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In-depth Analysis on Operation Trends and Financial Structure of DMOs 1. Overview

The Convention business has a great ripple effect on the national and local economy, hence is at the center of a lot of attention from a diverse range of stakeholders in the context of public interests. Therefore, the role of the Destination Marketing Organization (DMO), which plays a key role in attracting and holding conventions, is of greatest importance. The DMO is an organization such as the convention bureau and the tourism authority, which represents a city, region, or country. The main objective of the DMO is to focus on sales of convention, marketing, and services so that the destination can push forward with long-term development and marketing. As the competition among DMOs to attract exhibitions gets fierce due to globalization, emerging economies, and economic depression, effective operational strategies of each DMO are getting the spotlight. In this journal, it seeks to examine the operational status of DMOs in North America and to provide insight into further DMO strategies, based on the findings of 「2013 DMO Organizational & Financial Profile Study」 published by the Destination Marketing Association International in December 2013.

Contents
1. Overview
2. Organizational Structure and Budget of DMO
3. Size of Budget Revenue and Financing
4. Size of Budget Expenditure and Detailed Expenditure Structure

 

1. Overview
The Destination Marketing Association International (DMAI) publishes a report every year on the operational status and the financial structure of DMOs located in the U.S. and Canada. The DMAI, an official global association that supports development and cooperation of DMOs throughout the world, has 600 participating member companies and 4100 individual members from 15 countries. Any official DMO approved by the government can join the membership from a city unit to a country unit. The membership holders include the convention bureau, the regional tourism authority, the state department tourism authority and the national tourism authority.

「2013 DMO Organizational & Financial Profile Study」suggests a yardstick for accomplishments that DMOs have achieved during the year and allows the person in charge of destination marketing to compare its own accomplishments and industrial norms with other organizations and find opportunities for improvement. This study classifies DMO by budget size and focuses on four topics: taxes and evaluation, the DMO operational status, the major revenue, and major expenditure. The study mainly addresses the following contents:

▶ Taxes and Revenue Distribution
▶ Public and Private Investment in DMOs
▶ Financial Policy and Procedure
▶ Human Resource
▶ Budget Allocation Depending on Function and Main Criteria of DMO
▶ DMO’s Relationship with Stakeholders in Major Financing

218 DMOs located in North America participated in an online survey for this study, and they are classified into six categories by budget size. To reflect the latest information, respondents used data from the recent fiscal year. As the relevant period is from April to June 2013, changes in operations afterwards are not reflected in the study. 30% of the respondents ended the fiscal year on January 30, 2013, and 57% of respondents ended it on December 31. Therefore, data reflects the status in this period.

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