Marketing and Managing

Tourism Destinations

Alastair M. Morrison, Ph.D.

Presentation outline

q Destination marketing and destination

management
q Destination management organizations
q What is the power of destination
marketing?
q Destination marketing success stories
q Key principles of destination marketing
What is destination marketing?

Marketing is a continuous, sequential

process through which a destination
management organization (DMO) plans,
researches, implements, controls, and
evaluates programs aimed at satisfying
traveler’s needs and wants as well as the
destination’s and DMO’s visions, goals,
and objectives. To be most effective, the
DMO’s marketing programs depend upon
the efforts of many other organizations and
individuals within and outside the
destination. (Adapted from Morrison, 2010)
 What is Destination Management?
Destination management is a professional
approach to guiding all of the efforts in a place that
has decided to pursue tourism as an economic
activity. Destination management involves
coordinated and integrated management of the
destination mix (attractions and events, facilities,
transportation, infrastructure, and hospitality
resources). Destination management
organizations (DMOs) are teams of tourism
professionals that lead and coordinate all tourism
stakeholders. Effective destination management
involves long-term tourism planning and continual
monitoring and evaluation of the outcomes from
tourism efforts.
Relationship of destination management
and marketing

q  Traditionally there were organizations

that solely promoted and sold places;
these eventually became known as
destination marketing organizations
(DMOs).
q  These organizations now have been
entrusted with several more
responsibilities and roles; so they are
now being called destination
management organizations (DMOs).
q  It’s a subtle difference in naming, but a
huge change in DMO functions.
Destination Management
Organizations
DMOs
 DMO roles: UNWTO

Elements of the Destination

Attractions + Amenities + Accessibility

+ Human Resources + Image + Price

The DMO
Leading and coordinating

Marketing Delivering on the ground

Getting people to visit Exceeding expectations

Source: UN World Tourism Creating a suitable environment

Organization, 2008.
Policy, legislation, regulations, taxation
DMO roles: DCG-BTI

Community
Leadership &
Relations &
Coordination
Involvement

Partnerships
Product
Development DMO & Team-
building

Planning and Marketing &

Research Promotion
Source: Destination Consultancy Group-Belle Tourism International, 2014.
Types of destination management
organizations

Scattered throughout the world and spanning many

different organizational sizes and types, DMOs have
existed for at least 100 years. Destination management
is done by a wide variety of DMOs ranging from national
to city-level organizations. DMO types include entities at
four geographic levels:
q  Country or national
q  State, province, and territory
q  Regional
q  County and city
National DMOs

National destination management organizations:

q  National tourism administrations and ministries of
tourism (NTAs) and (MOTs), e.g., China National
Tourism Administration and Bahamas Ministry of
Tourism.
q  Shared ministry portfolios including tourism, e.g.,
Indonesia Ministry of Tourism and Creative Economy.
q  Dual national destination management organization
systems, e.g., Tourism Australia and RET.
Roles and activities of national DMOs

q Tourism legislation and regulations

q Tourism policy-making
q Tourism planning and strategies
q Tourism development
q Tourism research
q Destination marketing and promotion
q Education and training programs
q Quality improvement and assurance
q Sustainable tourism
What is the Potential Power of
Destination Marketing?

Lessons from actual experiences

around the world
Power of destination
marketing, 1

q Turns “unknown places” into popular tourism

destinations, e.g., Costa Rica, Maldives, and
Sabah (Malaysia).
q Can produce a significant return on
investment (ROI) on marketing funding, e.g.,
Brand USA.
q Reverses the impacts of crises on tourism
destinations, e.g., HKTB marketing during
the SARS crisis.
q Improves the image of a country, e.g., India,
New Zealand, and Australia.
Power of destination
marketing, 2

q Quickly ignites interest in places with the

rapid feedback of social media, e.g.,
Queensland and Philippines.
q Provides a platform for government
agencies to cooperate and co-invest in
various partnerships with the private sector,
e.g., Seychelles and other PPPs.
q Keeps travel agents and tour operators
informed and interested in destinations.
q Maintains a constant and positive public
presence for destinations.
Power of destination
marketing, 3

q  Colorado cut its state

marketing budget to
zero in 1993.
q  Colorado’s share of
U.S. travel declined
30% within two years,
creating a revenue
loss of over $2 billion
annually.
Destination Marketing Success Stories
Best-practice marketing from around the
world

Virg
inia
India

sland
U SA ueen
Q

Spain
a y s ia
Mal

The Bahamas
 Australia

q  Tourism Australia is widely acknowledged as one of the

best NTOs in the world.
q  Apart from its wonderful destination advertising
campaigns, TA is recognized for its relationship-building in
other countries, including through the Aussie Specialist
Program.
q  TA provides excellent Toolkits and other support materials
for tourism operators.
q  Australia also has an excellent tourism research program;
but this is the responsibility of a separate agency, Tourism
Research Australia.
Sources: http://www.australia.comhttp://www.aussiespecialist.com http://www.ret.gov.au/tourism/research/tra/
Pages/default.aspx 2014.
Successful destination branding:
Australia

“The kangaroo is symbolic of the warmth, boundless energy and optimism which
are integral parts of the brand. The brand identity will be featured in all tourism
promotion, providing a unifying link across markets and campaigns” (Source:
Tourism Australia)

q  The Brand Australia logo features the nation’s most recognised
icon, the kangaroo, which helps ensure instant recognition for
Australia around the world.
Best Job in the World, Queensland,
Australia
q  Tourism Queensland (TQ)
created the highly-publicized,
“Best Job in the World”
promotional event.
q  Applications opened in
January 2009 and 34,000
people applied.
q  Applicants had to send in 60-
second videos and 16 finalists
were invited to the Whitsunday q  Ben wrote blogs about
Islands in May 2009. his trips to places in
Queensland and
q  Ben Southall of the UK was finished up his
selected and took up his job as
assignment in 2012.
Island Caretaker in July 2009.
Sources: http://blog.queensland.com/tag/bensouthall/ 2014.
 Costa Rica
q  Costa Rica as a destination has become synonymous with
sustainable tourism and ecotourism.
q  The Costa Rica Tourism Board (Instituto Costarricense de
Turismo – ICT) is the DMO.
q  ICT used the catchy slogan of “Costa Rica: No Artificial
Ingredients” for many years, emphasizing its natural and
home-grown resources (now it does not).
q  ICT has prepared a 10-year, National Plan for Sustainable
Tourism Development 2002-2012, which was updated in
2006.
q  ICT has also produced “general land use and tourism
development plans” for 10 geographical units of the
country.
Sources: http://www.visitcostarica.com and http://www.turismo-sostenible.co.cr/en/2014.
 Costa Rica
S
q  ICT has introduced the Certificate for Sustainable Tourism. u
s
t
q  Tourism companies are assessed on: physical-biological a
i
n
parameters; infrastructure and services (lodging); service a
b
management (tour operators); external clients; and socio- i
l
economic environment). i
t
y

CST
Successful destination branding:
State of Virginia, USA

q  This is the longest-lasting successful tourism brand in the

world and the first to use the “heart” symbol.
q  It is a very flexible approach; for example, Virginia is for
lovers of history or nature or the arts, etc. 1969
Successful destination branding:
State of New York, USA

q  Probably the best known tourism brand in the world; it was launched
on Valentine’s Day in 1977.
q  Like the Virginia approach, it was a good platform for presenting 1977
the
State’s tourism USPs.
Successful destination branding:
Spain

q  This brand’s logo was developed by the famous Catalan

painter, Joan Miró for Tourism Spain.
Successful destination branding:
Switzerland

q  Everyone remembers the red and white Swiss Army cross.
q  Do you know the Victorinox brand?
q  MySwitzerland.com was introduced later in 1999.
Successful destination branding:
New Zealand

q  100% Pure New Zealand has undoubtedly been the “world
champion” of destination branding for at least ten years.
Successful destination branding:
Malaysia
"Malaysia, Truly Asia" captures and
defines the essence of the country’s
unique diversity. It sums up the
distinctiveness and allure of Malaysia
that make it an exceptional tourist
destination.
Source: Tourism Malaysia

q  This brand has been highly acclaimed. International

tourists have increased from 7 million in 1999 to 24.7
million in 2011.
Successful destination branding:
India

q  Incredible India has been hugely beneficial to tourism in India.

USA, Brand USA
q Brand USA was created through
the Travel Promotion Act and
began operations in May 2011.
q In 2013, a record 69.6 million
inbound passengers arrived in
the US
q They spent a record high of
$180.7 billion, an increase of
over 9% from 2012.
q International visitors spent
nearly $1.3 billion more per
month in 2013 year over year.
Brand USA and Land of Dreams

q The power of
music and
video in
destination
marketing is
beautifully
demonstrated
in this Brand
USA video.

https://www.youtube.com/watch?v=WWUA1CXIku8
The Maldives
q  In 1981, there were just 60,000 international
arrivals to Maldives and it was mainly perceived
as a diving destination.
q  In 2013, international tourist arrivals reached
the 1 million mark for the first time ever.
The Maldives
q  Tourism’s contribution to the Maldives’ GDP has
been increasing.
The Bahamas
q The Bahamas received 6.15 million foreign
arrivals in 2013.
q The Bahamas has established itself as a major
cruise port in the Caribbean, with 79% of its
visitors arriving by sea.
The Bahamas
q The Bahamas spends approximately $90 million
annually on tourism marketing.
 Key Principles of Destination Marketing
1.  Doing destination marketing in a systematic
way based on good research
2.  Involving stakeholders with a sound and
professional destination marketing planning
process
3.  Defining a great destination marketing strategy
and objectives
7.  Having the most effective organizational
structure for marketing and adequate funds
8.  Implementing marketing programs with
professionalism and creativity
9.  Constantly monitoring and evaluating
destination marketing performance
#1
Doing marketing in a
systematic way based
on good research

Destination Marketing System

DMS
The Destination Marketing
System

Where are we
now?

How do we know Where would we

if we got there? DMS like to be?

How do we make
How do we get
sure we get
there?
there?
PRICE Model of
Destination Marketing

Planning

Evaluation Research
DMS

Control Implementation
 DMS Step 1

Situation
•  Trends
Analysis •  Strengths and
•  Opportunities •  Destination analysis weaknesses
•  Challenges •  Competitive analysis •  Unique selling
•  Threats •  Visitor market analysis propositions
•  Marketing position (points)
analysis
Environmental •  Marketing plan analysis USPs
Scan •  Resident analysis

Planning and Research

Where are we now?
Destination Marketing System
#2
Involving stakeholders
with a sound and
professional
destination marketing
planning process

DMPP
 Destination Marketing Planning Process

q  A carefully structured planning process

must precede marketing implementation
and actions.
q  This is called the destination marketing
planning process and it has long-term
and short-term dimensions.
q  In the model, we start with the desired
future (destination vision) and work back
to the present.
 Destination Marketing Planning Process

Destination
DMO Vision
Vision
LONG-TERM

10 years M
I
S
S
Marketing I
Goals O
3 to 5 years N
1 to 2 years
Where would How do we How do we make How do we know
SHORT-TERM

Where are
we like to be? get there? sure get there? if we got there?
we now?

Environmental
Scan and Marketing Strategy Marketing Control and
Situation and Objectives Plan Evaluation
Analysis
#3
Defining a great
destination marketing
strategy and
objectives

DMSO
 DMS Step 2

PIB
•  Market Approach •  Quantitative
segmentation •  Target market
analysis •  Positioning
specific
•  Target market •  Image
•  Timetabled
selection •  Branding

Target Marketing
Markets Objectives

Planning and Research

Where would we like to be?
Market
Segmentation

Market  Segmenta,on  Analysis  and  

Targe,ng  
Market Segmentation Analysis
Pinpointing target markets for the destination
 Segmentation Factors

Purpose  of  
Geographic   Demographic  
Trip  

Product-­‐
Psychographic   Behavioral  
related  

Channel  of  
Two-­‐stage   Mul=-­‐stage  
Distribu=on  
 Tourism Australia’s market
segments

h@p://www.tourism.australia.com/en-­‐au/marke=ng/segments.aspx  
 Experience Seekers
g rap hic
syc h o
p l e of p
Exam ntation
e
segm

http://www.tourism.australia.com/en-au/downloads/
marketing_experience_factsheet.pdf
 Canadian Tourism Commission
market segmentation system

r a ph ic
o g
o f p sych
x a m ple
E
e n tation
segm
q  CTC uses the Explorer
Quotient research system to
classify people into nine
groups.
q  This is a type of
psychographic segmentation.
q  This page describes the
Authentic Explorers.
 Belize: Scuba diving
market segment

ase d
c t-b
o f p rodu n
x a m ple e n ta tio
E s e gm
e t
mark

http://www.travelbelize.org/scuba
 Special-Interest Travel Market Segments

Adventure   Culture  and   Casino  

Dark    
  Heritage     Gaming  

Health  and  
Cruise     Culinary        Industrial  
Wellness  

Nature-­‐based  
Medical   and   Religion   Shopping  
Ecotourism  

Sports   Voluntourism   Wine  

Contiki uses demographic
hic
segmentation le o f d
g
emo n
r
io
a p
p t
Exam segmenta
et
mark
q  Contiki is a highly
successful tour
company that
specializes in
holidays for 18-35-
year-olds.
q  These holidays
have an important
social element,
and Contiki
encourages this
through its online
discussion group.
The PIB Model

Posi,oning,  Image,  and  Branding  

Applying the PIB
Model
How to stand out from
the competition?
 PIB Definitions

Des,na,on  Posi,oning  
•  The  steps  taken  by  a  DMO,  in  collabora=on  with  its  stakeholders,  to  iden=fy  
and  communicate  a  unique  des=na=on  image  to  people  within  its  target  
markets.  Therefore,  posi=oning  is  how  the  des=na=on  decides  to  make  
itself  unique  among  compe=ng  des=na=ons  from  the  tourist’s  perspec=ve.  
Des,na,on  Image  
•  The  mental  “pictures”  people  have  in  their  minds  of  specific  tourism  
des=na=ons.  These  images  are  formed  from  mul=ple  sources  of  
informa=on.  Des=na=on  images  are  difficult  to  change  in  the  short-­‐term.  
Des,na,on  Branding  
•  The  steps  taken  by  a  DMO,  in  collabora=on  with  its  stakeholders,  to  
develop  and  communicate  an  iden=ty  and  personality  for  its  des=na=on,  
which  are  different  from  those  of  all  compe=ng  des=na=ons.  Some  experts  
also  refer  to  a  place’s  des=na=on  brand  as  its  “compe==ve  
iden=ty”  (Anholt,  2009).  
What is a Destination Brand?

A destination brand is:

q  A way to communicate a

destination’s unique identity to
visitors
q  A means of differentiating a
destination from its competitors
q  A uniform “look” that all
destination partners can
consistently use
q  A symbol, name, term or design,
or combination of these
elements
Characteristics of Successful Tourism
Brands
q  Attractive
q  Consistent with positioning
q  Convey excitement and quality
q  Express the destination’s personality
q  Memorable
q  Simple
q  Transportable to the Web as a domain
name
q  Unique
q  Well-accepted by all partners
q  Supported by marketing activities
Overall Tourism Branding
Process

Situation
Analysis

USPs

Brand
Development
   Des,na,on  
Des,na,on   Compe,,ve   Market   Resident  
 1   Analysis   Analysis   Analysis  
Image  
Analysis  
Analysis  

Tourism  Sector  Stakeholder   Analysis  of  Past  Des,na,on  

2   Consulta,on  and  Inputs   Marke,ng  Programs  

3   Unique  Selling  Proposi,on  Iden,fica,on  

4  
Brand  Strategy  Development   Brand  Iden,ty  Development  

Brand  Launch  and  

Brand  Implementa,on  
Introduc,on  

Brand  Monitoring  and  

Brand  Evalua,on  
Maintenance  
Summary: PIB Model

"   The PIB model is applied as a broad marketing strategy for

the destination after target markets have been selected.
"   Every destination has to determine how it is perceived in its
target markets (image) and how it wants to be perceived in
the future (positioning).
"   Sound market and competitor research and their analysis
are prerequisites for effective use of the PIB model.
"   Branding is much more than just coming up with slogans.
"   There are many good examples of destination branding in
the world that can be studied as best practices.
"   A sound brand development process needs to be followed.
#4
Having the most
effective
organizational
structure for marketing
and adequate funds
Best Practices for DMOs

Governance
& Reporting

HR
Development
Community
Relations

Communications

Research
How to reach for the top in
Marketing destination management and
Product
Development
marketing?
DMO Accreditation Domains: Destination
Marketing Accreditation Program
q  Governance
q  Finance
q  Human
resources q  Communications
q  Technology q  Membership
q  Marketing q  Management and facilities
q  Visitor services q  Brand management
q  Group services q  Destination development
q  Sales q  Research, marketing, intelligence
q  Innovation
q  Stakeholder relationships
Source: Destination Marketing Association International, 2010.
Source: Destination Marketing Association International (DMAI), 2014.
Destination Product Development

"   Prepare a tourism development plan or strategy

"   Have a multi-year events strategy and action plan
"   Engage in packaging of experiences (e.g., route and
theme packages)
"  Introduce a system of quality assurance standards
"  Develop and offer training programs to upgrade the
professionalism in tourism
"  Conduct resident surveys about tourism and maintain a
community awareness program
"  Actively seek to develop new partnerships that add to
the destination product
Marketing, Sales and
Communications
"   Create a highly effective destination positioning
and branding approach
"  Consistently invest in market research
"  Frequently prepare a marketing plan
"  Have a comprehensive website
"  Periodically measure effectiveness of website
"  Actively engage in social media marketing
"  Put together a media/press kit
"  Develop a detailed sales plan
"  Design a media protocol
"  Write a crisis communication plan
"  Work collaboratively with many partners
"  Measure the effectiveness of performance
Human Resources Management

"   Conduct periodic performance appraisals

"   Have a professional development and training
program for staff
"   Prepare a Human Resources Manual
"   Develop job descriptions for all positions
"   Design and enforce an e-mail and Internet
usage policy
Governance and Reporting

"   Have vision and mission statements

"   Prepare a strategic plan
"   Make a summary of marketing and business
plan available to stakeholders
"   Provide an Annual Report to stakeholders
"   Consistently communicate to the local
community about its activities, performance,
and successes
#5
Implementing
marketing programs
with professionalism
and creativity
 Product

People Price

Partnership
8 Ps Place

Programming Promotion

Packaging
 Digital   Integration of DMO
Marke,ng   Communication Adver,sing  
Components

Public   Integrated Sales  

Rela,ons  
Marketing Promo,on  
and  Publicity  
Communications

Sales   Merchandising  
 DMS Step 3

Marketing Plan
•  Product, people, •  Marketing budget
packaging and •  Responsibilities
programming •  Executive Summary •  Timetable or schedule
•  Promotion •  Marketing Plan •  Implementation of the
•  Partnership Rationale marketing plan
•  Price •  Implementation Plan

Marketing
Marketing Mix
Implementation

Implementation
How do we get there?
Destination Marketing System
#6
Constantly monitoring
and evaluating
destination marketing
performance
CONTROL: How do we make sure we get
there?

Inputs DMS Step 4 Outputs

•  Marketing objectives How do we make •  Progress reports (formative

•  Marketing plan (8 sure we get evaluations)

Ps) and the there? •  Marketing plan

specified activities CONTROL modifications

and programs
•  Marketing plan
timetable
•  Marketing plan
implementation
responsibilities
•  Marketing budget
DMO Performance Reporting
Measures
C = How do we make sure we get there? Activities
E = How do we know if we got there?
Marketing activities and programs
to achieve objectives (use of 8 Ps)

Performance DMO Activity

Measures Evaluation Measures

Outcomes and results of marketing

activities and programs

Productivity
Measures
Efficiency and effectiveness of
DMO in using resources
 DMS Step 4

Progress
•  Activities and •  Discontinuation of
programs activity or program
•  Milestones
•  Measures or •  Adjustment of activity
metrics •  Performance or program
standards
•  Progress on
objectives
Measures Modifications

Control
How do we make sure we get there?
Destination Marketing System
EVALUATION: How do we know if we got
there?

Inputs DMS Step 5 Outputs

•  Marketing How do we know if •  Marketing

objectives we get there? effectiveness or

•  Progress EVALUATION performance
reports measures
(formative •  Changes

evaluations) required in next

•  Marketing plan marketing plan
modifications
 DMS Step 5

Productivity
•  Activities and •  Actual outcomes
programs or results for
•  Efficiency and activity or program
•  Activity measures effectiveness of implementation
DMO

Activities Performance

Evaluation
How do we know if we get there?
Destination Marketing System
 KRAs and KPIs

q KRAs = key result areas

q KPIs = key performance indicators
q KRAs and KPIs are two interconnected “metrics” for
DMO performance measurement.
q KRAs are the major desired outcomes for the
priority goals or initiatives of the DMO and in its
marketing strategy and plan.
q KPIs are the specific results, preferably quantified,
forecasted for a KRA.
 Tourism  Malaysia’s  KRAs  and  KPIs    

Reproduced  with  permission  from  Tourism  Malaysia.  

Alastair M. Morrison, Ph.D.
Distinguished Professor Emeritus, School of Hospitality and
Tourism Management, Purdue University, USA
CEO, Belle Tourism International Consulting
President, International Tourism Studies Association (ITSA)

Contact information:
alastair@belletourism.com, alastair@purdue.edu
Tel: 1-765-409-0004 (USA), 86-13761855678 (China)