The dynamics of tourism in the global economy define a series of realigning with social and political implications. Changing trends and demand in tourism are proof that this is a “heavy industry” for development at national and regional level especially at traditional destinations. The development of tourism benefits from an effective policy scheme. The development of the tourism product in Greece during the last two decades was heavily based on the model of mass tourism. The product diversification pursued through special and alternative forms of tourism needs a coherent developmental policy in order to gain a competitive advantage in the international tourism clientele. The aim of the research is the examination of the reactions expressed within the central government structure regarding a potential sport tourism development on the traditional tourism destination of Crete as part of a rejuvenation strategy. The analysis produced valuable insight into the role of government in policy making for the development of sports tourism. The study extends to the examination of related stakeholders interaction with the central tourism making mechanisms proving that the process of sport tourism development is a challenging process.