Sustainable tourism has evolved as a significant attribute in the realm of economic development, environmental conservation, and social well-being. This chapter explores how sustainable tourism enhances positive environmental, social, and cultural impacts while balancing economic benefits and addressing challenges like regulations, infrastructure, and stakeholder engagement. The study adopts a theoretical approach, drawing on an extensive, systematic review of existing literature and secondary reports to gain insights into the subject. The findings reveal the economic paybacks associated with sustainable tourism, which includes income generation, employment opportunities, and foreign exchange earnings, and the inherent challenges, such as resource depletion, environmental degradation, and socio-cultural erosion, which can undermine long-term sustainability.