There are various definitions of tourism. Tourism is defined by the Macmillan Online Dictionary as the activity of providing services to those traveling for holidays. Tourism has seen continuous growth and diversification over the years and has become one of the fastest growing economic sectors in the world. For countries like Australia, it has become a major contributing sector to the economy, generating large percentages of national income while increasing employment opportunities. The future is still bright for the country's industry with possible future growth in expansion and diversification. The industry, however, has both pros and cons for various ranges of environments (Tourism Research Australia). The impacts of tourism can be broadly classified into seven categories, each of which has both positive and negative impacts. These impacts include; economic, environmental, social and cultural, crowding and congestion, taxes and community attitude. It is essential for a balance on the range of impacts that can positively or negatively influence resident communities. Different groups are concerned about the different impacts of tourism affecting them in one way or another. The benefits of tourism can be increased through the use of specific plans and actions. This can also lead to a decrease in the severity of negative impacts. Communities will not experience every impact but will instead depend on particular natural resources, development or spatial patterns (Glen 1999). Economic impacts Tourism has been described as a global activity with local implications. We are all aware of the potential of tourism to stimulate economic diversity and growth in our respective regions. The decentralized nature of t...... half of paper ......available at: [Accessed 7 March 2012].Gunn, CA, 1996. Tourism Planning. New York: Taylor and Francis.Macmillan Online Dictionary. [Online}. Available at: Accessed 7 March 2012]. Neth, B., 2008. Ecotourism as a tool for sustainable rural community development and natural resource management in the Tonle Sap biosphere reserve. Kassel: Kassel University Press GmbH, Sharpley, R. and Telfer, DJ, 2002. Concepts and problems of tourism and development. Bristol: Channel View Publications.Tourism Research Australia, Department of Resources, Energy and Tourism. Contribution of tourism to the Australian economy, 1997-98 to 2009-10., [Online. Available at: [Accessed March 7 2012].