3.1 Introduction
Meagan A. McGuire
What is a Destination Management Organization?
A Destination Management Organization (DMO) promotes a city, region, county, state, nation, or area to potential visitors and, or alternatively, manages multiple aspects of tourism within a destination. These organizations can be private, government, quasi-government, or non-profit. The DMO coordinates with tourism-related stakeholders (those with an interest in tourism in a destination), including local businesses, attractions and events, hotels and event facilities, local government, and community groups, to strategically plan the promotion, development, and continuity of tourism for the destination.
Although variations exist in the terminology used to describe different types of DMOs (discussed below) that denote slight variations in organizational focus, structure, and geographic boundaries, these organizations are similar enough to draw general conclusions about their roles within the hospitality and tourism industry. The term “Destination Management Organization” and the acronym “DMO” will be used throughout this chapter as an umbrella term to designate all variants.
DMOs serve as the nucleus of the local tourism industry. As a result, anyone entering the career fields of hospitality or tourism will have the opportunity to work with a regional DMO. In turn, all professionals working in hospitality and tourism are impacted by their local DMO and its regional marketing and sales efforts. For those working in hospitality and tourism, DMOs typically offer many opportunities for career training and advancement, including cooperative marketing and sales campaigns as well as research and training programs.
Defining a Destination
The term destination is used by the tourism industry to identify a geographic area that attracts visitors. A destination can include one city or multiple cities; an entire state, territory, or country; or a region of a country, such as the Pacific Northwest. In the case of a DMO, the boundary defining the region as a ‘destination’ is typically established by the administrative body that has commissioned the management of the region, such as a community organization or a governmental entity like a city council.
Often, the boundary of a DMO is based on its financial sources. DMOs are typically funded by a variety of sources (to be discussed later in this chapter) including Tourism Promotion Area and Business Improvement District assessments, hotel occupancy taxes, and other types of taxes. Assessments and taxes are charged to businesses or taxpayers within a defined area of a district, city, county, or state. If a DMO is funded by one or more of these sources, then the boundary of their destination typically mirrors the assessment or tax boundary.
Types of Tourism Organizations
The diagram below, the result of a worldwide survey of DMOs conducted by Destinations International and MMGY NextFactor (2023), shows the variety of business models invo