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DMO: Defining the structure, roles and procedures3.2.5
O 4.1. MODEL ON SLOW, GREEN & HEALTHY TOURISM DEVELOPMENT
Interdependence Diverse, depending on the integration degree of the services, as well as on the diversity of the market portfolio
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Trust/control
Strong need for mutual trust, in order to come to decisions and actions; social control at least as strong as institutional control Trust is ensured by control mechanisms and formal contracts, inside the dominating firm(s), as well as between the firm(s) and the municipality/public institution
Knowledge
Informal, personal connections
Diffuse and general, relevant for the historical context, the institutional and individual relationship Detailed and specific, relevant for business strategies and specific contracts
Numerous, networked Strong between the dominating firm(s) and the municipality/public institution
Limited, among few actors
Table 2: Differences of the community and the corporate model As it can be seen, similarly to the compensation matrix of the quadruple helix model, the different governance solutions can well complement each other that envisages a kind of mixture of the two models – in harmony with the diverse supplementary factors by each destination.
3.2.5 DMO: Defining the structure, roles and procedures
„Destination management is the co-ordinated management of all the elements that make up a destination (attractions, amenities, access, marketing and pricing). Destination management takes a strategic approach to link-up these sometimes very separate entities for the better management of the destination.” (WTO 2007)
The form and the structure of destination management is affected by different factors, such as: the maturity of the partnership: the more mature is the cooperation, the more institutionalised forms will appear; the functions to fulfil and the service portfolio to be provided: the structure and the bodies of the cooperation have to fit the tasks to perform; the competences of the stakeholders: the joint management structure will not be allowed to extend beyond the competencies its members have. We have to highlight again, that there is no one-size-fits-all solution: every destination has to decide on the most appropriate structure to apply for the sake of delivery of the expected results.
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3.2.5.1 Functionality and competencies
Destination Management Organisations (be they institutionalised or not) have a complicated and comprehensive set of tasks to deliver. The WTO practical guide on tourism destination management summarises the position of the DMO as it can be seen on the figure below. Setting up of a DMO has many advantages compared to less formalised and less designed tourism development. DMO can ensure the development of a regional brand identity through its organisational capacities. The unique brand guarantees the coherent narrative what is the basis for positioning. Another advantage is the coordination of the service providers and developing tourism value chains, experience clusters what is the key for experiential quality tourism. This way, DMO contributes to the financial sustainability of tourism within the region.
Figure 7: Destination Management (WTO 2007) In the case of slow and green tourism, the management plays a crucial role in diminishing the detrimental impacts of tourism on the natural heritage. Accordingly, DMOs introduce a holistic approach of representing the destination, which is in charge of a triple set of tasks: to ensure a suitable environment for tourism delivery: from the legislation to taxation rules; to help deliver suitable services meeting the visitors’ expectations: from transport through product development to trainings; to ensure the visibility and marketability of the destination: as an “information broker” including CRM and e-solution development.
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DMO is the initiator, the coordinator and the analyser of the feedback of tourism activities within a region and this include that a product developer needs to ensure feedback from customers and employees (Sub-model chapter 4). Accordingly, the service portfolio of the DMO should include: Product development, Destination and product packaging, Promotion, Distribution and sales, In and outbound logistics, Destination operations and services, Aftercare (visitors), Destination planning and infrastructure, Training and skills development, Technology and systems development, Related industries and buying local products.
(WTO, 2007) In addition, DMO should provide services to the partners, as well. These services can include: fund raising drafting applications organisation of events printing of brochures development of websites and databases search for partners issuing a newsletter, etc.
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TASK II: Evaluation of existing and relevance of future services
Service Existing Service Performance
(1=low to 5=high)
Product development Destination and product packaging Promotion Distribution and sales In and outbound logistics Destination operations and services Aftercare of visitors Destination planning and infrastructre Training and skill development Technology and systems development Related industries and local products Fundraising Drafting applications Organization of events Printing of brochures Development of website and database Search for partners Issuing newsletters …
Future Task Relevance
(Priority/relevance 1=low to 5=high)
Example: Model of Noosa Council
Noosa Council, situated in South East Queensland, Australia has created an integrated destination management which is based on community governance. This governance model enables the involvement of local communities in the decision-making processes connected to tourism. Tourism Noosa Board, the main organisational established by the Council consists of community, industry and council representatives. Its primary role is to oversee the development and management of tourism within the destination, and to develop a strategic vision and directions for the tourism industry. 4 directors are elected by the members, 3 directors jointly appointed by the Tourism Noosa, a CEO for the local tourism, and the Council, 3 directors represents the community, and one councillor is appointed by the Council. Thus, the Council has established an overarching Board structure comprising representatives from local government, business and community stakeholder interests with expertise/knowledge of tourism.
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The second level of the management structure is represented by the Tourism Noosa CEO with over 600 members who come from a diverse range of sectors including accommodation providers, tour operators, restaurants, retail businesses, real estate agents and health and wellbeing, etc. With the help of the CEO the management involves the third, and also local level; stakeholders representing marketing, commercial services and the CEO has a function of connecting bookings, membership and visitor services. The management structure thus provides a structure for communication and information exchange about tourism amongst stakeholders. To support daily operation as well as strategic thinking, specialist committees (e.g. Marketing and Events Committee, Finance and Governance Committee, Policy Committee) have been established.
Figure 8: The Model of Noosa Council (Wray et al., 2010)
TASK III: Please draw a graph showing the competencies and structure in your DMO. Analysing the structure of different DMOs might be helpful.
For the management it is important to understand the structure. Therefore, it is useful to illustrate the relationships and hierarchical structure and relationships. It is suggested to work in groups and to compare the understanding and roles demonstrated and visualized in the respective structures.
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3.2.5.2 Risk assessment
When designing the management, the partners have to draft a risk assessment document containing the list of potential risks endangering the functioning of the DMO (such as financial instability, lack of human capacities, changing economic environment, etc.); the probability of the occurrence of the risk (is it highly or less probable that the risk in question will occur); the potential impacts that the risk can have on the operation of the management (is it high or damaging, or less relevant); the provisions to be taken in order to minimise the probability and impacts of the risk. Based on the results of the monitoring, the risk assessment document has to be regularly revised.
3.2.5.3 Internal communication
One of the main missions of the DMO is to create the conditions for permanent internal communication. The tools of communication include personal meetings, online communication tools and other ways, like mails, phone calls, surveys, events, local media, etc. The main objectives of the communication are to create a pool of information through permanent exchanges to intensify integration, thus enhancing self-identification. The target groups of internal communication are the service providers, and local community. It is the DMO’s responsibility to enhance their commitment. At the same time, it is in the interest of the DMO to involve the local stakeholders since it needs their financial contribution for sustainability. (For further details check Sub-model chapter 5.3.2.3).
3.2.5.4 Vertical and horizontal cooperation
Vertical cooperation
Traditional form of tourism organisation creates the conditions for vertical cooperation. The division of the competencies forms the basis for the separation of the different levels. According to the classification of the WTO, three-layered system is the optimal solution. Regarding the division of the competences, the WTO recommends the following model. As it can be seen, national level is the responsible party for more strategic issues, while local level rather focuses on operational questions. Obviously, there is no destination standing alone. As being a geographic phenomenon, with special characteristics, every local destination is built into a more comprehensive system. These regional destinations support national level tourism coordination. At the same time, the DMO systems arranged along by administrative barriers fail the main mission of geographical integrity. Especially those
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destinations organised on their unique spatial features make necessary to apply the landscape-based approach. To sum up, without vertical coordination, our destination can be found itself in a conflictuous situation while cooperation among different levels can create synergic effects. At the same time, the main organising power of contemporary destination management consists of the ability of network building with horizontal partners – and not of vertical cooperation.
Table 3: The system of competences along by different territorial levels of DMOs (WTO, 2007)
Horizontal cooperation
„Governance […] involves the establishment and maintenance of appropriate collaborative structures and processes to manage tourism across governments, business and community interests.” (Wray et al., 2010)
Horizontal cooperation has a multi-faceted character. First and foremost it means the building and maintaining of the partnership within the destination. The DMO’s main task is to keep the different stakeholders together and let them achieve their own goals, as well. Second dimension of horizontal cooperation targets other sectors within the region. WTO proposes diverse forms of collaboration, such as joint brand development (e.g. use of shared logos, design styles, etc.), co-branding (exchange of trademarks and labels with other sectors), exchange of materials, brochures, web links, shared media appearances. (WTO, 2007) Corporate Identity (CI) described in Submodel in chapter 5.3.1.2 should be developed, meaning that inter-coordinated appearance of a region requires the creation of a proper and uniform – thus recognizable – image of the destination. (Sub-model chapter 4.3.1.)
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Third dimension of horizontal cooperation addresses the local community. As it has already been explained, the involvement and training of local communities have also economic impacts. (Sub-model 4.3.2.3). Within the framework of green and nature-based tourism, visitors can disturb or even endanger the traditional life-style of the population. When developing a new destination, sensitization of the community in relation to the needs of sustainable tourism as well as the service providers regarding the traditional ways of living has a crucial role in creating a sustainable model. WTO compiled a list of recommendations on how to involve local community in destination development: Develop partnerships and joint ventures in which communities have a significant stake. Facilitate access to training, managerial support and market information. Foster the development of community-based tourism products by providing marketing and mentoring support. Encourage visitors to spend more money in the local economy, and to visit local bars and restaurants and participate in tours to local areas, bringing business to local communities. Sell local crafts and food products through visitor centres and facilitate distribution through mainstream tourism enterprises
(WTO, 2007)
Further recommendations are found in Sub-model in chapter 4. Finally, DMO has much to do with visitors. On the one hand, there are the tasks related to education of the tourists (see the previous chapter). At the same time, tourists are more and more interested in being involved in the daily life of the destination. It is even more true in those regions characterised by green, slow and healthy services where the visitors can experience the traditions, the heritage and spend longer time that enables them to be involved more deeply. Nowadays, involvement does not limitate to participate in local events. According to a survey conducted more than 10 years ago, 65% of the respondents were curious about the ways of supporting local economy / preserve the natural heritage during their stay. As a consequence, some destinations made possible to finance their activities (e.g. in the field of protecting the nature) by the visitors. (WTO, 2007) Successful destination management is unseparable from active cooperation with the visitors.
3.2.5.5 Ensuring stability and sustainability
The management has an additional responsibility for ensuring the stability and sustainability of the destination as a structure. Among the conditions of global competition this is a hard challenge since the business environment changes rapidly and the stakeholders get many different influences thanks to the on-line world. Without stability, visitors can easily draw back from the given destination. As Reid (2003) outlines, tourism will be sustainable when a community reaches a collective decision through the identification of commonly held
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values and aspirations for development. Therefore, first aspect of sustainability is the maintenance of the partnership and the involvement of the community. Another factor is the professional and financial sustainability and stability of the DMO office as the engine of the destination. As it was highlighted above, the partnership of the actors of the regional tourism is a necessary but not sufficient component of success. The office has to play a coordinator role and to guarantee the implementation of the strategy. Consequently, the sustainability of the destination fundamentally depends on the sustainability of the management body. The need of financial stability makes necessary that the office seeks for alternative financing opportunities and develops own service portfolio generating incomes.
3.2.5.6 Specific factors to consider in cross-border cooperation
In the case of cross-border destinations, the management and networking are even more complicated. The reason is that there are differences in the organisation of tourism activities on both sides of the border, the languages create a boundary; the taxation and legal background of undertakings are different. While natural landscapes do not respect administrative borders and this fact provides the opportunity for developing cross-border tourist destinations, the administrative and legal differences hinder the creation thereof. E.g. it is very complicated to develop an institution responsible for the whole cross-border region. EGTC can be a good solution to involve the local municipalities. However other sectors of the quadruple helix can participate in an EGTC with limitations or not at all. Consequently, the destination management of a cross-border tourist region necessitates the set-up of a cross-border partnership with a joint coordination organ (without legal entity) and working groups. The management has to involve also the representatives of the national tourism system from both sides and to create the conditions of harmonisation of different level strategies. In a cross-border context the operational costs are always higher based on the translation needs, the lower density of border crossings and public transport lines (longer routes) and mental barriers. The last one means that every actor considers the distance across the border longer than within the same country that increases the costs of cooperation.
3.2.6 Monitoring – A Task of DMO
Monitoring activities have to be carried-out according rules defined beforehand. Thus, together with planning the structure and operation, also monitoring procedures have to be set. The most important rules of monitoring are the following. Respect your methodology The methodology applied during the first evaluation should not be modified. Otherwise, the results will not be comparable what makes the identification of the developments impossible. The main mission of the monitoring is to detect where we are compared to where we were planned to be. If the methodology is changing, we
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will not be able to settle the direction and the achievements. Therefore, the selfassessment tool must be applied covering all aspects of sustainable development. Minimise overlaps There are different institutions collecting data from the ground. It is worth avoiding overlaps. On the one hand, the results of other data processing can be used when drafting our own evaluation. On the other hand, the addressed respondents lose their temper if they get regularly on-line questionnaires on the same data. Schedule your monitoring activities The results of monitoring will be more useful if they are identified regularly with the same space of time. If the data are collected according to the same space of time, the changes will offer clear trends easy to analyse. Furthermore, in harmony with the different maturity level of a destination, information and data have to be gathered by different schedules (not every data have to be collected at the same time). Make the results public Transparency and trust necessitate that the results of the monitoring are available for different stakeholders. At the same time, publicity encourages the management to work even better. For the partners we provide a list of crucial criteria which stand for effective destination management and good collaboration (see next page). The checklist is based on criteria developed by Wray et al. 2010. Further aspects, such as communication or geographical extension have been added. Each partner should provide a self-assessment and evaluate their current status. We suggest that the evaluation is done by several members within the partnership independently. In the next step the eventually divergent results might be discussed and summarized into one overall evaluation.
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TASK IV: DMO – GOVERNANCE EVALUATION CHECKLIST
Criteria
Leadership
Clearly defined roles and responsibilities Regular participatory processes are defined for debates and decision making Engaged and participative communities Develops and shares expertise and knowledge Transparent and accountable decision-making is given
Critical questioning
Self-learning, flexible and adaptive management tools are applied
Diversity in tourism system
Effective relationship management
The DMO works efficiently
All members are treated equally
The geographical extension is fitting
The current involvement of communities in the DMO is fitting The DMO includes locally relevant NGOs
The DMO includes locally relevant academic institutions
Frequency of meetings meets the requirements State of implementation Value 1 = poor to 5 = excellent, 0 = does not apply
Value: Comment: Value: Comment:
Value: Comment: e.g. one is not enough
Value: Comment: Value: Comment: Value: Comment: Value: Comment: Value: Comment: Value: Comment: Value: Comment: Value: Comment: Value: Comment: Value: Comment: Value: Comment: Value: Comment: Value: Comment: e.g. this aspect does not apply when there are no regionally relevant academic bodies to be involved Value: Comment:
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Risk assessment tools are in place
Monitoring initiatives have been started
Value: Comment: Value: Comment
3.3 Conclusion
This chapter has presented methodologies and applicable approaches to the management of destinations, which have important natural and cultural heritage. Concluding on the presentation, it can be stated that stakeholders in a defined area, called destination, need to know what they have and what they can offer, need to decide in which direction they want to develop in terms of tourism, need to find a “corporate identity” in order to serve visitors at best, need to contantly check if the agreed goals can be or are reached, need to adress any concerns about unsustainable developments and find the appropriate response to it. All these needs require a professional coordination, a transparent communication, a consensus building approach and most important stakeholders, which are well informed. It has to be clear that destination management is a continous and ever-changing process, because the people involved will change and the destination will change for sure, too. Therefore destination management is not one linear and easy to explain approach. Each destination and its stakeholders are different, which means that one methodology here cannot be applied there. However, this sub-model shows a large variety of possible approaches, which can be uptaken by those in a destination, which are in charge, involved and/or affected by tourism development.
This chapter is based on the sub-model of integrated slow, green & healthy tourism product and service development: smart tools and methods for coordinated sustainable tourism supply, linked to greenways and novel IT solutions promoting them and is talking on increasing, diversifying, and coordinating the fragmented touristic supply into an integrated touristic network linked together by waterways, cycling and trekking trails as sustainable slow travel chains. This supply shall be based on the natural, traditional and cultural assets of the region. It is to promote the integrated slow, green and healthy tourism, offer along greenways via state-of-the-art ICT tools to reach new target groups and improve visibility of the touristic regions involved. Fitting into the previous steps and manuals developed by INSiGHTS, the focus is on product development, specifically on supply chains. Situated between strategy management, and marketing and promotion, it addresses developing products with special attention to forming
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joint products and joint supply chains through which the destinations can market themselves in networks. The product placement is a strategic step in which providers and planners have the opportunity to create stronger bonds between tourism providers on location and to strengthen the overall offer. This bond can lead to better integration of the products in the tourism region, a stronger regional identity and brand, and to a better projection of local culture and tradition. In addition the various organisations involved from a supply chain and interactive network.
4.1 Theoretical Background
The modern day destination does not quarrel amongst themselves for recognition on a local level. Marketing and promotion are a common endeavour, a joint effort to distinguish their region from others. In order to show this, regions need to create visibility on the market. To achieve this, products need to be aligned in or grouped into a supply chain or along the tourism chain. At this stage, it is important to keep the next implementation steps in mind. In future, these products will be marketed and promoted. The purpose of modern marketing and promotion is the creation of a corporate identity, which sets values and selects goals through creating guiding principles. Furthermore, it is a strategic tool that works along its defined long-term development aims and abides to the created strategy and concept. Finally, it is a set of tools and methods that serves as an instrument to achieve the development goals of a region (Freyer, 2004). Since the early 2000’s new forms of marketing have been emerging. Cooperation or network marketing in tourism has seen a strong rise in application. Network marketing is to be understood as a cooperative marketing style in which regional providers bond together vertically or horizontally along the tourism supply chain and market themselves together (Freyer, 2004). The benefits of bonding together in the supply chain will be felt manifold, if these groupings are transferred into marketing as well. Gains include better brand reputation, morale, long-term business relationships, returning clients, higher revenue, reduced costs and improved efficiency (Font, Tapper, Schwartz, & Kornilaki, 2008). A successful partnering includes mutual understanding of the multitude of objectives (Wearing et al. 2007). “For tourism marketing strategies, it needs to be acknowledged that traditional destination branding is not effective anymore in a global environment, that branding is connected to complexity of a place, and that all stakeholders needed to be involved in the process.” (Jamrozy, 2008). Synergies between products and development are created. This means it must come to a balance between strategic sustainability goals and the stakeholders’ economic visions. In this context Wearing et al (2007) gives recommendations when marketing in sustainable destinations: The product supply chain marketing needs to be realistic, regional and relationship focussed. Therefore, the products themselves need to focus on regional relationships in their chains. The providers need to have realistic visions of what their
