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Destination management Notes 1

Tourism Destination Management

Introduction
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. Local destinations
incorporate various stakeholders often including a host community, and can nest and network to
form larger destinations.
Destinations could be on any scale, from a whole country (e.g. Australia), a region (such as the
Spanish ‘Costas’) or island (e.g. Bali), to a village, town or city, or a self-contained centre (e.g.
Center Parc or Disneyland).
This document is intended to be useful to destination managers within this range of scales: that
said the optimum level for destination management in most countries is below the national level.

The Basic Elements of the Tourist Destination

Destinations contain a number of basic elements which attract the visitor to the destination and
which satisfy their needs on arrival. These basic elements can be broken down into attractions
(the ‘must sees’ or ‘must dos’) and the other remaining elements. These are summarized in
Figure 1. The provision and quality of these elements will be influential in the visitor’s decisions
to make their trip.

Figure 1 Destination experiences:

Destination appeal and experiences offered are shaped by

Public and Private Image and Price

Attractions Amenities Character

Accessibility Human Resources

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

Aggrey Musoke
PhD Tourism and Hospitality
VU lecturer.
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Destination management Notes 1

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, 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, e- 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, 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.

The Destination Management Organization (DMO)

Aggrey Musoke
PhD Tourism and Hospitality
VU lecturer.
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Destination management Notes 1

Destination management calls for a coalition of many organizations and interests working
towards a common goal. The Destination Management Organization’s role should be to lead and
coordinate activities under a coherent strategy. They 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. Though DMOs have typically undertaken marketing activities, their
remit is becoming far broader, to become a strategic leader in destination development.

1. CASE OF Tourism Victoria, Australia:

Goals of a destination management organization
Tourism Victoria is the State Government authority responsible for developing and marketing
Victoria as a premium tourist destination for Australian and international travellers. Tourism
Victoria is a statutory authority within the Department of Innovation, Industry, and Regional
Development.
Tourism Victoria’s mission, in partnership with the industry, is to “Maximize employment and
the long-term economic benefits of tourism to Victoria by developing and marketing the State as
a competitive tourist destination”.
To achieve this mission, the Board of Tourism Victoria has set the organization four broad goals:
Marketing Goal. To increase visitor numbers, length of stay and visitor expenditure by
positioning Victoria as a distinct and competitive tourist destination.
Leadership Goal. To take a leadership role in the tourism industry, encourage professional
standards and the development of cooperative arrangements which maximize industry
effectiveness.
Infrastructure Goal. To improve the tourism assets of Victoria by identifying infrastructure
opportunities and facilitating development projects.
Management Goal. To maximize the effective use of resources by conducting the business of
Tourism Victoria in accordance with professional commercial management principles.
Destination Management Organizations generally fall into one of the following categories:
National Tourism Authorities (NTAs) or Organizations (NTOs), responsible for management
and marketing of tourism at a national level.

Aggrey Musoke
PhD Tourism and Hospitality
VU lecturer.
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Destination management Notes 1

Regional, provincial or state DMOs (RTOs), responsible for the management and/or marketing
of tourism in a geographic region defined for that purpose, sometimes but not always an
administrative or local government region such as a county, state or province.
Local DMOs, responsible for the management and/or marketing of tourism based on a smaller
geographic area or city/town. Taking New Zealand as an example, these categories would be
represented by New Zealand Tourism at a national level [Link]; Destination
Fiordland at a regional level [Link]; and Positively Wellington at a local or city
level [Link].
Destination Management is complex. The DMO’s most critical assets are its credibility as a
strategic leader in tourism destination marketing and development and its ability to facilitate
industry partnerships and collaboration towards a collective destination vision.
2. Case of Northwest England:
Implementing the tourism strategy
The Northwest Regional Development Agency (NWDA) is responsible for the sustainable
economic development and regeneration of England’s Northwest. Tourism is a significant sector
within the regional economy. NWDA has been given the leading, strategic role in the
development of tourism in the region and will deliver the Regional Tourism Strategy through a
new support structure which comprises:
The Visitor Economy Forum who will oversee the development of strategy and the broader
regional visitor economy ensuring synergy between regional and sub-regional strategies. A
Regional Tourism Management team, chaired by NWDA, consisting of Visit Britain and the five
tourist boards is responsible for driving and coordinating the operational delivery of the strategy.
The regional tourism executive group within the NWDA which is responsible for the strategic
direction of tourism in the region, providing funding and project management, managing
relationships with DMOs and, through its specialist teams, leading developments in ICT, skills,
research, regional marketing and business support.
The five sub-regional Tourist Boards are the DMOs responsible for the tourism management of
these areas, including destination marketing, relations with the industry, research, project
delivery and leading the delivery of their strategy through the Destination Management Plans
that bring together all those involved in tourism and the visitor economy in their subregion.

Aggrey Musoke
PhD Tourism and Hospitality
VU lecturer.
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Destination management Notes 1

What is Destination Management?

Destination management is the coordinated 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.
Joined up management can help to avoid duplication of effort with regards to promotion, visitor
services, training, business support and identify any management gaps that are not being
addressed.
There are various options for destination management governance as follows:
Department of single public authority;
Partnership of public authorities, serviced by partners;
Partnership of public authorities, serviced by a joint management unit;
Public authority(ies) outsourcing delivery to private companies;
Public-private partnership for certain functions – often in the form of a non-profit making
company;
Association or company funded purely by a private sector partnership and/or trading – again for
certain functions.
Destination management can be summarized as follows:

Figure 2 Destination management

Elements of the
destination

Attractions
Amenities
Accessibility
Human resources
Image
Price
The DMO
Leading and coordinating

Marketing Delivery on the ground

Getting people to visit Exceeding expectations

Creating a suitable environment:

Policy, legislation, regulations, taxation

Aggrey Musoke
PhD Tourism and Hospitality
VU lecturer.
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Destination management Notes 1

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 is the need to ensure a suitable environment, (physical, social and
economic) in which to develop tourism. The Destination Management Organization should lead
and co-ordinate these different aspects of the destination.

Creating a suitable environment. This is the foundation of destination management on which

the marketing of the destination and the delivery of the experience are dependent. Before the
visitor is attracted by marketing or arrives at the destination the right social, economic and
physical environment in which to develop tourism must exist. A strong and authoritative DMO
will be necessary to provide the leadership and to drive and co-ordinate this process. Creating the
right environment includes:
 Planning and infrastructure.
 Human resources development.
 Product development.
 Technology and systems development.
 Related industries and procurement.

Marketing. Destination marketing should face outwards to attract visitors to the area. It should
promote what is most attractive to potential visitors and most likely to persuade them to come.
The key functions are:
 Destination promotion, including branding and image.
 Campaigns to drive business, particularly to SMMEs (Small medium and micro
enterprises).
 Unbiased information services.
 Operation/facilitation of bookings.
 CRM (Customer Relationship Management).
Promotion need not necessarily follow public sector boundaries and indeed may often cut right
across them to represent many regions or destinations, although individual regions may also be
Aggrey Musoke
PhD Tourism and Hospitality
VU lecturer.
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Destination management Notes 1

responsible for their own marketing as seen in their focus of marketing is outward looking to
attract tourists to the regional destination

Delivery on the ground.

Ensures the quality of every aspect of the visitor’s experience once they arrive at the destination.
This includes:
 Destination coordination and management for visitor ‘quality of experience’, especially
the public realm.
 Product “start-ups”.
 Events development and management;
 Attractions development and management;
 Training and education.
 Business advice.
 Strategy, research and development.
Destination management tends to be most easily organized on public sector boundaries at the
sub-regional, provincial or state level because the public sector is the deliverer of much of this
infrastructure.
However, destinations may also need to be managed across political or administrative
boundaries. Destination could also be organized around a distinct attraction, such as a river
valley or a stretch of coastline or a unique natural or cultural attraction. Destinations are
individually responsible for managing the delivery of the tourist’s experience once they arrive.

3. Case of Blackstone Valley Tourism Council, Rhode Island, USA

The Blackstone Valley is a river valley, historically significant as the birthplace of the American
Industrial revolution. This distinct geographic and heritage area is a designated National Heritage
Corridor which comprises of nine different communities. The Blackstone Valley Tourism
Council is a non-profit organization which is responsible for bringing together these
communities to develop and co-ordinate sustainable tourism. Blackstone Valley Tourism
Council has recently received UNWTO’s best Certification for Excellence in Tourism
Governance.
How Does Destination Management Work?

Aggrey Musoke
PhD Tourism and Hospitality
VU lecturer.
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Destination management Notes 1

The stakeholders. There are many public and private sector stakeholders who are engaged in
fulfilling the functions of destination management:
 National and regional/provincial government.
 Economic development agencies.
 Local authorities/government.
 Town center management organizations.
 National Park authorities.
 Transport providers.

Aggrey Musoke
PhD Tourism and Hospitality
VU lecturer.