ABSTRACT
Destination competitiveness requires ongoing government funding for the destination marketing organisations (DMO) over the long term. The two key arguments for government support for tourism are the economic and socio-cultural benefits for the wider host community from visitor spending and tourism superstructure, and the risk of market failure when destination promotion is left to individual businesses. However, the issue of whether governments should use public funds to subsidise tourism is contentious with those in the community who believe they don’t benefit from visitors to the area. Therefore, it is important for anyone considering a career in tourism management to be able to clearly articulate the rationale for the existence of publicly funded DMOs; and understand the key arguments for and against government support of tourism development. The necessity of impartiality in holistic destination strategies, and the difficulty in getting industry to contribute direct funding have led to the emergence of public–private partnership (PPP) DMO governance structures. The challenge lies in collaboration between the DMO and stakeholders to stimulate a cohesive destination wide approach in a manner that will satisfy the entrepreneurs and the wider community through governance transparency. The PPP structure means accountability of DMO staff to a multiplicity of stakeholders with an active interest in destination marketing decision making, such as government, local taxpayers, local media, and the wider business community.
