Sustainable tourism based on community initiatives and resources has become very crucial to peripheral and coastal communities in Western Newfoundland, Canada facing four distinctive socio-economic and geographic challenges: negative impacts of the 1992 federal government moratorium on Atlantic cod fishing, geographic isolation and high cost of travel, declining threshold populations, and low international and domestic demand for tourism products. These challenges necessitate timely development and introduction of more effective virtual tourism, all-inclusive and all-season packages, and integrated regional development plans and marketing strategies. The Gros Morne Institute of Sustainable Tourism (GMIST), Western Newfoundland Destination Marketing Organization (WDMO), and Tuckamore Lodge espouse regional and community approaches to sustainable tourism development. Virtual tourism has been recommended as an effective marketing tool to enhance sustainable tourism development in the island and peripheral communities.