DMOs on the Way to Greater Accountability
By Staff -- Tradeshow Week, 5/7/2007
Dear Editor:
Re: "CVBs Gone Wild" (April 2, 2007):
On behalf of the destination marketing industry, I would like to respond to the recent editorial regarding convention and visitors bureaus, which cited two instances of inadequate checks and balances within CVBs that had severe consequences.
These stories remind us that due diligence is a necessity, but these were specific instances that do not reflect on the industry as a whole. The readership of Tradeshow Week needs to know that proper internal accounting practices are a top priority at destination marketing organizations (DMOs and CVBs) around the world.
Regular audits are happening, and DMOs – just like their counterparts in the private sector – go to great lengths to assure that the proper checks and balances are in place to protect their operations.
At the industry level, this commitment has been evident over the last several years with Destination Marketing Assn. Intl.'s member organizations collaborating on a series of performance reporting initiatives and spearheading the creation of the Destination Marketing Accreditation Program (DMAP).
In 2004, a DMAI taskforce, including more than 20 industry leaders, created a handbook called "Standard CVB Performance Reporting." This guide has become widely accepted and used by DMOs. In addition, destination marketing professionals repeatedly attend education sessions where the latest performance reporting updates are provided.
The destination marketing industry then took the next step and launched DMAP. Within this accreditation program, two mandatory requirements specifically deal with fiduciary responsibility. Accredited DMOs must show that they have policies and procedures in place for the control of the financial operation of the organization; and they must also implement formal, independent audits at least every two years.
The number of DMOs clamoring to go through the accreditation process is impressive. Since its official launch this year, DMAP has accredited 15 organizations, and more than 35 DMOs have indicated their intent to apply for accreditation during the next two application cycles.
For a program in its infancy, these are great numbers and will only continue to grow. Research conducted prior to the program's launch indicated that 93 percent of DMO executives said their organizations would seek accreditation once an acceptable program had been developed.
Simply put, the majority of DMOs already recognize the importance of (and have in place) proper internal controls for their bureau operations. These recent isolated events remind us to be vigilant, but should not imply that the majority of organizations are not actively standing guard and implementing the proper procedures.
–Michael D. Gehrisch, President and CEO, Destination Marketing Assn. Intl., Washington, D.C.
Letters to the editor of Tradeshow Week are always welcome. Please send them to Editor in Chief Michael Hart (by mail) Tradeshow Week, 5700 Wilshire Blvd., Suite 120, Los Angeles, Calif. 90036-5804; (by e-mail) hartm@reedbusiness.com; or (by fax) (323) 965-5306.
