Destination Development and
Institutionalization Strategies
In the OIC Member Countries
109
the tourism sector in the decision-making process and implementing decisions was an integral part of the
process.337
On a regional level, integration of stakeholders in decision making is ensured through membership of
lower level DMOs in higher level DMO as discussed earlier in the Naturo and Val Passiria DMOs which are
both members of the Meran regional DMO. Regional DMOs are themselves composed of members from the
local tourism industry ensuring that their interests are represented and feedback is taken into
consideration in decision making. In terms of the coordination role between the various stakeholders,
regional DMOs efforts can be affected by the relative size and power relationships of the various
stakeholders. As in the case of the Val Pissiria DMO, where efforts to coordinate different stakeholders’
interests is affected by the centrality of the Sport and Wellness Resort Quellenhof to the destination,
which makes the resort a main player in decision making and formulation of strategies.338
4. Funding sources for DMOs
Both public and private sources are used to fund destination management organizations activity. Due
to Italy’s “subsidiary approach”, regional governments have the authority to impose taxes. However,
traditionally both national and regional governments have not imposed taxes. In South Tyrol, the
government initially adopted a “voluntary” approach for funding DMOs through membership fees.
However, a lodging tax, paid by tourists, was introduced recently to fund the activities of destination
management organizations since membership in the local tourism organizations is not mandatory
and revenue from membership fees would not ensure sustainable funding of DMOs. In the case of
Naturno, the DMO budget is mainly funded through membership fees and contributions. The
contribution of the hotels consortium, which is the largest player in the tourism industry in Naturno,
accounts for a large portion of the budget. It is worth noting that even though the hotel consortium
contribution is quite large to the budget and that it finances many of the activities needed for support
of small tourism businesses in the area, many of the smaller tourism players would like the
consortium to contribute more to the budget of the DMO. 339
5. Lessons Learned
 The private sector can play an important and leading role in some instances in destination
development and rejuvenating destinations especially in areas where public resources are
limited.
 The existence of a “core” can increase the effectiveness of a network as in the case of Naturno
where the Dolce Vita Hotel represents an “entrepreneurial core” which succeeded in
transforming the destination and spreading the notion of quality to other stakeholders
through the local DMO.
 The “leading firm” governance model, where one player has significant influence on decision
making, can benefit a destination as long as the interests of the leading player and other
tourism businesses are convergent.
337 Ministry of Cultural Activities and Tourism . (2017). Strategic Plan for Tourism 2017-2022. Retrieved from
338 Pechlaner, H., Beritelli, P., Pichler, S., Peters, M., & Scott, N. (2015). Contemporary Destination Governance: A Case Study Approach.
Bridging Tourism Theory and Practice, 6, iii. doi:10.1108/s2042-144320140000006045
339 Ibid.