This paper talks about the role and of importance of the intangible cultural heritage in tourism, with the focus being on islands, more specifically on Cres island. In the paper, the terms such as „tourism“ in a general sense and „island tourism“ are explained, „island tourism“ being a relatively recent subgroup of tourism in the world. The paper presents tourist resources necessary for the achievement, functionality and success of island tourism and possible obstacles for its development. This paper also presents island tourism in national and international proportions, which is supported by many examples of successful island tourism destinations. Economic aspects of tourism are explained through terms such as tourist offer and request and tourist income, focusing on island tourism. The paper gives an explanation on what is a tourist market and how is it different from other types of markets. Furthermore, it states the difference between tangible and intangible cultural heritage, with the subject of research on intangible cultural heritage described in this paper, being Cres island. This paper also describes the work of UNESCO and other similar institutions in the process of recognition, acknowledgement and guarding of the intangible cultural heritage of a certain area. The research has been conducted among the tourists of Cres island, focusing mainly on their interest and knowledge of intangible cultural heritage of Cres and if they have any interest about it.