ICT and digital technology adoption, sustainable development, community empowerment and local wisdom and destinations uniqueness are keywords that will be further explored in the de-velopment of tourism villages in Kenderan as the most importance of tourism destinations de-velopment from the village level. Therefor this research is aimed at developing suitable model for post smart or wise tourism village through proposing Culture and Tradition Festival and the application of a circular economy. Circular economy development in tourism villages focuses on the application of sustainable production principles in the tourism value chain, namely in creating tourism experiences together with tourists (co-creation of experience) and integrated in a tourism system that supports environmental sustainability. This research is applied research conducted with a sequential mixed method research by conducting qualitative research through expert judgment and quantitative research by circulating questionnaire to tourists visiting Kenderan village, while the collected data is analyzed by Structural Equation Modelling to see the rela-tionship between variables. The results of this research show that creative event as the locality aspects of tourist village, digital competence, and sustainability practice are the building blocks of post smart tourism village, while digital competence and sustainable practice have significant mediating effect of locality on post smart tourism village. To make tourism village possesses sustainable competitive advantages, the village must explore and promote its locality aspects to differentiate its tourist village by identifying the valuable, rare, inimitable and non-substitutable tourism resources. The implication of this research is that to develop smart tourism destination wiser and distinctive, tourist village should explore their local values and resources, embed them into its tourism basic components and core resources, and co create, distribute, deliver and promote it to global market through technology adoption and global sustainability value.