The chapter discusses the phenomenal development of Macao’s tourism industry after the deregulation of the local gaming business in 2002 and the implementation of “Individual Visit Scheme” by the Central Government in 2003. Such development reveals the heavy reliance of the mini economy on the gaming and tourism industry，hence，a high level of sensitivity and passivity toward any changes in the economic and political environment outside the city. Mainland China is Macao’s major source of visitors. Any policy encouraging or contracting the travel of Mainland residents to Macao has immediate and noticeable effects. This highlights the second major characteristic of Macao—a high level of source market concentration. The chapter then discusses the current situation of several key tourism sectors and the challenges and opportunities for sustainable development.