The main goal of the thesis was to discover residents' opinion and perspective on further development of cultural tourism in the historical centre of Dubrovnik. The research among residents had wanted to discover their opinion on different positive and negative tourism effects, including economic, socio-cultural and environmental effects. What is more, it tested the residents' willingness to participate in the decision-making process. In the first part of the paper , it was presented the subject and the problem of research, along with the hypothesis objectives, the goals and the contribution of the study. The theoretical part of the thesis explained the culture's role in tourism, related concepts and definitions, and also cultural tourism definitions. Positive and negative effects of tourism development were presented as well as the concept of sustainable tourism. Furthermore, the city of Dubrovnik was presented as a cultural tourism destination and there were given an analysis of current aerial, demographic and economic situation, and an overview of the infrastructure. In the paper, Dubrovnik's resource base, tourism supply and demand have been elaborated and an overview of crucial problems in tourism development along with guidelines for future tourism development was given. The empirical part provided a research about local population views on the development of cultural tourism in the historic center of Dubrovnik. The section offered a view on respondents' demographic characteristics, tested hypotheses, and a survey review. The results showed that locals were more likely to perceive the negative effects of tourism, such as rising product prices and cost of living, evicting residents from the historic centre, and additional pressure on communal infrastructure. The research has confirmed the importance of locals' attitudes and their role in planning further development, respecting the concept of sustainability.