Indigenous tourism has been identified as providing significant competitive market advantage for the Australian tourism industry as well as considerable economic opportunities for desert communities. However, at the present time many Indigenous businesses find it difficult to achieve sustainability. This paper examines some of the difficulties faced by the sector as well as some initiatives that could improve the sector’s performance. A holistic approach needs to be taken to develop sustainable Indigenous tourism businesses. There is potential for the DKCRC to take a leading role in the sector by undertaking applied research as well as providing specific industry development programs.