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The aim of the paper is to explain how application of marketing and branding principles contributes to effective management of destinations under conditions of globalization. The paper emphasizes the importance of understanding of tourists’ behavior model, with special focus on importance of destination image in process of decision making on destination choice. Case of the city of Rovinj was presented as good practice example in development of destination brand. In order to get the answer to the question where BiH is located in comparison to other countries of the Western Balkans in regard to the most important tourism indicators, findings of relevant research of the World Tourism Organization and the World Economic Forum were presented. In the last part of the paper, some of the shortcomings that usually arise in the process of destination management in BiH were presented, with recommendations how they can be overcome in accordance with the principles of destination marketing and branding, in order to better utilize tourism potentials in BiH.

DESTINATION BRANDING AIMED AT INTERNATIONAL AFFIRMATION OF TOURISTIC POTENTIALS OF BiH