Abstract--Tourism has a crucial role to play in booming the economic condition of the Islands. It has great significance with regard to foreign relations. There are strong cultural roofs in tourism industry. The three important sectors contributing a lot to the growth of Andaman & Nicobar Islands economy are Agriculture, Horticulture, Fisheries, Floriculture, and off course Tourism. Out of which Tourism can be regarded as the largest and fastest contributor. It has assumed very high significance in the development of the economy, exchange of knowledge, technology, marketing, commerce and industrial exhibitions and these are considered to be the major factors generating the demand for tourism. Bigger planning and management is in dire need to control the tourism industry, and more important, to protect and conserve the biodiversity of tourist places. Dealing predominantly with such serious issues, sustainable tourism comes in great handy, as it is all about conserving the resources, valuing the local culture and tradition and, contributing largely in economy.