Tourism is extremely important for the economy of the Republic of Croatia, and the continuous development of tourism ensures the development of the entire economy and social community. However, in addition to the numerous positive effects of tourism development, it is necessary to adequately analyze and valorize its negative effects at the destination level. Negative effects at the destination level create the need for sustainable tourism development that can meet economic needs, without neglecting the protection of nature and its resources and the social well-being of the population. With the goal of developing sustainable tourism, the Government of the Republic of Croatia adopted the Strategy for the Development of Sustainable Tourism until 2030, a document that has a purpose to guide the development of tourism in Croatia in the direction of sustainability. The subject of research in this thesis is the vision of tourism development in the direction of sustainability and harmony of key community factors. The impact of sustainability on the further development of not only tourism but also the entire economy of Croatia is also addressed as a subject of research. The main goal of this paper is the analysis of the mentioned Strategy and the identification of needs and potential for achieving sustainable development of tourism in Croatia. The professional contribution of this paper is reflected in the detailed analysis of the Sustainable Tourism Development Strategy until 2030 and the evaluation of the overall feasibility of the Strategy. This contribution is planned to be achieved by identifying the key challenges associated with the development of sustainable tourism and by defining tourism policy instruments that can successfully solve these challenges. This graduate work aims to provide professional input to tourism policy makers in the implementation of the concept of sustainable development through responses to the key challenges of tourism such as: the quality of life and well-being of the local population, the adverse impact of tourism on the environment, the lack of human resources, the lack of quality accommodation facilities and an unfavorable business environment.