The significant role of tourism in the Croatian economy is reflected in the continuous growth of the sector related share in Croatian GDP, which over the years has gradually led to positioning key issues related to tourism development and sustainability in the epicentre of Croatian politics and economic development. The issue of successful development of the tourism industry for the Croatian economy is extremely important and besides focusing on the implementation of various incentives and policies it is necessary to highlight the strategic development of key players in the tourism industry, which will act as direct carriers of future growth and development of the tourism industry. For this purpose, the subject of this thesis is a strategic analysis of Turisthotel d.d. which will be conducted by selecting and applying several methods and models of the strategic and financial analysis thus resulting in the conclusion about the prospective of the company and the market position within the relevant strategic group in the tourism industry in the Republic of Croatia. A comprehensive analysis, as well as identifying possible future development alternatives for both the company and the strategic group will create a framework with potential guidelines and tools necessary for further successful development of the tourism industry and its repositioning in regards to new changes and challenges caused by COVID -19 pandemic. Companies in the tourism sector that are ready to respond to changing patterns of consumer behaviour and utilize all available resources to adapt business processes to new conditions will create a solid foundation needed for overcoming the current and future strategic breaks and challenges.