The main aim of the paper was to analyse the current situation of tourism development in the Sudety Mountains municipalities. This led the authors to establish the prospects of the future growth possibilities. Butler’s Tourism Area Life Cycle theory was applied. The main research method was based on statistical data of the Central Statistical Office of Poland, with reference to entities in the REGON register and newlybuilt tourism accommodation establishments. The results show that there are no municipalities at the exploration stage, and there are only two at the involvement stage. The most important tourist and spa resorts (Karpacz, Szklarska Poręba, Kudowa-Zdrój, Polanica-Zdrój) are at the maturity stage, which is the result of slowing dynamics of the tourist economy. Unfortunately, the majority of the analysed municipalities are on the decline.