Following the analysis of the institutional framework regulating small family owned hotels in Croatia, as well as the analysis of theri major business features , the document specifies key success factors needed for market competitiveness of this type of accommodation , defines its major strengths, weaknesses, opportunities and threats and analyses the possibility of its development by means of funding through EU funds/programs. On this basis, the document defines the vision and strategic goals of small family owned hotels in Croatia as well as the key program areas and their stakeholders, policy instruments and/or activities in order to raise funds from available EU programs.