Tourism is a highly fragmented system that has been the largest source of revenue for the Croatian economy for a long time, and thus becomes a major factor influencing its development. This is particularly visible at the regional or local level in the units located in Adriatic Croatia. Good economic results require mutual cooperation and complementarity between different economic branches and activities. This role of connecting between activities should ne played by the economic policy, that is, the policy of development, both of certain branches of the economy, and of the economy as a whole. As a part of the economic policy with the help of which the directions of development of a number of different activities are directed and unified, the tourism policy is based, as the name itself suggests, on tourism. In the economic world, writing a business plan and planning are fundamental actions that enable quality management of a business venture. As for small entrepreneurs, a good plan is equally important for large stakeholders in economic system. Planning is an activity that is conscious and continuous and is aimed at defining some future goals. It can be planned in the long or short term. For a successful business, it is necessary to have both a short-term and long-term plan and to define in advance the goals. The topic of this thesis is the Plan and policy of tourism development – Municipality of Konavle. In the first part of this thesis, there is a brief overview of the relevant literature on planning and the plan as a means of managing tourism development and on policies that affect tourism development. As the paper refers to a specific analysis of the Municipality of Konavle, the first part of this thesis also contains information about the Municipality of Konavle. In the second part of this thesis, tourism development in the Municipality of Konavle and its connection with the plan and policy of tourism is presented through the analysis of secondary data. The most important economic branches and activities are also presented and through the analysis of tourist arrivals and overnight stays over the years, as well as the analysis of budgets and infrastructure projects, the development of tourism and the impact on the plan and policy of tourism in Konavle are shown. At the end of the thesis, a SWOT analysis determined the strengths, weaknesses, opportunities and threats in Konavle.