Functional changes of local DMOs in the modern tourism economy

Abstract

The objectives of the article are to identify the operational forms and roles of local DMOs (Destination Managment Organization), resulting in an increased organisational effectiveness within a given operational model. The study provides an addition to the extant body of knowledge concerning the relevance and effectiveness of local DMOs’ operating models and their roles. The CAWI survey results of the entirety of 125 local Polish DMOs indicate that their organisational structures have become obsolete. Their reorganisation into network cooperation organisations, clusters or consortiums of tourism products or management organisations in tourist destinations has been shown to have great adaptive potential and will affect their effectiveness. The study has identified key roles for increasing local DMOs’ effectiveness, as well as the functions that should be limited. The study offers implications for evaluating local DMOs using non-financial indicators, also having implications for managerial practice. The implications presented enable comparative studies of different organisations in tourist destinations and indicate the importance of the need for further research on organisational evolution of local DMOs in turbulent environments and growing stakeholder expectations.