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 The e-Newsletter for Tourism Destination Professionals September 2005 | Issue 6
 
Dr Roger CarterWelcome

One of the most important challenges facing DMOs today lies in creating an effective brand identity for their destination and we know, from your enthusiastic response to our earlier Branding Master Classes, that this is a subject you'd like to see us continue to cover.

That's why we're delighted to welcome a new contributor to DMO World - Bruce MacMillan, president and CEO of Tourism Toronto - to share with us his firsthand experiences of developing a new brand for Canada's largest city. We also report on the results of the new Nation Brands Index in our Destination Brand Watch section.

This issue, along with all the usual news and views, sees a welcome return to hospitality industry specialist John R Hendrie, with his thought-provoking views on the highs (and lows) of trade association membership.

We hope you enjoy this edition of DMO World.

Roger Carter
Managing Editor, DMO World
rogercarter@dmoworld.com

Special Features
The Flatiron building is one of Toronto's historic landmarks. Photo © Tourism Toronto.Toronto Unlimited:
The birth of a new brand

Having struggled though the perilous seasons of 2002 and 2003, Toronto has taken the initiative. In a classic response, the city has re-introduced itself to the world through a new brand identity, but attracted some strong criticism along the way. Bruce MacMillan, president and CEO of Tourism Toronto, talks us through the development process.

The value of membership:
What makes a good trade association?

The tourism and hospitality industry looks to trade associations for leadership, innovation and representation. But so often all it finds are organisations struggling for relevance and solvency, with waning influence and declining membership.

Hospitality specialist John R Hendrie offers a personal insight into what makes a good trade association and what we can all do to influence the service we receive from them... advice that is just as relevant to the wider DMO community.
Key Articles
Terrorism:
Latest research into impact on tourism


City of London skyline. Photo © www.freedigitalphotos.netJust three months after the first bomb blasts rocked the capital on July 7th, London's tourism industry has been fighting back. A multi-million pound advertising campaign, designed to lure both domestic and international visitors back to the city, was launched earlier this month.

The 'London in September' campaign, promoting the capital's free festivals and events programme, is backed up with an ambitious advertising drive aimed at the UK's key markets - USA, France , Germany, Spain, Italy, Ireland and the Netherlands. Other campaigns targeting segments that have previously demonstrated high resistance to similar incidents, such as youth, student and visits-to-friends/relatives - are being brought forward or extended.

After the initial terrorist attacks in London, industry experts predicted a quick recovery but research commissioned by TIER, VisitBritain's Tourism Industry Emergency Response group, has suggested that the impact of the follow-up attack on July 21st will be much deeper and long lasting.

The effects of the recent terrorism attacks on Egypt's tourism industry are expected to be short-lived. Photo © wwwbigfoto.com.The research, carried out by Oxford Economic Forecasting (OEF), reveals that, while the UK's visitor economies are still expected to see overall growth in the long-term, there is still very real concern for forward bookings and revenues for the rest of the year.

A spokesman for the OEF said: 'Many of London's businesses have been hit hard over the summer. But the record start to the first half of the year (with overall spending up by 13% compared to 2004 and visits increased by 12% - to 11.3 million) will mean that inbound tourism should still finish the year ahead of 2004.'

There is optimism, too, in the international arena, with the World Tourism Organization (WTO) suggesting that the recent terrorist attacks in Egypt's Sharm el-Sheikh will have only a short-lived effect on tourism flows. The latest report by the WTO's Market Intelligence Department notes a change in the markets' attitude towards the threat of terrorism over the past few years, a development that, it suggests, has made tourism 'more resilient'.


China:
Dramatic growth in both inbound and outbound travel


The Hong Kong skyline'. Photo © www.freedigitalphotos.netThe news that the Chinese government is to allow its citizens unrestricted travel to six more countries from September this year has forced industry experts to revise their tourism growth projections once again.

China's outbound market is now expected reach 35 million by the end of 2005 and more than 55 million by 2010, an annual growth rate of around 10%. The lifting of restrictions on group travel to Brazil, Mexico, Peru, Barbados, Laos, Antigua and Barbuda now brings the total number of nations with Approved Destination Status (ADS) up to 76.

Growth in China's inbound market is proving to be even more remarkable, with analysts suggesting that China will become the world's second largest destination within the next decade. Over 40 million tourists visited the country last year, an increase of more than 25% over the previous year, setting China well on the way to achieving its target of tripling tourism income over the next fifteen years.

A Beijing temple. Photo © www.BigFoto.comThe 2008 Olympic Games, to be hosted by Beijing and Qingdao, play an important role in China's tourism development plans. A massive investment in the country's tourism infrastructure is underway, with improvements being made to accommodation and security, roads and transport networks, including plans for eighty new airports.

More than 200 Chinese cities, around a third of the country's total, have now been awarded the title of Excellent Chinese Tourism Cities. To achieve this status cities must have 'made good use of their tourism resources and paid great attention to their tourism design'. Assessment of excellent tourism cities began in 1996 and there are now a further 100 cities seeking accreditation.


Sustainable Tourism:
The important role of tourism in developing countries


Visitors take more dollars to the developing world than their governments give in development aid, according to a new report by Counterpart International. More importantly, these tourist dollars often have a greater impact on local businesses and services than the governments' cash handouts. With one in every ten jobs in a developing country now related to tourism in some way, it's clear that tourists can bring much-needed income to the nations that need it most.

Tourist dollars often have a direct impact on local communities. Photo © wwwbigfoto.com.The World Tourism Organization (WTO) agrees that tourism makes a huge contribution to the fight against poverty in developing countries and, more specifically, in the least developed countries. However, it warns that this potential is closely linked to the accessibility of appropriate finance.

Its recent report 'Tourism, Microfinance and Poverty Alleviation', sets out recommendations for ways that small tourism enterprises, microbusinesses and microfinance institutions (MFIs) can work together in a way that benefits all. It also encourages governments and MFIs to adopt lending terms that match the needs of poor populations and that are appropriate to the very specific characteristics of the tourism industry.

The WTO organises a regular programme of seminars and workshops on tourism and poverty alleviation, aimed at DMOs, NGOs, local authorities and development agencies. These events present the WTO's methodologies and recommendations, using case studies to disseminate good practice.

Tourism plays an important role in the fight against poverty. Photo © wwwbigfoto.com.There is a further opportunity for tourism professionals to contribute to this debate early next month with an online ecotourism emerging industry forum organised by Planeta.com and EplerWood International. The event will examine the many barriers to sustainable tourism development, inviting key commercial players and travel industry representatives to debate strategies for developing an infrastructure for sustainable tourism.

A key issue will be the need to attract business finance in a way that will ensure long-term benefits for local economies, environment and communities and, at the same time, improving the profitability of the business partners.
Research and Reports - What's New
The latest IMEX Quarterly Barometer of Business Tourism Confidence indicates a positive outlook for the MICE industry over the next twelve months. A poll of key decision-makers across Europe suggests that demand has accelerated significantly as the effects of 9/11 finally fade away and that corporate confidence is now returning.

The report also suggests that budgets are becoming more realistic and that there is an increasing sense of economic prosperity. The next update is due in October.

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ETC Annual Report.The need for concerted action to promote tourism to Europe is one of the biggest challenges facing the European Travel Commission and its member NTOs, according to the recently published ETC Annual Report.

The report, which is available for download via the ETC website, provides details of ongoing initiatives, such as the new European tourism portal due to launch at the end of 2005.

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By 2010, European marketers will spend almost €3 billion on search engine marketing, a dramatic increase on last year's figure of €856 million, according to research carried out by Forrester Research. Europe's Search Engine Marketing Forecast suggests that, although search spending will more than triple, its share of online advertising will decrease by 2007, as consumer mistrust of paid listings takes effect, as rich media ads gain prominence, and as the prices of keywords rise.

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Online travel spending passed the US$5 billion mark in June this year, indicating a growth of 25% for the same month last year, according to comScore's Media Metrix Monthly Analysis of Consumer Activity.

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Nearly 90% of online consumers use the internet to buy or plan their summer holiday travel, according to an independent survey carried out by Feedback Research, a division of the Claria Corporation.

Low prices seem to be the key driver with more than half of all consumers choosing the brand or company that offered the lowest price and nearly 80% revealing that they chose the site(s) they typically buy from because of good prices / rates.

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Detailed results of 900 'origin to destination' pairs for early 2005 are available in the recently published Pacific Asia Travel Association (PATA) First Quarter 2005 Quarterly Statistical Report. The report is available online at a cost of $275 ($200 PATA members).

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The Canadian Tourism Commission (CTC) has produced a guide to Best Practices in Working with Small and Medium Sized Enterprises in the Tourism Industry. The guide, which can be downloaded free of charge from the CTC website, uses case studies to present ideas for building strong and effective relationships.

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Hotwire, the European technology PR consultancy, has teamed up with MORI to produce a series of reports into Consumer Technology Adoption across France, Germany and Great Britain. The research provides a valuable tracking index of the most important consumer technologies and an analysis of the major issues driving or hindering adoption in Europe's key markets. The first report in the series is available for free download from the MORI website.

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What will the tourist be like in 2015? A question many DMOs are asking. A new report from VisitScotland - Tomorrow's World, Consumer, Tourist - uses a process of scenario planning and 'futures thinking' to examine how world mega-trends and consumer behaviour are shaping tomorrow's tourist.
Destination Brand Watch
Australia's remarkable Uluru. Photo © www.BigFoto.comAs every DMO will know, brand development is a competitive business. But what makes a successful brand and how can its success be properly rated? The Anholt-GMI Nation Brands Index (NBI) is the first analytical ranking of the world's nation brands, regularly polling 10,000 consumers globally on their perceptions of the brand power and appeal of both developed and developing nations.

The index provides a unique barometer of global opinion, measuring countries on their cultural, political, commercial and human assets, investment potential and tourist appeal. Results from the NBI's second poll, released last month, reveal Australia as the panel's overall first choice for quality of people, tourism and investment / immigration.

However, the index is quick to point out that: 'Tourism is merely the most striking example of several of these fundamental disconnects between Australia's value as a nation brand and its actual performance in the global marketplace... This is because brand represents goodwill, and thus points to potential rather than the fulfilment of this potential.'

The US is ranked 11th in the Anholt-GMI Nation Brands Index. Photo © www.BigFoto.comAustralia was a new entry in the quarterly index, replacing Sweden as the world's strongest nation brand. Canada is currently ranked number two, Switzerland three and the UK is fourth, with Sweden dropping to fifth place. Overall the US is now eleventh, with Russia and Turkey remaining at the bottom of the rankings at 24th and 25th respectively.
Dates for Your Diary
Don't miss out on conferences, exhibitions and seminars... here are some of the key events for tourism destination professionals taking place over the coming months:

* * *

The first International Tourism Research Congress will be held next month (5th - 7th) at Guadalajara, Mexico.

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A seminar on The Current State and Future Developments of Cultural Tourism is being held by the World Tourism Organization Business Council in conjunction with AECIT, the Spanish Association of Scientific Experts in Tourism, on the 14th October in Málaga, Spain.

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Nairobi, Kenya, is the venue for the 2005 International Conference on Accessible Tourism, scheduled for the 17th - 19th October.

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Destinations 2005, the second annual summit of the World Tourism Forum for Peace and Sustainable Development, will take place on the 24th - 26th October in Rio de Janeiro, Brazil.

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You won't even have to leave your desks to take part in the online Ecotourism Emerging Industry Forum, which will be taking place between the 1st and 18th November.

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The 75th ASTA World Travel Congress will be held in Montreal, Canada, between the 6th - 11th November this year.

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London's World Travel Market 2005 will take place between the 14th - 17th November.

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And finally... a peek into the New Year, with ENTER 2006, the global travel and tourism technology and e-business forum, due to take place in Switzerland on the 18th - 20th January.
In This Edition...
International News

Air Travel:
Impact of fuel price rises


An increase in European travel over the summer has helped to offset the impact of rising fuel prices, according to many of the region's airlines. Record oil prices forced the majority of carriers to introduce ticket surcharges and there were fears that this would result in a widespread slump in air travel. Instead, many low-cost and national carriers are reporting increased passenger traffic and a positive outlook for the next quarter.

Ireland:
Tourism faces major restructuring


In an effort to halt a steady fall in visitor numbers, the Irish government is to carry out a major restructuring of its tourism marketing function. The promotion of destinations outside Dublin, previously carried out by a network of regional tourism bodies, will now be centralised under the control of Fáilte Ireland, the national tourism development authority.

DMO World will be featuring this in more detail in our November edition, so if you have any comments you'd like to make, please get in touch.

Australia:
Links with National Geographic


Tourism Australia (TA) has renewed and extended its exclusive deal with National Geographic to further boost the country's largest ever integrated tourism campaign targeting American travellers.

The renewed partnership features major promotions in National Geographic's Traveler and Adventure magazines, a special TV series on the National Geographic channel, as well as a dedicated website.

India:
Showcases rural life


India's Ministry of Tourism has launched an ambitious investment programme which aims to bring both social and economic benefits to local communities by showcasing the country's rural life, art, culture and heritage. The scheme will also help to balance tourism's previously urban centric development.

Tourism minister, Renuka Chowdhury, said that more than fifty destinations across the country would benefit from the investment which includes improvements to transport links, increased accommodation provision and the development of a training programme in hospitality services.

Exhibitions Industry:
First ISO standard agreed


The International Organisation for Standardisation (ISO) has recently accepted Singapore's proposal to develop a new international standard on exhibition terminology, the first ISO standard for the exhibition industry.

The standard is aimed at helping enhance and raise service and operational standards in the exhibition management services industry, making it easier for exhibitors and visitors to understand and evaluate exhibitions across the world.

Australia:
New events team created


Tourism Australia's drive to brand, promote and position the country as a high value international business and events destination has taken a step forward with the creation of a new specialist team - Tourism Events Australia (TEA).

Australia's business events sector attracts around 550,000 visitors each year and makes a significant contribution to tourism revenue. Major events attract both domestic and international visitors and are seen as an invaluable branding opportunity for the country.

Caribbean:
New human resources handbook


Tourism leaders in the Caribbean region now have a new tool to help improve their quality of service. The Caribbean Tourism Organization (CTO) has produced a handbook 'Competing with the Best - Good Human Resource Practices in Caribbean Tourism' which provides helpful tips and resources on how to find, train, manage and retain good employees.

The handbook covers a variety of related subjects - from building a performance culture to understanding the importance of rewards, recognition and benefits. It can be ordered via the CTO website in hard copy only for US$20.

Brunei:
Tourism restructuring


Brunei's tourism efforts have been given a boost following the creation of the country's first tourism board. The board, which includes representatives from both government and the private sector, will focus on improving the country's basic tourism infrastructure, introducing more effective marketing measures and increasing the number of tourists by 2023.

E-Business News

Expedia:
Promotes World Heritage


Online travel giant Expedia is to join up with the United Nations Foundation (UNF) to help build grassroots awareness and involvement in World Heritage conservation. Through its website, Expedia will offer travel to selected World Heritage destinations, helping to promote an awareness of sustainable tourism, as well as raising funds for the UNF through donations from online sales.

Macchu Picchu, a World Heritage site. Photo © www.freedigitalphotos.net

New Zealand:
Launch of online planner


An online travel planner has been launched by New Zealand Tourism, which allows users to collect details of activities, accommodation, transport providers and area profiles in one integrated system. The planner also includes a street level mapping system and calendar function.

Minister of Tourism, Mark Burton, commented: Keeping ahead of development trends is essential in today's tourism environment. We need to use new technology to our advantage and this development will help increase the usefulness of our website.'

Travel Guides:
Downloadable guides


Finding your way around a destination is now easier than ever, with the launch of 100 new pocket city guides from WCITIES. The guides provide detailed mapping, including turn-by-turn directions, as well as location details of attractions, restaurants, hotels and shops, and can be easily downloaded to smart phones or hand held devices.

Philippines:
WoW! cash card


The Philippine Department of Tourism has joined forces with WoW! Technologies to help promote the Philippines as a major international tourist destination. The new agreement includes the government's endorsement of the WoW! card, a pre-paid cash card that can be used for both purchases and cash withdrawals, in return for international marketing and promotion support.

Philippine congressman, Simeon Kintanar, commented: 'This agreement will help our tourism efforts. By having easy access to cash, tourists can enjoy their visit to our country even more.'

London:
Free TV channel for hotels


Visit London is to launch a second dedicated TV channel, this time designed specifically for the capital's many hotels. The free service is aimed at enhancing guests' experience during their stay and will provide a mixture of news and entertainment.

WAP:
Destinations take up the challenge


Growing numbers of destinations and attractions are exploring WAP technology as a way of reaching new markets. London's National Portrait Gallery recently used WAP to promote a photographic exhibition, providing phone users with a virtual gallery tour. Although most of the current traffic is directed to mobile operator sites, the technology is becoming increasingly more adaptable for use by DMOs.

Podcasting:
It's the latest thing


Haven't heard of it? Merge 'iPod' and 'broadcast' and you'll probably get the picture.

Podcasting is similar to the process that allows subscribers to view syndicated web content but, instead of reading feeds on a computer screen, users listen to the content on their iPod or MP3 player. The potential for use by the travel industry is evident... watch this space!


© DMO World 2005

If you have any feedback or ideas for future content, then please contact us at info@dmoworld.com

Brought to you by TEAM - The Tourism Destination Consultancy

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Whilst every care has been taken in the compilation of this e-newsletter and the statements contained in it are believed to be correct at the time of going to press, the publishers and promoters of this publication are not liable for any inaccuracies.