Stakeholder engagement plays an important role in sustainable tourism development by supporting inclusive governance, information sharing, and collaborative learning among tourism actors. However, limited empirical evidence exists regarding how stakeholder interaction, knowledge exchange, and participation mechanisms influence sustainable tourism outcomes within local governance systems in developing countries. This study investigates stakeholder engagement as a driver of sustainable tourism development in Ghana, with particular attention to the roles of digital participation and local governance structures within Metropolitan, Municipal, and District Assemblies (MMDAs). A quantitative descriptive research design was adopted, and structured questionnaires were administered to 365 respondents across six tourism-hosting communities within the Ahanta West Municipal Assembly using stratified and convenience sampling approaches. The collected data were analysed using descriptive statistics and one-way analysis of variance (ANOVA). The results showed that respondents regarded stakeholder engagement, digital participation mechanisms, and collaboration with cultural institutions as important elements of sustainable tourism development. The findings also showed significant differences across age groups and length of residence, indicating uneven experiences of participation and information access among stakeholders. Digital engagement tools received the highest level of support, suggesting growing interest in technology-supported participation mechanisms within tourism governance. The findings indicate that stakeholder engagement contributes to sustainable tourism development when participation structures support meaningful interaction, knowledge exchange, and equitable involvement among community actors. This study provides empirical evidence from local governance settings in Ghana and contributes to tourism governance literature by linking stakeholder engagement with knowledge-sharing practices and digital participation mechanisms, while offering practical guidance for the development of more inclusive and context-sensitive tourism governance systems.