Destination

Management
Organizations

Dr. Harsh Varma

UNWTO Expert

www.unwto.org
 ROMANIA
Romania

History A land of many wonders

Nature

Culture

Beaches

Mountains

Warm and hospitable people

 ROMANIA

A geo-strategic position
International image
Political and policy stability
Growing economy
Safe and secure destination
High potential for tourism
 ROMANIA

Strategic sector
Creation of value added
Overall contribution to GDP
Job and income opportunities
Regional and local development
Social and economic development
Consistent increase in sectorial growth
 ROMANIA
Tourism
A multi-sectoral industry

Operates in close collaboration with other sectors such

as agriculture, transport, culture, environment, education
and research

For sustainable development, an integrated approach

has to be adopted
 TOURISM

Has to cooperate, collaborate and coordinate with other

sectors in order to get optimum results
Synergies need to be developed between different
sectors
Public sector agencies which have a direct or indirect
role to play in tourism development
Private sector which operates and manages the sector
on a day to day basis
 TOURISM

An integrated, cohesive, composite and unified

sector can only be developed and managed through
a destination management organization with the
optimum involvement of all the operating structures
DESTINATION MANAGEMENT ORGANIZATIONS

DMOs significant and integral component of the

tourism supply chain

Critical implementation arm of a tourism strategy

UNWTO has defined DMOs as: coordinated

management of all the elements that make up a
destination (attractions, access, marketing, human
resources, Image and pricing). It takes a strategic
approach to link up very separate entities for the
better management of a destination.
DESTINATION MANAGEMENT ORGANIZATIONS

DMOs TYPICALLY FALL INTO ONE OF THE FOLLOWING

CATEGORIES :

National Tourism Authorities or Organizations

responsible for tourism at a national level

Regional, provincial or state DMOs, responsible for

management and marketing of tourism in a given
geographic area

Local DMOs, responsible for the management and/or

marketing of tourism, based on a smaller area or
city/town
 NATIONAL LEVEL DMOs

Exist mainly in city-states and countries with centralization

of authority, policy-making, strategies and activities

Coordination with government agencies

Collaboration with the private sector, NGOs, academics,

professional institutions and other players

They administer, govern, manage, legislate, regulate,

market and promote, and develop

All in one organizations

 NATIONAL LEVEL DMOs

Principal financer is national government

Other revenue from membership fees, local taxes,

advertising, events

Many have become self-sustaining

Governing structures have a good and balanced mix of

all the major stakeholders

Managed by a board of directors all decisions by

consensus

Work planning, budgeting and implementation

 REGIONAL DMOs

Operate in decentralized structures

Regional autonomy and delegation of authority

Active support from the national DMO and local

governments

Conglomerate/cluster of several local DMOs

Membership from local governments and other major

players, both public and private

Local DMOs under the aegis of regional DMO

 REGIONAL DMOs

Grant-in-aid from national government, financial

contribution from local governments, private sector, local
taxation, advertising revenue, and events

Horizontal integration in destination management

Cost-effective sharing of human and financial resources,

joint planning and management, integrated marketing and
promotion, and learning from each other
 LOCAL DMOs

Basically local entities concentrating on the development

and management of a single destination
Narrow mandate with county government at the nucleus
Financial contribution from county government,
membership fee, taxes and levies, advertising revenue
Focus on marketing and promotion
Product development short breaks, spas and thermal
waters, nature walks and trekking, low altitude climbing,
family holidays, museums and cultural centres
Unique and different experience to tourists
 DMOs

economic driver which is capable of generating new

income, employment and taxes more diversified local
economy
public-private sector coordinator which binds the two
sectors to share the economic benefits
effective marketer and promotor to communicate the
destinations image to markets
quasi-public representative which provides legitimacy
to the local industry
flag bearer to enhance the quality of life of residents
 ROMANIA

Inadequate stakeholder collaboration

Lack of collective vision
Non-availability of professional managers for efficient
and effective destination management
Paucity of financial resources
Passive attitude of travel trade
Mundane websites
 THE BEST WAY FORWARD

A national DMO department in the Ministry of

Tourism

Regional DMOs

Local DMOs
 NATIONAL DEPARTMENT

Responsible for inter-sectorial coordination

On one hand MT, Transport, Culture, Education and
Research, Water and Forests, MDRAP, Environment
and others
On the other regional DMOs, professional
associations, NGOs, managers of protected areas,
tourism education and training institutions, employers
association, advertisement associations and other
relevant entities
 NATIONAL DEPARTMENT
Assume all responsibilities in the initial years for the
operation and management of the sector as a whole. Act
as a mother institution
Policy and strategies, administration, governance,
management, legislation, regulation, human resource
development, marketing and promotion, sustainable
development and quality control
High-level body with a board of directors
At least 50 per cent members from the private sector
 REGIONAL DMOs

Conglomerate/cluster of several local DMOs

Operate and manage a specified region
Strong relationship with national department
Membership includes local governments, private sector,
professional organizations, academics and others
Full autonomy for destination development within the
region including product development, marketing, human
resources, regional/local laws, organization of events,
and regional regulation of the sector as a whole
Managed by a board of directors with 50 per cent
membership from the private sector
 LOCAL DMOs

Charged with the responsibility for a single destination, a

town or a village or a thematic destination
Local government as the primary driver
Private sector partnership from the resort level onwards
Operates under the overall guidance and support from
the regional DMO
Coordinates with other local DMOs within the region
Managed by a local executive committee with 50 per
cent membership from the private sector
 DMO RELATIONSHIP

National Department

Regional DMO

Local DMO Local DMO Local DMO Local DMO

 THE APPROACH

A top down from National Department to Regional

DMOs

Regional DMOs at the hub of activities

Bottoms up from Local DMOs with convergence on

the Regional DMOs

Local DMOs at the centre of local activities

 NATIONAL DEPARTMENT

National Strategies
National policy-making
National vision statement
National branding and imaging
Training of destination managers
Overall work planning and budgeting
Coordination between various sectors
National-level marketing and promotion
Stakeholder consultation at the highest level
 NATIONAL DEPARTMENT

Provision of statistical data

Consistent dialogue with travel trade
Operation and management of national tourist
information centres
Provision of funding grant-in-aid, seed money,
working capital, Global Grant from the EU, Danube
Delta Integrated Territorial Investments, Carpathian
Convention, EU Strategy for the Danube Region, and
the Black Sea Joint Operational Programme, World
Bank (non-loan grant), European Bank for
Reconstruction and Development, and UNDP
 NATIONAL DEPARTMENT

Legal framework for public-private partnership

Establishment of common funds to pool in public-
private contribution to be done through a
government decree or changes in the existing laws
Hotel classification and grading system the authority
can also be delegated to Regional DMOs
Code of conduct for the travel trade the authority can
also be delegated to Regional DMOs
Quality Management Standards
 REGIONAL DMOs

AT THE VERY HEART OF REGIONAL OPERATIONS

AND MANAGEMENT

Under the overall guidance and supervision of the

National Department, the Regional DMOs would be
responsible for the daily operations and management of
their destinations
They will coordinate and collaborate with all the major
stakeholders and take appropriate decisions at the
regional level for sustainable development of their
destinations
They will operate the common fund which will be
established through public-private contributions
 REGIONAL DMOs

OTHER ROLES AND RESPONSIBILITIES WOULD INCLUDE:

Impact analysis
Licensing of tourist guides
Designation of souvenir outlets
Formulation of regional vision statement
Regional training of destination managers
Identification of regional competitive edge
Regular stakeholder consultations all decisions by consensus
Appropriate deployment of external funds made available
through National Department
Data analysis and use of statistics for marketing and planning
Operation and management of Regional Tourist Information
Centres
 REGIONAL DMOs

Spatial planning
Creation of regional brand(s)
Continuous product development
New product packaging and presentation to markets
Marketing and promotion in both domestic and international markets
Enforcement of hotel classification and grading
(if delegated by National Department)
Enforcement of code of conduct for the travel trade
(if delegated by the National Department)
Safety and security of tourists
(in collaboration with local law enforcement agencies)
Formulation of community welfare schemes
Sustainable development (environmental, social, economic)
Regular review and monitoring
 LOCAL DMOs

THE PRIMARY ROLE OF LOCAL DMOs WOULD INCLUDE:

Local vision statement

Operation of common fund
Regular stakeholder consultations
Identification of local competitive edge
Product packaging and presentation
Local policy and strategy coordination
(under advice and support from the Regional DMO)
Sustainability and profitability of local tourism enterprises and
small businesses
Operation and management of local tourist information centres
 LOCAL DMOs

Events management
Marketing and promotion
Safety and security of tourists
Quality management and monitoring
Appropriate use of external funds
(made available by National Department and Regional DMO)
Preservation and conservation of local tourism assets
Local surveys including exit and expenditure surveys
A high-quality experience to tourists
(to motivate repeat visitations and mouth- to- mouth publicity)
 Thank you

Dr. Harsh Varma

UNWTO Expert

harshvarma@yahoo.com