Considerable variation occurs throughout New Zealand in the organizational and inter-organizational framework for destination management and the ways and extent to which aspects of destination management are undertaken. In some instances all or most destination management functions are carried out by territorial local authorities (city and district councils); in others, a more complex set of structural arrangements are found in which the role of councils is complemented by the work of regional tourist organizations (RTOs), economic development agencies and macro-regional marketing alliances. The destination management landscape is dynamic: from time to time the respective functions of councils and RTOs may be expanded or pared back; RTOs periodically move inside and outside of council structures; occa- sionally they disappear altogether. This variation and state of flux suggests there is an ongoing tension regarding destination man- agement as each destination seeks to find the most appropriate structure. This article seeks to explain why these structural differences arise and to examine the benefits and disadvantages of particular structures. These issues are analyzed by taking a functional approach, one which views functions as the building blocks of destination management, takes into account a range of associated functions and considers the various organizational structures through which these are delivered. In doing so, it moves