The process of digitization covers all areas and changes people’s daily lives. Smart technologies are also significantly changing the tourism sector. This change is increasingly changing the habits of travelers, and companies are increasingly implementing smart technologies in the tourism sector. However, these innovations also pose significant legal challenges related to privacy and personal data protection. The study aims to identify the emerging challenges in the increasingly digital tourism sector and the impact of laws on managing these challenges. The main challenge addressed will involve the investigation and evaluation of the obligation of accommodation service providers to submit data on arriving guests to the Tourism Information System. The findings show that while some data collection for security and law enforcement purposes is proportionate and in line with the right to privacy, other legal provisions extend the scope of personal data beyond what is strictly necessary, which may conflict with the principle of proportionality. The study concludes that more balanced solutions are needed to maintain trust in the tourism sector, ensuring both technological progress and strong privacy protections.