This is the pre-published version – For final version see: Andriotis, K. (2003). Tourism in Crete. A Form of Modernisation. Current Issues In Tourism, 6(1): 23-53. Abstract Tourism in Crete is an irreversible phenomenon that has resulted in a process of change under the form of modernisation. This modernisation had both positive and negative consequences. Specifically, tourism has been transformed into a primary source of income and employment generation for the island and has increased the quality of life for the locals. However, tourism development was directed to the increase of demand through the increase of the numbers of beds, as well as the concentration of tourist arrivals in space and time, rather than the balanced development of the tourism industry. In effect, various social and environmental strains have resulted, such as environmental degradation, cultural pollution, commercialisation of human relations and negative demonstration effects. It is the aim of this paper to review past studies having examined various aspects of tourism in Crete in order to investigate the costs and benefits associated with the modernisation of the island through tourism expansion and to provide recommendations for future development. Keywords: Tourism, modernisation, costs and benefits, development, demand and supply, Crete. Introduction Developing nations and islands consist of a declining ‘traditional’ sector, and a growing ‘modern’ sector. The traditional sector comprises an indigenous culture and is characterised by a sub-culture of peasantry or social norms oriented towards maintaining the status quo (Brown, 1981, p.252; Potter et al, 1999). On the other hand, the modern sector incorporates the influence of foreign, primarily developed world, economic practices and social norms (Brown, 1981; Potter et al, 1999), through the input of new ideologies, technologies and expertise from external to the region agents. As Harrison (1992) remarks: Economically, there is a shift from agriculture to industry (and from rural to urban), and a central role for money and the money market. Socially, the influence of the family and other collectivities declines, institutions become more differentiated, and a pivotal role is played by ‘modernising’ elites and other ‘change agents’ in introducing modern values and institutions, often in the face of hostile or resistant tradition... If investment capital, entrepreneur skills, technological knowledge and values necessary for modernity are absent from societies which are ‘developing’, they can be diffused from outside, perhaps as some form of aid, provided there are sufficient, and sufficiently powerful, indigenous change agents to act as catalysts and carry the rest of society with them, albeit unwillingly (p.9). Development is inevitable and it may be better achieved along Western lines and through the movement from the ‘traditional’ agricultural sector into a modern sector (Clancy, 1999). Consequently, the only way to achieve modernisation is through the elimination of the ‘under-development’ characteristics and the acquisition of characteristics already adopted by the more-developed regions (Browett, 1980; Oppermann and Chon, 1997). This process takes place through a series of development stages similar to those experienced by many western countries (Barnett, 1988; Harrison,