3.4 Current Trends

As discussed earlier in this chapter, many DMOs have prioritized managing tourism within their destination in addition to their marketing and sales activities. And while this has been a trend for many years now, the COVID-19 pandemic exacerbated this systematic shift. During the pandemic, tourism essentially ceased and many DMOs struggled to retain their funding, partnerships, and community support (Månsson & Eksell, 2024). As a result, many DMOs emerged as community leaders more so than ever before. Relations within the community became even more vital and DMOs who did not listen to their community and respond to their community’s needs were soon seen as superfluous.

DI’s DestinationNEXT 2023 Futures Study states that:

According to this year’s survey data, organizations are increasing how they prioritize many different types of supply-side initiatives. Those include: Destination, product and experience development; community and economic development; small business and workforce development; partner support and education; resident engagement and education; workforce housing and childcare improvements, and advocacy to influence local, regional and national policy. (Destinations International & MMGY NextFactor, 2023, p. II)

This trend is likely to continue and accelerate as social issues, such as equity, diversity, and inclusion (EDI) priorities, workforce and housing difficulties, and mass tourism continue to have implications on quality of life and business. The above study shows that DMOs are addressing “a greater need for more actionable, data-driven business intelligence to collaborate with partners more effectively to support community and destination development efforts” (p. II).

Many DMOs face growing pains as they grapple with a balance between appeasing the community they serve and the profit-hungry businesses that see the DMO in the traditional sense—as an organization that will bring them business. The new approach to tourism management may be seen as contradictory to a DMO’s traditional, long-held mandate to increase tourism dollars spent in a destination. Some of the initiatives, such as workforce housing and childcare initiatives, may be seen by some as shifting dollars away from tourism sales and marketing and into enterprises that do not directly put “heads in beds.”

The following top five trends impacting the future of DMOs were also identified by the DestinationNext 2023 study:

1. Artificial intelligence will become increasingly prevalent at an accelerated pace
2. Customers are increasingly seeking a unique, authentic travel experience
3. Communities expect to be more engaged in destination, product, and experience development for locals and visitors
4. Destinations are looking at sustainability and regeneration more broadly, encompassing economic, social, and environmental impacts
5. Greater industry, community, and government alignment drives destination competitiveness and brand

(Destinations International & MMGY NextFactor, 2023, p. III)

As society changes with new technology, global issues, and cultural shifts, the tourism industry must respond. As community leaders, DMOs are in a unique position to align with government, industry, and community leaders to move towards a more sustainable tourism economy that balances the needs of the people, the planet, and profit.