Destination Marketing Organizations CH 8 PDF

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DESTINATION MARKETING ORGANIZATIONS CH 8 Tuesday, April 18, 2017

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12:40 PM

Destination Marketing Organizations (DMOs)

○ WTO defines DMOs as the organizations responsible for the management and/or marketing of destinations. § Categories: □ National Tourism Authorities or Organizations, responsible for management and marketing of tourism at a national level; □ Regional, provincial or state DMOs, responsible for the management and/or marketing of tourism in a geographic region defined for that purpose; □ Local DMOs, responsible for the management and/or marketing of tourism based on a smaller geographic area or city/town. •

Organizational Structure of DMOs

○ a government department or a division of a government department ○ a quasi-governmental organization (such as a crown/government corporation) ○ a joint public/private agency ○ a not-for-profit membership-based organization ○ private organizations •

Funding for DMOs

○ Depends on the organizational structures: § government allocations of public funds § specific tourism taxes or levies such as hotel/room taxes § User fees § allocations from gambling and lotteries § membership fees paid by tourism organizations § sponsorship and advertising in destination promotional activities i i f b ki d l

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§ commissions for bookings and sales § commercial/retail sales at visitor centers § in-kind contributions to host travel writers and meeting planners The "M" in DMOs- Marketing or Management? ○ Current practice: many DMOs concentrated solely at destination promotion ○ The role of DMOs has strengthened and spread as destinations have attempted to play a more proactive role in fostering and managing the benefits of tourism development. § The “M” should stand for management rather than marketing 5 Key Functions of DMOs ○ an economic driver: generating new income, employment, and taxes contributing to a more diversified local economy ○ a community marketer: communicating the most appropriate destination image, attractions, and facilities to selected visitor markets ○ an industry coordinator: providing a clear focus and encouraging less industry fragmentation so as to share in the growing benefits of tourism ○ a quasi-public representative: adding legitimacy for the industry and protection to individual and group visitors ○ a builder of community pride: by enhancing quality of life and acting as the chief “flag carrier” for residents and visitors alike. The Fundamental Functions of DMOs ○ External Destination Marketing: § to include all activities aimed at attracting visitors to the destination. ○ Internal Destination Development: § encompassing all other forms of activity (apart from marketing) undertaken by the DMO to develop and maintain tourism in the destination National Tourist Offices ○ A NTO is the organization officially responsible for the marketing and development of tourism for a country. ○ Examples include the Australian Tourist Commission British Tourist

○ Examples include the Australian Tourist Commission, British Tourist Authority, Canadian Tourism Commission, China National Tourism Administration, Irish Tourist Board, Singapore Tourism Board, South African Tourism (SATOUR), and Tourism New Zealand. • Roles of National Tourist Offices in Foreign Countries (FOCUS ON INBOUND INTERNATIONAL TOURISM PROMOTION)

1. Image creation and enhancement 2. Literature distribution and fulfillment 3. Marketing research and database development 4. Package and tour development 5. Partnership development 6. Consumer marketing and promotion 7. Travel trade marketing and promotion • State, Provincial, Territorial Tourism Organizations ○ An STO/PTO/TTO is the organization officially responsible for the marketing and development of tourism for a state, province, or territory. ○ U.S. examples include the California Division of Tourism, New York State Department of Economic Development, Tennessee Department of Tourist Development, Texas Tourism Division, and Visit Florida. • Local Tourism Organizations ○ U.S. has developed a network of convention and visitor bureaus (CVBs) at the county and city levels, many funded through room taxes. ○ Traditional CVB role to attract MICE (meetings, incentives, conventions, and exhibitions). Recently, CVBs placing more emphasis on group and individual travelers. ○ In other countries, LTOs tend to receive more direct government funding (e.g., London Tourist Board and Convention Bureau, England)....