The 4th industrial revolution is changing the tourism sector and affecting tourist habits and tourism business models. Digital technologies raise complex issues, such as increasing competition data privacy, consumer protection and work environment. The aim of this article is to present the impact of digital transformation on employee engagement and legal changes in the tourism sector. Based on a literature review and relevant case law, the article discusses the main cases of data protection violations and how they affect tourism businesses. As a result, it has been established that to achieve digital changes, it is necessary to consider not only smart technology solutions but also their compliance with legal regulation, employee competence development and changes in the internal culture of the company itself. Only by harmonizing legal compliance, employee engagement and the implementation of the latest technologies can the long-term success of the tourism sector be ensured.