The main purpose of this graduate thesis is to point out the importance of building a tourist destination brand considering current market trends and competitiveness growth. Although the concept of branding has been widely applied to products and services, tourism destination branding is a relatively new phenomenon. A growing number of cities worldwide are seeking to revive and build a positive image. Namely, if they want to operate in a long term, attract target market segments and other stakeholders, it is necessary to create strong brands based on their own identity. The thesis presents theoretical aspect of the tourist destination and its importance. It also explains the process of creating and managing a destination brand, emphasizing the importance of these activities and the need of sustainable development. Also, some positive examples of countries are presented that have achieved high level of market recognition through successful brand creation and management. In order to point out the unused potentials of Kaštela town, within the scope of survey research are presented all the usable resources and destination icons on which the brand can be built. Also, empirical research was conducted through in-depth interviews with the destination stakeholders. The interviews revealed current state and image of the city in the market, the level of stakeholder’s awareness of the destination potential and the importance of creating and managing the brand. Analysis of the results indicates that Kaštela does not have recognizable image on the market and stakeholders are familiar with the state of the city. Therefore, in the future, city needs to take concrete activities of building and managing the destination brand in order to improve the business and achieve desired results.