Issues and complexities arising when the fisheries and marine tourism sectors have stakes in an institution governing the coral reefs ecosystem called awig-awig are discussed, awig-awig is a colloquialism meaning ‘a local rule’. The community-based management system is commonly recognized as a better approach to governing resources, however, the success of awig-awig in the study area is questionable. Awig-awig fails to deal with the conflict of interest among stakeholders in coastal resource appropriation,
despite the community being relatively culturally homogenous. The benefits of awig-awig are biased in favor of the tourism as opposed to fisheries, leading to the fishers’ resistance of awig-awig. There are critical factors to this weakness: a crisis of legitimacy within community, socio-economic inequality among actors involved in such system, high intervention from external agencies, and the institutional conflict over conservation policy. In addition, awig-awig reduces community spirit as it is perceived as not being attached to any customary law or traditional norms. Group cohesion is challenged and there is no common understanding of the problem or alternatives strategies.