Today's evolving macro environment conditions are characterized by hyper-production and hyper-competition. Remaining competitive requires differentiation through utility and emotional values, which is made possible by branding. Destination branding brings multiple benefits. Primarily helps achieve desired market placement and consequently builds an emotional connection with tourists that leads up to creating a sustainable competitive advantage. In order for the branding process to be successfully implemented, it is necessary to develop a strategic framework for communicating the values present in the foundations of the brand. Effective implementation of destination branding strategies presupposes the interactive involvement of the public and private sectors. The aim of this paper is to point out the importance andpotential of branding of Croatian islands. To this end, a secondary andprimary survey was conducted, i.e. an analysis of selected statistical indicators and a survey of managers of tourist boards on the islands of Cres, Mljet and Rab. The contribution of the research stems from the conclusion that the strategically driven branding process is a prerequisite for year-round tourist attendance.