This paper provides insight into the complex dynamics between tourism and local residents, analyzing various aspects of perception and impact. The economic, sociocultural and environmental impacts of tourism were presented and it was determined how they are experienced by the residents of Dubrovnik. The aforementioned impacts can be positive or negative, which depends on various factors, including the way tourism is managed, the type of tourism, local circumstances and ultimately, the perception of each individual. In order to reduce the negative impacts of tourism and achieve development goals that promote the preservation of the natural and cultural heritage, economic benefits and improved quality of life for the local population, the cooperation of all stakeholders in tourism, including the authorities, local residents, the tourism industry and non-governmental organizations is needed. This research focuses on the point of view, role and needs of local residents, as the most important stakeholder in tourism. Previous research has confirmed the existence of interrelationships between tourism and the local population and emphasized the importance of adequate management of the destination in order to achieve a balance between the interests of tourists and the local residents. In other words, sustainable management of a destination that is in line with the wishes and needs of the local population can result in a happier and more satisfied population, an improved tourist experience and a positive reputation of the destination. For the aforementioned reasons, many experts point out the need for continuous monitoring of local residents' attitudes with the aim of timely identification of possible issues and undertaking strategies to mitigate them and ultimately solve them. Thus, as part of this work, a quantitative research was designed and carried out in order to determine the attitudes of the local population on tourism and their satisfaction with the quality of life in Dubrovnik. The results of this research can be beneficial for future planning and policies that will be more successful in balancing the benefits and challenges of tourism for Dubrovnik and its residents.