Tourism industry structures
Model 1
This model is appropriate when local government identifies tourism as a priority economic generator and prefers to contribute significant resources such as staff, facilities and marketing funds to maximise the development of tourism. It also recognises that tourism is essentially a private sector business activity and establishes a mechanism to provide industry input and advice on tourism development strategies, as well as encouraging strong local and regional associations.
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Model 2
This model is appropriate where local government identifies tourism as being important, but does not wish to be involved in management and implementation, believing that this can best be industry driven. Under this model, local government should expect accountability from the tourism association for return on investment (through tourism and marketing plans), local government could also expect representation on the regional tourism association management committee or board.
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Model 3
This model is appropriate where it is considered that regional economic development is best structured independent of local government, to encourage significant community participation. It also integrates all aspects of economic development.
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A New Approach
During recent times the East Gippsland region has adopted a new structure to meet the particular needs of its diverse and widespread tourism industry. This emerging model draws upon the considerable talent and initiative often present at the grass roots level, which needs to be channelled into a region-wide approach.
Click here (83 kb) to read about how the East Gippsland region determined an appropriate regional structure.
The English model
The World Tourism Organisation Business Council reports on a growing trend in many countries to decentralise tourism management and promotion. The move is towards semi-public but autonomous tourism organizations, involving a partnership of both private sector and regional and/or other authorities. In the U.K. they are known as Destination Management Organisations (DMOs) and have been adopted throughout the country. These new style organizations are in response to the need for flexible and a multi-disciplinary approach to achieving long term and sustainable destination management. The DMOs merge and streamline many of the activities undertaken at the lower levels and by individual organizations and agencies, particularly local authorities. The role of DMOs is:
- To develop and implement a Destination Management Plan, aligned to the regional economic strategy,
- Manage product development within the sub region,
- Provide a subscriber relationship management function,
- Collect/ distribute research and market intelligence,
- Within the context of the Regional Visitor Information Plan, to co-ordinate and deliver local and sub-regional visitor information services,
- Provide business advice, support and information,
- Provide local skills and training advice,
- Promote quality assurance activities within their subregions.
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Tourism in most areas comprises hundreds of small to medium businesses, tied loosely together under a structure similar to those outlined above. However, strength and effectiveness does not come from numbers alone. The area’s tourism operators need to effectively communicate, network, cooperatively market and lobby authorities under an appropriate structure that enables them to share objectives, share market intelligence and to coordinate activity.
They need to recognise that consumers primarily respond, and make a decision to visit, based on their perception and the prevailing image of the destination, rather than to a businesses own marketing communications. Therefore, maximum collaboration to increase the efficacy of the overall destination marketing message should be a priority. However, the quality of the facilities and service delivery provided by individual businesses has a major impact on the quality of the visitor experience.