Who funds DMOs?


Who funds DMOs? DMOs usually raise funds via public channels but they can also be funded privately. Among public channels, the most common way for DMOs to secure funding is via hotel occupancy tax and therefore local governments.


What industry is a DMO?

A destination management organization promotes and drives a community's economic development by increasing travel and tourism in the region. The organization is made up of local experts tasked with marketing their community as an attractive travel destination to draw new visitors, businesses, and customers to the area.


Who funds DMO?

Many DMOs receive their funding, or a portion of it, from hotel occupancy taxes, which vary state by state. Guests pay transient occupancy tax on hotel reservations, which may be passed on to local government organizations, like a DMO or CVB.


How do destination marketing organizations make money?

Among public channels, the most common way for DMOs to secure funding is via hotel occupancy tax and therefore local governments. In addition, DMOs can accrue government grants, membership dues, “premium listing” advertising revenue, marketplace revenue and other forms of public & private funding.


Who is responsible for destination marketing?

A DMO is a non-profit entity responsible for marketing and promoting a destination. It acts as a central hub, bringing together hotels, attractions, restaurants, transportation services, and other tourism-related businesses to collectively promote the destination.


What benefits does a DMO provide?

DESTINATION MARKETING ORGANIZATION (DMO) The DMO can provide assistance in scouting, negotiating, and supplier vetting. Some DMOs market only to leisure travelers, while others market solely to meeting planners. Both CVBs and DMOs provide their services for free to the meeting planner.