The aim of this paper is to review the concept of benchmarking with emphasis on its strengths and weaknesses and the methods by which it can be applied to tourist facilities and destinations. To achieve its aim, the paper presents several approaches to the benchmarking and benchmarking development. In doing this, it examines the perceived benefits and costs of benchmarking and the implementation process. It then examines the different benchmarking methods using qualitative and quantitative research to identify performance gaps. From this, weaknesses of past benchmarking research are addressed. Finally, it analyses the development of benchmarking within the tourism industry together with some examples and its limitations.