Destination Development: The Role of DMOs/Tourism

THE DEVELOPMENT TEAM

Principal Investigator Prof. S. P. Bansal

Vice Chancellor, Indira Gandhi University, Rewari

Co-Principal Investigator Dr. Prashant K. Gautam

Director, UIHTM, Panjab University, Chandigarh

Paper Coordinator Prof. Nimit Chaudhary

Head of Department, Hotel, Hospitality & Heritage studies,

Jamia Millia Islamia

Content Writer Sushma J. Maligi Junior Research Fellow, Tourism Studies, IGNOU, New-Delhi

Content Reviewer Prof. Monika Prakash

Nodal Officer, IITTM , Noida

Paper 13: Destination Management Module 04: Destination Development: The Role of DMOs/Tourism

Development Corporations

TABLE OF CONTENTS

1. Introduction

2. Learning outcome

3. Developing a destination

4. Introduction in destination management

5. Role of DMO’s

6. Developing a product

7. Ensuring safety and security

8. summery

ITEMS DESCRIPTION OF MODULE

Subject Name Tourism And Hospitality Management

Paper Name Destination Management

Module Title Destination Development: The Role of DMOs/Tourism

Development Corporations

Module Id Module no-4

Pre- Requisites Basic understanding of Tourism Development

Objectives To understand the importance and role of Destination Management

Organizations and Tourism Development Organization’s in

developing the destination

QUADRANT-I

1. Introduction

The act of travelling for varied purposes has been remained an impervious preference.

The tourism industry has undergone strides of changes over the period of time. The

travel and tourism industry has faced various challenges globally yet, the statistical

evidence has been very encouraging as it has recorded a positive growth in the

international tourist arrivals and the economic gains. But these figures don’t actually

promise a safer and brighter future as the global economic, social, political,

environmental setbacks and volatility remain major issues. The changing preferences

and profiles of the international travellers have given rise to new destinations in the

developing regions and have had a significant impact on the existing ones. While the

business of tourism focused on attracting many tourists in the past the focus has now

shifted to have a sustainable growth to minimize and defy the harm it caused. The

destination managers have shifted the focus from rapid success with short term yields

to have a long term sustainable planning. The policy makers also are facing the

challenge of varied change drivers in the industry which is affecting the destinations

and their source markets. This calls for a refinement in the existing development

techniques. The development of the destination has to be planned pragmatically

taking into consideration the many faceted impacts to minimize the negative impacts.

The Destination Management Organizations and the Tourism Development

Corporations have a major role in delivering the same. The destinations need to be

assessed suitably to recognize its distinctive offerings. The attractions could be

carefully crafted into a valued product which would benefit the visitors by providing

a fulfilling service along with a lasting memory and most importantly an unparalleled

thematic experience.

2. Learning Outcome

After completing this unit, you will be able to understand

The importance of developing a destination

The role of Destination Management Organizations (DMOs) and the Tourism

Development Corporations in developing the destination

The need of formulating a thematic tour product and ensuring safety and

security while conducting the same

3. Developing a Destination

A destination in its simple sense would mean “the place to which someone is going or

something is being sent”. The source is the place where you start the journey and the

destination is ideally where you wish to visit. A local tourism destination is a physical

space in which a tourist spends at least one overnight. It includes tourism products

such as support services and attractions and tourist resources within one day’s return

travel time. It has physical and administrative boundaries defining its management,

and images and perceptions defining its market competitiveness (UNWTO,

2011).The boundaries of the destination depend upon the market in which it is served

and marketed. The entire country may be termed as a destination in one context or it

may only be one single monument or a national park. A large destination, such as

country which has earned its own brand image, can contain many separate

destinations within it, such as resorts, commercial towns or the set rural areas. While

the term ‘site’ significantly overlaps the term destination, it tends to center on a

particular place bound by physical and cultural characteristics (Strange, Brown,

Solimar International, 2012). Many sites often inhabit in a single destination such as

multiple palaces and forts at Jaipur.

Tourism is now the world’s largest economic sectors. It is projected that the growth is

unwavering in the coming decade. This may be economically productive but is it

equally contributing positively on the other ends? While an overcrowded tourist

destination brings a relief to the local service providers, it also brings in a concern

from the environmentalists and a sigh from the locals. It may also demotivate many

tourists to look out for other place. Tourism growth thus confronts destinations with

both opportunity and stress. A traditional tourism approach would mean short term

earnings outranking the long term impacts on the destinations. Improper development

it lacks a regulatory framework. It is not planned integrating the various stakeholders

in the industry. The increased footfalls exert direct pressure on the fragile ecosystems.

It is compelling for the destination managers to understand how many tourists are too

many tourists as it will dilute the experience quality per tourist. Resource

exploitation, over or imbalanced development, pollution and economic instability

would foster community frustration.

With the lack of careful destination planning and management, the negatives

outnumber positives. The issue doesn’t just limit to overcrowding. Reckless

development harms the environment, degrades scenery, disrupts local culture, and

channels tourism revenues away from local communities. Delicate historic,

archaeological, and natural sites suffer physical wear and tear. Oil residue from hands

and fingers slowly erodes aging limestone blocks and gypsum walls. On coral reefs

clumsy divers bump into living polyps, crush them with flippers, or bury them under

kicked-up sand. In caves, even carbon dioxide from too many human exhalations can

chemically alter both rock formations and prehistoric paintings. Entire landscapes fall

victim to resort and vacation home sprawl, and developers force out native residents.

Every destination differs and so does the approach vary. The state of the destination is

of a great importance to understand and design its development plan. Is the

destination economically well or ill? Whether the locals understand the importance of

tourism and take part or are they reluctant towards it? What tourist profile is apt for

the place? Are the local service providers are benefitted by the activity is what is to be

understood. When an attraction such as a popular national park or renowned cultural

monument is involved, impacts depend a lot on tourist interaction with neighboring

towns, called gateway communities. So good management means thinking about the

destination as a whole — not just the protected site, but also its human, natural, and

cultural settings. These ailings would not just imply additional policies, planners or

the destination managers. It calls for a refined principles and techniques. These can be

mitigated if the destination embraces the sustainable development model.

The UNWTO has defined sustainable tourism as an “enterprise that achieves a

balance between the environmental, economic, and socio-cultural aspects of tourism

development so as to guarantee long-term benefits to recipient communities”.

According to UNWTO, it should:

Make optimal use of environmental resources, maintaining essential ecosystems

and helping conserve biodiversity

Respect socio-cultural authenticity, conserve built and living cultural heritage,

and contribute to cross-cultural understanding and tolerance

Ensure long-term socio-economic benefits, fairly distributed to all community

stakeholders, including stable employment and income-earning opportunities,

social services, and poverty alleviation

This is commonly called the triple bottom line for sustainable development:

environmental, economic, and cultural returns on investment. Some identify a fourth

benefit of well-managed tourism: public education for both visitors and residents to

deepen understanding of cultures and ecosystems, though this is also a cultural

benefit.

4.1 Introduction to Destination Management

The business of tourism is complex and fragmented and from the time that visitors

arrive in the destination, until they leave, the quality of their experience is affected by

many services and experiences including a range of public and private services,

community interactions, environment and hospitality. In the present era which is

more volatile and an ever changing environment of tourism industry, the destinations

have to deliver wonderful experiences and excellent value to Visitors to compete

effectively. But at the core of these experiences and values lies the destination which

enables that. The destination is made up of certain basic elements which attract the

visitor to the destination. It assures to serve the visitors by satisfying their needs. The

quality and the standard of the elements provided influence the decision of the

visitors to plan their trip. Destination management thus calls for coalition of many

organization and interest to develop and manage the elements of a competitive

destination. The elements are illustrated below. (Fig.)

Fig. The elements which form the destination

Source: UNWTO, 2011

Attractions: These are often the focus of visitor attention and may provide the initial

motivation for the tourist to visit the destination. These can be categorized as natural

(e.g. beaches, mountains, parks, weather), built (e.g. iconic buildings such as the

Eiffel tower, heritage monuments, religious buildings, conference and sports

facilities), or cultural (e.g. museums, theatres, art galleries, cultural events). They

could be in the public realm such as a nature park, cultural or historical sites or could

be community attractions and services such as culture, heritage or lifestyle. Other,

less tangible factors, such as uniqueness and emotional or experiential triggers are

also attracting tourists to destinations.

Amenities: These are the wide range of services and facilities which support the

visitors’ stay and include basic infrastructure such as utilities, public transport, and

roads as well as direct services for the visitor such as accommodation, visitor

information, recreations facilities, guides, operators and catering and shopping

facilities.

Accessibility: The destination should be accessible to a large population base via

road, air passenger services, and rail or cruise ships. Visitors should also be able to

travel with relative ease within the destination. Visa requirements, ports of entry, and

specific entry conditions should be considered as part of the accessibility of the

destination.

Image: A unique character or image is crucial in attracting visitors to the destination.

It is not sufficient to have a good range of attractions and amenities if potential

visitors are not aware of this. Various means can be used to promote the destinations

image (e.g. marketing and branding, travel media, marketing).The image of the

destination includes uniqueness, sights, scenes, environmental quality, safety, service

levels, and the friendliness of people.

Price: Pricing is an important aspect of the destination’s competition with other

destinations. Price factors relate to the cost of transport to and from the destination as

well as the cost on the ground of accommodation, attractions, and food and tour

services. A tourist’s decision may also be based on other economic features such as

currency exchange.

Human Resources: Tourism is labour intensive and interaction with local

communities is an important

aspect of the tourism experience. A well-trained tourism workforce and citizens who

are equipped and aware of the benefits and responsibilities associated with tourism

growth are indispensable elements of tourism destination delivery and need to be

managed in accordance with the destination strategy

Destination management has been in the discussion and execution from couple of

decades ago. The concept has been introduced due to increasing demand for tourism.

As the number of travellers has increased over the period of time, the need to supply

and cater to the needs of the visitors in creative and innovative ways has pressurized

the supply side as well. This has forced to strike the balance between safeguarding the

resources and to tactfully benefit from the existing resources. These changes have

compelled the need for the Public and the Private actors of the tourism supply to

manage the flow of tourist, tourism activities and its consequences from a coherent,

integrated and qualitative perspective (UNWTO, 2011).

Destination management is a process of leading, influencing and coordinating the

management of all elements and aspects of a destination that contribute to visitor’s

experience, taking into account the needs of the visitors, local residents, businesses

and environment. It is equivalent to a strategy and action plan for the sustainable

tourism in a destination.

An effective and systematic destination management plan represents a key strategy

for the destinations of all levels right from the emerging ones to the mature ones. It

helps in satisfying the ever increasing demand of the visitors, ensures sustainable

development and to gain the positive implications. As it might help to gain a strong

position in the global market, accordingly it shall assist in holding the same in a

sustained manner or it might help the destination to get back the lost position of the

destination the global market. Ritchie and Crouch have summarized the objectives of

the destination management (fig.ii).

Fig.ii Objectives of destination management approach

Source: Ritchie and Crouch, 2003

While the concept of destination management has gained a wide acceptance

theoretically, its diffusion, understanding and use among the tourism stakeholders is

relatively low. Understanding the importance of destination planning and

management at Public, Private and by all the suppliers at the ground level is the need.

The tourism organizations are not completely aware of the important role they have in

creation and management of the tourism resources out of the local supply, their

influence on the destination image by their services and especially on the visitors’

experience. There is very limited consciousness on formulating the product through

interactions which might ultimately determine the destination competitiveness

(Manente, Minghetti, 2006). Here arises the need for the Destination management

organizations (DMO) that rely on holistic destination management. The destination

management approach is summarized below fig.iii

Fig. iii : Destination Management

Source: UNWTO, 2011

The elements of the destination are supported by marketing to get people to visit in

the first place and delivery of services on the ground to ensure that expectations are

met at the destination. Underlying

These activities are the need to ensure a suitable environment, (physical, social and

economic). The DMO will help in assuring the same by strong and competent

leadership and co-ordination. The DMO activities should ensure destination

promotion as well as support to the visitors, Small Medium and Micro Enterprises

(SMMEs).

4. Role of Destination Management Organizations (DMOs)

The Destination Management Organization is the leading organizational entity which

may encompass the various authorities, stakeholders and professionals and facilitates

tourism sector partnerships towards a collective destination vision. The governance

structures of DMOs vary from a single public authority to a public/private partnership

model with the key role of initiating, coordinating and managing certain activities

such as implementation of tourism policies, strategic planning, product development,

promotion and marketing and convention bureau activities. The Destination

Management Organisations do not control the activities of their partners but bring

together resources and expertise and a degree of independence and objectivity to lead

the way forward. It follows that DMOs must develop a high level of skill in

developing and managing partnerships.

In the past (and in most cases still today) Destination Management Organizations

(DMOs) were focused on marketing. Due to the recent developments, the well

informed DMOs engage beyond marketing to include management of the destination

(Morrison et al., 1998; Ritchie and Crouch, 2003; Presenza et al., 2005; Pike 2004,

2005). Indeed several authors have defined DMOs as the actor that is in charge of

managing and organizing destination resources (Pike, 2004; Presenza et al., 2005),

working closely with governmental development agencies, local authorities,

businesses comprising the tourism industry, and other destination stakeholders to

facilitate sustainable development practices (Ritchie and Crouch, 2003).

There are diverse roles and responsibilities in destination management and marketing.

These are handled in different ways in different countries, but typically are split

between national provincial/regional and local levels. Normally the national level is

responsible for the more strategic roles while the local level will have responsibility

for the more operational elements. The National Tourism Authorities (NTAs) or

Organizations (NTOs) are responsible for the management and marketing at the

National level. The Regional, provincial, state DMOs or RTOs look after specific

region defined for the purpose. The Local DMOs are specific to city or town. There

can also be DMOs formed based on product which brings together the stakeholders

related to a specific type of tourism product such as adventure or any special interest

tourism activity. Though the structure and formation differs by the area of operation,

the below table (fig.) differentiates the functions of DMOs at various levels.

Fig. IV Roles and responsibilities of DMOs

Source: UNWTO, 2007

In fulfilling the role of destination management, DMOs do not “produce” or own the

destination’s tourism product. Rather, DMOs undertake actions of coordinating the

constituent independent, and often, diverse elements (of the tourism destination

supply) with the aim of facilitating destination development through tourism activity

(Born horst et al., 2010; Volgger and Pechlaner, 2014). DMOs are conduits between

suppliers of tourism products in their geographic area (local tourism firms) and

buyers from outside the region. DMOs should meet the needs of destinations, whether

marketing, coordinating stakeholders, influencing business climate, or assisting

human resource development. The DMOs heavily influence the visitor experience.

Destination management organizations (DMO) are often the only advocates for a

holistic tourism industry in a place; and in this role they ensure the mitigation of

tourism’s negative impacts to the environment and local communities as well as the

sharing of opportunities for a vibrant exchange of people. Because of this unique

capability, DMOs prove invaluable for supporting tourism development, especially in

developing destinations where tourism is an important economic driver and

mechanism for equitable social capacity building. Developing a DMO iteratively

relies on identifying and redefining a destination vision through collaboration. The

pages that follow outline how to build a successful DMO to increase visitation while

preserving a destination’s assets. Every destination is different, however, so no one

volume could ever be a complete resource. The information within hopefully guides

the reader to explore more deeply additional interests and seek out examples of

innovation by other organizations around the world (IITS, 2012).

Often, DMOs have been criticized for their inability to reinvent themselves in face of

the radical changes occurring in their external environment. The enormous

transformations, that are happening, require significant changes in the organizational

mind-sets of these organizations.

5.1 Developing a product

It is evident that the tourists’ motivations and needs have been varying increasingly

over the period of time. As the new segment of tourists is differentiated by their

unique demands, consequently, the supply side too requires a greater differentiation

in its offerings. It demands personalization of the destination as a whole as well of its

components in particular as all these participate to form that unique tourist

experience. The DMOs strive to create this differentiation by creating a new product

in the form of packages or in the form of themed experiences. This is quite possible

when the destination has several possibilities of attraction and it is sold to different

typologies of clients. The task of creating that differentiation is quite a challenge in

this era of globalization where the services and infrastructure are constantly evolving.

This leaves very little space to gain the ‘monopolistic regime’. Hence the recent

developments, evolving needs and the future challenges have made destinations to be

competitive enough to secure their destination image and positioning. Now the need

is not to sell the destination as a unique tourism product, but to propose as many

products so as to make its self visible to all the available segments.

The destination “product” is the combination of elements that creates the total

experience which can be offered to potential customers. The tourism experience

extends throughout the value chain, e.g. when the tourist “buys” an adventure

experience, this includes investigating it, booking it, access to it, the actual activity,

onsite facilities, environmental integrity of the area, safety features, adventure

instructors and guides, feedback afterwards, etc. The on-the-ground destination

experiences include intangible features (unique happenings, sights and scenes,

environmental quality, service levels, people friendliness, etc.) as well as tangible

aspects such as public infrastructure, private products and services, public attractions

and services, community lifestyles, attractions and services one weak element in the

combination of product components is capable of reducing overall customer

satisfaction significantly. A seamless approach to delivering quality is essential.

With the growing sophistication and diversity of consumer segments and the demand

patterns, the DMOs have to concentrate on presenting the experiences in a user-

friendly format like:

Route packaging. Given the growing trend towards independent and

experiential travel, the

Development and packaging of tour routes (e.g. Route 66, Silk Route etc.)

coordinate experiences along a travel circuits and provide visitors with

achievable and easily accessible travel experiences. Routes may be developed

for touring by car, hiking/trekking, cycling, pony-trekking and other forms of

transport.

Route developments are excellent mechanisms of bringing together

experiences that compliment the destination positioning, e.g. its unique

cultural, natural, lifestyle and other experiences.

Theme packaging. To capitalize on unique experiences and appeal to special

interest segments special travel themes can also be presented in a coordinated

manners e.g. birding opportunities, golf, culture and heritage, outdoor and

adventure, etc.

The route and theme concepts can also be merged by packaging theme routes

e.g. flower route, whale route, wine route, castles route, etc.

Hence the product-related goals of the DMO could include:

Delivering an exceptional tourism experience to chosen market segments,

based on their particular expectations, demands and requirements.

Creating an active experience where the visitors are indulged in an activity has

to be prioritized

Routing and Theming the experience by harmonizing the positive counters by

minimizing the negative cues

Making it possible to have a lasting memory in the form of souvenirs and

collectables

Delivering on the brand promise – there is nothing worse for the destination

band than the actual experience not living up to expectations.

“Gearing” the experience to deliver in accordance with the DMO’s targets and

objectives e.g.

Increasing length of stay, extracting spend, spreading tourism, smoothing out

seasonality, etc

5.3 Ensuring Safety and Security

Safety and security makes up for one of the important and most sought intangible

resource. Upon designing the product it is expected that the execution happens in a

conducive and safe environment. The effective provision of safety and security

services is of utmost importance to a successful tourism experience and is clearly one

of the main ‘levers’ of tourism movement on the globe. The safety and security has

been one of the biggest challenges amidst growing feelings of insecurity fuelled by

social unrest, political unrest and the terror attacks at the destinations. While visitors

have abandoned several destinations from their visit list the ones which are being

visited have to be secured else the recent ailment of decreased span of stay would be

inevitable. From a tourism perspective, it is important that the public authorities fulfil

properly their responsibility to ensure safety and efficiency of the basic infrastructure.

Certainly tourists travel to the unknown places hence the signage play a significant

role and it has to be in place to ensure easy accessibility. The safety and security

significantly contributes for the image of the tourism destination. Providing

information brochures to the tourists is vital. All the products offered should and must

comply with the law. It is imperative to indentify the potential risk associated with the

environment and activity so as to minimize the risk. Complying with all the safety

and health related instruction would certify that the DMO understands and is

concerned with the visitor’s safety which in turn would facilitate in raising the

destination quality. It is a major differentiator in tourism competitiveness. Protection

of touristic areas and facilities, reliability of authorities and trust building campaigns

carry the capabilities of best practices in assuring safety and security of the

destination as a product.

5. Summary

With the ongoing advancements and the volatile market environment a tourist

destination is more than just a mere geographical place. A destination is an

amalgamation of products, services, natural resources, artificial elements and

information that is able to attract a number of visitors into a place (UNWTO, 2012).

A tourist destination is well acknowledged as a tourism product as the visitors attach

some expectation before they make their choice which would suffice their needs. As

the services offered and the destination cannot be separated it is always assessed as a

whole. There has been a major shift from destination being looked at as tourist place

to destination now being stated as tourism product. Hence destination management

has been of great importance to provide highest quality experience for the visitors

while minimizing the negative impacts. This approach is thus endorsed by the

Destination Management Organizations (DMOs) who bring together various

stakeholders having diverging needs and objectives to attain a common goal of

sustainable tourism development. The DMOs should pool the knowledge and initiate

the SWOT analysis for the destinations to be competitive and sustainable.

Traditionally responsible for destination marketing, the role of the DMO (often

Tourist Boards) is becoming far broader. DMOs today should not only lead on

marketing, but must also be strategic leader sin destination development. This role

requires them to drive and coordinate destination management activities within the

framework of a coherent strategy. Promotion must attract people to visit in the first

place; creating a suitable environment and quality delivery on the ground will ensure

that visitors ‘expectations are met at the destination and that they then both

recommend the destination to others and return themselves on a future occasion. As

the visitor satisfaction is assessed only after the trip is completed it makes destination

as an experience product. It is not just the product which creates the value but it is the

experience which is coupled with it. The feel of the destination or the feel of the

product is rather important than that of the mere product. To benefit from the existing

resources the DMOs and the policy makers have to assess and identify the key

competitive advantages of the destination which differentiates the experiences from

the other tourism products or destinations. The shift from the economy to the

experience economy has to be acknowledged. Established destinations need to pool

their efforts on innovations, multi-stakeholder cooperation, and flexibility if they are

to respond successfully to demand from emerging regions. Safety and security are

vital to providing quality in tourism. More than any other economic activity, the

success or failure of the destination depends entirely on how safe the destination is.