<p>While pathways towards sustainability are catalysed by a circular economy (CE), its theoretical frameworks often remain impractical in real-world contexts and inconsistently translated across industries. The complex and compounding value chains of modern product-service ecosystems are further beset by the lack of a systems approach and localisation. In order to address such pertinent knowledge-practice gaps, incorporating industry-specific perspectives embedded in ground realities is essential. Taking the case of the tourism industry, this study adopts a mixed methods approach to strategise for the institutionalisation of circular economy and sustainability (CES). Based on a multi-stage systematic literature review process and the methodological integration of two multi-criteria decision-making (MCDM) methods, this study identifies, prioritises and maps the causal relationships among the key barriers to a CES in tourism. In terms of novelty, the study is among the few that utilise institutional theory in tourism policy and practice, and among the first for CES. The theoretical contribution of the study is in its development of a comprehensive framework to guide academicians in structuring and conceptualising a CES. Practically, it guides policymakers and upward-bound managers in formulating, implementing and auditing CES policies from the firm to the national level. The study contributes to the growing body of literature strategising to overcome CES barriers across industries and within institutions. It is relevant to academicians and practitioners working towards today’s sustainable development goals.</p>