The aim of this research is to evaluate and assess the tourism policies and environmental sustainability related to the tourism industry in the Khon Kaen province of Thailand. The tourism industry is one of the greatest contributors to gross domestic product (GDP) in Thailand. Therefore, the relationship of tourism with the three pillars of sustainable development, i.e., economic, environmental, and social, is very important. To analyze the situation we used qualitative and quantitative approaches. Likewise, primary and secondary data were collected using different sets of tools. Moreover, we applied different statistical models and tests such as the Friedman scale method, Range table analysis, and multiple comparison ranks. Our results showed that Khon Kaen was a good contributor to the economy of Thailand. The analysis showed that the highest percentage (26%) of activities was related to hiking of mountain areas. Nonetheless, museums and educational parks ranked second with 20% followed by temples at 14%. National parks represented 11% of the total attraction spots. Local policy makers need to design a sustainable tourism policy framework while keeping in view the sustainable environment. Coordination among public and private sectors may also help to promote a sustainable tourism industry.