This research discusses the opportunities and challenges of tourism development in Gedeo zone. To attain the research objectives, the researcher used multiple methods. Based on the findings obtained from multiple methods, this research concludes that the study areas have plenty of cultural, historical, archeological and religious sites. It is potentially favorable for: historical tourism, archeological tourism, ecotourism, cultural tourism, and professional type of tourism which is not exploited and promoted properly. The major reasons for this could be: lack of knowledge about what tourism and tourists, less knowhow what and how to do with regard to tourism businesses, unable to use their local products, less involvement and participation in tourism activities, and weak coordination among the major stakeholders of tourism. An awareness creation about tourism, how and what tourism businesses will be profitable, create a conducive atmosphere for local communities to involve and participate in tourism.