Scientific research of this doctoral thesis was conducted in two directions, first, theoretical research of development concept model and, secondly, the implementation of the development concept model in the tourism destinations and hotel companies. Tourism market is determined by the dynamics that opens the needs for constant changes and adjustments. The future is becoming increasingly uncertain and unstable, therefore, the development of tourism destinations and hotel companies is conditioned by strategic considerations. Under these conditions, the development concept model as an activity achieves competitive advantage in the dynamic tourism market. The model is based on the research process, reducing uncertainty and risk, and discovering knowledge about improvements and achieving success in future business activities. Within the development concept model, the author researched four closely related elements: development concept, strategy development, system and business policy. The challenge of this doctoral thesis is reflected in the research of relevant features of the development process through the innovated model of development concept of Poreč as tourist destination and hotel company Plava laguna Poreč. This PhD thesis researched the current situation, anticipated future, set out the goals and operational strategies in function of development. The research focus is on knowledge management and intellectual capital as fundamental determinant of initiating changes and anticipating the future. For the purposes of development concept model innovation, in the Poreč tourist destination was conducted qualitest as a model of measuring the quality of tourist destination. For data collection were used these methods: surveys, interviews and focus group. The respondents were following key stakeholders: tourists, management and the local residents. Data were analysed using descriptive statistical methods and methods of exploratory factor analysis. During the research, author used the following methods: inductive and deductive methods, methods of analysis and synthesis, abstraction and concretization methods, classification method, modelling method, observation method, content analysis method, method of system theory, triangulation method, method of quantitative and qualitative analysis and mathematical methods. The results of this scientific research and generated findings presented in a doctoral thesis contribute to the improvement of theoretical achievements in the field of conception and development strategy in tourism, which implies a positive effect on the process of tourist destinations and hotel companies development. Conducted scientific research, in applicable part, implies the contribution of the doctoral thesis in the current situation analysis, defining goals and operational strategies innovation as a result of the stakeholders attitudes and authors upgrades.