Destination Development and
Institutionalization Strategies
In the OIC Member Countries
3
DMOs reinvent localities as tourism hotspots, an example of which is a timber town in Oregon
redeveloped as a mountain biking destination for tourists.
 Stakeholder engagement: Well-developed engagement models have three core pillars – formal
organizations that tie the DMO together with industry representatives, formal and regular
meetings with stakeholders to discuss strategy and feedback, and an ongoing process which
involves regular interaction and feedback mechanisms, such as focus groups and surveys.
 Funding: Predominantly, public funding is the most common form of funding, with 97% of funds
on average coming from a lodging tax which is then used by the DMO to cover its expenditures as
well as local development, according to the Destination Marketing Association International 2017
Report on DMO Organizational and Financial Profile Study. Private funding, through sponsorships
and advertising, as well as other sources, represents a fractional share of funds.
KPIs: The measurements of a DMO's success has moved beyond a tradition focus on
marketing activities and visitor metrics towards broader outcomes, including changes in
consumer-based brand equity as a result of DMO activities, and stakeholder evaluation of DMO
performance.
Key Performance Indicators
Measurement Approach/Model KPI Measurement
Visitor Metrics Visit Statistics Number of Visitors
Average Length of Stay
Tourist Spending
ROI Ratio of Visitor Spending to DMO Spending
Marketing Communications Activity Number of Programs/Campaigns
Total Reach
Total Frequency
Performance Advertising Awareness
Brand Image Changes
Productivity Conversion Rates
Cost-per-Conversion Rate
Return on Investment
Consumer-Based Brand Equity (CBBE) Brand Salience Top of Mind
Decision Set
Brand Associations Cognitive Attributes
Affective perceptions
Brand Resonance Previous Visits
Intent to Visit
Brand Loyalty Repeat Visits
Word of Mouth Referrals
Organizational Effectiveness Appropriateness of Objectives Clarity of Objectives
Feasibility of Objectives
Achievement of Objectives Progress towards Objectives
Implementation Efficiency Efficient Resource Allocation
Cost-effectiveness
Stakeholder Tourist Evaluation Satisfaction with Access to Services
Satisfaction with Accommodation
Satisfaction with Transport
Local Industry Evaluation Satisfaction with Destination Promotion
Satisfaction with Industry Support
Local Community Evaluation Satisfaction with Quality of Life
Source: DinarStandard Analysis