As a transit town and a town situated at the intersection of some of the main traffic routes, Karlovac has a prominent growth tendency in residental tourism. It is located near the streams of four rivers, which makes it attractive to the tourists from nearby towns and provides it an opportunity for developing river beach tourism and sports and recreational tourism. In its surroundings, there are rural settlements and farmsteads that have already implemented their contents in the tourist offer. Considering that Karlovac is a relatively young city (its foundation dates back to 1579), it has a rich cultural and historical heritage, both in the town and in its surrounding areas. Struck by the devastation during the Homeland War and by the global economic crisis, Karlovac has long stagnated in terms of economics, the consequences of which are still felt today. Therefore it is necessary to recognize the potentials which may contribute to the local and regional development, and to actively implement the measures and activities that would contribute to its recovery. Minor improvements can be discerned from the projects funded by the EU pre-accession funds, while more significant steps have been undertaken after the accession of the Republic of Croatia to the European Union through implementing the EU Cohesion Policy and using the instruments from the Structural Funds. This thesis is based on studying the key resources in the development of tourism at the local level, and has a descriptive-analytical character. The study was conducted on the basis of the literature listed, the obtained actual statistical data, and personal interviews with the personnel of the relevant institutions and agencies of the City of Karlovac (Development Agency, Karlovac Tourist Board, Administrative Department for European Integration, Croatian Chamber of Economy).