Module 3 - Destination Management Strategy
Module 3 - Destination Management Strategy
With this in consideration, this module will touch on innovative forms of governance and collaboration
that will enable you to apply a more holistic approach to destination management and resilience.
Relevant case studies will be presented to illustrate how DMOs exhibit strategic
stewardship, effective implementation and efficient governance in handling tourism crises.
In the wake of the COVID-19 crisis, Travel & Tourism has a real opportunity
to help drive recovery and fulfill its potential as a critical sector in our
transition towards a greener and more equitable society and economy. To
do so, we must be destination stewards and ask – in the spirit of President
John F. Kennedy's timeless call – not what our destinations can do for us but
what we can do for our destinations.
WTTC (2021)
The shift from destination management to destination stewardship, the role of tourism in the
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achievement of the SDGs and the GSTC criteria for destination management.
What risk management in tourism entails and how to translate the principles and tools of ISO
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31000 in crafting risk management policies.
And what are the learning outcomes?
By the end of this module, you will be able to:
formulate risk management strategies to help your destination cope with the negative effects
of crises using the ISO 31000 Framework.
Understanding Destination
Management and the Role of
DMOs
Introduction
Today more than ever, tourism destinations are facing several challenges – environmental crises,
technological advancements, leadership issues, overtourism and, more recently, a global health crisis –all
calling for a responsive mode that makes destinations more resilient against these disruptors.
This first section will emphasise the important role of DMOs in effective destination management. This
requires an in-depth analysis of several factors, including: Who is managing? What is being managed? How
should the destination be managed?
Tourism destination management must maximise visitors' value and quality perception while
ensuring the competitiveness and sustainability of the destination, as well as the
preservation of its natural and cultural assets, and catalyse the benefits for the local economy
and its residents.
UNWTO (2021)
However, the recent pandemic has now changed the way we look at destination management. There should
be a strategic approach to linking up the sometimes very isolated elements for better planning and
management of a destination.
In the past, destination management was often a reactive process in response to some crises, but now it must
transition to a proactive, forward-looking and future-oriented approach.
A DMO is a governing body that calls for partnerships beyond traditional organisations
to include communities and non-governmental organisations in decision-making and
management.
Also, effective destination management works best when in partnership with the trade. This is a two-way
process: the trade benefits from regulation, education and access to marketing platforms beyond their
budget and reach, and the DMO benefits from direct access to authentic content, market intelligence, access
to user-generated content from actual visitors and strategic guidance.
Now let's take a look at some of the most fundamental functions of DMOs:
Planning and developing Developing and implementing Monitoring and reporting Developing tourism products
strategies the destination’s tourism policy
Training and capacity building Funding and securing Marketing and branding Managing crises
investments
The DMO should develop a roadmap and formulate strategies based on the destination's
needs, competencies and priorities assessed during the participatory process.
1. Increasing resilience and sustainability. The destination will be able to withstand adversity; bounce forward from crises
and disasters; maintain its economic viability, its environmental & socio-cultural integrity, and its authenticity and character.
2. Enhancing tourism quality and yield. The DMO will reduce seasonality & overcrowding and deliver great value and
experiences, increasing the average length of stay and visitor expenditures.
3. Spreading tourism benefits. The economic benefits from tourism will be spread across various areas of the destination
through the development & promotion of locally-owned SMEs, products and experiences, and decent job opportunities for
residents.
4. Boosting competitiveness. The quality of the tourism experience will be further enhanced through the unique
positioning of the destination that highlights its authenticity and high-standard products & experiences.
5. Strengthening governance. The DMO will align efforts and bring together all relevant stakeholders to improve the
destination and its communities.
6. Involving the community. The wants and needs of local communities towards tourism development will be considered,
and they will be included in the decision-making process.
Traditional parameters for measuring success – i.e., that solely integrated economic considerations –have led
to many complications:
This commonly results from a fixation on growth alone, which often stems from using Key Performance
Indicators that are solely focused on growth measured by volume, such as arrival numbers. By focusing on
management, these KPIs can be modelled on what is best for the destination and instead be ranked on yield
(increasing length of stay and spend), grading of environmental and social impact and ratings and reviews of
visitor experience.
There is a clear mismanagement when the tourist arrivals and receipts are more favoured
than the destination’s culture, environment and community well-being.
Fewer tourists staying longer is a better long-term business plan than more tourists staying shorter. In
the long run, it will bring more economic benefits with a much lighter footprint – less pressure on the
destination, a better experience for tourists and a higher quality of life for residents.
See below two examples of DMOs that have addressed sustainability issues by responding to the call on
choosing value over volume:
tourists.
When taking this approach, destinations should avoid the practice of greenwashing, which is creating demonstrations
of environmental or social benefits specifically for promotional purposes. Some examples of this are:
• tree planting projects in areas where forests are being destroyed (as opposed to protecting the forests);
• appointing and benefiting local community associations based in their willingness to be used for publicity (as
• not washing towels in large resorts (as opposed to addressing the broader water consumption);
• undertaking 'research' on captive dolphins or animals (rather than actually protecting wildlife).
Volume-focused Value-focused
On the surface, it looks good... the more A higher percentage of the money stays in the
people, the more money destination
Volume-focused Value-focused
But the more people who come, the more Adventure travellers spend more than
problems you have ordinary travellers
With mass tourism, only a small percentage of It gives opportunity for local people to own the
the money stays in destination tourism businesses and stay in their communities
Introduction
Destination management requires full public-private-community (PPC) collaboration. This lesson will
discuss the different levels of engagement to support stakeholders in assessing their current context and the
pathway towards destination resilience.
A new approach of destination management will be explained to present greater potentials for DMOs to
operate efficiently and transparently, thereby generating legitimacy and trust among the different
tourism stakeholders in the industry.
allows DMOs to maximise their destination’s contribution to the following specific SDGs.
Click on each of the pictures for examples on how DMOs can incorporate the SDGs in their plans
and policies (UNWTO):
As one of the world’s largest sectors, Tourism empowers women through Tourism provides 1 in 11 jobs
tourism fosters economic growth and jobs and income-generating worldwide, creating access to decent
development at all levels and provides opportunities in small and larger-scale work opportunities particularly for
income through job creation. tourism enterprises. women and the youth.
A city that is good for its citizens is Tourism adopts sustainable Tourism strengthens public-private
suitable for tourists. Investments in consumption and production practices partnerships and engages multiple
green infrastructure result in more that accelerate the global shift stakeholders to work together to
innovative, greener cities benefiting towards sustainability. achieve the SDGs and other common
both residents and tourists. goals.
Explore more about the examples above and the relationship between tourism and the 2030
Agenda at: www.unwto.org/tourism-in-2030-agenda
You were introduced in Module 1 to the Global Sustainable Tourism Council (GSTC), which provides
sustainability standards and criteria for the tourism sector. These criteria are also a powerful tool in guiding
you towards good destination stewardship.
Section A of the GSTC Criteria (2019) on Destination Management Structure and Framework deals with
sustainable management and is concentrated on the following areas:
1 Management Structure;
2 Stakeholder Engagement;
The destination has a multi-year destination management strategy and action plan: publicly
available; suited to its scale, developed by stakeholder engagement; and based on sustainability
principles. The strategy includes the identification and assessment of tourism assets and socio-
economic, cultural and environmental issues and risks.
DMOs must strive to manage holistically, with full regard to the destination’s character
and assets, which add up to the area’s “sense of place”:
The destination has a system to monitor and publicly report visitor satisfaction with the
quality and sustainability of the destination experience. Also, promotion and visitor
information material about the destination is accurate with regard to its products,
services and sustainability claims.
The stakeholder groups to be involved in the tourism planning and management include: local
residents and minority groups (women, indigenous populations, LGBTQ+ community, individuals
with disabilities), community leaders, spiritual/religious leaders, business sector representatives,
researchers, local government and tourists themselves.
To .finish, let's see the criteria for Managing Pressure and Change
Crisis management must be part of the destination's agenda, with strategic plans on how to carefully manage
risks. DMOs must be able to establish destination resilience through policies and programmes to build on
their capability for destination stewardship.
destination management.
Developing organisational strategies helps destinations avoid or limit the severity of risks induced
by crises. The GSTC Criteria highlights the importance of a holistic approach, meaningful
engagement with stakeholders and effective management of risks.
Introduction
As we know very well by now, tourism destinations face a wide variety of risks. Some risks arise from events and
circumstances beyond the control of DMOs (natural disasters, political unrest, epidemics, etc.) while others result
from management failures or lack of contingency measures to deal with predictable risks (inappropriate
strategic management, financial problems, property loss, massive turnover, business collapse due to management
failures, etc.).
In this lesson, we will discuss the fundamental roles of DMOs in establishing risk management.
It is not the strongest of the species that survive, nor the most
intelligent, but the one most responsive to change.
Charles Darwin
What is disaster risk management and why is it important?
Disasters do happen, therefore it is best to be prepared to manage these unavoidable events. Disaster Risk
Management (DRM) is the application of:
These strategies include preparedness, response and recovery activities, but also a mix of
different financing instruments, such as national contingency funds, contingent credit,
insurance and reinsurance and social safety nets.
Take a look at the Disaster Risk Management Cycle below (UNESCO, 2010). Disaster Risk Management
consists of 3 main stages: before, during and after disasters. Click on the numbers to know how these
stages are covered in our TDR course:
In times of crisis, visitors and residents need firm leadership and direction. Adequate
planning is necessary to address risk management issues and reduce the impact of crises
on the destination.
Risk management consists of 6 main functions:
3 Plan: use the decision-making information to formulate contingency action plans for mitigating
the potential impact of each risk.
4 Track: monitor the likely effectiveness of these plans by reviewing data on evolving risks.
Control: revise the risk mitigation plans according to data from the tracking stage.
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Communicate: implement internal and external information policies to ensure
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stakeholder buy-in and support in monitoring changes in the risk environment.
have trained personnel at the disaster management agencies during response and recovery
operations;
identify procedures for return to normal activities upon the termination of the disaster
operations.
Disasters like earthquakes, floods, oil spills, conflicts and the outbreak of diseases cannot be entirely prevented, but
destinations can implement mitigation measures to reduce the risk that these can present, and empower stakeholders to
act. An effective DRM plan can help to support tourism stakeholders and vulnerable communities by protecting the
loss of life, assets and property in a destination.
UNDRR
Disaster risk governance at the regional or destination level is part of destination management/stewardship
and refers to the way in which all stakeholders within a tourism destination (public authorities, civil servants,
media, private sector and civil society) coordinate together (and within the
regional and national disaster risk governance structure) in order to manage and reduce disasters and
climate-related risks in tourism destinations.
Clear vision, plans, competence, guidance and coordination within and across sectors, as
well as the participation of relevant stakeholders, are needed to best prepare for disasters.
Through the development of a risk management strategy to effectively identify and mitigate
risks.
By allowing you to understand the consequences associated with risks and thus make more
informed decisions.
The ISO 31000 principles, framework and process encompass developing, integrating, designing, implementing,
evaluating and improving risk management across the organisation. Click on each step to know more about them:
Principles
The principles provide guidance on the characteristics
of
an effectiverisk management, communicating its
value and explaining its intention and purpose.
Framework Process
The purpose of the risk management framework is to The risk management process involves the systematic
into significant activities and functions. activities of communicating and consulting, establishing
the context and assessing, treating, monitoring,
This requires supportfrom stakeholders, particularly
top management. reviewing, recording and reporting risk.
Read about each component and how they will help your destination's risk management here.
According to ISO (2018), you should evaluate your existing risk management practices and
processes for any gaps and address those gaps within the framework. The components of the
framework should be customised to your needs.
In this link, see a specific example of how the ISO 31000 Risk Management Framework was
applied to the tourism industry in Indonesia.
Mitigation Risk Based on ISO 31000:2009 on The Optimization Model for Developing Spiritual Tourism
Destinations
This article analyses the implementation of risk mitigation through ISO 31000: 2009 on the optimisation model for
developing a spiritual tourism destination at Parahyangan Agung Jagatkartta Temple, Indonesia.
Final thoughts on DMOs risk management
Throughout this section we have emphasised the importance of being prepared through risk management. This
means being prepared to minimise emergent risks (which may be unforeseen and happen suddenly) and then
shift rapidly into disaster management. This raises the risk of inaction or slow response that makes the crisis
even worse.
DMOs should undertake advance audits of the organisation's ability to manage and handle a crisis. This means
identifying issues that may occur during a crisis or disaster and how this could happen. These often include:
Who can respond to a crisis and share information? And via which channels?
Do these people have the ability to take action without seeking permission or clearance that may be
time consuming or difficult?
An immediate chain of communication is needed and must be agreed in advance. We will cover more on this topic
in Modules 4 and 5.
Can marketing messages, approaches and channels be stopped or changed at short notice without
breaking protocols or losing available budget?
Access to resources
During a crisis, new resources may be required for managing the situation. These may include services of PR
firms, media buying or supportive resources for the trade such as producing web based content, mapping of
impacted areas and more.
If accessing these resources requires lengthy procurement procedures, approvals and selections, the
management of the crisis can become too slow, or stopped.
Risk management polices should include procedural and procurement waivers that are agreed in
advance and explaining the circumstances under which they may be invoked.
Budget
Managing a crisis and risk and impact mitigation can be costly, and in many cases DMOs failure to respond
is because of lack of available budget.
Having a contingency budget agreed, identified and available in all DMO budgets is important, with an
assessment of the amounts that will be required, under what circumstances they can be used, and how they can
rolled over.
An audit process to identify these areas as well as a collaboration with the public sector
to develop these contingent plans, actions, resources and budgets is essential.
Destination management
The Destination Management Organisation (DMO) should formulate strategies based on the destination's
needs, competencies and priorities that were assessed during the participatory process with all relevant
tourism stakeholders, including the local community and minority groups.
Destination stewardship
It is crucial for DMOs to implement risk management strategies to handle the adverse effects of crises
and disasters in their destinations.
DMOs must develop strategies to ensure continuity of normal operations and, at the same time, partner
with stakeholders to create crisis management plans, systems and procedures.
ISO 31000 can help DMOs develop a risk management strategy to effectively identify and mitigate risks, as
well as it allows for more informed and effective decision-making.
Module Summary
Key takeaways
We have seen that managing tourism destinations requires a shared understanding of the common good
and effective platforms for collaboration with shared objectives and measurements of
success that go beyond traditional growth metrics, such as visitor arrivals and overall spend. More than
ever, DMOs face the challenge of addressing the effects of crises in a more proactive and sustainable way.
what a DMO is and the importance of effective destination management towards resilience and
1 sustainability;
that innovative forms of governance and stakeholder collaboration enable a more holistic
2 approach to destination management;
the principles and processes of ISO 31000 as a comprehensive framework to ensure that risks are
3 managed effectively and coherently across an organisation;
that all tourism stakeholders should have significant input into the risk management process
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and contribute to the development and implementation of associated risk management plans,
systems and procedures;
that by identifying and managing risks, DMOs may very well respond to any crisis correctly and
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precisely.
Thank you for completing this module! In Module 4, we will dive into a crucial step in risk
management: the development of an emergency plan. Please contact us at crc@pata.org
for any questions, suggestions or support.