Destination Development and
Institutionalization Strategies
In the OIC Member Countries
18
2. Destination Development Institutional Strategies
Most destinations have established and entrusted destinationmanagement 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”. 33 According to the
World Tourism Organization (WTO), a destination management organization (DMO) is “the leading
organizational entity which may encompass the various authorities, stakeholders and professionals and
facilitates tourism sector partnerships towards a collective destination vision”. 34
It is estimated that there are more than 10,000 DMOs in existence globally today, from governmental and
private entities to public private partnerships.35 DMOs exist and operate at different levels; national
tourism organizations (NTO) operating at the national level, regional, provincial or state DMOs operating
at the level of a geographically defined region for tourism marketing purposes, and local DMOs operating
at the city or town level.36
In terms of DMO development timeline, regional tourism organizations (RTO) were the first type of DMOs
founded, with the establishment of the Swiss St Moritz RTO in 1864. The first national tourism office (NTO)
was established by New Zealand in 1901, to be followed by a French NTO in 1910, an Italian NTO in 1919,
which were followed by a myriad of other NTOs established around the globe. The first state tourism
organization (STO) was established in Hawaii in 1903, and was followed by 26 STOs in various US States
by 1946.37 While the role played by destination management organizations (DMOs) today encompasses
both marketing and management activities, they started off with a focus on marketing activities. Early
DMOs, established at the local level in the 1800, developed travel guides and advertising campaigns to
promote their destinations. 38
2.1. DMO Characteristics and Structure
Currently, DMO legal forms around the globe vary from governmental bodies to private entities, and
public-private partnerships. However, the past 40 years witnessed a shift from governmental DMOs, that
include ministries, authorities and departments, to public-private partnerships, which are in many
instances non-governmental organizations funded partially by the government but run as autonomous
entities. 39
Traditionally, NTOs were essentially governmental organizations, however, in some instances
governments grant NTOs a separate legal identity to allow them more financial and administrative
latitude. Governmental DMOs can directly influence government policies. RTOs can cover the whole
33 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. .
34 Presenza, A., Sheehan, L., & Ritchie, J.R. Brent. (2004). Towards A Model of the Roles and Activities of Destination Management
Organizations. Spain: World Tourism Organization.
35 Pike, S., & Page, S. J. (2014). Destination Marketing Organizations and destination marketing: A narrative analysis of the literature.
Tourism Management , 41, 202-227. doi:10.1016/j.tourman.2013.09.009
36 Presenza, A., Sheehan, L., & Ritchie, J.R. Brent. (2004). Towards A Model of the Roles and Activities of Destination Management
Organizations. Spain: World Tourism Organization.
37 Pike, S. (2008). Destination Marketing: An Integrated Marketing Communication Approach. Oxford: Butterworth-Heinemann.
38 Pike, S., & Page, S. J. (2014). Destination Marketing Organizations and destination marketing: A narrative analysis of the literature.
Tourism Management , 41, 202-227. doi:10.1016/j.tourman.2013.09.009
39 Ibid.