This paper aimed to check the potential of domestic tourism in light of the COVID-19 pandemic. For this purpose, existing research and secondary data were analyzed, and an independent online survey was conducted among citizens of the Republic of Croatia. The conclusion on whether domestic tourism has the potential to mitigate the considerable decline recorded in foreign arrivals of tourists and thus help the faster recovery of the tourism sector of the Republic of Croatia was reached by considering the insights obtained from all these sources. It was concluded that domestic tourism certainly could not fully compensate for the decline in international arrivals because the share of domestic tourism in Croatia's total tourism activity is relatively small. However, there is undoubtedly the potential to mitigate the marked decline observed in international tourist arrivals by encouraging domestic tourist consumption. Namely, as it turned out, the majority of the respondents in the sample have the desire to travel around the country, with the price factor as a fundamental factor in choosing a tourist destination at the time of COVID-19, and at the same time, a negative perception of the affordability of the domestic tourist offer. The Croatian government could achieve this goal by reducing the VAT rate in tourism and approving vouchers for touristic travels.