This final thesis deals with cultural tourism and its definitions, the history of cultural tourism and sustainable development of cultural tourism. It is explained what the term cultural product is and who are cultural tourists. Moreover, the cultural tourism of the Republic of Croatia, the strategic development, positive and negative effects of development in Croatia and financing of cultural tourism in Croatia by the government are presented in this thesis. Taking into consideration that it is the capital of Croatia and the top destination for tourists, the city of Zagreb is carefully selected for this final paper. Furthermore, the elaboration of the tangible cultural and historical heritage of Zagreb’s Upper town is chosen for the main part of this thesis. SWOT analysis was done by collecting data and it presents the positive and negative impacts of Zagreb’s Upper town cultural tourism and provides suggestions for the possibility of improving the future of cultural tourism. After the SWOT analysis, the author's opinions on the topic are summarized in the conclusion.