Destination Development and
Institutionalization Strategies
In the OIC Member Countries
139
Comparing the OIC to best practice examples
In the best practice examples that are shown, public funding represents a significant component of
revenues but is met through a tax rather than direct government grants. 97% of DMO funding on average
comes from public sources, 73% of which is from a lodging tax, according to Destination Marketing
International in 2017402
However, in the OIC countries, the source of funding in the examples reviewed were primarily directly
from the government in the form of grants or from private entities, with a larger role for lodging taxes to
play.
Table 27: Leading Non-OIC Developed Country Examples 403:
Country United States Australia Italy
Public
sources
Travel Oregon, a state
DMO, receives 1%
statewide lodging tax
levied in 2003.
Go Great Lakes Bay, a local
DMO, is funded by 5% tax
on overnight hotel stays.
Destination NSW received
funding from NSW Treasury
government grants, which
amounted to $148 million in
2017.
Italy’s regional DMOs, such as
the IDMSouthTyrol are funded
by a lodging tax.
Private
sources
In the United States, DMOs
have generated revenue
using ads and have taken
booking and reservation
fees. 404
Destination NSW received
$11.3 million in contributions
received from industry
sponsorships and membership
fees.
Naturno, a local DMO, is funded
by membership fees and
industry stakeholder
contributions.
The OIC countries have leveraged traditional ways to attract funding405.
Source: DinarStandard Analysis
402 Destinations International. (2017). [Infographic of 2017 Organizational and Financial Profile Study]. Retrieved from
403 All components of table based on case study feedback unless otherwise mentioned
404 SimpleView provides a tool that allows DMOs to display relevant ads on their websites. They also offer a solution that allows DMOs to
sell tickets to attractions, activities, and tours through their website.
405 All components of table based on case study feedback unless otherwise mentioned