This paper examines the social and ecological characteristics of the Nha Trang Bay Marine Protected Areas (MPAs) to (i) identify what makes this location desirable for driving sustainable tourism, and (ii) determine the factors associated with local people's decisions to participate in tourism activities. A brief historical context of Vietnam's integrated coastal management is provided linking it to the development of MPAs as a management and conservation tool. Using a propensity score matching technique for survey data collected in 2014, the paper shows that the tourism industry does not help improving local communities’ economic well-being as expected. We had a 95% response rate for this survey and our targeted respondents were 140 household business owners. Low education, pressure of supporting the whole family and distance between home and tourism destinations are the primary factors preventing local communities from participating in the tourism industry. Using a game with linked issues approach, the paper demonstrates a mechanism for improving the well-being of the local people and sustainable tourism in MPAs.