Abstract
This paper examines the hypothesis that in SEE transitional economies there are two key success factors to insure the successful development of tourism. The first factor is the building up of an active role of government in structuring a state tourism strategy focused on increasing the international competitiveness of the given country's tourism sector. This would speed up the process of tourism development in a sustainable way, since the preservation of space and benefits for the local population should be the main strategic goals of future tourism development in SEE. The second success factor is the elaboration of tourism development master plans at a local level within the country, carried out with the broad involvement of stakeholders with a strong orientation towards pragmatic implementation. This paper uses the case study of Croatia, the most successful country in terms of tourism in SEE.