The main subject of this final paper is the city of Otočac and it´s challenges in developing as a tourist destination. With disadvantaged geographical location, the city of Otočac breaks records of tourist arrivals and nights every year. Natural resources of the Gacka river and large quantities of trout attracts tourists of different age structures and different preferences. By developing an original, indigenous tourist products with forable promotion and acceptable price range, the possibility of tourists arriving is increasing and there is a possibility of attracting a younger population to stay in the city of Otočac and reducing depopulation in the entire county. Thanks to the opportunities offered by Croatia's membership of the European Union, young farmers and their families have possibility for grant funding, which enables the development of agriculture, arable farming and animal husbandry in less represented areas in our country. The main aim of this final paper is to analyze strategic documents and spatial planning documentation for tourism development, the current situation in the city area, inventory of resources and to present an innovative tourism product based on previous research. The methods used in the development of the project plan are research of data on the official websites such as the Otočac Tourist Board and the Development strategy of the city of Otočac, contacting the Croatian Chamber of commerce and talking with local population as well. Methods used in the development of the project plan, current situation in the city of Otočac and available resources will help to create an innovative product for the city of Otočac that will bring new benefits such as creation of an indigenous tourism product, development of rural tourism, helping young farmers, increasing employment and GDP, higher exports of local product and promotion of the city of Otočac as well.