The relationship between tourism and terrorism is explained by economic experts using a model that says that in countries where tourism is underdeveloped, there are no terrorist attacks, investments in tourism are increasing, and with the development of tourism, the country becomes more attractive to terrorists who have an impact in reducing investment. Investments and the number of tourists are decreasing, as well as the number of terrorist attacks, and the country is at the beginning of the round again. The countries of the world, especially the developed ones, are investing in tourism, so an attack on tourism IS an attack on the country itself. In many countries, significant revenues are generated precisely in tourism, and terrorist attacks reduce those revenues significantly. Tourists' decisions to stay at home or to choose a safer destination actually mean big losses for the industry of a country suffering terrorist attacks. What makes terrorism in tourism is the creation of an image of an unsafe destination, which has a direct effect on reducing the number of tourists and changing tourist trends. Terrorism can especially affect the tourist consumption of every country, including Croatia. Of course, the same has a negative impact on the tourist consumption of the country, because with the existence of a degree of terrorism in a country, the possibility of tourist arrivals in that destination decreases, and thus the tourist consumption decreases. Therefore, this paper will explore the impact of tourism on tourism expenditure of the Republic of Croatia.