The tourism sector plays a strategic role in promoting regional economic growth and enhancing the competitiveness of local destinations. Klayar Beach in Pacitan Regency, East Java, is recognized as one of the region's flagship natural attractions due to its distinctive Sphinx-like coral formation, ocean flute phenomenon, and coastal landscape. Despite its considerable tourism potential and national recognition, visitor numbers have declined over the last three years, indicating the need for a more effective destination development strategy. This study aims to analyze the strategy implemented by the Pacitan Regency Department of Tourism, Culture, Youth, and Sports in developing Klayar Beach using Fred R. David's strategic management framework, which consists of strategy formulation, implementation, and evaluation. A descriptive qualitative approach was employed through observations, semi-structured interviews, and documentation. Data were analyzed using the interactive model of Miles, Huberman, and Saldana, while data credibility was ensured through source, technique, and time triangulation. The findings reveal that the agency has optimized destination development by strengthening promotional activities, improving tourism facilities, enhancing stakeholder collaboration, and increasing community participation. However, several constraints remain, including limited financial resources, infrastructure challenges, human resource capacity, and environmental risks that affect destination performance. Although the implemented strategies have demonstrated measurable progress, they have not yet succeeded in achieving the targeted level of tourist arrivals. Therefore, continuous strategic evaluation, innovation, and stronger inter-institutional collaboration are essential to improve the sustainability and competitiveness of Klayar Beach as a leading tourism destination in Pacitan Regency