Tourism is an important driver of socio-economic development and poverty reduction. One of the most dynamic and resilient economic activities, tourism is a catalyst for job creation and can stimulate the development of infrastructure and public services. Thanks to its job-creating capacity, tourism plays a major role in developing the often overlooked potential of rural areas. Its significant multiplier effect on all economic sectors such as agriculture, manufacturing, construction and transport, can greatly contribute to the economic diversification of rural regions and to local economic development. This article analyzes the development of rural tourism as a factor for diversification of the rural economy. It reveals conditions and preconditions for the emergence of rural tourism, its promotion and development through multifunctionality concepts and diversification of agriculture. The article examines the history of emergence and development of rural tourism. The article also provides a framework showing how tourism activities impact the travel experience, but also on local development seen in terms of the economy. Rural tourism plays an important role in the economy and thus it should not be overlooked. Rural tourism has suffered because of the recession with increasingly more people choosing this form of tourism to recreate, to move away from the crowded areas of the country.