This paper presents the findings from a Sustainable Tourism Co-operative Research Centre study into the risks associated with the social impacts of tourism on 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 indictors to monitor these risks and the problems associated with tourism development. The paper provides details of the findings from the community workshops and a survey to the community’s ratepayers. In so doing, the paper elaborates on the community perceptions of tourism and the potential risk to both the environment and the community well-being.