Abstract This research explores the interplay between Political, Economic, Social, and Technological (PEST) factors and institutional capacity in shaping sustainable tourism Destination in Myanmar. The study adopts a qualitative approach through thematic analysis of interviews with stakeholders within Myanmar's tourism sector. It investigates how external PEST factors influence the tourism industry and how institutions mediate these influences through capacity-building and adaptive strategies. The research identifies that despite significant challenges such as political instability, economic fluctuations, and limited technological infrastructure, institutional responses play a crucial mediating role. By fostering resilience and adapting to external pressures, institutions contribute to the destination of sustainable tourism destinations in Myanmar. The findings provide actionable insights for policymakers and stakeholders, emphasizing the importance of strengthening institutional capacity to enhance sustainable practices and resilience in the tourism sector. This study contributes to the theoretical and practical understanding of the dynamics between external pressures and institutional responses in fragile economic and political contexts, offering a framework for enhancing sustainable tourism destination in similar settings globally.
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