This report evaluates the role of discussion papers in the policy formulation of the tourism industry. It critically analyses and compares two discussion papers, namely, “Sustainable Tourism for Development” and “Discussion paper on Promoting investment in Tourism Industry of Nepal”. The report discusses the six phases of effective tourism planning policy and the consultative approach of policy formulation. It also highlights the importance of sustainability in the tourism industry. The report includes a critical analysis and comparison of the two discussion papers, their contrasting features, and commonalities. The report concludes that discussion papers are an important tool in the policy planning cycle.