Inspired by the cultural and historical heritage, numerous events and the increasing economic importance of the city, author of this paper discussed the current situation and future development of cultural tourism in Varaždin. Using literature, resources, statistical data, interviews and inquires author has analyzed the current state of cultural tourism, touristic and hospitality infrastructure, collaboration and promotion of touristic activities and cultural institutions. He has categorized and presented cultural attractions and events, and pointed out the economic and other benefits of implementing the cultural tourism into touristic offer. Results of this work discovered that the city of Varaždin is extremely rich in cultural and historical attractions that are very well attended and promoted also outside of the Croatia, and participates in numerous projects that are developing cultural tourism. Orderliness and atmosphere of the city are attractive to cultural tourists who, primarily due to the lack of interesting content, maintain year-round for a short periods, usually up to 3 days. Dissatisfaction arises from undeveloped accommodation and hospitality infrastructure, lack of entertainment, and a relatively weak cooperation between cultural and touristic institutions. The author therefore proposes a greater financial investments in tourism infrastructure, strengthening the cooperation between touristic and cultural sectors and continuously developing new manifestations and ideas that will keep the tourists for a long time in Varaždin, and thereby will generate a required economic flow.