To maximize the benefits to stakeholders in Macao, the sustainability of Macao tourism was examined by assessing the economic, socio-cultural and environmental impacts of tourism, visitor satisfaction and the level of community involvement in local tourism planning from 2002 to 2009, through the use of primary and secondary data. The results revealed that tourism did bring both positive and negative impacts to the community. Visitor satisfaction was found to be moderate. Channels for community participation in local tourism development were also lacking. The paper suggests that for sustainable tourism development, Macao needs to diversify away from its casino industry, to speed up the construction of the public transport system and to keep monitoring the environmental conditions, the students' drop-out and crime rate and the locals' quality of life. More importantly, a master plan for its tourism development integrating all the key stakeholders' interests is urgently required. Copyright © 2011 John Wiley & Sons, Ltd.