„Tourism is one of the most profitable branch in the world which affects on economic development of the destination.“ Through a quality tourist offer, the destination is becoming more attractive, and nowadays, when all cities become competitors in attracting resources, their recognizable image becomes one of the leading strategies. Tourists are becoming more experienced and demanding, and for many of them, events are the reason for coming to a certain destination. For the destination to attract visitors, it must have a tourism product with specific amenities that will provide tourists with an interesting experience and a sense of adventure, which will contribute to the prolongation of their stay in the destination and create a positive image. This thesis focus on the effects that the Ultra Music Festival has on the economy of the city of Split. Split, which is the second largest city in Croatia, has often been considered as a transit destination in the past, but in the last few years, it has experienced tourist development and has more and more visitors from season to season. “Ultra Music Festival” is becoming a biggest reason why visitors come, which confirms the fact that „Ultra“ is becoming one of the most visited music festivals in Croatia. This event shows the galloping tourism development of the city of Split where it generates revenue for the destination and its service activities such as accommodation, catering, trade, traffic, taxi and transfer and it should also be emphasized that this is a tourist product that attracts new tourists and it is different from the usual products that Croatia has in its offer (sun and sea). It is also an added value for the existing tourist offer of the city of Split and due to the festival, Split is ranked among the best festival destinations in the world.