The relevance of the study is conditioned by the need for an in-depth investigation of the relationship between the imperatives of the circular economy and tourism and the identification of the role of this system in achieving sustainable environmental development of states. The purpose of the study is to describe global trends in tourism, substantiate the connection between tourism and the ideas of the circular economy, determine the prospects for digitalization of the tourism industry, present examples of the use of circular economy technologies in hospitality institutions, and provide information on national and international circular economy initiatives and their results. The leading method of this study is economic analysis, which was used to examine in detail the economic processes in the paradigm of circular economics, their regularities and consequences. The economic analysis established the influence of the circular economy on the development of trends in tourism. In addition, the following research methods were used: logical analysis, synthesis, deduction, observation, comparative, abstraction, and analysis of scientific literature. The study substantiates the connection between tourism and the ideas of the circular economy, determines the prospects for digitalization of the tourism industry, presents examples of the use of circular economy technologies in hospitality institutions, and provides information about national and international circular economy initiatives and their results. The materials of the study are of practical value for teachers and students of tourism, economic and environmental specialities, owners of tourism businesses and hospitality establishments, environmentalists, economists, members of environmental committees, environmental activists, politicians.