Context analysis is critical to the study of a destination and how it operates. Drawing from existing models in urban design and tourism planning, this paper examines the key aspects of context that influence destination development: place, polity and power. Using Cairns in Tropical North Queensland as a case study, we examine a number of historical accounts to assess how existing place-based modes of operation have developed through events in the past. Part of a larger study on urban design and tourism in the tropics, this paper examines the history of the tourism industry in Cairns to identify some key elements that have shaped the city as an example of how the context analysis model can work. The paper finds that the place, polity and power model is an effective tool to assess the context of a destination, but could be improved with an overlay of environmental, social, economic and geographic considerations to more practically apply the context analysis.