Destination management has an increasingly important role in tourist destination development and management. The first part of thesis includes the definition of the goals and the role that the destination management emphasises. Because of the fact that various organizations and individuals operate within a destination, and their interests are often in conflict, a local destination management organization (DMO) plays important role in connecting stakeholders within the destination. The paper seeks to present how DMOs work and also to hightlight the advantages of applying such a model in the management of a tourist destination. It also identifies the key stakeholders that need to be involved in planning and managing the tourism development of individual destinations. Furthermore, an analysis of the Makarska Riviera was conducted, highlighting the comparative and competitive advantages of the destination, as well as its existing tourist offer and demand. After a detailed analysis, the assumptions of the development of the destination management of the Makarska Riviera are considered, which is also the topic of this paper. The main goal of the research is to provide insight into the attitudes and opinions of stakeholders in the Makarska Riviera about their cooperation. The obtained research results indicate that there is an interest of the stakeholders in mutual cooperation and that they notice the advantages of DMO in terms of better tourism management. The results of the thesis can be of great benefit for future research, and therefore can initiate the establishment of local destination management organizations that will manage the development of tourism in Makarska Riviera.