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Destination Development and

Institutionalization Strategies

In the OIC Member Countries

8

Introduction and Methodology

Background

Tourism plays an important economic role, adding $2.3 trillion to global GDP in 2016, and indirectly,

contributing a further $7.6 trillion to the global economy, and account for 109 million jobs.

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Most tourism

destinations have established and entrusted destination management organizations (DMOs) with the task

of developing and managing their destination in response to increasing competition. Destination

management is defined as “the strategic, organizational and operative decisions taken to manage the

process of definition, promotion and commercialization of the tourism product [originating from within

the destination], to generate manageable flows of incoming tourists that are balanced, sustainable and

sufficient to meet the economic needs of the local actors involved in the destination”.

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Acknowledging that

the 57 Member states of the Organization of Islamic Cooperation (OIC) have is substantial potential to

improve tourism and enhance economic growth, this study aims to provide tourism policy-makers in

member states’ governments with recommendations regarding measures that can be taken by

governments to ensure successful and sustainable destination development through institutionalization.

In this study, chapter one explores the potential of tourist destinations, the impact of tourism, and how to

add value to tourism stakeholders, particularly tourists and local communities. Chapter two outlines the

destinationmanagement organizations' characteristics and structures, their activities, fundingmodels and

resources, and key performance indicators that are used to measure DMO effectiveness. Chapter three

offers a step-by-step process for destination product development, from identifying tourism resources,

assessing and developing infrastructure, assessing and developing a strong supporting environment

across the value chain, engaging with community, to activating the destination product development

strategies. Chapter four presents eight case studies from the OIC and the non-OIC countries to shed light

on best practices in destinationmanagement and destination product development. Chapter five compares

practices of the OIC and the non-OIC countries in areas of destination management and product

development. Chapter six provides recommendations based on study findings for policy-makers in the OIC

member states for destination management and product development.

Objective

The objective of this study is to enable tourism stakeholders:

To identify characteristics of potential destinations and destination development strategies and

their implications,

To present ideal destination governance structures and institutionalization strategies,

To explore stakeholder responsibilities with regards to destination development,

To explore destination product development processes,

To provide policy recommendations for effective destination management and destination

development strategies for the OIC member countries.

Methodology

The study combines primary and secondary research tools and sources to fulfill its objectives:

3

Travel & Tourism Global Economic Impact & Issues

2017 (Rep.). (2017, March). Retrieved fro

m https://www.wttc.org/- /media/files/reports/economic-impact-research/2017-documents/global-economic-impact-and-issues-2017.pdf

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Presenza, A. (2005). The performance of a tourism destination. Who manages the destination? Who plays the audit role?

XIV

International Leisure and Tourism Symposium ESADE

, 1-14. doi:10.1.1.115.1245