Tourism is a social phenomenon that is nearly impossible to accurately and precisely describe in one sentence. Even though numerous expert and scientific definitions of tourism contributed to better understanding of this phenomenon, it is still very complex and needs to be viewed from many different angles. As a branch of economy, tourism depends on a lot of factors and is interdependent with other branches and economic activities. Its development is influenced by many tourist resources, some natural, some man-made, and also by various stakeholders that help either its improvement or regression. Also, in order for a proper and wanted development of tourism to occur, it is necessary to have different accommodation establishments for tourists to stay while in a destination. To gain an insight into a current situation and spot certain trends, it is necessary to conduct a state analysis, that is, to compare the number of arrivals and overnight stays in the current year with those of the previous years and try to predict tourism flows in the coming year. Apart from that, one has to carry out the so-called SWOT analysis, through which strengths, weaknesses, opportunities and threats to tourism are spotted, and accordingly work to eliminate the existing disadvantages and exploit the advantages as well. Finally, it is important to be familiar with the destination environment in order to compare with the competitors, but also for the purpose of achieving a possible cooperation in the future. All of these aforementioned factors and prerequisites for tourism development are analyzed and clarified in this paper using the example of the city of Trogir, a coastal tourist destination known for its long nautical tradition as well as for its rich cultural and historical heritage.