What is a Destination Marketing Organization?

From Destination Marketing Association International’s 2015 Organizational & Financial Profile Study (the most recent data we have):

  • Most DMOs surveyed continue to receive the vast majority of their funding from public sources.
  • Smaller (less than $1 Million) and mid-sized ($1 Million to $5 Million) budget DMOs reported receiving approximately 90% of their total funding from public sources.
  • More than 87% of DMOs reported receiving hotel room tax revenue, by far the leading source of public investment.
  • Of 246 DMOs surveyed, the 2015 average annual budget was $3.39 million
  • By far, the most frequent DMO organizational structure is 501(c) (6) – 60% of all reporting DMOs

Here is the definition of a DMO:

Per numerous organizations including DMAI (Destination Marketing Association International), the TTRA (Travel and Tourism Research Association) and the US Travel Association:

“A Destination Marketing Organization is a non-profit entity charged with marketing and providing visitor services locally.”  

And from Wikipedia:
A destination marketing organization (DMO) or convention and visitors bureau (CVB) is an organization that promotes a town, city, region, or country in order to increase the number of visitors. It promotes the development and marketing of a destination, focusing on convention sales, tourism marketing, and services.
 
Such organizations promote economic development of a destination by increasing visits from tourists and business travelers, which generates overnight lodging for a destination, visits to restaurants, and shopping revenues and are typically funded by taxes. Convention and visitor bureaus are the most important tourism marketing organizations in their respective tourist destinations, as they are directly responsible for marketing the destination brand through travel and tourism “product awareness” to visitors. DMOs produce billions of dollars in direct and indirect revenue and taxes for their destinations’ economies with their marketing and sales expertise. [1]

Destination marketing organizations are often called travel, convention, visitors, or tourism bureaus, welcome centers, information centers and more. Regardless of the name, these organizations offer many services to the traveling public.