Although previous research has widely acknowledged the critical role residents play in tourism, limited evidence exists on the impact their interactions with tourists have on tourists’ own image formulation and intention to return/recommend the destination to others. Grounded in the mere exposure and contact theories, this research offers insights into tourists’ destination image formation in light of their interactions with local residents and tourism employees at a destination. Two independent studies were conducted in 2019 to establish the soundness of the model; a preliminary one in the city of Kavala (n = 353) and a follow-up study on the island of Thasos (n = 397), both located in Greece. Findings suggest that interaction between the two parties positively affect cognitive, affective, and conative image, predicting 64% (study 1) and 54% (study 2) of the latter’s variance. Implications to theory and practice along with recommendations for future research are provided.