Abstract: Tourism is one of the most important industries in the economy and it has grown not only in Malaysia but also worldwide. In Malaysia, the statistics in 2009 showed tourists’ arrivals was over 23.6 million people in which their presence contributes to the economy. However, this sector generates both positive and negative impacts. This study was conducted to identify factors that encourage returning visitors and visitors’ perception of the impact of tourism on environmental sustainability of coastal areas. The study was conducted at Pantai Cahaya Bulan (PCB) in Kota Bharu, Kelantan, Malaysia. A total of 40 visitors were selected as respondents in the survey and questionnaires were used as instruments. The results showed that tourism activities do have an impact on PCB. One the positive impact is tourism activity increases the local socio-economic whereas the negative impact, it affects on the environmental sustainability such as cleanliness of the beach.