The tourism industry has become one of the potential revenue sources for local governments in many regions. It may transform the local economy from a traditional-based one into a promising economic welfare for local society, but on the other hand, it may also become a threat to the risk of environmental degradation. This study evaluates the implementation of the Tourism Development Master Plan (TDMP) in Merauke Regency, Indonesia, with a specific focus on balancing increased tourist visits and environmental sustainability. It uses a qualitative approach employing interviews with several key informants and FGD involving multiple stakeholders. The findings of this study reveal critical gaps between policy planning and execution. It confirms that although the TDMP presents clear economic opportunities, its implementation is hindered by limited coordination, unequal benefit distribution, and weak environmental safeguards. Furthermore, conflicting interests between development actors and the NPA have further contributed to fragmented policy outcomes. Therefore, it suggests the need for integrative governance, enhanced institutional capacity, and inclusive participation to align economic objectives with ecological protection under the eco-tourism policy framework.