Cutting Costs the Top Challenge for DMOs During the Coronavirus Pandemic

Destinations International’s new poll reveals more than half of destination marketing organizations anticipate budget cuts of 35 percent or more.

dmo-polll

Coronavirus and Meetings
Head here to see Northstar Meetings Group’s comprehensive and continuing coverage of how coronavirus is affecting meetings.

Cutting costs in anticipation of steep budget cuts is the top challenge destination marketing organization and convention and visitors bureau executives are facing during the coronavirus pandemic. An April 1 Destinations International poll of 50 DMOs revealed that 60 percent of bureaus polled anticipate their budgets will drop 35 percent or more for the immediate future as a result of the unprecedented pandemic.

When asked about specific programs they have trimmed, 80 percent reported cuts to their meetings and convention business development; leisure marketing and travel trade marketing cuts were slightly higher.

More than 40 percent of the DMOs polled are laying off, furloughing or reducing staff hours, while more than 70 percent are curtailing professional development such as education and participation in industry events.

After cost-costing, other current challenges bureaus are facing include:

  • Being a trusted conduit of information to stakeholders including travelers, meeting planners, residents, members and staff
  • Providing resources to local businesses that are forced to close and local workers who may lose their job
  • Finding reliable information about the pandemic, its implications for the industry and official guidance on how organizations should react
  • Continuing to offer core services and continuing business operations in a safe manner
  • Understanding how — and when — to begin recovery planning.  

Destinations International is running the poll weekly.

More from Northstar Meetings Group