Sustainable tourism development is crucial for preserving natural and cultural resources while supporting local economies. In the coastal areas of Dauin, rapid tourism growth presents both opportunities and challenges, particularly in environmental conservation, community engagement, and resource management. Addressing these issues is essential to ensure long-term sustainability while maximizing the benefits of tourism for local stakeholders. This study aimed to assess the extent to which tourism challenges contribute to sustainable development and identify opportunities that promote eco-friendly practices, economic benefits, and stakeholder collaboration. A quantitative research design was employed, utilizing a self-made survey questionnaire for data collection. Statistical tools such as frequency and percentage, weighted mean, and Pearson’s Correlation Coefficient were applied to analyze the responses. Findings indicated that environmental conservation efforts, community involvement, and resource management significantly impact sustainable tourism. Community engagement emerged as the most influential factor, highlighting the importance of local participation in tourism sustainability. Additionally, eco-friendly practices, job creation, and partnerships among stakeholders were identified as key opportunities. A significant relationship was established between tourism challenges and opportunities, suggesting that addressing resource limitations and enhancing collaboration can strengthen sustainability efforts. These findings emphasize the need for improved conservation programs, increased stakeholder engagement, and better resource allocation. Strengthening these aspects ensures the long-term sustainability of Dauin’s coastal tourism, benefiting both the local community and the environment.