Allocation of resource access and use rights is one of the most controversial issues in marine fisheries. Historically, various principles of allocation have evolved along with the objectives of public policies (such as concerns for sustainability), and recognition of different stakeholders in fishing industry. The recognition of exclusive economic zone (EEZ), development of technologies, and emergence of markets for different products, services and uses of fisheries and marine environment provided an overall economic dimension to the allocation issues. Recognition of tourism, recreational fishing, conservation and bio-diversity values of fisheries have greatly influenced the allocation principles in fisheries. As a result, allocation issues in tropical fisheries have become elevated from being concerns for improving and maintaining the welfare and living standards of small isolated fishing communities to a higher level cross-sectoral, national and international development and conservation concerns. This paper examines the conflicts and competition amongst artisanal, commercial and tourism with regard to allocation of marine resources. The effectiveness and limitations of market based allocation principles as well as common property and co-management arrangements to manage resource conflicts are also discussed. Both vertical and horizontal approaches to the management of the industry have been recommended to manage the allocation issues in socially, economically and environmentally sustainable ways.