The aim of the current study is to examine the effects of competitive advantage and digital marketing on tourism business performance (BP). The indirect effect of supply chain management (SCM) is also considered by the current study. Quantitative research approach is used and data collection is made through a survey instrument. 225 responses were received and used in data analysis to examine the relationship between variables. Five direct effect hypotheses and two indirect effect hypotheses are tested in this study. Smart PLS is used to test the direct and indirect relationship. It is found that; competitive advantage has a positive effect on BP. It also has a positive effect on SCM. Furthermore, digital marketing has a positive effect on BP. Similarly, digital marketing has a positive effect on SCM. Additionally, SCM is a mediating variable between competitive advantage and BP of the tourism industry.