This paper explains the basic determinants of public-private partnership, where it is defined as a model of cooperation between the public and private sector on projects that the public sector cannot carry out alone in order to meet public needs. The advantages and disadvantages of this way of doing business are presented, and various models for implementing PPP projects are listed and explained as well. Given that tourism plays an important role in the economy of the Republic of Croatia, one of the objectives of this paper is to present the state of public-private partnership in Croatian tourism through project examples. The public and private sectors play an important role in the development of tourism and destinations, so the public sector primarily provides infrastructure and basic services while the private sector provides tourism products and services. When it comes to PPP, the public and private sectors mainly cooperate with the aim of improving the destination by performing simpler less capital-intensive tasks by a private partner, but also by implementing larger projects in the form of renovation and construction of infrastructure and superstructure.