The indigenous communities of Taquile and Amantani in Lake Titicaca, Peru, once sole players in the tourism industry they developed, have lost control of tourism activities to external tour operators. This study sought to understand tourists’ level of awareness of and perception regarding sustainable tourism impacts within Lake Titicaca, Peru, through a quantitative study of 125 respondents. The findings showed that the consumer demands and behaviour of tourists is a contributing factor to the rise in mass day-tourism and the reduced economic benefits to communities in Lake Titicaca. Tourists were also willing to pay more to ensure community development in the region but do not believe that they are responsible for the negative economic impacts in Lake Titicaca.