The Earth’s climate is changing. Tourism is an important economic sector in Vanuatu and is highly vulnerable to climate change. Luganville is a key dive tourism destination in the SANMA province of Vanuatu. This working paper aims to ascertain the current shocks and stressors faced by Luganville’s tourism sector and how climate change can exacerbate these. Although data is still in process of being analysed, key shocks that have been identified include cyclones, effect on demand due to media footage and changes to direct international flights whilst notable stressors include Crown of Thorn Starfish outbreaks and environmental degradation. A majority of the tourism sector in Luganville is run by the expatriate community, which is fairly sceptical towards climate change risks and the majority of members of this community show little concern for the consequent impact on their business. On the other hand, the Ni-­‐Vanuatu (Indigenous) communities are terrified about the impacts of climate change and feel limited in their capacity to address these changes. There is a clear need to disseminate information about the challenges tourism will face, as a result of climate change, and to develop effective adaptation options for implementation at different levels. Official proceedings of the 21st Annual CAUTHE Conference 8-11 February 2011, The Hawke Building, City West Campus, University of South Australia, Adelaide, South Australia