In the digital era, the tourism industry manages all the resources in a social and economic need of the country through cultural integrity, essential ecological processes, biological diversity, and life-support systems. Tourism and Hospitality are highly revolutionized as one of the important impulses for the country's economy. Sustainable tourism development indulges in a deep understanding of the dynamics of sustainability and its relationship with human well-being. The concept of sustainability has been widely distributed and gained prominence in the context of scientific research globally. There are several issues and challenges to be addressed concerning sustainable tourism and hospitality which serves as a source of competitive advantage. This chapter explores the challenges, the digital world is experiencing highlighting the need for better understanding, collaboration, and support from the government, stakeholders, and specific industry players to prioritize sustainability by initiating effective and efficient strategies in the tourism and hospitality industry.