique of the contribution of tourism to the sustainable growth and prosperity of small economies in the context of the challenges posed by climate change. These economies generally face unique challenges because of their small size and exposure to global shocks and extreme climatic conditions. As major source of income and employment, tourism is a key element in the growth strategies of small economies. The principal determinants of growth in of small economies are reviewed and the impacts of the tourism sector are analysed in terms of employment, multiplier effects and local linkages as well as its social and environmental impacts. The critical dependence of tourism upon long-haul air travel and large cruise ships represents a major, and possibly insuperable, challenge to the future viability of the sector in many small island economies.