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Measuring the Performance of Convention and Visitors Bureaus

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Abstract

Convention and Visitors Bureaus (CVBs) are nonprofit organizations initially created to represent tourism accommodations for the purpose of generating overnight tourist visits to the area (Gretzel et al., 2006). In their original roles, they provided information about a destination's lodging, dining, attractions, events, arts, culture, history, and recre-ational opportunities to visitors and potential visitors. This role was summarized by Gartrell (1988): "CVBs have one fundamental mission: to solicit and service conventions and other related group business and to engage in visitor promotions, which generate overnight stays for a destination, thereby enhancing and developing the economic fabric of the community" (p. 10). CVBs in the United States are considered a special type of Destina-tion Marketing Organization (DMO). As such, they are expected to play multiple roles and coordinate a wide range of activities within the destination (Wang, 2008). These may include operating one or more visitor centres, managing a convention centre, and conducting tourism sales marketing programs. According to a 2007 survey by Destination Management Association International (DMAI), the world's largest as-sociation of destination marketing organizations, DMOs spend almost half (48 per cent) of their budget on sales and marketing efforts, with media advertising the top activity (18 per cent of total expenses). The remainder is spent on personnel (39 per cent) and administrative ex-penses (13 per cent) (DMAI, 2007). Although they provide information to tourists directly and planned packages to conference attendees in-directly through meeting planners, the CVB's traditional clients have been tourism industry members. The CVB board of directors, unpaid 6208-082_Mook.indb 167 9/21/2012 8:30:51 AM and without shares of ownership in the CVB, are typically elected by the CVB membership and primarily beholden to the tourism industry. The role of CVBs is expanding. As populations have grown and stakeholders have become more numerous, CVBs have gradually tran-sitioned to institutions that influence and organize destination gover-nance (Beritelli, Bieger, & Laesser, 2007, p. 106), typically "through a process of collaboration, cooperation and leadership and through find-ing a common understanding" (Padurean, 2010, p. 198). That is, they have adopted a broader set of responsibilities that includes a more cen-tral governance role. As the CVB's role has expanded, it has taken on the tasks of policymaking, quality control, safety, security, and a myr-iad of other services to visitors and residents. Reflecting this change, since the 1990s the term "Destination Marketing Organization" has gradually been replaced by "Destination Management Organization" (Perdue, Tyrrell, & Uysal, 2010). Initially, this change was paired with an increased public relations emphasis on contributions by the DMO to the qualities of host communities as destinations for tourists. Increas-ingly, however, DMOs – as recipients of public funds – are expected to demonstrate their contributions to communities as places where people live, thereby enhancing social welfare. These changes are now reflected in the official positions of organi-zations representing DMOs and CVBs. For example, the Destination Marketing Association International (DMAI), whose mission is to "en-hance the professionalism, effectiveness, and image of destination mar-keting organizations worldwide" (DMAI, 2010, p. 1), acknowledged the importance of the wider range of community stakeholders at its 2008 DMAI Annual conference. This included a "New Strategic Map" for Destination Marketing which included "a reconceptualization – or at least a clarification – of the potential role and contribution of DMOs to the destinations they serve." Two of its eight conference themes empha-sized this changing mission: The Quest for Relevance – DMOs continue to face confusion and uncer-tainty on the part of their local governments, stakeholders and partners regarding their role and the value the DMO offers. DMOs must be a part of the strategic conversation that drives important decisions about the de-velopment of the community. Mixed Signals from Government – Governments are increasingly im-posing taxes, laws and other restrictions upon travel-related commerce.
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
      




        








       




     




 
   


velopment of the community.
 

6208-082_Mook.indb 168 9/21/2012 8:30:51 AM



  



      gross

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


  net      


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
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 
        

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        

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total value as a basis for evaluating the performance of the


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

        
6208-082_Mook.indb 169 9/21/2012 8:30:51 AM




The CVB as a Non-prot Organization




 The tax exemption for busi
     






line of business generally refers either to an entire



commerce is that the former must promote the common business inter

the common business interests of persons within a community or simi

 
        

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    

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
6208-082_Mook.indb 170 9/21/2012 8:30:51 AM
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
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
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  
           
 
         




ment of business leagues to promote the public welfare by improving



   


           


    

  







     
       
          


it is not unreasonable to suspect that the purposes of the CVB may not
6208-082_Mook.indb 171 9/21/2012 8:30:51 AM



Traditional CVB Performance Measures





right things
the things right
       
sicsic


 
re-
turninvestment

Visitor spending generated by the CVBs efforts
Total CVB opeerating costs=ROI(Gross,Market,Overall)
This measures gross, market-valued, overall benets   
     
may be variations on measures of returninvestment

clearly and
signicantly generated



net benet that CVB activi
right
way
6208-082_Mook.indb 172 9/21/2012 8:30:52 AM

of right things


returninvestment
total value


total values


Total Value CVB Performance Measures

         

      




market
valuetotal value
         
      

    

      

   






          
 
6208-082_Mook.indb 173 9/21/2012 8:30:52 AM








  

Net Benets to the Tourism Industry











the CVB.




        



    


Industry Profits generated by CVBs efforts
Total CVB Operatiing Costs=ROI (Net, Total, Industry)
6208-082_Mook.indb 174 9/21/2012 8:30:53 AM



Net Benets to the Tourists
    
       
   




         




     



simply by the operating costs of the CVB.
Tourist Surplus generated by CVBs efforts
Total CVB Operatinng Costs =ROI (Net, Total, Tourists)
This ROI ratio measures NetTotalTourists in relation to total
  


Net Benets to Residents
The performance of the CVB from the perspective of community resi



         
6208-082_Mook.indb 175 9/21/2012 8:30:53 AM


      


     



       



   

           









Total Residential Value generated by CVBs efforts
Total CVB Operating Costs=ROI (Net, Total, Residents)
This ROI ratio measures NetTotalResidents in relation to the

Aggregate Net Benets


        
public investment.
6208-082_Mook.indb 176 9/21/2012 8:30:54 AM

Industry Profits+Tourist Surplus+Residential Value generateed by CVBs efforts
Total CVB Operating Costs
=ROI (Net, Totaal, All Stakeholders)

       

         


Example of Total Value Performance Measures



       Performance Reporting Handbook







Visitor Spending generated by the CVBs efforts
Total CVB Opeerating costs
$150.5 million
$4.0 million
==
3
76
.





 

           
6208-082_Mook.indb 177 9/21/2012 8:30:55 AM

 

Industry Profits
Total CVB Operating Costs
=
=
150 5 143 0
40
7..
.
..
..
5
40 19==ROI (Net, Total, Industry)



    


analysis

   

 



  

           




  
        


Tourist Surplus
Total CVB Operating Costs
=
+
=
15 020
40
17 0
4
..
.
.
.. .
043==ROI (Net, Total, Tourists)



6208-082_Mook.indb 178 9/21/2012 8:30:56 AM


elsewhere.      
           






  

    
services.
         

       
 Such investments ben



taxes.

lion to local employees.

     



          





Total Residential Value
Total CVB Operating Costs
=
++23 41.. .55 111
40
51
40
13
++
==
=
.
.
..
ROI (Net, Total, Residents)
6208-082_Mook.indb 179 9/21/2012 8:30:57 AM


Industry Profits+Tourist Surplus+Residential Value
Total CVBB Operating Costs
ROI (Net, Total, All
=
++
==
75 17 5 1
40
74
..
.
.SStakeholders)
     



        

    


  
they serve.
Conclusions
      
   

 This chapter proposes a new per


as a novel way to measure the performance of CVBs from a more com
prehensive social value perspective. A simple example illustrates how





improvement.


      

6208-082_Mook.indb 180 9/21/2012 8:30:57 AM

         
         
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
















the CVB.




















6208-082_Mook.indb 182 9/21/2012 8:30:57 AM




opportunity costs.





















scribe a measurement of the value of cultural heritage.














tural sites.
6208-082_Mook.indb 183 9/21/2012 8:30:57 AM

REFERENCES
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Tourism Management17



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

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

Cost-benet analysis: Concepts and practice


Environmental Science &
Technology34

Washburn Law Journal16


Fordham Law Review76

right of association. U.C. Davis Law Review35

Economic Jour-
nal94

Psychological Science in the Public Interest5



proposal. Accounting, Organizations and Society2

Prole of a destination
marketing organization


6208-082_Mook.indb 184 9/21/2012 8:30:57 AM

Placemaking
and tourism

Introduction.



Standard CVB
performance reporting: A handbook for CVBs









The Measurement of environmental and resource values:
Theory and methods
Destination marketing for convention and visitor bureaus.



Journal of Travel Research45

Pricing nature: Cost benet analysis and envi-
ronmental policy
Hidden order: How adaptation builds complexity

Economic
analysis for ecosystem based management: Applications to marine and coastal envi-
ronments
The tax law of associations

Annals of Tourism Research27


Journal of Tourism and Cultural Change2

6208-082_Mook.indb 185 9/21/2012 8:30:57 AM


Situated learning perspectives


Handbook of public administra-
tion
Travel watch. National Geographic traveler.

Valuing cultural heritage: Applying envi-
ronmental valuation techniques to historic buildings, monuments and artifacts.



Annual Re-
view of Political Science2

Proceedings
Think Tank X: Networking for sustainable tourism



Tourism
research: A 20–20 vision
Destination marketing organizations

Exempt organizations – Technical
instruction program for FY 2003


Nonprot Management & Leadership13


isfaction. Journal of Travel Research49


Tourism Econom-
ics15

E-Review of Tourism Research
hp://ertr.tamu.edu
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
Nonprots



Journal of Vacation Marketing14

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6208-082_Mook.indb 188 9/21/2012 8:30:57 AM
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Chapter
Full-text available
Destination Marketing Organizations (DMOs) occupy a central position in the marketing of tourism destinations. They are destination-based organizations assuming several roles that are instrumental in the marketability and sustainability of the destinations. This chapter examines the roles of DMOs at tourism destinations. The aim is to broaden understanding on their relevance as well as on challenges faced by them in the context of the twenty-first century. The island of Mauritius will be utilised as case study to illustrate the implications of marketing the destination without a DMO. The chapter argues that one of the critical success factors for an effectively managed and competitive destination lies in the type of role played by the DMOs in the marketing of the overall tourism destination. In This Chapter Destination marketing organizations Introduction Why tourism destinations need a DMO Definitions of DMO Historical development of DMOs Roles of DMOs at a tourism destination New roles of DMOs DMO: a marketing or management entity? Assessing the performance of DMOs Customer satisfaction Marketing communication and branding Quality of relationship with stakeholders Profitability of tourism businesses Destination management and sustainability issues Benefit to the locals DMOs in the twenty-first century environment: scopes and challenges Case Study Conclusion
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Threats in the external environment and changes in the industry’s markets and structures have challenged destination marketing organizations to change in fundamental ways. The strategic responses to these developments are essentially decisions to proactively shape, adapt to, or passively struggle through a crisis. Envisioning the future of tourism and examining possible ways of reaching various future scenarios are essential exercises in this process of deciding which strategic approach to adopt. In response to the increasing need for new visions of the future of tourism and particularly destination marketing, leading destination marketers from the midwestern United States were invited to participate in a large focus group to discuss the specific challenges encountered by their organizations. This article summarizes the issues raised and their implications for destination marketing organizations as well as tourism research.
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The objective of this article is to assess the socio-cultural impacts of tourism development in the Okavango Delta, Botswana. This paper largely relied on the research work and reports by the author in the Okavango Delta from 1998 to 2004. In all instances, both primary and secondary data sources were used. However, much of the paper is based on the results of a survey carried out between April 2001 and July 2002. Findings indicate that tourism development in the Okavango Delta has both positive and negative socio-cultural impacts. Some of the positive socio-cultural impacts include income generation and employment opportunities from both community-based tourism projects and safari companies, infrastructure development such as airport and airstrips, tarred roads, hotels, lodges and camps, the improvement of social services such as banking, health, telecommunications and access to electricity. The negative socio-cultural impacts include enclave tourism, racism, relocation of traditional communities, breaking up of the traditional family structure, increase in crime, prostitution, the adoption of the Western safari style of dressing and a traditionally unacceptable ‘vulgar’ language by young people. This article argues that tourism needs to be sensitive to local cultural norms and beliefs for it to be accepted by local people and promote sustainable development. This is possible if all the stakeholders (government, operators and local people) collaborate in policy formulation, implementation and monitoring. This can minimise the negative cultural impacts and instead promote the positive.