Over 20 million tourists visit Croatia every year, mainly in the summer months (from June to September). Therefore, high seasonality is one of the key features of Croatian tourism. According to statistics for the „record-breaking“ year 2019, the majority of tourist overnight stays, nearly 40%, were realised in private rental properties, mostly apartments. This accommodation category also recorded the biggest increase in capacities. The second-ranking accommodation category were hotels, with 25% of overnight stays, followed by camps, with 20%. The fact that Croatian tourism primarily leverages the advantages of the sun and the sea, the pressure of tourism-related construction in the coastal areas has significantly altered the natural environment, and represents a huge challenge for sustainable spatial planning. The existing infrastructure is inadequate for the large numbers of tourists, and conflicts between the tourism industry and the daily lives of locals have been increasingly frequent. This publication presents the research conducted as part of the educational process of the Graduate Design Studio 3, a second-year course of the graduate university study of Architecture and Urban Planning at the Faculty of Civil Engineering, Architecture and Geodesy in Split. By examining the relationship between tourism and local life and developing scenarios for the cohabitation of different, but mutually beneficial, amenities, the studio tries to determine whether tourism can serve as a medium in the protection of an island’s natural environment, and as an impetus to the local economy, without destroying the natural resources. The location of the site is in Zadar County, in the small town of Luka on the island of Dugi otok. The task is performed on different scales, from the scale of urban planning, to the architectural scale of new tourism capacities. The students are expected to design new programmatic and typological synergies of tourism and local life, which will contribute to the development of the island town.