Sustainable tourism has gained increasing attention in Tanzania, where the sector is a significant contributor to GDP and employment. A mixed-methods approach combining literature review and stakeholder interviews to identify best practices and challenges faced by businesses operating in the sector. Businesses employing community-based initiatives reported higher levels of customer satisfaction and reduced operational costs, indicating a positive impact on both tourism revenue and local communities. Sustainable business models that integrate environmental conservation with socio-economic benefits are crucial for the long-term viability of Tanzania's tourism industry. Encourage government policies supporting community-based enterprises, providing financial incentives, and fostering collaborative partnerships between businesses and local communities.