South Asia is one of the fastest-growing tourism regions in the world, offering diverse cultural heritage, natural attractions, affordability, and emerging hospitality infrastructure. However, destination competitiveness varies significantly across countries due to disparities in safety, policy frameworks, infrastructure, branding, and environmental performance. This research evaluates destination competitiveness in five South Asian nations—India, Sri Lanka, Nepal, Bangladesh, and the Maldives—using a multi-dimensional framework based on the Travel & Tourism Competitiveness Index (TTCI), stakeholder interviews (N = 42), and tourist surveys (N = 1,600). Results indicate that the Maldives scores highest in natural resources and destination branding, India excels in cultural resources and air connectivity, Sri Lanka leads in environmental sustainability, Nepal stands out for adventure tourism, while Bangladesh remains competitive in cost and emerging tourism markets. Limitations and strategic recommendations are provided for elevating regional competitiveness in the global tourism landscape.