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.3 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”. 4 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
4 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