25 Dec The Evolution of Destination Marketing Organizations and a Need for a New Business Model
The Evolution of Destination Marketing Organizations
and a Need for a New Business Model
The United Nations World Tourism Organization (UNWTO) has recently released a report titled “The True Value of Meetings,” in which was stated that the goal of Destination Marketing Organization (DMO), such as Convention Bureaus that its purpose is not simply attracting exhibitions and participants to make them book hotel rooms, but rather to develop the overall economy of a city and to improve the quality of life of the citizens. In particular, the report emphasized that the traditional CVB model is no longer valid and a new model is needed to revitalize the local economy.
The UNWTO recommended the use of tourism satellite accounts to measure the economic effect of the meetings industry. The United States, Canada, Mexico and the United Kingdom have measured their economic impact of the meeting industry through the use of the UNWTO’s Tourism Satellite Account, and it was pointed out that approximately 50% of the direct expenses for meetings do not include expenses related to other industries (such as venue rental, sound equipment, meeting planning, translation. interpretation and other expenses related to the hosting of events. In other words, the meeting industry should no longer be recognized as a sub-industry of the tourism industry.
The Destination Marketing Association International (DMAI) also recognizes that the role and scope of the City Marketing Organization (DMO) has expanded to become more relevant to the local economic development. It also reported the findings in “DestinationNEXT: The Strategic Roadmap for Next Generation of Global Destination Marketing”. The report recently stated that DMOs tend to collaborate with local chambers of commerce, agencies for economic development, governments, airports, convention centers and other civic groups with the aim of becoming attractive destinations for residents, businesses, visitors, new investments and developments. The report now argues that it’s important for DMOs to work with Economic Development Organizations (EDO).
What these two institutions (UNWTO and DMAI) have in common is that the strategies of the city marketing organization or convention bureau over the past two decades have been focused on the short-term goal of reeling in as many participants as possible to MICE events, but now the DMOs previous strategy is no longer valid.
The meeting industry can no longer be seen as a sub-sector of the tourism industry. DMOs now need a simpler, more powerful and focused strategy because destination marketing focuses on the greater goal of economic development rather than tourism. As the MICE industry grows, interaction with local communities also increases. A deep understanding of the local industry is needed to gain the support needed for the MICE industry to grow and prosper. To do this, it is necessary to establish a close relationship between the DMO and the EDO.
The relationship between the DMO and EDO is critical not only in terms of tourism, but also in terms of the overall economic development of a region. This is due to the shared goal the two organizations have for improving the local economy and the quality of life for local residents, that provides the background for which the collaborative efforts between the organizations can occur. The DMO is now moving away from its past role as a sub-sector of the tourism industry, such as filling up hotel rooms and attracting tourists. The ultimate goal should be to actively to attract MICE events through active cooperation with EDO and put the city’s economic development as a priority.