Destination Development and
Institutionalization Strategies
In the OIC Member Countries
39
Measurement Approach/Model KPI Measurement
Stakeholder Tourist Evaluation145 Satisfaction with Access to Services
Satisfaction with Accommodation
Satisfaction with Transport
Local Industry Evaluation146 Satisfaction with Destination Promotion
Satisfaction with Industry Support
Local Community Evaluation147 Satisfaction with Quality of Life
Source: DinarStandard
As the bulk of DMO budgets is spent on marketing and communication activities, monitoring the
effectiveness of those activities is essential to establish how successful DMOs are. The level of marketing
activities can be measured by the number of programs or campaigns, total reach and total frequency, while
their effectiveness can be measured using conversion rates and return on investments. Conversion rates,
which calculate the percentage of individuals who respond to DMOs marketing efforts and subsequently
visit the destination, are the most prevalent measurement of DMO marketing efforts effectiveness. Return
on investment (ROI) measures the economic impact of DMO investment on the local community, in terms
of visitor spending, tax revenues, among other financial impact indicators. Measuring ROI is extremely
important since many DMO receive public funding which makes it imperative to demonstrate that the
allocated funds are being used effectively and that the local communities’ interests are being served. 148
The Consumer-Based Brand Equity (CBBE) is based on a hierarchy of indicators for gauging DMO
effectiveness, including brand salience, brand associations, brand resonance and brand loyalty.
Brand salience establishes the intensity of consumers’ awareness of a destination, in terms of top of mind
or unaided recall of a destination in a specific travel context and whether a destination is included in the
consumers’ “decision set” i.e. shortlist for destinations they intend to visit. 149 While, awareness in itself is
not translated into intent to visit, it is a prerequisite for making a choice of a destination. Top of mind is
usually investigated in consumer research using unaided questions. Destination brand association
measures the success of positioning strategies, by studying the strength of the relationship between brand
identity and brand image as well as the uniqueness and favorability of these associations. Brand
associations are usually researched using surveys measuring cognitive attributes and affective benefits.
Brand resonance studies consumers’ level of engagement with the destination in terms of previous visits
and intent to visit the destination. While no studies have established the extent of the relationship between
intent to visit and actual visits, intent to visit remains an important indicator to measure success of
destination marketing efforts, Longitudinal studies are used to establish the change in intent to visit.
Brand loyalty is determined by measuring repeat visits and referrals. Investigating repeat visits and
referrals is generally conducted through tourist intercept surveys at destinations. Collecting this data can
help destination managers identify loyal tourists’ demographic characteristics and motivation and
behavioral patterns, which can help them develop better targeted marketing campaigns. 150
DMO organizational effectiveness indicators include; appropriateness of DMO objectives, the extent to
which objectives were achieved, and the efficiency of its implementation. Organizational effectiveness
145 Epp, A. (2013). Assessing the Impact of Stakeholder Engagement on Perceptions of DMO Performance (Working paper). The International
Centre for Responsible Tourism. Retrieved fro
146 A Manual for Evaluating the Quality Performance of Tourist Destinations and Services (2003). Luxembourg: Office for Official
Publications of the European Communities, 2003.
147 Crouch G.I., & Ritchie J.R.B. (2012) Destination Competitiveness and Its Implications for Host-Community QOL.
148 Destination Marketing Association International (2011). Standard DMO Performance Reporting: A Handbook for DMOs.
149 Pike, S. (2007) Consumer-based brand equity for destinations: Practical DMO performance measures. Journal of Travel & Tourism
Marketing 22(1): 51-61.
150 Pike, S. (2008). Destination Marketing: an Integrated Marketing Communication Approach. London: Routledge.