Tsunami action had resulted in negative impacts in many ways, it had resulted in great changes to coastal areas, especially in terms of physical change to the coastal landscape, affected on economy, loss of life and physical damage to property. After the devastation, hotel bookings in the island were dropped, people have lost their jobs and some small-scale tourism businesses have got the hardest time as well. Some lifestyle entrepreneurs felt hopeless and have given up on doing business, which resulted to their businesses had to be closed because they were unable to access financial resources and did not have budget to restart their businesses again. Some might take longer time to rehabilitate their firms due to various limitations and conditions. While some have to fight back and develop their firms by turning crisis into opportunity and taking advantage of the crisis. This research is made in order to study and examine the impacts of and the recovery to the 2004 December tsunami disaster in Phuket, especially to small tourism businesses in Karon beach, which will be described through a disaster management model. The goal of this research is to study how the tsunami has affected on small firms and how they performed in order to rehabilitate their businesses, and even how they have been working and cooperating with the local government to draw back tourists to the destination.