Why cities need destination management

Collaborative governance that integrates public authorities, the private sector, cultural institutions, universities and citizens in tourism planning are what are required in today’s tourism management, synthesizing diverse needs and expectations into a strategic management and development framework while being innovative in the face of a rapidly evolving tourism landscape and travel patterns.

One of the key challenges facing a DMO today is articulating its transformation from an organization primarily focused on tourism promotion into one that manages the visitor economy as an integral part of the city’s broader strategic vision. This evolution requires communicating that tourism is a multifaceted urban phenomenon that influences quality of life, the use of public spaces, the preservation of heritage and the city’s international reputation. Tono Franco Martínez, Director General of Fundació Visit Valencia comments:

“In the case of Valencia, this approach is reflected in the 2025–2028 Tourism Strategic Plan, which places citizens at the heart of tourism initiatives and promotes a growth model capable of managing tourism’s negative externalities through data-driven policies and collaborative governance. In this context, communicating the value of a DMO means demonstrating how tourism can contribute to the city’s economic and social development while safeguarding its identity and lifestyle. This requires transparently explaining the impact of tourism, integrating its management with other urban policies - such as mobility, sustainability and spatial planning - and strengthening dialogue with the public.”

Patrik Romano (Managing Director Fondazione Bologna Welcome) elaborates:

“DMOs currently face at least three major challenges. The first is to avoid limiting their role exclusively to promotion and communication activities, and instead assume a central role in the management and promotion of the destination, taking responsibility for tourism governance in all its dimensions, with particular attention to the destination’s overall attractiveness. If the goal is to achieve sustainable tourism growth that remains in balance with the territory, it’s essential to integrate and coordinate destination development policies with broader urban development policies. The second challenge is financial sustainability. DMOs need reliable investment over the medium and long term in order to plan and implement effective strategies for managing and developing tourism, as well as to build the professional expertise needed to oversee these activities.”

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A number of elements are transferable to other urban contexts, as Martinez says:

“Florence’s experience offers valuable lessons for other European cities, particularly regarding its approach to responsible tourism management and influencing visitor behavior. Its strategy combines communication campaigns, regulations and cooperation with the local sector to foster tourism that respects both the city’s heritage and the daily lives of its residents. One of the most transferable elements is precisely this holistic approach to destination management. The concept of influencing visitor behavior - for instance, through clear messaging about respecting the urban environment or promoting more sustainable experiences - is a tool increasingly employed by many European DMOs.”

The commitment to distributing tourist flows and diversifying experiences within the destination is also an approach that aligns with those of other cities, where the value of neighborhoods and natural areas near the city are highlighted. The specific context of Florence and its historical and artistic heritage in a relatively compact city center are factors that can give rise to congestion, with the key takeaway being that a tourism management philosophy must be grounded in responsibility, governance and adaptation to the local context.

Romano details:

“Over the years, Fondazione Destination Florence has undertaken significant development and has become a reference point for our sector. One of the main elements that has characterized this path is the ability to engage in dialogue in a constructive manner between stakeholders and private operators. This is an activity that requires commitment and consistency, but which I consider essential to the success of a DMO in any destination.”

Management based on data and tourism intelligence is another essential element, as expressed by Martinez.

“The ability to measure visitor flows, analyze behavior and assess tourism’s impact is fundamental to making informed decisions. In the case of Valencia, this approach is reflected in initiatives such as the development of FOCUS - the Visit Valencia Foundation’s Tourism Intelligence System - which is available on its website and open to anyone requiring data and analysis. Placing sustainability and residents’ quality of life is also at the heart of tourism strategy, with DMOs working to ensure that tourism generates economic and social benefits without compromising the urban balance, while reinforcing cultural identity and the well-being of the local community.”

Fondazione Destination Florence recently shared the findings of their social report, that involved the directors of four Italian DMOS in the presentation event: Fiorenza Lipparini (YesMilano), Luca Caputo (Visit Verona Garda), Sonia Pallai (Fondazione Turismo Montecatini) and Patrik Romano (Bologna Welcome).

On the fourth Saturday of September, the Carro Matto (“Crazy Cart”) makes its way through Florence in a lively celebration marking the arrival of the first bottles of the new wine vintage. The tradition begins in Rufina, where a pair of white oxen pull a wagon laden with around 2,000 flasks of wine towards Palazzo Vecchio. The procession is accompanied by participants in historic costumes and spectacular performances by Florence’s renowned flag-throwers, creating a vibrant tribute to Tuscany’s centuries-old winemaking heritage.

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