Destination Development and
Institutionalization Strategies
In the OIC Member Countries
82
4. DMO Funding
Dubai Tourism is a government agency which receives funds from the government. While a Tourism Dirham
levy on hotel stays is used for adding to its income, it mainly depends on government budgetary financing.
Since tourism is a significant contributor to the economy, Dubai Tourism’s funding is usually enhanced every
year to meet the needs of a growing sector of the economy.
5. Lessons Learned
The transformation of Dubai into a major tourist destination in the last 25 years has been nothing short of a
miracle. Growth in the last ten years has been equally impressive. From 5.5 million tourist arrivals in 2006 264
to 14.9 million in 2016 is a phenomenal achievement. One of the reasons has been listening to tourists need,
and responding to themwith something beyond their expectations. Always outperforming. Dubai has always
been reinventing itself and expanding its offerings. And marketing itself aggressively.
Unlike other destinations, Dubai is a city with a lean government structure. The leadership of Dubai closely
monitors the progress of Dubai Tourism as tourism is a major contributor to the GDP of the emirate. Decision
making is prompt. And follow-up is meticulous to ensure that things actually get delivered.
But how is a DMO in some other city or country to emulate this success?
 Structure of the DMO: It is important to segregate legislation and infrastructure management from
marketing and promotion. An independent division of the DMO should look after regulations and
focus on expediting legislation that is needed for encouraging the growth of the tourism sector. The
other division can look after marketing and promotion. This division may be further bifurcated into
business events (MICE tourism) and leisure marketing.
 Ecosystem support: The success of Dubai depends considerably on its ability to fast track legislation.
DMOs should, therefore, have strong links with the city government. The DMO should be in close
coordination with mayor of the city or the governor or legislative head of the province.
 It is not important to have a large infrastructure ready before a DMO begins its promotional role. A
beach, a forest, a city’s culinary offering, a theme park or a historical relic can be the springboard for
promoting the destination. (Shopping was the main attraction in the early days of Dubai.)
 Start with the low-hanging fruits – encourage friends and relatives to visit. VFR can also be in the form
of the country’s expats who can be encouraged to visit. Domestic tourism can also be a first step.
 Build hotels and infrastructure - airports and public transport. Once tourists start arriving it is
important to monitor growth and project trends. Infrastructure takes time to build and proper
forecasting can ensure that the destination is ready to accommodate the growing number of visitors.
 Encourage airlines to freely fly in and out – have an open skies policy
 Identify or create an iconic “bucket list” attraction (such as Burj al Arab or Burj Khalifa in Dubai)
 Listen to the tourists (surveys, social media monitoring) and prioritize what they want
 Interact with stakeholders and tell themwhat tourists want.
 Incentivize stakeholders to build what tourists desire - and monitor progress
 Keep adding new attractions that appeal to different demographics – kids, millennials, adults
 Adding new attractions can also encourage repeat visits
264 Dubai Tourism Statistics and Trends [Infographic]. (2016). Dubai Statistics Center. Retrieved fro