There is evidence of a strong link and close interaction between territorial identity, whether at the local level or defining a larger territorial unit, and tourism, and several aspects of this have been discussed in the literature. The National Tourism Strategy 2030 in Hungary, among its strategic objectives, pays special attention to the creation and strengthening of national identity and attachment, stating that strengthening domestic tourism contributes to the domestic population's knowledge of Hungary's values and heritage and to the experience of its national identity. Identity is an important pillar of social sustainability, but it also has a role to play in the marketing of destinations and can be investigated from the tourist's point of view as well. The aim of this research is to examine the relationship between tourism and territorial identity from different angles and to confirm the potential for synergies between the two. The novelty of the paper is that it examines territorial identity in the context of sustainable tourism development. The research analyses territorial identity in the context of social sustainability in the designation of new tourism areas and, in parallel, their contribution to sustainable development goals. By analysing and summarising the identity-forming elements of destinations, the relationship between identity, tourism, and social sustainability will be defined. The relationship between tourism and territorial identity is well-documented, with organisations responsible for marketing and branding in the sector utilising this relationship to a great extent. The relationship is employed as a distinctive, unique feature, as part of the development of a regional image and along the lines of cultural identity. The result indicates the starting position of territorial identity, identified as a key indicator of tourism competitiveness, which is changeable and constantly evolving along the dimensions of strategic and functional identity, independently of tourism. The added value of this analysis could be to show which aspects of destinations need to be developed and which areas need to be strengthened in relevance of territorial identity. The enhancement of territorial identity has been demonstrated to exert a favourable influence on tourism demand, whilst concomitantly contributing to the enhancement of the quality of life experienced by the local population. This is achieved by establishing and adhering to the fundamental principles of sustainable and responsible tourism, which is in harmony with the local community.