This report examines the tourism industry in Brazil. Using the case study of Porto de Galinhas, a small village in Brazil’s Northeast, the authors analyse sustainability issues in the tourism industry and map the value chain of tourism to Brazil. The case of Porto de Galinhas is in many ways illustrative of the challenges faced by small and mid-size communities in Brazil as an effect of the rapid growth of tourism. Value chain analysis and research on the sustainability of the Brazilian tourism industry are the cornerstones of this SOMO report. The authors give recommendations on how companies, local entrepreneurs, governments and tourists can act to ensure that tourism contributes to the sustainable development of local communities in Brazil and elsewhere in the world.