The evolution of DMOs as destination management organizations, like all entities responsible for managing tourism in their destinations, is increasingly being called upon to handle complex challenges in the global tourism landscape stemming from rapid changes in the tourism sector. To remain competitive, sustainable, and attractive, DMOs must adopt innovative approaches and flexible strategies. From simple promotional bodies, they are transforming into strategic entities that must demonstrate their ability to orchestrate the complexity of tourism dynamics to balance economic growth, environmental sustainability, residents’ quality of life, and visitors’ “quality of experience.”
In this post, we analyze the main challenges that DMOs face today and some of the responses implemented in some of the world’s most iconic destinations.
What are these challenges? Let’s try to synthesize with a partial list (forgive the simplification, but each of these would require a much longer treatise than a post like this!)
- The Evolution of DMOs and Environmental Sustainability
Despite the widely proven benefits to the destination’s economy, tourism can exert intense pressure on natural ecosystems, causing problems such as habitat destruction, resource exploitation, and pollution. DMOs must integrate ecological practices, promoting sustainable transport, waste reduction, and renewable energy use. This is not only to preserve and enhance destinations that protect biodiversity and natural resources but also because this specific attention is part of the value proposition for increasingly large categories of travelers. - The balance between Residents and Tourists
Tourist influx can pressure local communities, affecting housing costs, infrastructure, and public services. DMOs must find ways to balance the economic benefits of tourism with residents’ well-being. Strategies such as limiting overcrowding in residential areas, educating visitors (however difficult…) about respecting local communities, and ensuring that tourism revenues benefit the population are fundamental. - Managing Overtourism
The most popular destinations often experience overcrowding during varying periods, worsening the experience of tourists and residents. This challenge requires innovative, data-driven solutions, such as diversifying attractions, promoting off-season travel, and introducing visitor limits or time-slot booking systems. - Preserving Cultural Heritage
Tourism can lead to the loss or flattening of local culture. DMOs must ensure that tourism development respects and enhances cultural heritage, supporting local artisans, protecting historic sites, and promoting authentic experiences that reflect the destination’s identity. The reason is simple: if this component disappears, one of the strongest motivations driving travelers to choose that specific destination – identity – will no longer exist. - Stakeholder Collaboration
DMOs work with various stakeholders, including governments, private operators, and local communities. Coordinating these interests can be complex but is essential for successful tourism strategies. Building trust, fostering transparent communication, and ensuring mutual benefits are key elements for long-term collaboration. - Technological Innovation
The rapid evolution of new technologies requires DMOs to adapt continuously. Change management has always been one of the most difficult skills to integrate into complex structures, especially in the public sector, but integrating tools like AI, big data, and IoT to improve destination management, understand visitor behavior, and optimize strategy and operations in real-time is critical to making better decisions and improving the management of all previous points. However, staff training and system interoperability represent significant challenges. - Crisis Preparedness and Resilience
Unforeseen crises such as pandemics, natural disasters, climate change, or geopolitical tensions can severely damage tourism. To withstand economic shocks, DMOs should start developing emergency plans and resilience strategies, diversifying target markets, building solid communication channels, and promoting sustainable tourism models. - Economic Sustainability
Many DMOs face increasingly tight budget constraints, especially in smaller destinations. Developing diversified revenue sources, such as partnerships, sponsorships, and innovative funding models, where possible from a regulatory standpoint, is essential to maintaining operations and investing in future projects and, in some cases, aligning interests among stakeholders.
Global Examples of Tourism Management Innovation
- New Zealand: Tourism Based on Māori Values New Zealand stands out for integrating Māori cultural principles into tourism management. To generate $41 billion from tourism by 2025, the country aims to combine economic growth with environmental sustainability. For more: Destination Think – New Zealand Tourism Strategy
- Venice, Italy: Tourist Flow Limitations The lagoon city has introduced a €5 entry fee for day tourists and regulated organized groups to preserve historical heritage and improve livability. For more: Wikipedia – Venice
- Barcelona, Spain: Increased Tourist Taxes Barcelona has adopted fiscal policies to increase revenue from transit cruise passengers, allocating funds to infrastructure improvements and urban regeneration projects. For more: The Times – Barcelona Tourism Tax
- Hallstatt, Austria: Tourist Bus Limitations To preserve residents’ quality of life, Hallstatt has imposed a maximum cap on the number of buses allowed each day. This measure reduces the impact of mass tourism on the small village. For more: Wikipedia – Hallstatt
- Azores, Portugal: A Sustainable Tourism Model With about 25% of protected territory, the Azores are a virtuous example of tourism management in harmony with the environment, promoting eco-friendly activities. For more: The Times – Azores Tourism
- Florence, Italy: Regulation of Tourist Activities Florence has introduced a 10-point sustainability plan to reduce tourism’s impact on the historic center, regulating short-term rentals and limiting megaphone use in UNESCO areas. For more: Tourism Review – Florence Tourism Policies
- Greece: Cruise Passenger Tax to Preserve the Environment The islands of Santorini and Mykonos have introduced a €20 tax for cruise passengers, contributing to the conservation of local resources during high season periods. For more: Daily Telegraph – Greece Cruise Fee
- Labuan Bajo, Indonesia: Sustainable Tourism Development Labuan Bajo, one of Indonesia’s priority tourism destinations, is investing in infrastructure that balances economic growth with environmental protection. For more: Wikipedia – Labuan Bajo
- Bhutan: “High-Value, Low-Volume” Tourism Bhutan limits visitors through a daily fee of $200-$250, preserving culture and environment while offering an exclusive experience. For more: Wikipedia – Tourism in Bhutan
The evolution of DMOs is a necessary response to global tourism’s challenges. From Venice’s turnstiles to Māori wisdom in New Zealand, from cruise taxes in Greece to Bhutan’s selective policies, a clear direction emerges: tourism can no longer be left to chance. It must be measured, planned, and increasingly managed with objective data and, when possible, in real time. Destinations must face this data-driven transition to preserve residents’ quality of life and offer increasingly better experiences to travelers. Data is also valuable for an informed and non-ideological regulatory process, helpful here, too, in ensuring lasting benefits for all.
With expertise, data, technology, creativity, and strategic vision, tourism and sustainability can be reconciled, transforming destinations into better places for both residents and travelers.
Mirko Lalli
Fondatore e CEO di The Data Appeal Company e Travel Appeal e co-fondatore di HICON. È stato Direttore della Comunicazione Corporate di Clouditalia SpA e prima Direttore Marketing e Comunicazione di Fondazione Sistema Toscana, dove ha ideato e coordinato i progetti “ToscanaLab” e la campagna di marketing e promozione della Regione Toscana “Voglio Vivere Così”, la prima campagna al mondo di marketing digitale per il riposizionamento di una destinazione. Speaker internazionale e docente in master e corsi di comunicazione digitale e management per il turismo in diverse università italiane. È Direttore Scientifico di MATIS, Master in Travel Innovation Strategy di H-Farm education. Ha fatto parte del Comitato Innovazione Turismo del Ministero del Turismo e fin dalla prima edizione ha collaborato all’ideazione e alla realizzazione di BTO - Buy Tourism Online; fa parte del Comitato Tecnico Scientifico di BTO Educational. Ha partecipato all'Executive Program di Singularity University in Silicon Valley, nel dicembre 2017.
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