Coastal zones are subject to both socio-economical concerns with respect to their tourist attraction, and also to environmental concerns since they are under the threat of water quality deterioration and water scarcity. This study overviews the environmental principles of sustainable tourism along sensitive coastal areas and its application to a small island is discussed through a detailed wastewater management study conducted in Turkish Republic of Northern Cyprus (TRNC). The study comes out with a proposed discharge limitation for the protection of sensitive areas involving nutrient restrictions and adapted wastewater characteristics from the values obtained in Turkey from previous research. Water consumption figures and pollution profiles from certain facilities are determined and specific pollution loads for tourism areas are assessed considering the occupancy rates. In the designation of suitable wastewater treatment technology emphasis is put on nutrient removal and also to advanced treatment technologies which will further enable wastewater recycle and reuse. Further concern is the monitoring of compliance along with legislation, administration and public awareness.