A purpose of this doctoral thesis was to explore and analyse the economic impact of foreign direct investment, propose a methodology of evaluating the economic impact of foreign direct investment in tourism of Croatia at the micro and the macro level and, at last, propose the guidelines to attract the appropriate foreign direct investment in tourism of Croatia. At the empirical part of this doctoral thesis the economic impact of foreign direct investment in tourism of Croatia was estimated. The impact was estimated at micro levelthrough an example of foreign-owned hotel and then these effects were consistently linked to the macro level. The economic impact of foreign direct investment in tourism at micro level was assessed through a case study of ‘Terme Tuhelj’. The example of ‘Terme Tuhelj’ showed that a foreign-owned hotel, in less developed country, has a significant development impact on the local economy. In contrast to the negative aspect of foreign investment in Tuhelj which resulted in a loss of local ownership, it has also been identified a number of positive effects that have arisen as a result of the new owner. Perhaps most important of all is to noted that the municipality Tuhelj in the midst of financial crisis has been developing itself. The research of the effects on the macro level was conducted in two parts. In the first part the effects of the portfolio of foreign direct investment in tourism and other relevant control variables on the productivity of the tourism sector was examined through the model of the extended Cobb-Douglas production function. In the second part a cointegration and causality between the portfolio of foreign direct investment and gross value added in tourism, the portfolio of foreign direct investment in tourism and the number of foreign tourist arrivals and the total portfolio of foreign direct investment in Croatia and the portfolio of foreign direct investment in tourism was examined. In the first part of the research at the macro level, the results of the regression showed that the portfolio of foreign direct investment in tourism has a significant positive effect on the productivity of the tourism sector. In other words, the portfolio of foreign direct investment in the tourism sector contributed to the productivity growth of the tourism sector in the observed period. The second part of the research at the macro level, through the VECM model, proved that there is a stable long-term relationship between the portfolio of foreign direct investment and gross value added in tourism. A short-term relationship was also proved, respectively, the causal relationship from the foreign direct investment to gross value added was confirmed through Toda-Yamamoto causality test. Granger and Toda-Yamamoto causality test also proved a short-term relationship, respectively, confirmed the causal relationship of foreign direct investment in tourism to total foreign direct investments in Croatia, and the causal relationship of foreign direct investment in tourism to the number of foreign tourist arrivals. It was concluded that Croatia and its destination should, as soon as possible, in order to become interesting to international foreign capital and thereby ensure the necessary continuity of development and further improvement of competitive ability, first of all, remove, or at least neutralize the significant existing investment restrictions. A special significance for tourism-FDI attraction have political stability, encouraging macroeconomic business conditions, the elimination of administrative and legislative barriers, removing the country's image as a 'corrupted destination' and education of tourism staff on all levels.