Tourism, as an industry, has a great impact on society and the environment. It adds to economic growth; and therefore, many governments try to enhance tourism because they realise the potential economic returns. Within each country, there are towns or cities that have great tourism potential. In South Africa, Knysna is a good example of a small town with great tourism potential. This study examines the critical success factors of tourism destination marketing for the town of Knysna. Most South Africans see Knysna as an ideal holiday destination, as it has the infrastructure and offerings to make tourists' holidays unforgettable. However, unfortunately, in recent times bad publicity has caused Knysna's image to be damaged. To improve the town's image and to add to its economic growth, tourism bodies and the community have had to work together to ensure that Knysna sustains its position in the national and international tourism markets. The best way to achieve this is through effective destination management and destination marketing. The aim of this study is to determine how effective destination management and destination marketing can lead to competitive growth and to enhancing a destination's position in the tourism industry, and also to providing a set of practical guidelines for the successful implementation of the destination marketing of the town of Knysna. A literature study was conducted to find out what the theory reveals about destination management and marketing. This was followed by an empirical survey; and this survey was conducted in Knysna in the Western Cape. The results of the survey were compared with the literature and tourism operators and managers can now use these as a point of departure to fill any gaps, thus leading to the optimal positioning of Knysna on the international tourism map.