Tourism is one of the most significant global industries, contributing approximately 3% of global Gross Domestic Product (GDP) according to the United Nations World Tourism Organization (UNWTO). With great economic potential, tourism has an important role in supporting social and environmental development. In Indonesia, tourism contributed 3.8% to the national GDP in 2023 and is projected to continue growing. Tourism villages hold the potential to support sustainable tourism development. However, several challenges, such as skill shortages, ineffective training, manual administrative systems, and poor promotion, hinder their sustainability. This study aims to build a conceptual model that explains how sustainable tourism industry can be achieved through improved organizational performance influenced by open innovation, organizational creativity, and innovation capability. The result of this research is to provide a framework that can be applied by tourist village managers to improve the sustainability of tourist destinations. This research was conducted within a specific time frame, so future adjustments are necessary to ensure the proposed solutions remain relevant to changing factors and evolving conditions. Tourism stakeholders can also take the factors in this model into account to develop policies that promote sustainable tourism industry.