Revisit intention and positive word of mouth recommendation have been regarded as indicators of destination loyalty. This study considers antecedents of loyalty based on literature review and examines the significance of image, as one of the basic elements in tourist destination. The objective of this study was to assess destination loyalty by examining the influence of satisfaction and image factors on international tourists who had visited Penang. Research findings indicated that there was a strong relationship between satisfaction, image and destination loyalty. In this study, it was found that ‘friendliness of people’ was significant for foreigners while ‘cleanliness of environment’ was not significant. It was also found that foreigners who were satisfied with image factor were willing to recommend Penang to others.