To modernize their business, marketing and promotion, tourist communities should function as a destination management organizations (DMO). The DMO is a body that brings together public institutions, private sector stakeholders and experts in order to strategically and operationally manage the destination and to achieve a common, previously agreed vision. The DMO's business mission is to develop and promote the destination through coordination and management of key activities such as financing, planning, marketing, decision making and implementation as well as product development at the destination. DMO uses Internet technology in its business. The paper uses successful examples of using internet technologies in tourism in destinations around the world in order to emphasize their importance and give an example to Croatian DMOs. The future of DMO's competitiveness is a smart destination. They developed from the concept of smart cities whose popularity in the world is growing rapidly day by day, primarily because of cost reductions and ease of life. The paper answers the issues where Croatia is in terms of smart destinations and its potential for development in that direction.