This paper presents and analyzes the climate of the City of Mali Lošinj as a tourist destination over a three-year period, and proposes guidelines for further tourism development. The general characteristics of the city itself, as well as its geographical location, are considered, highlighting its potential to contribute to the continued growth and development of the city as a desirable destination. The geographical features are complemented by climatic characteristics that greatly contribute to the growth of tourism, due to the clean air with low levels of air pollution and the absence of more aggressive allergens, making the destination attractive to tourists. In order to propose guidelines for further tourism development in Mali Lošinj, its phases are described and analyzed, and during the observed three-year period, indicators of accommodation occupancy and the most represented guests in Mali Lošinj from various countries are examined. The developmental phases of tourism in Mali Lošinj are accompanied by demographic characteristics, which in this paper are analyzed from the beginning of 2019 to the end of 2021. During the observed period, the City of Mali Lošinj, according to the development index value, was ranked in the first quarter of above-average ranked local self-government units. In addition to the aforementioned, and considering the abundance of natural and anthropogenic tourist resources, numerous attractions, and a solid public, economic, and civil sector described in this paper, further guidelines for the development of Mali Lošinj's tourism potential are proposed in accordance with tourism demand trends.