Getting the cash-cow directors on board - An alternative view on financing DMOs
Journal
Journal of Destination Marketing & Management
ISSN
2212-571X
Type
journal article
Date Issued
2014-01
Author(s)
Abstract
Research on the composition of the board of directors of DMO's as well as the governance of DMOs is of particular interest for destination management, because it helps understand the context of community-type tourist destinations. There is an increasing body of research on the composition and roles of DMO boards of directors as well as the duties and tasks of those individuals. However, to date, no study has addressed their influence on the financial revenues of the organizations and the institutions in the destinations. Thus, we investigate to what extent directors on the boards affect the amount from different revenue sources. Using data from 44 Swiss local and regional DMOs, we perform seven distinct multiple regressions with the following revenue sources as dependent variables: (1) membership fees, (2) partnership platforms/initiatives, (3) commercial revenues, (4) overnight taxes, (5) regional and state subsidies, (6) municipal susidies, and (7) tourism taxes. Four independent variables (1) stakeholders, (2) public agents, (3) leaders, and (4) networkers, positively and negatively affect the revenue sources. The results reveal two contrasting roles: while leaders and networkers likely increase the revenue sources, stakeholder representatives and public agents negatively affect the revenue sources. Additionally, the latter two functions strongly increase the size of the DMO's boards. We conclude with a new perspective on how to understand DMO boards, their functions, and finally the organizations themselves.
Language
English
Keywords
destination management
organisation (DMO)
board of directors
revenue sources
board governance
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Elsevier
Publisher place
Amsterdam
Volume
2
Number
4
Start page
213
End page
220
Pages
8
Subject(s)
Eprints ID
228053