Uncontrollable development of tourism in coastal destinations, which is the result of irresposable management in tourism, is the direct cause of many negative side effects in tourism. One of these side effects happens when the coastal destination stops being competitive and it loses its place in the tourist market. The tourism industry is very slow to accept the sustainable development theory in tourism, which is not surprising since at the very core of this industry lays the motive for extra profit. The main problem which was investigated by this thesis was the problem of successfully managing the development of coastal destinations because most of the destinations are burdened with the fact that their tourist activity is very seasonal, short term and more numerous each year. Whats more, it takes place in regions which are right on the coast. Most of these environmental problems which are caused by massive tourist activity, are the result of tourism development being uncoordinated and without a proper plan. The main aim of this thesis is to focus the readers attention on the problem of successfully managing the development of a coastal tourist destination. This development should be based on the principles and the criteria of sustainable development, which should be applied in strategic planning, and whilst deciding on the carrying capacity of the destination. Primary research has proven that the role of local governments is crucial for the effective establishment of the planning module. This should include long term planning, active participation and cooperation between the main participants in tourism and the participation of local residents. Only in this manner can the long term strategy of tourism development be put in place. The awareness of how many tourist attractions can a certain place withstand without the negative effects for the future generations should be at the very core of sustainable tourism development of a coastal destinationThe main contribution of this thesis is the realization that the management of tourist development of a coastal destination should be aligned and it should depend on the management of the carrying capacity, and vice versa, and all of this should be taking place on the level of local government. The main aim of this should be to please the final consumer of tourism, but at the same time, any future negative side effects of overdeveloping, which should disturb the quality of life of the local residents, should be avoided.