Attempts by cities to attract business tourism – including meetings
and events – will be undermined by budget cuts, if fears raised by destination
marketers prove founded.
More than four out of ten (42%) destination professionals thought the next three years would throw up funding challenges, the 2025 DestinationNEXT Futures Study reveals.
The survey of 530 destination professionals in 36 countries
found that destination marketing organisations (DMOs) were increasingly being
asked to do more with less resource.
Once seen as tourism promoters, their evolving roles now
include community development, sustainability, and workforce planning, yet
their financial stability was not guaranteed.
“This year’s study underscores the transformative period
destination organisations are navigating,” said Don Welsh, president & CEO
of Destinations International, co-producer of the reports. “But without
reliable funding, even the most innovative strategies may be unsustainable.”
The risks are compounded by growing geopolitical
instability, changing traveller behaviours, and rising public scrutiny over
tourism's social and environmental impacts.
Even after a huge advocacy push in recent years, DMOs are
still viewed as discretionary line items in municipal budgets - leaving them
vulnerable when economic pressures mount.
“Funding challenges have become a defining threat,” added Cassandra
McAuley, managing director at MMGY NextFactor, who worked on the report. “DMOs
are being asked to lead in areas like destination stewardship and economic
resilience. But without advocacy and diversified revenue streams, their ability
to deliver real community value is at stake.”
The report points to creative solutions already emerging,
such as Tourism Marketing Districts (TMDs), public-private partnerships, and
performance-based funding models that tie investment to community benefit and
economic impact. These strategies, the study suggests, are critical to securing
DMOs’ future relevance and capacity.
Still, advocacy remains a core concern. The study emphasises
that destination leaders must reframe their value proposition, moving beyond
bed nights and visitor counts to highlight their role in shaping liveable,
prosperous communities. More organisations are adopting multidimensional
success metrics—including resident sentiment, environmental sustainability, and
equity outcomes—to better reflect their holistic impact.
“DMOs are not just promoting places—they are building them,”
said Amir Eylon, chair of the Destinations International Foundation. “Investing
in them is not a luxury; it’s a necessity for long-term competitiveness and
social cohesion.”
“The bottom line,” Welsh said, “is that if we want our
destinations to thrive, we must advocate relentlessly and innovate fearlessly.”
Written By
James Lancaster
AMI editor James
Lancaster is a familiar face in the meetings industry and international
association community. Since joining AMI in 2010, he has gained a reputation
for asking difficult questions and getting lost in convention centres. Proofer, podcaster, and panellist - in his spare time, James likes to walk,
read, listen to music, and drink beer.
