This article presents the findings from a Sustainable Tourism Co-operative Research Centre study into the risks associated with the impacts of tourism on the quality of life of residents in a small community in the Australian state of Tasmania. This state is known for its pristine environment and potential difficulty in coping with large numbers of visitors to popular areas. One of the icon regions in the state is the Coles Bay town and the adjacent Freycinet National Park. This research investigates community attitudes to tourism and the potential benefits and risks to this iconic region if the tourism levels are not managed. It discusses the development of indicators to monitor these risks and the problems associated with tourism development. The article provides details of the findings from community workshops and a 2005 survey of the community's ratepayers (n=174). In so doing, the article elaborates on the community perceptions of tourism and the potential risk to both the environment and the community's well-being.