This study examines the impact of the digital era, particularly the increasing prevalence of social media, on sustainable tourism and hospitality development, and examines how the tourism and hospitality industry leverages social media to foster sustainability within the sector. However, researchers and policymakers have paid little attention to this aspect. Research on social media usage and sustainable tourism development still needs to be revised and made novel. Drawing on organizational learning theory and the resource-based view, this study examines the associations between social media usage and service innovations, aiming to develop sustainable tourism. Our research findings reveal a promising and positive relationship between social media usage and service innovations, which contributes to the sustainable development of tourism. Sustainable leadership also moderates this relationship. This research significantly contributes to the existing knowledge in the field, with implications for academia, researchers, and government entities focused on digitalization and sustainable development, supporting innovation, and preparing for future challenges.