destination development: the role of dmos/tourism
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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.
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