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Destination Marketing Organisations by Steven Pike

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Chapter 9

Performance Measures

Good management starts with good measurement (Aaker 1996: 316).

Chapter Perspective

It is fitting to conclude by considering how effective DMOs are. Do they generate an appropriate return for the millions spent on promotion? What is an appropriate return on investment? Is it actually possible to quantify the contribution of DMO efforts? If so, are such quantifiable short run measures actually appropriate for DMOs? With no direct control over tourism businesses there is no direct profit return from marketing spend, with which to reinvest in future marketing. DMOs are instead relying predominantly on grants provided by government and are not therefore accountable to shareholders in the same way as a commercial enterprise ...

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