The application of circular economy in tourism is very important, because with proper and planned management, the amount of waste can be reduced, and by recycling it, greenhouse gas emissions are reduced, and numerous raw materials and materials can be reused for a similar or different purpose. Smart waste management and tourism activities in general contribute positively not only to the local community, but also to the entire country and the environment in general, and in order to be successful, all stakeholders, from local individuals to the self-government, should be involved in the sustainable development of tourism and the application of the circular economy, tourists to the government and the entire country. The application of the circular economy has numerous advantages, the most significant of which are the reduction of greenhouse gas emissions and the consumption of primary materials, the protection of productivity and soil health, the stimulation of economic growth and the creation of new jobs, and the saving of material costs. Tourism is increasingly turning to the circular economy because people's awareness of ecology and the daily harmful impact on the environment is being raised, and the principles of the circular economy should be applied by tourist destinations, as well as tourist companies and tourists themselves. Therefore, this paper analyzes the concept of circular economy and the possibility of its application in tourism. Some of the examples of good practice implemented in the Republic of Croatia are presented.