The research investigated the potential application of destination management organization (also known as DMO) in Dubrovnik, and it evaluated the perceptions of the local community on the current destination management practices. Findings revealed that locals perceive existing policies as ineffective, highlighting the need for change. The study suggested that by introducing destination management organization in Dubrovnik, some of the issues could be addressed. The organization should be led by proficient experts that would create and manage long-term strategy for the future of the city. Through qualitative analysis of survey and focus group discussion, the research showed the importance of well-defined strategic leadership and stakeholder cooperation in the creation of DMO. The research identified key areas in which DMO could enhance the destination sustainability, engage the entire community, and improve overall visitor experience. Ultimately, the results advocated for a tailored approach to destination management organization implementation in Dubrovnik, by putting the emphasis on expertise and local input in shaping effective strategic management plans.