The European tourism indicator system is specifically intended for tourism destinations. It is designed as a locally owned and led process for monitoring, managing, and enhancing the sustainability of a tourism destination. It has been developed as a result of lessons learned from previously existing indicator system initiatives and fine-tuned as a result of feedback collected from field testing, in a number of different destinations in Europe. The system is made up of a set of Indicators, a toolkit, and a dataset. It is drawn up as an instrument that any destination can pick up and implement without any specific training. It can be a useful way to track destination performance and make better management decisions, as well as influence adequate policies. The present system has a structure of 27 core and 40 optional indicators. These can be used on a voluntary basis, together or integrated into existing destination monitoring systems. The system is flexible. It can be expanded or contracted to meet the needs of the destination, the interest of local stakeholders, and the specific sustainability issues that the destination faces. The basic principle of the indicator system is that destination responsibility, ownership, and decision-making is shared. Engaging a group to come together and work together to collect and report information is a powerful way to undertake effective destination management.