This paper discusses regional disparities and general national trends in the development of tourism industry in Serbia. Serbia has a rich and well-preserved cultural and natural heritage, which means that this country holds significant potential for the development of tourism. Our analysis assessed the dynamics of tourism development by using census data and focusing on such indicators as the population size of different regions, the share of people employed in tourism, the proportion of economically active population and tourism traffic (the number of foreign tourists and overnight stays). All indicators were analyzed by calculating the index of change. The results show that in Serbia, tourism has not yet achieved an adequate level of development and plays a secondary role in the country's economy even though it could contribute to the demographic revitalization of Serbian regions. There is also a steady growth in the number of people employed in the tourism sector. Among other Serbian regions, Belgrade has the most thriving tourism industry due to its status of the capital city. Other regions also demonstrate significant growth in the traffic of foreign tourists, especially Zlatibor, Moravica, and Toplica. Adequate management and promotion of these destinations on the international tourism market have proven to be quite effective. KEYWORDS tourism, economic evaluation, unbalanced regional development, regional disparities, Serbia FOR CITATIONMicić, J. (2018) Tourism development and regional disparities in Serbia.