The topic of this final paper is the analysis of the development of tourism and hospitality throughout history and recommendations for the development of Croatian tourism. The paper presents the development of tourism and hospitality from the very beginning, in Croatia and the world, as well as their interconnection. The thesis of the paper is that without the development of tourism there is no development of the hotel industry and vice versa. By placing the development of tourism and hospitality in the time context and emphasizing the mutual influence and interdependence of tourism and hospitality throughout history, the thesis is fully confirmed. From the very beginning, tourism and hospitality have had a great impact on the economy of every country, as well as on the world economy. They are one of the most developed industries in the world, which means that countries that want to develop should invest significant resources in their development and promotion in the world. Historically, each country has been developing and investing in tourism and hospitality, depending on its geographical location, natural beauty and opportunities, and what is obvious is that the greatest impact on the development of tourism and hospitality have always had events (e.g. wars and economic crises), inventions (e.g. steam engine and electricity) as well as social and political events. The emphasis in the paper is on tourism and hospitality in Croatia. Current state of Croatian tourism is presented via SWOT analysis, separately analysis of number of overnight stays by the type of accommodation facilites is brought out. To understand these two industries and to see how they can be developed in Croatia, the development of hotel industry and tourism in Croatia is presented and suggestions are made on how to improve the tourist offer in the future and influence the further development of tourism in Croatia.