Tourism development in a relatively unknown country is faced with various challenges. The difficulty is not only choosing an appropriate tourism development strategy but also managing it in a complex sociocultural, economic and political environment with diverse stakeholders’ interests. The present research analyzes the current tourism dynamics of the Inlay Lake region in Myanmar from an innovative conceptual framework: the modified value chain. Through a comparative analysis between two divergent areas in relation to their tourism dynamics at the Inlay Lake,the paper aims to comprehend and detect potential development strategies that can lead to sustainable tourism practices.