Abstract: The Balaton region is the most popular tourist destination in Hungary among domestic travellers, and the second most visited destination for foreign guests. The largest lake in Central Europe awaits visitors all year round, with a tourist offer to each seasons, unique natural and cultural attractions and programs as well. Seasonality is still a major problem. The goal is to find solutions to ensure a high quality of life and working environment for the local residents living and working in the region throughout the year and also to increase the length of stay of tourists visiting the Lake Balaton area and the development of institutions and organizations that can respond flexibly to changing needs. The concept of Circular Economy has possibilities for tourism industry to achieve higher sustainability in hotel, food and spa services and the material flows of energy and water. The tourism industry has to address environmental problems and carry out the transition to a circular economy. The outbreak of the pandemic has been putting unprecedented pressure on EU tourism ecosystem as well. The implementation of Circular Economy principles can contribute to more positive impacts in tourism industry