This article examines the relationship between government and the tourism industry and the problems of that relationship as both strive for more effective management to meet the challenge and changes of the 1980s. Attention is focused on the role of government and the political input, the tourism management agency, the government administrative system, the industry, and the response of these various groups to demands on the tourism sector. The article concentrates on Thailand but many problems experienced are common to most countries and arise from the nature and role of government and the tourism industry and their relationship.