This study explores the drivers and barriers of the Circular Economy (CE) in Tunis Village, a rural tourism destination, as a case study of emerging economics. We adopted an exploratory case study methodology. Telephone interviews (n = 10) with stakeholders were conducted, and a survey of employees (n = 123) was distributed. Qualitative data were thematically analyzed, and quantitative data were descriptively presented. The results show that improving relationships with the local community, gaining financial benefits, and improving relationships with suppliers were the top perceived drivers. The top perceived barriers are poor economic development, which makes the implementation of large-scale sustainability difficult; a lack of technology and advanced technologies; and the absence of effective and integrated waste management and recycling systems. Considering the exploratory nature and design of this study, the results cannot be generalized. However, the results can help plan future research on a larger scale in developing economies. Furthermore, the findings can inform policymakers on how to better apply CE practices in rural tourism destinations. The topic of CE has been under-researched in connection with developed countries, and this study is the first to examine CE in rural tourism destinations in emerging countries. This underlines the specific drivers and barriers related to CE as a sustainable development practice. Additionally, it contributes to the academic debate on this notion.