Tourism urbanization has become an important means of urbanization in China. Taking the example of Simatai Village, Beijing, this study used empirical research and morphological typological analysis methods to explore the urbanization process driven by tourism based on the dimensions of physical space, functional space, and social space. It has been identified that: (i) the physical space has been completely reconstructed, and this is reflected in the overall layout, texture, and architectural form; (ii) the functional space has been transformed from a single function to a composite function, and this is reflected in the land use and the function of houses; and (iii) the social space has been transformed as the population is urbanized, and this is reflected in the aspects of population composition, lifestyle and communication mode, and collective organization. Overall, tourism development is an effective way to realize urbanization in rural areas that are on the fringe of cities and have good resources. However, in practice, we must be cautious about the introduction of large-scale foreign capital and pay particular attention to the marginalized disadvantaged groups and the historical and cultural value of the village.