The global tourism sector continues to grow, this sector presents both opportunities and challenges in achieving its sustainability. Indonesia, as one of the world’s leading tourist destinations, faces several pressures, such as environmental degradation, infrastructure pressures, and socio-economic inequalities. This study aims to develop a conceptual model linking Absorptive Capacity (AC), Open Innovation (OI), Intellectual Capital (IC), and Competitive Advantage (CA) to achieve Sustainable Competitive Advantage (SCA) in Indonesia’s tourism industry. The model emphasizes how AC enables destinations to adjust to market trends and innovations, OI promotes collaboration, IC provides the resources for sustainable practices, and CA strengthens a destination's ability to excel in a competitive market while maintaining sustainability. In line with international sustainability goals, our model proposes a strategic pathway for stakeholders to enhance tourism competitiveness, ensure environmental conservation, and promote sustainable innovation. This study potentially contributes to sustainable tourism by presenting a comprehensive framework that supports sustainability and innovation across the sector.