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Little Tobago, the small neighbouring island supports some of the best dry forest remaining in Tobago. Little Tobago and St. Giles Island are important seabird nesting colonies.

The principal economic forces in Tobago are tourism and government spending. Conventional beach and water-sports tourism is largely focussed in the south-east around the airport and the coastal strip. However ecotourism is growing in significance and much of this is focussed on the large area of protected forest in the centre and north of the main island and also on Little Tobago, a small island off the north east tip of the main island.

The country has remained a member of the Commonwealth, and until 2003 has retained the Judicial Committee of the Privy Council in London as its highest court of appeal.

Local Government functions in Tobago are handled by the Tobago House of Assembly. The current Chief Secretary of the THA is Orville London. The People's National Movement controls 11 seats in the Assembly, while the Democratic Action Congress controls the other seat.

The country's highest court is the Court of Appeals, whose chief justice is appointed by the president after consultation with the prime minister and leader of the opposition. Final appeal on some matters is decided by the Judicial Committee of the Privy Council in London. Trinidad and Tobago was chosen by its Caribbean neighbors (CARICOM) to be the headquarters site of a contemplated Caribbean Court of Justice (CCJ) to replace the Privy Council in the fall of 2003

Tobago was inhabited by Island Caribs at the time of European contact. The island later changed hands between the French, Dutch, British and Courlanders. The island was finally ceded to the British in 1814. Originally a very wealthy sugar colony, Tobago's economy collapsed after the abolition of slavery. In 1888 Tobago was annexed to Trinidad.

Since December 24, 2001, the governing party has been the People's National Movement led by Patrick Manning; the Opposition party is the United National Congress led by Basdeo Panday.

In 2004 the party was re-formed under the leadership of Hochoy Charles and won a single seat in the 2005 Tobago House of Assembly Elections. Having lost the election and the seat he contested, Charles offered to resign as party leader, but the resignation was not accepted on the grounds that the party needed experienced leadership.

The Tobago House of Assembly is the local government body responsible for the island of Tobago within the twin-island nation of Trinidad and Tobago. The THA was established in 1980 to rectify some of the disparities in the relationship between the two islands. In addition to the normal local government functions the THA handles many of the responsibilities of the central government, but lacks the ability to collect taxes or impose local laws or zoning regulations.