For a Bowling league, you come into a bowling alley and bowl with others maybe once or twice a week for a certain amount of time. A tournament is where everyone bowls against someone, and the winners from each game plays against each other and it keeps narrowing down until there's only one player left, who is crowned the champion.
Tournaments are usually a certain number of games, then they cut part of the playing field based on total wood (all your games added together). Then semifinals can be either more games followed by another cut based on total wood or match play (individuals bowl against another and top score advances).
To the more experienced bowler, bowling league is a joke or just practice, and tournaments are valued.
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For league championship, there are some fixed number of teams, each team has to meet every other teams once or twice. When they have to meet twice they usually have a Home game and a visit game.
For tournament, the teams or players and team numbers might change greatly. The competitions are held at pointed cities and sites.