Tourism, a sector for the strategic development of Croatia and Istria as the most developed Croatian tourist region provides a strong driving force and impetus for the development of national prosperity in terms of economy, culture and environmental protection. In order to transform Istria into an attractive tourist destination with adequate hotel offer, the complexity of the tourist destination is analysed. Furthermore, factors affecting the competitiveness of hotel offer in the national and international tourism market are analysed. Any study of the complexity of tourist destination offer must take into account offer providers, i.e. accommodation facilities. Creating and organising the hotel product, without implementing a strategic development of the destination, results in an offer that does not satisfy global market demand. A hotel company as the most important factor for the tourist destination develops its offer and contents based on market demand but also based on the resources of the region where it is organised. Niche markets and market segments are identified according to which a specialised hotel and destination offer is designed. The offer is then placed at the international market with the objective of achieving year-long tourist movement. The key to success of a well organized tourist destination lies in the synergic effect of all five major factors of overall tourism offer organisation. These factors include companies providing accommodation facilities, government institutions which include local self-government, the Ministry of Tourism, the Tourist Board and finally, the local population. Customers or consumers of tourist services are more experienced and have greater demands in terms of new experience, knowledge, skills and memories worth remembering. Learning, having fun, aesthetic values and physical activity are all motives influencing their experience, which can find affirmation through a high-quality destination and hotel offer.