Abstract Climate change exacerbates natural conditions and disasters. It increased the frequency and severity of droughts, rising sea levels leading to coastal erosion and flooding, more intense and unpredictable weather patterns, and the potential for stronger storm surges and tropical cyclones. These changes have significant impacts on the local ecosystems, water resources, and agriculture and ultimately affect the lives and livelihoods of the island’s residents. Additionally, the changes in ocean temperature and acidity due to climate change can disrupt marine ecosystems, affecting fisheries and coral reefs, which are vital for the island’s tourism industry. This research investigates the consequences of climate change-induced disaster risks on the Gili Islands, particularly drought and their implications for local tourism. Utilizing qualitative methods, the study focuses on developing strategies for sustainable tourism and bolstering community capacity across the islands. Prioritizing the establishment of a strong nexus and resilient community, the research underscores the essential role of collaboration and education. It highlights the importance of active engagement from well-resourced hotels and resorts in addressing these challenges. The study also proposes innovative business processes to enhance connections between hotels, resorts, the government, and the local community. Ultimately, the research aims to provide a roadmap for sustainable tourism practices, fostering a resilient community and facilitating effective cooperation among stakeholders to mitigate the impacts of climate change in the Gili Islands.