In pursuit of advancing economic prosperity in Pokhara Metropolitan City (PMC), Pokhara Research Centre (PRC) is dedicated to conducting evidence‐based policy research aimed at fostering citizen participation in policymaking, thereby facilitating the development of an informed society. Recognizing the significance of tourism in both economic and social sectors, Pokhara Metropolitan City (PMC) has prioritized tourism as a key driver of development. To this end, the Tourism Development Act 2020 was introduced and passed by the eighth municipal assembly. The act primarily focuses on establishing local executive institutions responsible for planning, supervising, managing, conserving, and promoting tourism development in PMC. Each committee is equipped with specific rights, rules, and regulations to guide their operations and fulfill predetermined objectives, along with a fixed number of committee members. While two committees fall under the jurisdiction of PMC, the remaining one operates under the Homestay Operation and Management Act of Gandaki Province. PRC conducted a comprehensive study involving key informant interviews with relevant stakeholders and desk research to gather secondary data. Through these endeavors, specific issues pertaining to the act were identified, and based on global trends and best practices, potential recommendations were formulated.