Tag: sustainable tourism

community based tourism experience in tanzania

What is Community-Based Tourism and Why Does it Matter?

Written by Ece Zivrali on . Posted in Uncategorized.

Community-based tourism is one of the most significant parts of the tourism industry and key to destination sustainability. Despite their importance, communities are often neglected in tourism. Many tourism destinations overlook local peoples, or at best use them as gimmicks and labor for foreign visitors. Instead, tourism should serve as a tool to improve destination development and locals’ quality of life.

What is a community and what does it mean for tourism?

A community is defined as individuals living in the same region with common interests and interactions. However, community means more than sharing the same physical environment – many social-cultural factors are in play to create a community. In tourism, a community encompasses anyone living in a destination and is affected by tourism, either directly or indirectly.

community cultural displays can be a great tourist attraction
Locals performing their traditional dance in Samara Beach, Guanacaste, Costa Rica

The importance of communities in tourism destinations

What is community-based tourism?

Community-based tourism falls under the umbrella of sustainable tourism. It aims to involve communities in aspects of tourism, ranging from planning to active participation. Community-based tourism seeks to support communities through tourism activities, and aims to offer tourists an authentic local experience. Solimar International has developed a CBT project in Timor-Leste.

In contemporary tourism planning, especially in developing countries, the voices of local residents often go unheard. Community empowerment aims to create dynamic and self-sufficient communities that will make decisions for their own well-being.

Unfortunately, a lack of sustainable planning in tourism ventures can create adverse effects in local communities. Community-based tourism aims to incorporate sustainability efforts and reduce the negative impacts of tourism, both on the environment and the residents of destinations.

community markets are popular with tourists
Traditional floating market in Thailand

What are the potential negative impacts of tourism on communities?

When done thoughtfully with stakeholders in mind, tourism is hugely beneficial to communities. There are many reasons why it is important to measure the negative impacts of tourism. To better understand the importance of thoughtful community-based tourism, let’s look at some of the potential negative impacts of tourism on communities.

1. Economic Leakage and Higher Prices

Tourism greatly influences communities in developing countries, especially those that take in large amounts of foreign currency. The profit generated from tourism–if not used to benefit communities–can create revenue leakage, and may lead to inflation in the destination, making it hard for locals to gain or keep economic independence.

2. Dependence on Tourism

Communities become economically vulnerable when tourism is their main source of income. They can become dependent on foreign visitors and have difficulty sustaining their economy during off-seasons.

3. Commercialization of Traditions and Customs

Especially with regard to mass tourism, local peoples and their cultures have become marketing assets for tourism profit. Instead of preservation, local traditions and customs are commodified and used as tools to attract more tourists.

local communities can suffer from harmful tourist practices
African women cooking traditional local food on the street

4. Cultural Deterioration

Interaction between locals and visitors can cause cultural clashes, and the rapid changes caused by an influx of tourism may agitate a community’s harmony and disrupt traditional living.

5. Environmental Damage

Tourism can also cause harm to the environment, leading to losses of natural resources and biodiversity, as well as general deterioration of the local biosphere as a whole.

tourism can damage the environment
Environmental damage of tourism on natural resources

Why is community important for sustainable tourism?

For a destination to be sustainable, tourism’s adverse economic, environmental, and social impacts should be limited. Local communities are motivated to minimize negative impacts to their homes in order to continue living in them, which is why community inclusion in the tourism sector is essential for sustainability. 

1. A Self-sustained and Locally Managed Economy

Community-based tourism ensures locals make their own decisions and keep the money within their community. As a result, communities become self-sustainable. The funds created by tourism activities stay within the community and are used for its own good.

2. Going Back to Basics: Local knowledge for preservation and sustainability

Locals know how to maintain and protect their land. They are permanent residents, and they care about their environment. Locals also hold knowledge beyond what tourism professionals can provide. They know what is appropriate or not for their environment. Local involvement ensures tourism sustainability. Locals are trained to protect and sustain their environment for themselves and future touristic activities.

3. Active Participation and Community Involvement

In community-based tourism, locals actively participate in the tourism decision-making process, which causes communities to gain confidence and their voice to be heard. It is important to include communities for sustainability, as community decisions have more considerable impacts than that of individuals.

4. Increased Value and Protection of Local Culture

Community-based tourism is also essential for cultural preservation. The publicity of local cultures encourages locals to value and preserve their traditions and culture.

What are the benefits of community-based tourism to travelers?

Community-based tourism not only benefits locals, but also travelers.

community-based boat tours are a great way to support locals when you travel
Small boat tours in Thailand

Here are some benefits of community tourism for travelers:

1. Experiencing the Authentic Culture

Community-based tourism gets closer to the community and the authentic culture. While a coach tour stops in a local village to buy handicrafts, community-based tourism involves tourists with the community and its lifestyle, which is a two-way interaction. Community-based tourism moves from the stereotypical, commercialized part of tourism to a genuine experience.

2. Unique Locations

Community-based tourism includes locations that mass tour operators may not prefer. It involves unique experiences and culturally dense areas fed by local knowledge.

3. Ethical Awareness and Responsible Traveling

Community-based tourism aims to provide opportunities for travelers to help locals. Tourists will know that their money is used for a good reason – the development of the destination. They will also leave knowing they have left a positive footprint.

4. Warm Welcome by Locals

Tourists have an unforgettable experience when they feel welcomed by locals. Community-based tourism puts importance on communities and tourists’ relationship with locals. Locals’ attitude is one of the leading influencers of why people prefer to travel to a destination.

ecotours help support the environment and the community
An ecotourist visiting a waterfall

Conclusion

In short, tourism has a significant influence on communities, especially in developing countries. Most tourism destinations ignore locals and use them as a tool to attract more tourists.

To the contrary, community-based tourism includes locals in every part of the tourism planning and managing process. Locals learn to be active participants. They build value and confidence, improve their knowledge, and interact with tourists, which creates mutual understanding and learning. The more locals feel supported by tourism, the more they support and further tourism, which favors destination sustainability and protection of the culture and its values. Community-based tourism helps locals when traveling to a destination. It is a win-win situation for everyone involved in tourism.

Interested in how we can help you with community-based tourism? Contact us to learn more.

stunning ocean and shades of blue of capurgana, colombia

Visiting Capurganá, Colombia – Nature Based Tourism

Written by Thomas Kalchik on . Posted in Blog.

Partaking in nature based tourism while visiting Capurganá, Colombia is a tool to drive economic success, protect biodiversity, and build a strong social impact.

explore nature based tourism while visitingCapurgana Colombia jungle

Colombia is one of the most biodiverse countries in the world. This provides a tremendous opportunity to improve its competitive edge for nature based tourism both internationally and domestically. In fact, USAID Nature Tourism Market Research shows that for international travelers, experiencing the biodiversity of Colombia was the highest nature-based motivation to visit the country (USAID, 2021). Colombia also has extremely diverse landscapes, from the Caribbean coastal desert of La Guajira, tropical rainforests on both the Pacific and Caribbean, brisk mountainous cities of the Andes, grassy plains of Los Llanos, and of course the dense Amazon of the South and West. It’s no wonder the domestic tourism market of Colombia is also attracted to these nature tourism areas, enjoying the beauty of the natural attractions and connecting with the rural and indigenous communities. Visiting Colombia and making the adventure to Capurganá is the perfect way to engage in nature based tourism.

What is Nature-Based Tourism? 

The Government of Colombia provides the definition of nature based tourism as the interrelation and appreciation of the environment in its pure state. Conceptualizing this with the definition of sustainable tourism, and you have nature as the driver for economic benefits, socio-cultural development, and environmental preservation of landscapes and biodiversity. Together, these nature tourism activities are developed in response to the needs of the visitors, destinations, host communities and the tourism industry. Nature tourism is seen as an umbrella product, with ecotourism, adventure tourism and rural tourism underneath. 

Meet Capurganá, Colombia! 

Where the dense, tropical jungle meets the Caribbean Sea lies the epitome of natural wealth that is Capurganá, Colombia. The lush, green jungle hosts an incredible amount of Colombian animals, insects and amphibians, while the sea boasts abundant marine life. See the chart below for a few examples of plants and animals in Capurganá, Colombia:

 

what can you do and see while visiting capuragana colombia

Capurganá Nature Tourism Meets Adventure and Eco-tourism

The definition of adventure tourism is to engage in adventure activities, such as hiking, climbing, rafting, scuba, and the like, and is often set in the wilderness or remote areas. How to get to Capurganá? Well, it is about as remote as you could ask for. Not accessible by car, you can get to Capurganá by boat or small airplane. The abundance of natural attractions provides a haven for adventure tourism activities. Hike the coastal paths to natural pools or nearby towns. Scuba dive or snorkel in the turquoise waters. Boat to nearby mangrove forests. Kayak across the bay or to the nearby island. And trek across country borders to Panama through the jungle and over the mountains, by way of the small town of Sapzurro, Colombia. The importance of conserving Capurganá’s vast amount of natural capital is vital to the success of local sustainable tourism development. To that end, the Adventure Travel and Trade Association explains adventure tourism as “even more dependent than other forms of tourism on human and nature capital. The protection and thoughtful promotion of these resources is crucial for the social, cultural and environmental integrity of any destination.”

Ecotourism in Colombia is abundant, and if you are looking to plan an eco trip, then Capurganá, Colombia is a fantastic choice. The International Ecotourism Society provides the definition of ecotourism as “responsible travel to natural areas that conserve the environment, sustain the well-being of the local people, and involves interpretation and education.” There are many activities in ecotourism in Capurganá through the plethora of ecotourism areas within and surrounding the town. La Coquerita is a coastal nature reserve offering access to a stunning natural pool. A hike through the shallow rivers and jungle allows the observance of bustling wildlife and lush flora. Often times the accommodations in Capurganá provide a local tour guide to help build environmental and cultural awareness along the trip. Some private sector businesses even build their values around ecotourism and nature tourism concepts. Casa Galú boutique hotel seeks to provide meaningful experiences to their guests by preserving its natural and wildlife surroundings. They inspire responsible interactions with its pristine setting through low impact facilities and respectful wildlife observance. 

Conflict Zones: a difficult history, current opportunities, and a bright future

Many of us know about Colombia’s history of war and forced displacement. But as peace has spread over the recent decade, Colombia is making a new name for itself. “Make Tours, Not War” is the slogan of Colombian tour operator Impulse Travel. Building off of the socio-cultural development aspect of sustainable, nature-based tourism, Impulse Travel is “writing a new history – one of peace, resilience and hope.” Watch this short video displaying how they use “the power of travel to create a peace movement through tours.”

Capurganá is located in the Chocó department and Acandí municipality. The Colombian government’s website on regional improvement strategies has designated the Acandí municipality as 1 of 12 former (in the past) conflict zones within the Chocó department. It can take many years for former conflict zones to recover post-conflict, and this initiative will put various strategies in place for the betterment of the local economies, environment and socio-cultural development. Nature tourism is the perfect tool to achieve this in Capurganá. If it can be more widely taught and properly executed then it will generate income, conserve biodiversity, and reduce harmful land-use changes. 

Solimar International has worked in several regions that have seen conflict, including the department of Chocó in Colombia. Check out Solimar’s approach to addressing tourism challenges in conflict zones, particularly through stakeholder engagement, organizational structuring and strategic marketing. 

Effective Education and Strategic Planning for Nature Tourism Benefits

By now, we know that Capurganá has an abundance of natural wealth, with great value to both the local community and travelers. But that is not to say it is always properly utilized, appreciated, or even recognized by locals and visitors alike. In Capurganá, education on the benefits of nature tourism may just be the number one need to properly implement these concepts. Through research, education, planning and monitoring, nature tourism development strategies “can be an effective tool for stimulating economic growth, alleviating poverty, conserving biodiversity, preserving culture and traditions, and creating employment opportunities for local communities,” as stated by Solimar International’s strategic planning approach. Of course, it is not solely up to the local communities in destinations like Capurganá to uphold the concepts of sustainable, nature tourism. The travelers must be educated as well. To that end, the nonprofit organization RISE Travel Institute’s mission is to inspire responsible, impactful, sustainable and ethical travel through traveler-focused, online educational courses that cover topics such as biodiversity conservation, animals in tourism, inclusivity, and much more. 

Tayrona National Park in Colombia is
Tayrona National Park, Colombia

A major opportunity to build sustainable, nature-based tourism development in Capurganá comes from capacity building programs. In remote destinations, access to adequate resources for proper training can be a challenge. Solimar International describes their successes in workforce development trainings in Colombia’s Chocó department, near the Utría National Park. Other National Parks in Colombia also provide a great example of structured organizations that implement strategic plans and monitor actions for biodiversity conservation, negative land use changes, and improving local livelihoods.  

Capurganá currently has a handful of individual people and private companies that work towards responsible environmental action and to improve local culture. However, it lacks the formal organizational structure with proper authoritative figures for effective implementation and monitoring. Capurganá could greatly benefit from a structured Community Based Organization to engage and empower destination stakeholders for strategic, nature tourism planning. As shown in Solimar International’s blog on community-based tourism, this is an extremely effective and customizable tool. Take the Jamaica Community Experiences project for examples on community tourism branding, training and product development. Another valuable tool is Solimar International’s courses on Destination Management Organization (DMO) Development, where they teach DMO stakeholders how to responsibly manage and market tourism within their destination. 

Capurgana, Colombia on the map

Conclusion: From Local to National Opportunity

Capurganá, Colombia’s high level of natural wealth is a prime opportunity to build on the concept of nature tourism. To improve its competitiveness and long-term sustainable tourism development plan in order to generate income, conserve biodiversity, reduce land-use change and build a stronger community. As the country of Colombia seeks to position itself more competitively in the nature tourism industry, small communities like Capurganá could benefit immensely from joining the movement. 

Want to learn how to help your destination or community reach its sustainable tourism development goals? Check out these resources on Solimar’s website, or contact us for more info!

 

stunning ocean and shades of blue of capurgana, colombia

What is a DMO by Solimar International

What is a Destination Management Organization (DMO) and Why Should Destinations Care?

Written by Zane Hartog on . Posted in Uncategorized.

Why do some destinations thrive, while others do not? All global destinations compete for visitors and money. They need the support of destination management organizations (DMOs) to help market, manage, succeed. But how and why? This article answers the question: what is a DMO and why the tourism industry should care about them.

So, what is a DMO?

DMO stands for destination management organization, though these are often referred to as destination marketing organizations. Ever wondered what a DMO is and what do they do? It is important to know about destination management first. The tourism industry is a trillion-dollar global business. Over 1.2 billion people travel abroad every year to experience the world’s diverse cultures and physical environments. Serious logistics are in play with this.  

According to the UNWTO, destination management is the coordinated and thoughtful planning of all elements that make up a tourism destination. This can involve anything from attracting visitors to providing amenities for them to enjoy during their stay in town – whether it’s free Wi-Fi or a stocked convenience store. 

What a destination management organization (DMO) does is represent the voice of its destination to potential visitors. It works with travel trade partners to provide travelers with information about the destination before they decide where to go on vacation. 

DMOs also bring together organizations that serve all aspects of the visitor experience – from lodging providers, attractions operators, restaurants, and retailers – so that they can share insights into what makes their community stand out as a tourist destination. Destinations with a strong DMO will be more competitive, have increased visibility, and have better economic performance than those without one. This careful planning ensures strategic, long term success of a tourism destination. This in-depth coordination moves beyond marketing, and is the reason why the M in DMO has been more recently referred to as management instead of marketing.

What Are the Responsibilities of a Destination Management Organization?

Successful DMOs and destination managers play an essential role in managing tourism at the local level to help attract tourists and support businesses within its boundaries. They’re also responsible for promoting it through positioning statements, branding campaigns, high-quality product development, effective communication with stakeholders (e.g., residents), and maximizing financial resources available from both public and private sources, while ensuring value for money spent on projects that meet overall objectives.

Contrary to popular belief, the overall objective for a DMO isn’t only to bring more tourists to the destination. It is to make tourism more sustainable and thus enjoyable for visitors for years to come. Hence, in a nutshell, DMOs engage in a variety of activities that will help promote and develop sustainable travel practices, including:

  • Educating travelers about the destination’s attractions and offerings
  • Marketing through targeted campaigns
  • Working with other organizations on issues related to sustainability to achieve common goals
  • Addressing resident concerns related to tourism

Image showing the aftermath of beachgoers not cleaning up after themselves. Shows what currently occurs in areas with no framework or organization to prevent wasteful behavior without a DMO

Why Should All Destinations Have a DMO?

Destinations are always looking for ways to stand out from the competition, but to do so, they need both short and long-term strategies. And that’s what all popular DMOs have. A destination management organization works with tourism boards and convention and visitors bureaus. It has a proven track record for generating awareness of destinations among tourists and travelers, which is why all destinations should care about DMOs.

Destinations don’t always receive their fair share of attention, funding, and investment from governments and corporations which can lead to a lack of tourism and growth opportunities.

However, destinations are an essential part of the world’s economy. Destination management organizations (DMOs) exist for this reason: to create economic prosperity in communities through promotion, strategic planning, and marketing efforts that attract tourists while ensuring that these visitors have a memorable experience.

The Importance of Destination Management Organizations

DMOs are committed to sustainable tourism and are of critical importance because they:

1. Take Advantage Of Their Destination’s Unique Potential

Every destination has something different and unique to offer. DMOs bring out that exclusivity to the front to portray the destination as a better attraction than other ones.

Simplification of tourism with different continents highlighted Colorful image that drives the point of tourism home while also drawing eye attention with colors

2. Conduct Market Research

Knowing what to do, how to do, and when to do it is an art. And DMOs are the masters at it. These organizations are able to conduct market research through their short and long-term strategies to further elevate the destination’s status for years to come.

3.  Implement Destination Marketing Strategies

For destinations, it is especially important to be visible online to guide potential visitors. Destination management organizations focus on marketing strategies to promote a destination’s events, products, services, landmarks, and attractions.

DMOs are responsible for promoting their city’s tourism industry through strategic advertising campaigns that reach target audiences with specific messages or information. This strategic destination content takes the form of social media, print collateral, co-sponsoring events, hosting influencers, working with the local chamber of commerce, and more! Look into the ways your local DMO promotes visitors coming to your home.

4. Drive Economic Growth in a Sustainable Way

In the 21st century, a sustainable economy is more important than ever. As travel becomes accessible to a wider range of people across all income brackets and cultures, destinations must promote tourism in a way that their economic growth remains sustainable. And that’s what DMOs do.

Sign depicting a common slogan directed towards tourists, encouraging them to be mindful of litter and leaving things behind. Emphasizes want for sustainable tourism by stakeholders (native people). it shows the importance of a DMO

5. Attract Investment

Every destination needs to be the best it can be, and that includes marketing its own community to attract investors. Hence, DMOs are one of the most effective ways for destinations to market themselves in exactly the right way to draw more investment feasibly! This requires a collaborative approach from both public and private stakeholders.

6. Engage With Stakeholders To Develop More Favorable Conditions

DMOs take everyone on the path to sustainable and successful tourism. They not only cater to travelers, but also serve as an interface between visitors and local businesses; they can help develop new products or improve existing ones to meet the needs of both tourists and locals.

What is a DMO by Solimar International

Conclusion

Destination Management Organizations (DMOs) are the backbone of tourism destinations. They exist to promote destinations, attract visitors, and develop a regional economy. DMOs are responsible for everything from attracting major sporting events to promoting local festivals. They work with businesses to help them understand what travelers need to have an enjoyable experience. Read more about why a DMO is important to a destination. 

Interested in how we can help you develop a DMO for your destination? Contact us to learn more, and check out ATKOMA, the DMO we helped develop in Atauro Island, Timor-Leste

Written by Daniel Segura and Zane Hartog

Destination Branding: Top Tips to Attract Travelers

Written by Emilija Zagere on . Posted in Tourism Marketing.

Destination branding – more than just a logo

What exactly is destination branding?

To start things off, it is important to first understand what a brand is: what is the purpose of destination branding, and how it is different from destination marketing? A brand is more than just a logo, a color scheme, and a slogan.

Your destination brand is a reflection of your culture and its people, history and heritage, traditional and modern ways of living, built and natural environments. It wrapped by the totality of perceptions, feelings, and thoughts that your guests have about your destination. It is the foundation of your marketing strategy and your most important marketing tool. 

Destination branding, commonly referred to as place branding, is the process of identifying, crafting, and nurturing the unique identity of a destination. It is building a story around the key elements, values, and the destination proposition, orchestrating consistent messaging that highlights just that and, ultimately, forming a reputation in the eyes of its visitors. In other words, destination branding is all about who you are. It is the focal part of destination marketing that, in turn, defines how you communicate and deliver your message to the right audiences. 

Top examples of destination branding

Good example destination Branding is Northern Ireland

Tourism Northern Ireland – Winner of The 2020 Travel Marketing Awards, Category Destination Brand of the Decade, image courtesy of Monotype.

Great example destination Branding is Northern Ireland

‘Northern Ireland – Embrace a Giant Spirit’ brand focusing on experiences, heritage and belonging, courtesy of Monotype and Genesis. 

Estonia destination branding

Courtesy of Lantern.  Estonia’s Repositioning and re-branding strategy focuses on telling a story about a lost paradise and experience-first destinations that allow travelers to make the most of their time. 

Why is destination branding important?

Prior to the COVID-19 global pandemic, travel and tourism was one of the largest and fastest-growing economic sectors in the world (UNWTO). While the global economy and the travel sector aim to recover safely, eager travelers are anxiously waiting for their time to travel again. Though it may still be unclear what exactly tourism will look like after COVID-19 recovery, and when that may take place, industry experts say the tourism sector will be among the last to recover. 

Not only are thousands of destinations planning and preparing for reopening, but undiscovered destinations are also establishing themselves every year joining the competition for the valuable tourist dollars. In such a saturated marketplace, carefully crafting a brand story that will resonate with the key audiences and potential visitors will allow your destination to stand out.

Differentiation is the ultimate objective of branding. Effective destination branding that stands the test of time while remaining competitive, dynamic, innovative, and agile to ever-evolving industry trends and consumer behaviors. It is what holds the key to successful destination development and tourism growth.

How to brand your destination successfully

Building your destination brand should focus on the uniqueness of the place and its surroundings. Consequently, the first step to building a destination brand, according to the World Tourism Organization and European Travel Commission, should be an audit of the destination to include the emotions and perceptions associated with it. Followed by that, it is important to recognize the strengths and weaknesses of the destination as well as identify your target market. Understanding your target audience will allow you to effectively articulate and deliver your destination’s unique selling point throughout the various touch points of the customer journey. A thorough competitor analysis should be carried out to identify a possible market gap, while successfully positioning and differentiating your destination.

It is important to mention that stakeholder involvement is an integral part of destination brand development and the branding process. A brand’s success is directly linked to the acceptance and support from local residents, and the public and private sectors. You should consider all these entities as brand ambassadors that will directly impact the perception of your destination in the visitor’s eyes. After completing an inclusive and comprehensive destination audit, you’ll be off to a great start to build your destination brand. 

Practical tools, such as the brand pyramid, can help define the destination and brand identity by considering all core components of your destination. The foundation of your brand pyramid lies in the rational attributes, the characteristics of a destination, and its tourism offer, i.e. the activities, the landscape, or the weather. Next, consider the emotional benefits and think about how the visitors feel about the destination and what feelings they take away from their visit. The third layer of the pyramid is the brand personality, the main characteristics, and attributes of the brand, including the question of how the brand should be perceived and described by the audience. Is your destination calm and charmingly intimate, or is it wild, vast, and rough? Perhaps it is a combination of the two? Furthermore, the brand positioning describes the uniqueness of your brand, led by the question of what makes the destination stand out from its competitors. Finally, the very top of the brand pyramid is the brand essence, the heart of your brand, and what wraps all other components and makes them into one.

After identifying all the components of your unique destination brand, it is time to build an engaging, empowering, and passionate brand story that will resonate with locals and visitors alike. Your story will be the backbone of your tourism marketing plan, strategy, and integrated marketing communications. Choosing the right visual tools and communication mediums will be essential in effectively and consistently communicating your brand promise, reaching the right audiences, and achieving your marketing goals. It also supports building relationships based on trust, and growing your destination popularity. 

Solimar acknowledges the importance of destination branding and provides more insights about this topic within our expert produced Destination Management Organization (DMO) development course. The course provides a deeper dive into the intrinsic components of destination and marketing organization planning, development, branding, and marketing.

Are you a destination who needs help with your destination branding? Contact us today!

Written by Lena Eckert and Emilija Zagere

Tourism Improvement District – A Funding Model Case Study

Written by Alicia Winfield O Hare on . Posted in Uncategorized.

A Tourism Improvement District (TID) is a revolutionary way to fund destination marketing programs. They are typically run by local businesses that collaborate and invest collectively to support the growth and development of their destination’s tourism industry. Depending on where you are in the world, the concept of a Tourism Improvement District has several different names. The United States first started using this term in West Hollywood in 1989. The UK and other destinations soon followed, by developing similar public-private partnerships sometimes called “Business Improvement Districts” or “Tourism Marketing Districts”.  Though they have different names, the goal is the same – increase the number of overnight visitors using business and services.

Lodging businesses are usually heavily involved, charging each visitor a per-night occupancy tax (also called a lodging tax, room tax, hotel tax, or tourist tax) usually ranging from 1-5% of the total bill. These funds raised are then directed to a destination marketing organization/destination management organization (DMO), and must be used on programs that increase paid nights spent in the destination. The TID tends to fund services such as marketing programs, tourism promotions, and projects to regenerate the destination to make it more attractive to prospective visitors. The period of the district varies, ranging from one year to a ten-year term, with some contracts lasting even longer. A 2016 survey of tourism districts revealed that most districts took between six and twelve months to form.

West Hollywood Tourism Improvement District Case Study

West Hollywood is the city where it all began and the home of the first TID (and now one of ninety-five of California’s cities that have a TID). In 2013, West Hollywood revived its previous TID and increased the hotel’s levy from 1.5% to 3%. The levy was then given to the West Hollywood Travel and Tourism Board where they used these funds to form strategic plans to promote the identity of West Hollywood, create a destination marketing strategy targeting potential visitors, and undertake advertising solely focused on the travel industry. In 2014, they implemented a three-year plan with the following objectives:

  • Increase demand of the destination
  • Strengthen domestic and international awareness
  • Improve and grow partnerships
  • Be a leader in developing the destination
  • Reinforce a culture of innovation

To achieve these objectives, they spent a total of $6,289,440 with the hotel levy contributing a staggering $5,900,000.

A 2015-2016 annual report by the West Hollywood Travel and Tourism Board, noted there were 1.38 million visitors to West Hollywood during this year. These visitors spent a total of $737,212,000, and directly supported 5,289 tourism industry jobs. In 2017-2018, West Hollywood saw record-breaking visitor numbers and spending, with over 3.59 million visitors, spending $1.73 billion, with an increase of employment supporting total 7,958 jobs. These numbers indicate how vast growth occurred in just two years.

Beyond West Hollywood, TIDs have developed other global destinations such as Visit Britain registering a 4 million increase in visitor numbers annually, and Visit Barbados showing an additional 2 million visitors per year. Once a Tourism Improvement District is implemented, destinations must be sure to maintain focus on the implementation of a tourism development strategy for consistent tourism promotion. Businesses in a destination need to collaborate and sync their efforts, to consider innovative ways to effectively market their destination.

 

 

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