With the phenomenal development of its tourism industry，Macao has morphed from a nameless city to an internationally renowned and prosperous tourist destination. The increase in visitation that follows，however，strains the city’s resources and puts its infrastructure to stringent tests. The community begins to wonder if Macao has reached its maximum tourism carrying capacity and if any further development will be sustainable. The article discussed the challenges brought by increased tourist arrivals，international experiences in adjusting and influencing tourist demand and service supply，as well as strategies to manage tourist flows. Recommendations on how to apply some of these strategies in Macao were provided.