Competitiveness for tourism destinations has become an important issue and increasingly demanding due to the impact of globalization. Therefore, there is a crucial need for a clear understanding of the tourism destination's ability to compete effectively in the international market context. Tourism destinations' competiveness can be enhanced through different development strategies, for instance; with destination image as being one of the main sources of sustaining a competitive advantage. This research paper aims to analyze the elements that influence the overall destination's image, emphasizing on Muscat as a promising tourism destination and to examine a model of consequences and antecedents of the destination image. An empirical survey was conducted by using a random selection technique for inbound tourists who visited Muscat in 2013-2014. The results indicate the level of image importance in the process of creating tourism marketing policies for the case of Muscat, which might have implications on the destination's competitiveness. Finally, the paper shows the need for further researches about the determining factors (economic, social, cultural ....... etc.) that could have specific impacts on positive image formation.