Tourism is increasingly perceived as important for island sustainability, though it also has impacts. Impacts on host communities have negative consequences on desired interactions with visitors, an important visitor appeal of islands. This paper uses social exchange and social representation theories to investigate island community perceptions of tourism development and impacts. The investigations highlight a diversity of island community perspectives, the salient tourism consequences, and importantly the processes that lead to the perceived impacts. On Magnetic Island, the development of resorts, changes to the type of visitor and consequent changes to the social environment were uncovered reasons not to interact with visitors. On Bruny Island, visitors overcrowding island infrastructure was highlighted as a key reason not to interact with visitors. On both islands, the reason not to interact was more due to the process of tourism development decisionmaking, rather than the consequent impacts of these developments. Overall, the research highlights the need for community inclusion and consultation in sustainable island tourism policy and planning, both to facilitate the process of sustainable development and to educate communities of the likely consequences.