The objective of this research was to measure the level of economic activity (employment, output and value added) in Kaikoura arising both directly and indirectly from tourism, to assess the ratio of total to direct effects, and to see if this ratio appears to be changing over time. It became necessary to calculate the direct expenditure by a survey of visitors to Kaikoura, and to estimate total direct employment in tourism by undertaking a survey of all businesses in Kaikoura. As the project progressed, it became apparent that there is a perception by residents that Kaikoura faces a need to undertake substantial upgrading of infrastructure (principally water and sewerage treatment), and that the need is primarily due to the growth of tourism. An attempt was made to measure the impact of tourism on the demand for these services so that both council staff and local residents are better informed when they debate these issues.