This final paper explores, analyzes and explains the conception and tourism development strategy of the city Pazin. Therefore, a special emphasis is put on rural tourism of the city of Pazin aswell as observing the unique and recognizable products, services and events in the context of rural tourism of Pazin which distinguishes this destination from other ones. During the process of writing this final paper, the scientific methods that were of help are method of analysis, method of synthesis, description method, explanation method, method of proofing and compilation method. Tourism of Pazin can be linked to not only rural and agritourism but also adventure and sustainable tourism. But, apart from the development of tourism, it is crucial to concentrate on modeling of the internal environment, to be more precise, developing staff in terms of lifelong learning, improving skills and creative innovation of tourism offer in order to create cohesion and appear in a competitive market with the strongest weapons - knowledge and create the highest level of competitiveness advantages - innovations. The great advantages of Pazin are recognizable through the trend of sustainable development, where Pazin pays attention mostly to the time when the key factor for survival was agriculture, which makes a very specific gastronomic and enological offer, as well as various manifestations and events. In the direction of rural tourism, Pazin already has many natural predispositions, as well as those related to the hospitality offer and accommodation offer. This final paper will explore the existing tourism offer in more detail, focusing on the city of Pazin and based on supply and demand analysis present the possible concepts and strategies for tourism development to reduce risk and increase competitiveness in a rapidly changing and highly competitive tourism market. Ultimately, the goal is to highlight the strengths and opportunities of this fairytale, medieval city and list specific strategies that can position and, according to the competition, make Pazin shine on the regional market and become one of the most visited cities in Istria.