This study examines tacit knowledge spillover among lodging firms within a destination and how it contributes to sustainable destination development. Longitudinal data for this study were collected primarily through in-depth interviews with lodging firms' managers and operators in a destination located in southern China. The findings suggest that tacit knowledge spillover in a region may lead to hospitality firm agglomeration. Furthermore, the eco-friendly hotel pioneers' tacit knowledge spillover may, over an extended time period, enhance the eco-friendly initiatives and operations of local hospitality firms, which may contribute to the successful development of sustainable destinations. The findings also indicate that local government's effective interventions tend to encourage and facilitate tacit knowledge spillover through establishing knowledge transfer mechanisms in the community, which is significant in the context of sustainable destination development.
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