The topic of this paper is the development of the tourist destination of Vrsar Municipality. Vrsar Municipality is located in the western part of Istria County. The main economic sectors are agriculture, fishing and tourism. Important resources for the development of tourism in this destination are natural and anthropogenic resources that contribute to the tourist offer. Anaylses of tourist arrivals and overnight stays in Vrsar Municipality have been conducted, as well as analyses of accommodation capacities by categories and surroundigs analysis. By comparing the time period from 2020 to 2022, the highest number of arrivals and overnight stays were achieved by tourists from Germany, Slovenia, Austria and Italy. In terms of types of accommodation facilities, the highest number of arrivals and overnight stays were recorded in campsites, hotels and tourist resorts. Vrsar Municipality has the highest number of registered companies engaged in accommodation services and food preparation and serving. It is very important to follow trends and take care of sustainable development of the destination in order to attract tourists. In Vrsar Municipality, seasonality prevails, meaning that the largest number of visitors come durint the summer months. The Municipality has the potential for the development of specific forms of tourism.