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Defining Destination Marketing Organizations (DMO)

By Donna Joy / February 5, 2023

Destination marketing organizations are generally tied to the government and typically funded through tourism taxes.
From Wikipedia, the free encyclopedia “DMOs are known as tourist boards, tourism authorities or “Convention and Visitors Bureaux”.” https://en.wikipedia.org/wiki/Destination_marketing_organization

Destination Marketing Organization (DMO)

Government designation, the state, region, county, and municipality promoting the government’s location to tourists. The designation (municipality or county) can either appoint themselves or appoint an organization to market tourism for their targeted location.

Public DMOs are governments that provide targeted designation marketing for their designation, State, City, or County.

In Arizona Destination Marketing Organizations DMOs are classified as:

  • Single municipality -Tourist Board
  • County-Tourism Authority
  • Multi-governments as Convention and Visitors Bureau

The State of Arizona DMO is the Arizona Office of Tourism. AOT sets the Public Policy for DMOs in Arizona.

According to AOT Arizona only recognizes government models. “It is the responsibility of the municipality or county to designate either themselves or another organization if they intend to participate in AOT’s programs.“
Arizona identifies a Destination Marketing Organization (DMO) as a:

  • A single municipality, a city, or a town.
  • County-Tourism Authority
  • Another organization if appointed by the municipality or county and intend to participate in AOT’s programs.
    • The management of an organization is for marketing purposes only, AOT programs
    • These organizations are limited, controlled, and managed by the government for “tourism marketing only”
    • The government’s infrastructure, management, and tourism taxes support the tourism program.
    • Typically we see Multi-governments as Government Convention Visitors Bureau (CVB) model with multiple governments limited by targeted tourism marketing only.

Sources: Arizona Revised Statutes, Arizona Office of Tourism, City of Flagstaff, City of Prescott, City of Scottsdale, Destination Marketing Association International (DMAI), Competitive AOT DMO members Benchmark, Tax returns of various DMOs, Wikipedia, NTEE system, North American Industry Classification System

Arizona Destination Marketing Organizations

Destination Management Company (DMC)

In the World of Destination Marketing, a Destination Management Company (DMC) is an organization that offers 

  • Destination Management Company (DMC) provide professional event and group-travel-related services only in destinations where they are located. 
  • Group travel services, Meet and Greet, Transfer / Transportation, Hotel Accommodations, Restaurants, Excursions logistic services in their destination.
  • These are usually private for-profit companies, paying members of a Government Tourism program if they qualify.
    • DMC are typically for-profit and due-paying members of a DMO

Chamber of Commerce

  • The Chamber of Commerce is a business association.
    “Business owners in towns and cities form these local societies to advocate on behalf of the business community. Local businesses are members, and they elect a board of directors or executive council to set policy for the chamber.” https://en.wikipedia.org/wiki/Chamber_of_commerce
  • Generally formed as a non-profit,” not for profit “. The activities are private.
  • Chamber of Commerces Categorization NTEE code, primary S41: Promotion of Business NAICS code, primary 813910: Trade Associations *
  • Local businesses are members, and they elect a board of directors
    • “Business owners in towns and cities form these local societies to advocate on behalf of the business community. Local businesses are members, and they elect a board of directors or executive council to set policy for the chamber.” https://en.wikipedia.org/wiki/Chamber_of_commerce
  • Not limited or restricted to one industry. The Chamber of Commerce represents local businesses
  • Membership Dues, Events, and other services are provided by the Chamber of Commerce.
  • Chambers may provide government fee-for-service services and or task-related.
    • Chambers when providing a government task are often referred to as partners.
    • Fee for Services
    • Controlled and monitored by the government
    • performance measures are reported to the government
      • the public can request from the government all elements of the fee for services.

Sources: Arizona Revised Statutes, Arizona Office of Tourism, City of Flagstaff, City of Prescott, City of Scottsdale, Destination Marketing Association International (DMAI), Competitive AOT DMO members Benchmark, Tax returns of various DMOs, Wikipedia, NTEE system, North American Industry Classification System

*The National Taxonomy of Exempt Entities (NTEE) system is used by the IRS and NCCS to classify nonprofit organizations.The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.https://www.census.gov/naics/

Donna Joy’s Research Sources & Data Analysis :

  • Competitive Benchmark Peer Government Destination Marketing Organization policy and program
    Including: Scottsdale, Flagstaff, Prescott, Arizona
  • City of Sedona Finance Reports
  • Policy Deep Dive: Research & Policy
    including  Arizona Office of Tourism, Scottsdale’s Convention Tourism Bureau including the Tax returns CVB Scottsdale, City of Scottsdale Tourism Program & Policy, Tourism Budget, contract with Scottsdale’s CVB,. City of Prescott , Tourism Program & Policy, Tourism Budget, Contracts with tourism vendors- Front Burner Media, Prescott Chamber of Commerce
  • Data analysis: Arizona’s Destination Marketing Organizations (DMO) on the Arizona Office of Tourism promotional website,
  • Data analysis: Destination Marketing Association International (DMAI) membership and accredited process requirements
  • Data analysis: Destination Marketing Association International (DMAI) 171 accredited organizations data analysis. Who, funding, classification
  • Data analysis: Sedona Chamber membership distribution data analysis.
  • Data analysis: City of Sedona Business Licenses

Donna Joy’s Research Trackers allow you to see critical details and connect directly to the source documents.

Check the Fact Checker
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Only through competitive benchmarking with peer governments and private organizations can we fully understand this. Local Government Benchmarking
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