According to the World Tourism Organisation, tourism is a growing phenomenon. Its economical and non economical influence is getting wider and cannot be left to market forces. Because of it, the intervention of the state is very important in directing tourism development. Directing tourism development in the desired direction implies the choice of adequate strategic orientation. Trends and changes on the tourist market are to be followed. The above mentioned should maximise tourism benefits and minimise potential problems connected to state and society. Having in mind tourist complex specificity, it is necessary to plan management of tourism and overall destination development. The aim of this summary is to point out the state's reasons for tourism intervention, instruments of tourism policy and a tourism management system, with special emphasis on the state's role in tourism development of the Republic of Croatia. The basic hypothesis is that the state has a very important role in tourism development so that its instruments and measures affect competitiveness of a country as a tourist destination. The importance of tourism for the national economy arises from its numerous economical functions which are making numerous benefits on all levels, from national to local. The impacts of tourism are not possible to neither comprise in full, nor quantify exactly, so different methods and approaches are used to get estimated indicators. Tourist Satellite Balance is a well represented method which measures the impacts of tourism on an international level. The obtained results of application of this method are useful for further research and the decision-making process regarding directing the tourism development of a certain country. The state uses a tourist policy to determine tourist development and improvement as well as its increase of competitiveness as a tourist destination. The state's key role is to create a stimulating environment, clear legislative framework and development of infrastructure which is going to facilitate availability towards and within a destination. Other than that, the state is responsible for health and safety as well as for creating conditions for the development of economy, security guarantee, freedom of entrepreneurship and fair competition. Croatian tourism is seasonal, not sufficiently used with an unfavourable structure of accommodation capacity. It has a lack of quality human resources and an unfavourable business environment. The development strategy of Croatian tourism by 2020 detects development restrictions, defines pursued goals and measures that need to be pursued in order to strengthen competitiveness and attractiveness. The state is engaged in problem solving using measures which include financial support, as well as enacting laws that are going to enhance the efficiency of the tourist system and business environment. A good quality infrastructure is a precondition for managing tourism development. The state has a key role in it.