Determining destination competitiveness is vital to appraise the performance of a destination compared to its competitors. With the rapid growth in the tourism industry and optimistic travelling trends, the destination competitiveness concept brings tourism economics theory and practices into sharper focus. The purpose of this study is to design performance-based destination competitiveness measurement for tourist destinations, grounded by competitiveness theory. This article asserts that a significant measurement of destination competitiveness is performance. The article integrates previous research in the field and proposes a conceptual framework of performance-based destination competitiveness. Indicators of tourism performance and future research directions are also presented.