Tourism Economics, 2015, 21 (4), 741–759 doi: 10.5367/te.2014.0381 Economic valuation of tourism destination image MARÍA M. CARBALLO, JORGE E. ARAÑA, CARMELO J. LEÓN AND SERGIO MORENO-GIL Institute of Tourism and Sustainable Economic Development (TiDES), Universidad de Las Palmas de Gran Canaria. (Corresponding author: Jorge E. Araña, Facultad de Economía, Turismo y Empresa, Campus Universitario de Tafira S/N, Universidad de Las Palmas de Gran Canaria, 35017 Las Palmas, Spain. E-mail: jorge.arana@ulpgc.es.) This paper develops a novel methodology for estimating the value of destination image, which incorporates two principal advantages over the methods used to date. First, it allows tourism destination image to be assessed in economic terms, so a formal cost–benefit analysis can be executed to ascertain whether or not a specific marketing action should be implemented. Second, it enables a dis- entangling of the economic assessment of tourist destination image in terms of destination attributes. This can be used to design mar- keting actions aimed at optimizing marketing efforts to enhance a destination’s image. Keywords: economic assessment; destination; image; economic valua- tion The difficult situation in which many destinations are currently arising from factors such as the unfavourable economic climate, more discerning tourists, the rise of new, competing destinations and the resulting increase in promotional activities by both established and new destinations and has caused major concerns among destination marketing organizations (DMOs). 1 DMOs have concentrated on projecting a favourable image as a distinguishing factor for destinations so that potential visitors will view visiting the destination as an attractive option and decide to go there. Destination image differentiates one destination from another and constitutes a key determinant of a successful destination (Cai, 2002; Qu et al, 2011). Previous evidence shows that destination image is useful in assisting DMOs to measure achievements and is a significant factor in determining visitor choice (Ekinci and Hosany, 2006; Qu et al, 2011), However, creating a successful The authors fully acknowledge financial support for this work from the European FEDER Fund through Project PI2007/040 from Agencia Canaria de Investigación, Innovación y Sociedad de la Información in 2009 and under the declaration of Canary Islands as “Objetivo de Progreso”.