The purpose of the business practice of homestay is to create valuable sustainabletourism. The purpose of this research was to study the requirements and satisfactionof tourists staying at Amphawa Floating Market Area’s Homestay facilities inSamutsongkhram Province, and to enable knowledge management by the government,homestay entrepreneurs, and all organizations concerned in this business. In this studythe researcher used qualitative and quantitative methods. Questionnaires werecollected from 430 homestay tourists staying around Amphawa Floating Market. Therewere 379 Thai tourists and 51 foreign tourists. An in-depth interview was used in thisstudy to interview 26 homestay entrepreneurs who operate businesses at AmphawaFloating Market and 21 homestay entrepreneurs who operate business withinapproximately 5 kilometers radius of Amphawa Floating Market.The study found that the requirements for homestay and tourists’ requirements whenselecting homestay had a positive impact on tourists’ satisfaction at a high level. Whattourists looked for in a homestay were: 1) receiving a warm and friendly welcome,2) good human relationships on the part of service providers towards service recipients, 3) personal safety and security, and the assurance of safety for theirbelongings, and 5) scenery around the homestay area.The results of in-depth interviews of homestay entrepreneurs found that nowadays thehomestay business was not simply additional income for the families in the local areabut it had became a major source of income. However, the business has now becomea cause of increasing competition between homestay entrepreneurs and has madea huge impact causing a change in the local culture and lifestyle. These problemsoccurred due to a lack of good systematic management by the Thai government, andno limit on the number of homestay entrepreneurs in each area. To develop andencourage sustainable tourism, the researcher proposes a workable homestay practicefor government, entrepreneurs, tourists, and local people.