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Although Tobago lies to the south of the hurricane belt, it was nevertheless struck by Hurricane Flora on September 30, 1963. The effects of the hurricane were so severe that it changes the face of Tobago's economy. The hurricane laid waste to the plantations of Banana, Coconut and Cocoa, which largely sustained the economy. It also wreaked considerable damage to the largely pristine tropical rainforest that makes up a large proportion of the interior of the northern half of the island. Subsequently, many of the plantations were abandoned and the economy changed direction away from cash crop agriculture towards tourism.

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.

Tobago has a land area of 300 km² (116 mi²), and is approximately 42 kilometres long and 10 kilometres wide. It is located at latitude 11°N, longitude 60°W, slightly north of Trinidad. The population is 54,084 (2000). The capital of Tobago is Scarborough, with a population of about 17,000. While Trinidad is multiethnic, the population of Tobago is overwhelmingly Afro-Tobagonian, although with a growing proportion of Indo-Trinidadians and Europeans (predominantly Germans and Scandinavians). Between 1990 and 2000 the population of Tobago grew by 11.28%, making it one of the fasting growing areas of the country.

The general direction and control of the government rests with the Cabinet, led by a Prime Minister and answerable to the House of Representatives. The 36 members of the House are elected to terms of at least 5 years. Elections may be called earlier by the president at the request of the prime minister or after a vote of no confidence in the House of Representatives. In 1976, the voting age was reduced from 21 to 18. The Senate's 31 members are appointed by the President: 16 on the advice of the prime minister, six on the advice of the leader of the opposition, and nine independents selected by the President from among outstanding members of the community. Local government is through nine Regional Corporations and five municipalities. Tobago was given a measure of self-government in 1980 and is governed by the Tobago House of Assembly. In 1996, Parliament passed legislation which gave Tobago greater self-government.

Tobago is linked to the world through the airport at Crown Point, and the Scarborough harbour. Domestic flights connect Tobago with Trinidad, and international flights connect with the Caribbean and Europe.