Study: PR needs integrated destination management

Written by  //  March 28, 2017  //  Tourism/Transportation  //  4 Comments

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The study entitled “Visitor Economy: Governance and destination management” embodies the nonprofit’s research and analysis.

The Foundation for Puerto Rico released a study that shows that beyond establishing a Destination Marketing Organization, or DMO, for Puerto Rico, the island has a pressing need for a destination management plan.

The study entitled “Visitor Economy: Governance and destination management” embodies the research and analysis the nonprofit conducted on the different elements of a tourist destination, the different existing governance structures to manage a tourist destination, and makes the distinction between marketing and destination management.

“The main finding of our study is that a development plan and management destination in Puerto Rico and the creation of an independent organization for marketing the destination are indispensable for integration, management quality and ecosystem effectiveness” said Arnaldo Cruz, director of research and analysis Foundation for Puerto Rico.

“Carrying out a participatory and inclusive process for the creation and development of a destination management plan facilitate its implementation in a coherent, integrated and effective way to build on the elements of strength and opportunities that Puerto Rico has as a global destination,” he said.

The study identifies and evaluates the multiple elements of managing a destination, both conceptually and in the context of Puerto Rico’s particularities. Those being: attractions, amenities, accessibility, human resources, price and image. In addition, best practices are identified to manage a destination and identify the different existing models of governance throughout the world.

“At the Foundation we are constantly analyzing the different models and trends to provide knowledge in the development of our visitor economy,” said Jon Borschow, Foundation for Puerto Rico chairman.

“We believe the increase in our tourist activity significantly contributes to Puerto Rico the economic future and spearheads it,” he said.

The Foundation for Puerto Rico has been part of the dialogue for the development of the bill authorizing the creation of DMO for strategic, continuous and consistent promotion of Puerto Rico at a global level.

“Marketing is one of the components of managing a destination. Marketing and promotion of Puerto Rico’s brand or image are part of a management strategy target,” said Cruz.

“Often, other elements of the destination — attractions, amenities, accessibility, human resources, price and image — are downplayed and we focus public discussion only on marketing,” Cruz added.

“But that’s as if companies focused only on promotion and didn’t worry about product development, distribution and price…this what destination management is about, overseeing all elements of a destination in an integrated manner,” he said.

Meanwhile, Borschow said creating a DMO is the first step to reform the governance model of the destination, reducing the vulnerability of promotion and marketing to electoral changes, which have affected the continuity and consistency of Puerto Rico’s brand.

“To align the management of all the components, it’s necessary to put into writing a strategy for the development of the destination that can guide the work of the new DMO and the Tourism Company, as well as all of the players of the ecosystem,” he said.

“That way we ensure that everyone is working in tune and in harmony, using a common language and sharing plans and strategies that allow us to use metrics to measure progress and results,” said Borschow.

The Foundation for Puerto Rico also recommends the creation of a process of validation and external evaluation to provide confidence in tourism statistics and that can be used by the entire ecosystem. This is something for which the Foundation has been advocating since 2016.

The nonprofit is hosting a gathering to discuss the topics of the study on April 6 at 6 p.m. at the Colaboratorio by Foundation for Puerto Rico in Santurce.

4 Comments on "Study: PR needs integrated destination management"

  1. Richard R. Tryon March 28, 2017 at 9:23 AM · Reply

    Marketing studies are not needed to know why PR has much to attract short-term vacationing tourists. The on-going increase in numbers of annual visitors shows it, but fails to explain that the increase is almost all a function of ever larger tour ships that spend a few hours in old San Juan. The passengers walk around and shop but eat on the ship all but lunch on land.

    What marketing and management need is a program to attract destination retirees! But, imported food costs far more than what farmers grow on land adjacent to all ports of call where new supply is needed by the ships. U.S. labor law and a zillion lines of regulations, codes, permits, and rules make workers in PR cost too much to both manage and pay to compete.

    What is needed? A low cost place to stay and an active retirement regime that includes growing food on small plastic vertical towers that we are making that let retirees assemble and grow great organic crops to pick and eat like we do.

  2. Hector Ortiz March 28, 2017 at 3:49 PM · Reply

    Brands are not built in a vacuum and ours needs to to be built on a forward thinking private and public policy in support of the tourism industry, and clear fundamentals that help us deliver destination value based on the realities of our operating cost while capitalizing our strengths.

    The strategic imperatives of a successful DMO plan require that the destination harmonize, support and promote an offering that’s true to their culture, deliver outstanding service, and promote personal security. Strict performance measurement criteria must be enforced among “sponsored” service providers. Non compliant offerings must strive on their own. Some well known and comparable destinations that have done this right are Colombia, Cancun, Alaska, Hawaii, and a more diverse example is Australia. A one-size-fit-all plan is not the only alternative. Technology should be capitalized, ROI from targeted groups, cities and countries results must be monitored in real time and marketing efforts shall be adjusted accordingly.

    I’ve applied these principles in a small scale as a registered PRTC vacation rental hosteler having established a top service strategy focused on listing in the right vacation websites, pricing competitively, providing prompt responses, offering ample destination information that endorse highly regarded tourist service providers, anticipating medical contacts for emergencies and providing personal attention as much as possible. My efforts have paid off having seen growing bookings not only from the US but from Germany, Estonia, Finland, Sweden, and even Patagonia, referrals and a 5 star rating.

    I encourage Fundación de Puerto Rico to keep their focus and bring together tourism organizations and service providers to make way for a fully functioning and successful DMO.

    • Louie Angelo March 29, 2017 at 6:47 AM · Reply

      Excellent!

      • Hector Ortiz March 29, 2017 at 6:29 PM · Reply

        Thanks Angelo. I seldom comment on these topics but felt that I had to share a POV.

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