Skift recently conducted a review of the pay for more than two dozen top bosses at U.S. destination marketing organizations (DMOs) and found that the salaries varied widely, with some making less than $200,000 a year while others made more than $1.5 million. It can be challenging to determine the value of a DMO, as it’s hard to attribute tourism success solely to marketing efforts or to the CEO. Factors such as other reasons for travel and economic impacts play a role.
When considering a CEO’s compensation, a DMO’s board of directors evaluates various metrics such as the impact of marketing efforts on visitor spending, convention bookings, and hotel occupancy rates, all of which contribute to critical tax revenues for the local economy. A significant issue that arises is assessing the direct influence of a CEO on these outcomes, as success is often the result of a collective effort rather than a single individual.
The Return on Investment (ROI) for DMOs like Visit Florida and Brand USA has undergone fluctuations in recent years. Visit Florida received a lower return due to the impact of Covid, but it is expected to improve in the future. Brand USA’s ROI analysis has also varied, with external factors influencing the results. Independent evaluations of these organizations by neutral, third-party sources have been suggested to provide a more objective assessment of their impact.
Tourism boards have an easier time measuring the impact from meetings, conventions, and large events, as these activities have clear start and end dates and lead to group-room bookings, making it easier to track the number of attendees who visited as a result. Board members often credit the success of their destination to the CEO’s leadership and creative campaigns, which open up new markets and attract tourists to the area.
While DMO CEOs play a crucial role in attracting visitors and promoting their destinations, the evaluation of their performance can be challenging. Some boards of directors may lack the expertise or independence needed to objectively assess the economic impact generated by the CEO. Transparency and accountability in determining CEO compensation are essential, as some CEOs may be underpaid while others may be overpaid based on their actual contributions to the organization.
In conclusion, the evaluation of DMO CEOs’ performance, impact, and compensation is a complex process that involves considering various factors such as marketing efforts, economic impact, and return on investment. While some CEOs are credited with the success of their destinations, objective evaluations by neutral, third-party sources are necessary to ensure transparency and fairness in determining CEO compensation. The role of DMO CEOs in attracting visitors, promoting tourism, and driving economic growth remains crucial, but accurate assessment and accountability are essential for effective leadership in the industry.
