The subject of the thesis is the competitiveness of the Republic of Croatia on the European Union tourism market. Competitiveness and the Competitiveness index are analyzed in the first part. Connection between the strategy of competitiveness and development of competitiveness of countries and the role of government policy in the development of tourism is explained. In the next part, named „Tourism of Republic of Croatia on the European Union market“, the thesis specifically deals with the competitiveness of tourism in the Republic of Croatia and the strategy of its development. The main strategic aim of the Croatian Government is to be recognized as leading tourism destination worldwide. Also, development of tourism in the EU and the relationship between EU and Croatia's tourism is explained. The empirical part is analysis of the competitiveness based on competitiveness indexes. Hypotheses are proved using secondary data obtained from reports WEF on tourism and competitiveness. Republic of Croatia is positioned as medium – ranking country in the EU tourism market. After analyzing competitiveness indexes it has been proved that Republic of Croatia has the lowest indicators and it is not competitive in business sphere. However, the tourism infrastructure has been proved as its strongest competitive tool. The final part consists of the recommendations for increasing the competitiveness of the Republic of Croatia, strategic objectives and principles of development of Croatian tourism. Croatia as a medium-ranking tourist country in the EU has good prospects for development and positioning among the top EU countries.