Dubrovnik is one of most visited cruise ports in the Eastern Mediterranean. Development of cruise tourism in a destination brings positive and negative effects. Local authorities in Dubrovnik implemented a set of regulations and limitations directed at cruise tourism activities in order to establish sustainable and responsible destination management practices. This research investigated the residents’ perceptions on Dubrovnik Cruise Tourism and Public Policy in an online survey. The results indicated that the residents perceive cruise tourism positively in terms of destination promotion and economic contributions, but negatively in terms of traffic, overcrowding and water quality in the City. Despite acknowledging both positive and negative effects of cruise tourism, the residents are not aware of public policy that restricts cruise tourism activities. Some of the results also showed that residents remain neutral when asked about cruise tourism and public policy because the regulations are not clearly communicated. The effectiveness of the public policy was shown dissatisfactory and the results suggest that the public policy is not prioritized in daily practices.