Virtual Reality Tourism (VRT) enables immersive, three-dimensional digital travel experiences that simulate real-world destinations. It is emerging as a powerful technological trend reshaping tourism consumption, destination marketing, accessibility, and sustainability. This study investigates the opportunities and challenges associated with VR tourism using a mixed-method research approach involving user surveys (N = 1,200), expert interviews (N = 35), and case studies of VR deployments in five tourism sectors (national parks, historical sites, museums, adventure tourism, and hotels). Results show that VR facilitates destination previewing, enhances marketing effectiveness, increases accessibility for the elderly and disabled, and reduces environmental footprints. However, challenges include high infrastructure costs, motion sickness, digital divide, authenticity concerns, and limited sensory engagement. The paper concludes with recommendations for integrating VR into hybrid travel models to complement—not replace—physical tourism.