The integration of sustainable practices in tourism is increasingly critical, given the sector’s substantial environmental and social impacts. Although the need for innovation management to promote sustainable tourism is widely recognized, various barriers hinder its effective implementation. This study employs the Decision-Making Trial and Evaluation Laboratory (DEMATEL) methodology to systematically examine these barriers, identifying their interconnections and assessing their broader implications. The findings indicate that a short-term focus and financial constraints are the primary effect barriers to implementing innovation management in sustainable tourism. Their prominence as endpoints in the flow of impact within the model of interconnected barriers developed in this study underscores the need to further address the deeper, cause-related barriers that propagate these effects, such as inadequate leadership support, resistance to change, poor stakeholder communication and collaboration, insufficient knowledge and skills, and restrictive regulatory policies. Additionally, industry-specific challenges like a fragmented industry structure and fluctuating market conditions exacerbate these difficulties. Therefore, a comprehensive, holistic approach is essential for transitioning the tourism sector towards sustainable practices through innovation management and overcoming inherent financial and strategic barriers. This study advocates adopting the recently published Management System Standard ISO 56001:2024 as a structured innovation management framework capable of systematically and holistically mitigating these barriers. By analyzing the cause-and-effect relationships among the identified barriers, this study ultimately provides valuable insights that aid stakeholders—including policymakers, business leaders, and community representatives—in devising more effective, inclusive, and forward-thinking approaches to innovation in sustainable tourism. This is crucial for fostering a tourism sector that is not only economically beneficial but also environmentally responsible and socially equitable.
