Travel and Tourism (9395) Study Notes: Destination Management Organisations (Topic 7.1)
Introduction: Who Runs the Show?
Welcome to the essential topic of Destination Management! Think of a destination—like Rome, the Maldives, or a National Park—as a massive, complex business. Who decides what gets built? Who makes sure the tourists don't overwhelm the local environment? That's the job of various organisations working together.
This chapter, 7.1, focuses on the diverse groups involved in Destination Management (DM), their specific roles, and their main priorities. Understanding these groups is crucial for Paper 4, as DM is all about coordination and achieving sustainable tourism.
1. Governments, Ministries, and National Tourism Organisations (NTOs)
These are the most powerful players—they are the strategic leaders who set the national vision for tourism. Think of them as the CEO of the country's tourism industry.
A. Roles and Actions (The Strategic Planners)
- Strategic Development: They create the long-term plan for tourism growth. Their primary goal here is to minimise negative impacts and maximise positive impacts (economic, social, environmental).
- Research: Conducting national-level research to understand market trends, competitor performance, and visitor numbers.
- Funding and Budgets: Allocating national government funds to tourism projects, infrastructure, and promotional campaigns (e.g., funding a major international advertising campaign).
- Setting Priorities/Objectives: Deciding what type of tourism the country should focus on (e.g., shifting emphasis from mass tourism to high-end, niche ecotourism).
B. Priorities (Long-Term Vision)
- Sustainability (ensuring tourism lasts).
- Maximising national economic benefit (e.g., high foreign exchange earnings).
- Improving the country’s international image and reputation.
Did you know? An NTO, such as Tourism Malaysia or Brand USA, often operates the official tourism website and runs global campaigns to attract tourists. Their focus is branding the entire country.
Quick Key Takeaway: NTOs set the national rules and control the big budgets, focusing on high-level strategy and sustainable growth.
2. Local Authorities and Regional Tourism Organisations (RTOs)
If the NTO is the CEO, the Local Authorities (like a City Council) and RTOs are the middle managers. They execute the strategy on the ground, dealing with the practical realities of tourism flow.
A. Roles and Actions (The Practical Implementers)
- Land Use Planning and Planning Control: Deciding where hotels, resorts, or visitor centers can be built and setting regulations (e.g., limiting building height near beaches).
- Local Infrastructure Development and Control: Managing public assets like roads, public transport, signage, and waste management within the destination.
- Regional/Local Promotion: Marketing specific, specialised tourism products or niche markets within their area (e.g., promoting the regional wine route or a local history festival).
- Visitor Management: Handling the flow and safety of tourists in specific attractions or crowded areas (e.g., putting limits on daily visitor numbers to a fragile natural site).
B. Priorities (Order and Immediate Experience)
- Ensuring the quality of the visitor experience.
- Minimising disruption to local residents (e.g., managing traffic).
- Effective planning and enforcement of local laws.
Quick Key Takeaway: Local organisations focus on making sure the physical destination works smoothly, balancing tourist needs with local life through practical control and planning.
3. Non-Governmental Organisations (NGOs)
NGOs are independent, often non-profit organisations. They typically act as the conscience or specialist support team, filling gaps left by commercial and government bodies, particularly concerning ethics and conservation.
A. Roles and Actions (The Ethical Champions)
- Research, Fund-raise, Develop and Finance Projects: Often working on grassroots projects that might not attract government funding, such as restoring a historical site.
- Specialist Knowledge: Providing expert staff and guidance, particularly in areas like sustainable architecture or wildlife conservation (e.g., advising on turtle nesting protocols).
- Assistance in Training and Education: Running programmes to train local people in hospitality or conservation ethics.
- Promote Awareness: Drawing attention to political, environmental, and sociocultural issues caused by or affecting tourism.
- Promote Specialised Products: Encouraging demand for responsible travel options, like community-based tourism or ecotourism.
B. Priorities (Ethics and Conservation)
- Community involvement and empowerment.
- Environmental preservation and protection.
- Ensuring fair economic benefits reach the local population.
Analogy Alert: If a government wants to build a mega-resort, an NGO might step in to ensure the local community gets a fair deal and that the fragile environment is protected. They hold the others accountable.
4. Commercial Organisations and Destination Management Companies (DMCs)
These groups form the backbone of service delivery. They are driven by the need to generate profit by serving customers effectively.
A. Commercial Organisations (The Sales Force)
These include everyone who sells or runs the core services:
- Overseas Travel Agents and Tour Operators: They package, market, and sell the destination to specialised or mass markets globally.
- Local Businesses: This covers all on-the-ground service providers:
- Accommodation providers (hotels, B&Bs).
- Transport operators (taxis, airlines).
- Attractions (museums, theme parks).
- Guiding services.
- Role: They develop and provide the actual products and services that tourists buy and experience.
B. Destination Management Companies (DMCs) (The Logistics Experts)
DMCs are essentially local operational companies hired by overseas tour operators or event organisers to manage everything on the ground.
- Providers of Ground Services: They arrange transport, transfers, accommodation bookings, catering, activities, and excursions for groups or high-volume clients.
- Conference and Event Organisers: They specialise in managing MICE (Meetings, Incentives, Conferences, and Exhibitions) events within the destination.
C. Priorities (Profit and Customer Satisfaction)
- Profit generation and increasing turnover.
- Providing high-quality services and customer care.
- Building strong relationships with local suppliers to ensure smooth operations.
Common Mistake to Avoid: Students sometimes confuse NTOs (government marketing) with DMCs (private logistics). Remember: NTOs sell the country; DMCs run the transfers and events within the country.
Memory Trick and Quick Review
To remember the four major groups involved in destination management and their roles, use the acronym G.L.A.D.
Government/NTOs: Strategy & Funding (The CEO)
Local Authorities/RTOs: Planning & Infrastructure (The Middle Manager)
As (as in and) or NGOs: Ethics & Conservation (The Conscience)
DMCs/Commercial: Product Delivery & Sales (The Sales Force)
Key Takeaway for Exam Success
When asked about the roles of these organisations, always link them back to the overall objective of destination development and management, which is to ensure sustainable and profitable tourism while benefiting the local community and environment. Note how each group's role is interdependent—none can succeed alone!