Small island developing states (SIDS) in the Caribbean have long specialised in primary commodity exports, and traditional export sectors continue to be a major source of employment. The challenge of sustainable development for the Caribbean SIDS has two dimensions. The first is to adjust to the economic and social impact of the loss of preferential markets for traditional exports and of the dismantling of the ISI apparatus erected during the post‐World War II period. The second is to ensure that existing and new patterns of production and consumption comply with the criteria for sustainable development, which is here defined as environmental, socio‐cultural and economic sustainability. This article outlines the potential contribution of sustainable tourism to the larger goal of sustainable development in the SIDS in the Caribbean. It reviews current literature on sustainable development and sustainable tourism, particularly their application to the Caribbean SIDS, and evaluates the Caribbean tourism industry from the point of view of sustainable tourism. Conclusions are drawn and proposals made for a policy‐oriented agenda in support of the quest for sustainable tourism in the SIDS in the Caribbean.

Several empirical studies carried out by Caribbean economists within a similar framework)eg Girvan 1971, Jefferson 1972, Thomas 1974) will not be considered here, since they all share similar ground with the PEM. Although Thomas' work is written within an avowedly marxist paradigm, his historical analysis is very close to the PEM. The Plantation Economy Model The PEM can be placed in the general structuralist/ historical/institutional methodological tradition. Best and Levitt argue that the present-day structure of Caribbean economies can only be understood by 'invoking the resources of history')Best and Levitt 1968). Following Seers) 1963! and Myrdal) 1957), they call for the outline of a typology of economic systems and seek to detail the mechanism of one such type the plantation economy. If the PEM is to be placed within the trifocal division of dependency thought suggested by O'Brien 11975), its emphasis on the analysis of specific situations suggests membership of the group which includes Cardoso. However, the methodology of the analysis itself shares some similarity with the work of Sunkel 119731 and Furtado 119701.

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