The purpose of this project was to use a CGE (Computable General Equilibrium) model and a TSA (Tourism Satellite Account) to improve the analysis of tourism impacts and tourism policies in the Azores. It improved our understanding of the underlying economic transmission mechanisms and the authorities’ capacity to design and to evaluate policies. The risks of missing the objectives justify the development of adequate models for policy analysis. The methodology should be extended to the analysis of other sectors/clusters.