For economic development, tourism sectors play a great role for countries like Ethiopia. As international tourism continues to develop from time to time, it is necessary to maintain the tourism sector for generations. Consequently, qualified tourist destination becomes one of the best tools to satisfy customers. The purpose of this study is to assess customer perception on service quality and their satisfaction level in tourist destinations. This study was used the five dimensions of SERVQUAL model, namely; tangibility, reliability, responsiveness, assurance, and empathy having 22 attributes to measure service quality Gap between expectation and perception using likert scale in tourist destinations. Cross sectional study is conducted using convenience sampling technique from a total of 123 respondents. The collected data was analyzed using gap analysis method to the mean difference between perception and expectation of each service quality dimensions. Findings showed that the empathy dimension scored high in terms of customer expectation but it scored the last in perception after the actual experience of the customers. This creates high negative mean gap in service quality between expectation and perception. Generally in three dimensions; empathy, tangibility and responsiveness scored negative and the remaining two scored positive mean gaps. Furthermore the aggregate mean gap between perception and expectation is negative. The negative gaps represent expectation is higher than perception and a reverse is true for positive gaps. Paired t-test was applied to test the significant difference between expectation and perception in each attributes. Hence, seven attributes was found insignificant which represents as good sides of the destination and the remaining showed that significant difference which are a weak sides. To conclude, customers' expectations have somehow exceeded from the actual perceptions and have an effect on the overall satisfaction of customers. Finally, it recommended that the destinations have to focus on the negative gap attributes in each dimension which show significant difference between mean of expectation and perception so as to improve the service quality and to enhance the satisfaction of customers.