Local tourism governance of destination marketing organisations

Globally tourism is one of the biggest industries and its role is considered key in economic development. In South Africa, tourism is one of the main economic drivers. Thus, tourism contributes to the gross domestic product, generates foreign exchange and provides sustainable employment opportunities. In order to facilitate local economic development (LED), local destination marketing organisations (DMOs) need to ensure that their operations are geared towards optimising the economic advantages related to tourism growth and development. As a result the DMOs must be strategic and well-managed. One way of achieving this is to ensure that the board of directors and specifically the non-executive directors (NEDs) practise good governance. In South Africa, three (3) types of DMOs are found, namely those that are funded by local government and incorporated into the municipality. The second type of DMOs is funded by the private sector. The third type of DMOs is those funded by both the local government and the private sector. In this case, the DMO has an agreement with the local government in terms of what their mandate is and what the agreed outcomes would be. A board of directors, comprising both executive directors (EDs) and nonexecutive directors (NEDs) is responsible for the governance of the local DMO. The main research problem of the study is the attributes and experience of the nonexecutive directors that serve on the boards of DMOs in accordance with developmental standards of best practices. In order to address the main problem, the following research objectives were formulated: To identify best practice by examining the literature as to how NEDs are prepared to serve on boards of both listed and non-listed organisations. To determine whether any policy frameworks provide guidance to NEDs serving on DMOs in South Africa. To examine whether any training or preparatory programmes exist specifically for NEDs in DMOs. To investigate whether NEDs should have specific attributes that would improve their governance of DMOs. To develop a set of recommendations that would assist NEDs to play a more effective role when executing their responsibilities. In order to address these research objectives, a quantitative research methodology was adopted sampling all the DMOs in South Africa that could be identified and were governed by a board of directors. For this purpose, a self-completed questionnaire was distributed to the board of directors of DMOs and specifically the non-executive directors. The results of the study indicated that no guidelines existed that DMOs could follow to better prepare the NEDs of local DMOs. Furthermore, no policy frameworks provide guidance to NEDs serving on local DMOs. The only guidelines that exist are generic guidelines of the King IV Report for NEDs of listed and non-listed organisations. In addition, Pike (2016:108) listed a number of characteristics of good governance. The study also revealed that no training or preparatory programmes exist for the NEDs of local DMOs. Finally, the study highlighted five (5) attributes that NEDs consider as critical in fulfilling their obligations. These include the empowerment of NEDs, the commitment of NEDs, communication with NEDs, job satisfaction of the NEDs and the need for NEDs to understand policy frameworks relevant to their tasks

Local tourism governance of destination marketing organisations

Globally tourism is one of the biggest industries and its role is considered key in economic development. In South Africa, tourism is one of the main economic drivers. Thus, tourism contributes to the gross domestic product, generates foreign exchange and provides sustainable employment opportunities. In order to facilitate local economic development (LED), local destination marketing organisations (DMOs) need to ensure that their operations are geared towards optimising the economic advantages related to tourism growth and development. As a result the DMOs must be strategic and well-managed. One way of achieving this is to ensure that the board of directors and specifically the non-executive directors (NEDs) practise good governance. In South Africa, three (3) types of DMOs are found, namely those that are funded by local government and incorporated into the municipality. The second type of DMOs is funded by the private sector. The third type of DMOs is those funded by both the local government and the private sector. In this case, the DMO has an agreement with the local government in terms of what their mandate is and what the agreed outcomes would be. A board of directors, comprising both executive directors (EDs) and nonexecutive directors (NEDs) is responsible for the governance of the local DMO. The main research problem of the study is the attributes and experience of the nonexecutive directors that serve on the boards of DMOs in accordance with developmental standards of best practices. In order to address the main problem, the following research objectives were formulated: To identify best practice by examining the literature as to how NEDs are prepared to serve on boards of both listed and non-listed organisations. To determine whether any policy frameworks provide guidance to NEDs serving on DMOs in South Africa. To examine whether any training or preparatory programmes exist specifically for NEDs in DMOs. To investigate whether NEDs should have specific attributes that would improve their governance of DMOs. To develop a set of recommendations that would assist NEDs to play a more effective role when executing their responsibilities. In order to address these research objectives, a quantitative research methodology was adopted sampling all the DMOs in South Africa that could be identified and were governed by a board of directors. For this purpose, a self-completed questionnaire was distributed to the board of directors of DMOs and specifically the non-executive directors. The results of the study indicated that no guidelines existed that DMOs could follow to better prepare the NEDs of local DMOs. Furthermore, no policy frameworks provide guidance to NEDs serving on local DMOs. The only guidelines that exist are generic guidelines of the King IV Report for NEDs of listed and non-listed organisations. In addition, Pike (2016:108) listed a number of characteristics of good governance. The study also revealed that no training or preparatory programmes exist for the NEDs of local DMOs. Finally, the study highlighted five (5) attributes that NEDs consider as critical in fulfilling their obligations. These include the empowerment of NEDs, the commitment of NEDs, communication with NEDs, job satisfaction of the NEDs and the need for NEDs to understand policy frameworks relevant to their tasks

A Socio-Demographic Analysis of the Board of Directors of Selected Destination Marketing Organisation (DMOs).

Destination marketing organisations (DMOs), specifically those at local level play a critical role in marketing towns and cities. However, it is not just the marketing that is key, but also how the DMO is managed and governed by the board of directors. This paper reviews the constitutions of selected DMOs in two provinces in South Africa, as well as the socio-demographic composition of the board of directors of DMOs. The study revealed that the constitution of DMOs that are funded by both the public and private sector do not specifically prescribe any equity or gender parameters in as far as the election and appointment of directors are concerned. This is disconcerting, given South Africa’s segregated past and the need to ensure that imbalances at board level are addressed. The study also indicated that whilst boards of directors in the Western Cape Province had younger directors compared with the Eastern Cape Province the latter had a greater proportion of board members who were older than 60 years of age. In addition, the Western Cape Province had more female directors than the Eastern Cape Province, which suggests that the Western Cape Province possibly have more females in management positions in tourism, who can be nominated and elected for positions on the board of directors. Furthermore, in both provinces, directors from previously disadvantaged backgrounds were under-represented. This implies that more focus needs to be given to enhancing the representivity and gender of board of directors of DMOs