This research drives at examining tourism and sustainable development and their impact on important productive sectors in lots of states' economics either the developed or the developing. Tourism is an economic activity characterized by producing foreign currency for states used for pushing development wheels. It also drives at identifing the obstacles and determinants of tourist activity in Egypt and the role of foreign direct investment in Egyptian tourism sector for activating sustainable development and setting standards for optimal use of resources without affecting them passively. Tourism in Egypt is still a highly capable resource for development for the multiple potentialities and potentials the state owns for tourism that meet the global demands and terms such as archeological tourism, cultural tourism, religious tourism, treatment tourism, businessmen tourism, sports and marine tourism. This type of investment definitely increases work opportunities directly or indirectly as tourist states work on achieving stability climate viable for investment. Nevertheless, environmental problems represent a dismissible factor for tourists since the unconcern in treating such problems affects the state's exerted efforts to develop and refresh this sector, affecting also national or international investment. Economic policies are considered a significant effective factor in fulfilling the tourist investment job affecting also its activity. The study also examines the green economy and its applicability in Egypt, rationalizing utilization of resources and reinforces inhabitants' awareness of environmental problems. Study results indicate that moving towards green economic can achieve sustainable development and eliminating poorness as it increases investment, labor opportunities, sustain industry and development which are all targets of sustainable tourism. Recommendation indicate to the necessity of setting policies and strategies for sustainable tourist development, providing the infrastructure and general appropriate climate for foreign investment to increase the economic growth and so the sustainable development in one hand and conserving environment from pollution on the other hand.