The purpose of tourism related events lies in attracting tourists to a certain destination. A large and various numbers of events can be the key factor that influences the decisions of tourists when it comes to choosing a particular destination. The island of Pag has a tradition of an island marked by “party tourism”. There is a hardly a person in the region or from abroad that does not recognize Pag as a party destination exclusively, due to its Zrće beach. However, the island of Pag is also recognized by its delicacies, lamb and cheese, respectively, as well as its invaluable non-material cultural heritage, lace. In order for cultural tourism to develop in another direction, it is necessary, through assessing the needs and demands of the tourists, to turn the island of Pag into a destination that will offer something to every visitor. The marketing environment analysis used here will determine all the capabilities external to marketing, which are used by a tourist destination in order to satisfy the needs of its target groups. SWOT analysis will also be used, to determine the weaknesses and threats to the city of Novalja and the island of Pag that arise from within and from the outside of its environment, and can pose a problem and a danger to this tourist destination. In order to present the founding concept of a certain festival, titled “The Olive Classic Festival”, that is supposed to improve the existing tourist offer in a different way, not yet experienced by the tourists, the present cultural tourism offer of the island of Pag is also described, as well as the development strategies that will be applied in the efforts mentioned.