Tourist destination is a term that is updated almost daily by creating new segments in order to give the definition which would circled the whole term on what it refers to. Attractiveness and characteristics are what makes a destination special and what should be the starting point in managinig a tourism destination. To make it more responsive to the demands of the market at destination management should adhere to the basic functions of destination management which relate to the functions of planning, organization and control. It is also very important to recognize in which phase of the life cycle of destination are we and what moves should we withdraw in order to achive the greatest possible satisfation of all stakeholders. Sustainable development is a high quality response to the demands placed on the destination management. The way sustainable development in general, and sustainable development of tourism is increasingly becoming a necessary way of thinking when we are creating a tourism product or in this case, when we are planning a tourism destination. To create a destination as a product that offers a sustainable manner it should stick to the principles of environmental sustainability, socio-cultural sustainability and economic sustainability. Istria is well known for tourism and, due tot long-term plans, through all the new planning, development is based on sustainability. This is mostly evident in the development plans and strategical documents issued by the County of Istria and it can also be seenin the European Union as an organization which thorugh its funds stimulates the development primarily focused on sustainability. Through the selected destinations, municipal Medulin and Ližnjan, where one is in a tourist point of view much more developed than other, it is not given a big advantage to any destination since they both have to make a big changes in order to be in step with the current range of tourism products/destinations. In order to fulfill their full potential it is necessary to introduce the concept of sustainability into all levels of planning and implementation, so that it could allow the future generations to enjoy the benefits which we ourselves enjoy.