Tourism is one of the leading contributors to service industry in Malaysia and is gradually growing. The growth of this industry brings impact towards the environment, specifically islands. This study views into the tourists’ perception on the impact of tourism activities, development and infrastructure to the environment of Perhentian Islands. A total number of 258 questionnaires were distributed to tourists in Perhentian Islands which is a popular tourist island destination in Malaysia. The results indicate that there is a significant number of moderate and high level of agreement that tourism activities, development and infrastructure are effecting the island’s environment. It was also found that foreign tourist had significantly higher level of agreement for both variables than local tourist. However, it was found that there was no significant difference among gender for both variables. Establishing carrying capacity and embedding environmental education in sustainable tourism management would help broaden the perception of tourists.