The importance of tourism sector has been increasing much more every passing day. The countries, for utilizing the economic benefits of tourism sector, produce policies and search for the ways for more tourist to visit their countries. At this point, identification of factors determining the tourism demand has importance in terms of the policy makers in tourism sector. The aim of this study is to determine what the factors affecting the demand of tourism in Northern Cyprus Turkish Republic (NCTR) are and, according to the findings obtained, to make suggestions of policy. In this regard, we aim to analyze whether the variables ofprice relationship, supply capacity, and exchange rate are effective on the tourism demand has been determined by means of MS-VAR method. In the framework of model established, the obtained results suggest that in the periods of contraction, the effects of GDP on tourism is statistically and theoretically significant, while in the period of expansion, the effects of inflation, exchange rate, and GDP are the significant on tourism demand of NCTR. It has been concluded that the supply capacity is insignificant in the periods of both contraction and expansion in terms of tourism demand.