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An improved understanding of both community attitudes toward tourism and host–guest interaction is vital for the sustainable development of tourism. However, there are significant research deficiencies and gaps in these two related research areas. This conceptual paper looks into these glaring research gaps through a review of literature and attempts to provide solutions suggested by an ongoing research project being conducted in Melbourne, Victoria, Australia. In particular, while this paper addresses the impacts of personality and ethnicity on community attitudes toward tourism and points to the urgent need for a well-established theoretical framework in order to understand and predict host–guest interaction, it also highlights the above issues in the context of the urban–rural fringe, the bordering region connecting neat ‘urban’ and ‘rural’ areas. [ABSTRACT FROM AUTHOR]