2006 Structures and Budgets of National Tourism Organizations

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Structures and Budgets of

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National Tourism Organizations

2004 - 2005
Copyright 2006 World Tourism Organization
Calle Capitn Haya, 42
28020 Madrid, Spain
Structures and Budgets of National Tourism Organizations, 2004 - 2005

ISBN-13: 978-92-844-1148-1
ISBN-10: 92-844-1148-3
Published and printed by the World Tourism Organization, Madrid, Spain

First printing in June 2006
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Table of Contents
L i s t o f Tabl e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
A ck n o w l e d g e m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
Exe c u t i v e S u m m a r y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
I I n t ro d u c t i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Purpose and Objective of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 General Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

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1.3 Technical Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
II T h e S t r u c t u r e a n d F u n c t i o n i n g o f N a t i o n a l To u r i s m O rg a n i z a t i o n s . . . . . . . . . . . . . . 4
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2.1 The NTO within the National Tourism Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.2 Structure and Functioning of the NTOs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.2.1 Legal Status, Mission Statement and Objectives . . . . . . . . . . . . . . . . . . . . . . 8
2.2.2 NTO Structures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.2.3 Strategic and Operational Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.2.4 The Role of Research in Marketing Planning. . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.2.5 The Role of Evaluation Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.3 NTO Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.4 Offices and Representations Abroad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
III B u d g e t s o f N a t i o n a l To u r i s m O rg a n i z a t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.1 NTO Budgets and Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.1.1 NTO Funding Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
3.1.2 NTO Budget Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3.1.2.1 Marketing and Operational Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3.1.2.2 Budget Allocation by Marketing Tools . . . . . . . . . . . . . . . . . . . . . . . . 29
3.1.2.3 Budget Allocation by Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3.1.2.4 Budget Allocation by Source Markets . . . . . . . . . . . . . . . . . . . . . . . . 32
3.1.2.5 Criteria for NTO Budget Allocation. . . . . . . . . . . . . . . . . . . . . . . . . . . 34
3.2 International Destination Marketing by Regional and Local Tourism Boards . . . . . . . . 34
IV SWOT Analy s i s o f N a t i o n a l To u r i s m O rg a n i z a t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
V A dd i t i o n a l B e n ch m a r k i n g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
2006 World Tourism Organization - ISBN 978-92-844-1148-1

iv Structures and Budgets of National Tourism Organizations, 2004 - 2005
VI N a t i o n a l To u r i s m O rg a n i z a t i o n s - C o u n t r y Pro f i l e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Australia - Tourism Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Chile - Servicio Nacional de Turismo (National Tourism Service) . . . . . . . . . . . . . . . . . . . . . . 51
France - Maison de la France. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Hungary - Hungarian National Tourist Office (HNTO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Netherlands - The Netherlands Board of Tourism and Conventions (NBTC) . . . . . . . . . . . . . 71
Norway - Innovation Norway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Peru - Promperu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Portugal - Portuguese Tourism Institute (ITP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Spain - Turespaa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Thailand - Tourism Authority of Thailand (TAT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
United Kingdom - VisitBritain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
United States of America - Office of Travel and Tourism Industries (OTTI) . . . . . . . . . . . . . . 110
A n n ex I - Questionnaire on NTO B u d g e t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
A n n ex II - Questionnaire on NTO S t r u c t u r e a n d F u n c t i o n i n g . . . . . . . . . . . . . . . . . . . . . . 121

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A n n e x I I I - Pa r t i c i p a t i n g C o u n t r i e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
A n n ex I V - M e t h o d o l o g i c a l N o t e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
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A n n e x V - B i b l i o g r a p hy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
A n n ex VI - Tabl e s i n U S d o l l a rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
List of Tables
Table 1 NTA/NTO relationship, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Table 2 Areas of NTA involvement in NTO structure and functioning . . . . . . . . . . . . . . . . . . . . 6
Table 3 NTO relationship with regional/local tourism boards and the private sector, 2005 . . . . 7
Table 4 NTO legal status, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Table 5 Strategic and operational planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Table 6a Major elements of the strategic planning process . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Table 6b Major elements of the operational planning process . . . . . . . . . . . . . . . . . . . . . . . . 13
Table 7 Use of research in marketing planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Table 8 NTO staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

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Table 9 NTO offices and representations abroad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Table 10 Costs per outlet abroad (euro) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Table 11 Annual NTO budgets for marketing inbound tourism (euro). . . . . . . . . . . . . . . . . . . . . 22
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Table 12 Relationship between absolute increases in government investment and the share
of government investment in the total NTO budget . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Table 13 Relationship between absolute total NTO budgets and the share of government
investment in the total NTO budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Table 14 Difference between Europe and other regions in the share of government
investment in the total NTO budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Table 15 NTO budget allocation (euro) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Table 16 NTO budget allocation by marketing tools, 2005 (per cent) . . . . . . . . . . . . . . . . . . . . 30
Table 17 NTO budget allocation by product, 2005 (per cent) . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Table 18 Ranking of main source markets vs. NTO marketing budget allocation . . . . . . . . . . . 33
Table 19 NTO marketing budgets spent in main source markets, 2005 . . . . . . . . . . . . . . . . . . 33
Table 20 The ranking in importance of the main criteria for budget allocation . . . . . . . . . . . . . . 34
Table 21 NTO budgets, 2004 (euro) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Table 22 Government budgets, 2004 (euro) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Table 23 General comparisons on the relevance of tourism, 2004 (euro) . . . . . . . . . . . . . . . . . 44
Table 24 Annual NTO budgets for marketing inbound tourism (US dollar) . . . . . . . . . . . . . . . . . 133
Table 25 NTO budget allocation (US dollar) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
Table 26 Costs per outlet abroad (US dollar) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
Table 27 NTO budgets, 2004 (US dollar) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
Table 28 Government budgets, 2004 (US dollar) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
Table 29 General comparisons on the relevance of tourism, 2004 (US dollar) . . . . . . . . . . . . . 138

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Acknowledgements
This report was prepared by consultant Mr. Herman Bos of Tourism Strategy Consultants, under the
responsibility of the Market Intelligence and Promotion Department of the World Tourism Organization
(UNWTO).
The data and information used were collected by the UNWTO Secretariat from the official institutions
of the various countries and territories, as reported by their National Tourism Administrations (NTAs) or
National Tourism Organizations (NTOs).
The World Tourism Organization wishes to express its sincere gratitude to all who participated in or
contributed to the preparation of this report, and in particular to the organizations and individuals
concerned in the various countries and territories for their invaluable cooperation.
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Executive Summary
Many countries look for information on budgets and structures for marketing inbound tourism by other
countries. This study aims to facilitate them in their benchmarking objectives. It includes information
on structures and functioning of twelve NTOs and data on budgets of fifty NTOs around the world.
It has to be stressed that the comparison is bound to limitations. Countries differ in administrative and
political organization, in the importance of tourism for their national economies, in the structure of the
tourism industry and in many other aspects. This is reflected in the different structures, ways of
functioning and financing presented in the report. Moreover, NTOs differ in financial systems of
bookkeeping and reporting. Notwithstanding, a solid database of comparable denominators is included
in the present report.
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Budgets and funding sources
The share of government financing in NTO budgets is of around 84 per cent and, has, according to data
available, slowly increasing between 2004 and 2005. This increase results on extra government
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spending in one out of three NTOs. Data also indicates that this increase occurs in particular in NTOs
with bigger budgets. The percentage of government funding in the budgets of NTOs in Europe is on
average around nine percentage points below that of NTOs outside Europe. When government funding
is related to some performance indicator, international tourism receipts are the most import source of
reference, followed by the development in demand as expressed in international tourist arrivals or
overnight stays.
Offices and staff
Nearly all NTOs possess offices abroad. In addition, or as an alternative, many NTOs make use of
representations. When NTOs have both, about one third of all their channels for marketing abroad
are representations. The average number of staff per office abroad is just above four persons, while the
overall staff abroad makes for around one third of the total NTO staff. The average turnover per NTO
employee in the NTOs surveyed (total budget divided by total staff) was of around 220,000 euros in
2005.
Budget allocation
Nearly two thirds of the available NTO budgets is spent on actual costs for marketing. The remaining
share is used for operating costs. Between 2004 and 2005 the share of operating costs has lightly
decreased, which indicates that available budgets are increasingly spent on direct out of pocket
expenses for marketing purposes.
More than 40 per cent of the NTOs marketing budgets is spent in advertising, followed by marketing
activities such as information and attending trade fairs, both with a share of just above ten per cent.
Around 2.5 per cent of the marketing budget is spent on research.
By type of product, sun and sea and cultural tourism absorb together nearly 50 per cent of the NTOs
marketing budget, while the investment in the MICE segment is of approximately 11 per cent. Budget
allocation by source market is mainly driven by the importance of the markets, and as shown in the
report, there is a significant relationship between the spending of NTOs budgets in a specific market
and the its importance in terms of market share.

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Chapter I
Introduction
1.1 Purpose and Objective of the Study

The World Tourism Organization (UNWTO) is frequently approached for up-to-date, internationally
comparable information on national budgets for inbound tourism promotion and on the structures
handling that activity. Many countries use this information as a benchmarking tool for their own
policies in this field. Today it is believed that data can be better understood when more information is
available on how international tourism promotion in destination countries is organized and carried out.
To meet these needs, the UNWTO Secretariat undertook a research project on the Structures and
Budgets of National Tourism Organizations (NTOs). The aim of this report is to compile and analyse
data on the budgets that NTOs allocate to the promotion of inbound tourism as well as on their
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structure, functions and methods of operation in order to illustrate the various forms of NTO and
suggest possible action in the area of inbound tourism promotion.
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The first part of the report focuses on NTO structures and operations and includes a benchmarking
analysis. The second part presents an overview of NTO budgets, including their volume, funding
sources and budget allocation by source markets, products and marketing activities. The report is
supplemented by twelve country case studies covering a number of important aspects of NTO
structures and organization.
1.2 General Notes

Besides using existing information, research for this report was based on an inventory drawn up in the
light of the replies to two questionnaires (see Annexes I and II), one on NTO budgets and the other on
NTO structures and functioning. The questionnaire on budgets was sent to a selection of seventy-five
NTOs, fifty of which responded. The questionnaire on structure and functioning was sent to sixteen
selected NTOs, twelve of which replied. This approach may be regarded as an extension of existing
research and information. A bibliography of the sources used in this report is contained in Annex V.
As on previous occasions, data collection focused on what are regarded as key elements of the
structure, functioning and financing of an NTO. The availability of easily comparable denominators that
would yield transparent and coherent information was also taken into account. Information was
collected until 31 October 2005. The UNWTO Secretariats long-term objective is to cover a wider
range of destinations. For this first exercise, however, the survey was confined to a group of countries
selected in the light of the following considerations:
their overall importance in terms of world and regional tourism;

their level of regional diversification;
their different organizational models.
In future, the Secretariat aims to extend this report to include more case studies.

2 Structures and Budgets of National Tourism Organizations, 2004 - 2005
1.3 Technical Limitations

It has to be stressed that a comparison of NTOs has many limitations. Countries differ in their
administrative and political organization, in the importance of tourism for the national economy, in the
structure of their tourism industry and, naturally, in their specific circumstances. These factors are
reflected in their varying structures, ways of functioning and means of financing.
Moreover, it should be mentioned that bookkeeping systems and approaches differ from NTO to NTO.
It was only with the help of all the respondents from the various NTOs that a solid database of sound
and comparable denominators could be built and made operational.
In Annex IV the major differences, where relevant, are listed. This Annex contains further explanations
of how specific problems have been handled so as to achieve optimal transparency. Nevertheless, even
though some minor inaccuracies may persist they are not believed to limit the benchmark objective.
Only when data were missing or insufficiently comparable were they omitted from the tables and text.
The differences between countries also impair the ability to summarize the replies to open-ended
questions. For that reason, and as it would not be very enlightening to reproduce texts in full, the
answers have been included in each countrys profile in Chapter VI. For the sake of clarity and
readability, minor adjustments have been made to the answers received.
Also in order to make them easier to read, the tables in the text are presented in euros, as this is the
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currency by far most commonly used by the reporting NTOs. The corresponding tables in US dollars
will be found in Annex VI.
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Chapter II
The Structure and Functioning of

2.1 The NTO within the National Tourism Structure

A National Tourism Organization (NTO) responsible for marketing a country abroad as a tourism
destination is, in general, either part of the national administration or an independent body.
When it is a part of the National Tourism Administration (NTA), various possibilities exist. The NTO may
be part of a ministry that is responsible for tourism policy only, or it may be part of a ministry that is
responsible for more areas of national policy. In both cases, tourism marketing is usually carried out by
a specific department. But it is also possible for tourism promotion to be handled by export marketing
or other kinds of organization. Colombia and Norway are cases in point.
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Even when the NTO is an independent body it usually comes under the influence of the NTA. This
influence is justified because the NTA is responsible for monitoring the effective and efficient use of
public funds. In addition, the NTO may be responsible for other tasks besides inbound tourism
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marketing. In many countries the NTA delegates to the NTO certain specific tasks considered to be of
national importance, but the NTA continues to be involved in monitoring their execution.
Turespaa (Spain)
Turespaa is an autonomous entity attached to the Ministry of Industry, Tourism and Trade
through the Secretariat of State for Tourism and Trade. The General Secretariat for Tourism, within
whose structure Turespaa operates, is part of the Secretariat of State for Tourism and Trade.
Turespaa has a separate public legal personality and its own assets and budget, as well as
management independence and full acting and legal capacity.
The Ministry of Industry, Tourism and Trade is responsible for the strategic management,
evaluation and monitoring of the results of its activities and for monitoring its efficiency through
the Secretariat of State for Tourism and Trade.
The bodys President is the Secretary of State for Tourism, the First Executive Vice-President is the
Secretary-General of Tourism, and the Second Vice-President is the Director-General of
Turespaa.
The functioning of the NTO, either within an independent organization or as a part of the NTA, also
comes under other influences. The tourism industry and regional and local tourism boards generally
wield the most influence. Their involvement relates mainly to marketing policy and to the allocation of
budgets for markets, products and activities and may be based on formal or informal relationships.
Striking a balance between the various interests, objectives, relationships and responsibilities is a major
concern for nearly every NTO in the world.
The paragraphs below reveal the wide variety of situations reported by NTOs in this area. (Detailed
information on each of the twelve countries presented as case studies is included in Chapter VI
concerning the NTOs position within the national structure, including relations between the various
organizations).

It is worth noting that of the ten countries reporting on the ministries responsible for national tourism
policy only France has a Minister that deals with tourism alone. In the other nine countries, three
ministries include the word tourism in their titles. Of the nine countries that use the words trade,
industry, development and economic affairs as synonyms for national policymaking, eight, excluding
France, include tourism. Only in the United Kingdom (UK), is tourism the responsibility of a ministry
with different responsibilities, i.e. the Department for Culture, Media and Sport.
Two more interesting conclusions can be drawn on this subject. The first is that, in addition to
interministerial cooperation at national level, tourism in many countries is closely linked to regional
development policies. The second is probably more relevant to discussions on the relationship between
tourism and exports and the coordinating role in this at national level. Norway has recently introduced
a new structure into which the NTOs has been integrated. It is also interesting to note that both Portugal
and Norway have included innovation as a specific policy objective. This, and the discussions taking
place in many other countries, may suggest that the traditional position of NTOs and their place within
the organizational infrastructure of administrations is about to change.
Innovation Norway
As of 1 January 2004, Innovation Norway took over the tasks of the Norwegian Tourist Board,
the Norwegian Trade Council, the Norwegian Industrial and Regional Development Fund (SND)
and the Government Consultative Office for Inventors (SVO).

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Innovation Norways objective is to promote private and socioeconomic profitable business

development throughout the country and to release the commercial opportunities of the districts
and regions by encouraging innovation, internationalization and image-building.
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The new state-owned company employs more than 700 people. Innovation Norway has offices
in all the Norwegian counties and in more than 30 countries worldwide. The head office is
situated in Oslo.
Innovation Norway has five divisions:
Customer Interface Norway;

Market Abroad;
Services/products;
Staff/support;
Strategic projects.
Innovation Norways services to the tourism industry are managed from Division
Services/products; while operative branding/marketing is carried out at the offices abroad
(Market Abroad). Financial and competence products are operated from Customer Interface
Norway.
An indication of change can also be found in the relationship between the National Tourism
Administration (NTA) and the operation of the NTO. The subject of analysis is the way in which the
NTOs activities are controlled by the NTA. Table 1 presents information on such relations in a number
of countries.
The Structure and Functioning of National Tourism Organizations 5
Table 1 NTA/NTO relationship, 2005
Contractual
Share of the
national
Country Yes, informal ( i.e. primarily Yes, with a written government
No based on understanding, contract with respect to in the total
occasionally with some execution budget (%)
verbal or written aspect)
Australia X 82
Chile X 100
France X 54
Hungary X 90
Netherlands X 64
Norway X 32
Peru X 100
Portugal X < 100

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Spain X 100
Thailand X 100
unknown
United Kingdom X 73
United States X 94
N=12
In five countries there is no contractual relation between the NTA and the NTO. In three of them the
government contributes 100 per cent of the NTO budget. The fact that an NTO is part of the NTA does
not automatically rule out a contractual relationship. For example, in Thailand, although the NTO is
part of the NTA, there is still a contractual relationship. In general, the lower the share of government
financing, the more likelihood there is of a written contractual relationship between the NTA and the
NTO. The more autonomous an NTO is (implying greater distance from the investing authority), the
more it has to account for the performance of its activities in a formal contract.
Whether or not there is a contractual relationship, the areas in which the NTA is involved in the
structure and functioning of an NTO, and the degree of that involvement, may vary to a greater or lesser
extent. Chapter VI describes the differences from country to country and provides explanations on
specific country data. It is worth noting, for instance, that the UK Governments involvement is mainly
based on a formal agreement. The degree of involvement naturally differs according to the NTOs
organizational structure and level of independence. When an NTO is part of the NTA, control is more
internally oriented and less formal regulations are needed.
The annual NTO budget and its subsequent control (and the reporting of financing and marketing
results) are unsurprisingly major areas of NTA involvement. The fact that government involvement is
also prominent in the establishment of marketing objectives and, hence, in strategic marketing
planning, underlines the close relationship between funding and its rationale.
Governments are, on the other hand, less concerned with how NTOs perform their tasks internally, as
is evident from their low level of involvement in such matters as staffing, salaries, etc. Annual activity
planning and, more strategically, the opening and closing of offices abroad, both take an intermediate
position. As the information available covers only a limited number of countries, the findings presented
here are rather general. The differences between countries suggest widely differing degrees of
involvement depending on the areas being considered.
Table 2 Areas of NTA involvement in NTO structure and functioning
Level of involvement
Total
Part of reporting
None Medium High Total formal NTOs
agreement
Strategic marketing planning 2 2 5 1 1 10
Establishment of marketing objectives 1 2 4 2 1 10
Definition of the NTO annual budget 1 0 6 2 1 10
Subsequent financial accountability

1 1 5 2 1 10
control
Definition of the system of financial

2 0 4 2 1 10
reporting
Salary policy 3 3 2 2 0 10
Staffing policy 5 1 1 2 1 10
Annual marketing activity planning 3 3 1 0 10

Tue, 18 Jul 2006 10:21:45
Evaluation of accomplishment of pre

2 3 2 1 1 10
formulated targets
unknown
Opening and closing of offices abroad 2 3 3 1 1 10

N=10
In addition to their relationship with the tourism administration, NTOs generally have strong ties with
regional and local tourism boards and the private sector. Table 3 gives an overview of the types of
relationship existing in both areas.
Chapter VI provides more specific country-by-country data, as well as information on the relationship
between the NTO and tourism consultative/advisory bodies. This Chapter also describes the structure
of the tourism sector in each country, allowing for a more comprehensive view of the twelve countries
to which the case studies of the report relate.
Maison de la France
Maison de la France (MDLF) is a grouping of economic interest based on partnership with both
local tourism authorities (Comits rgionaux et dpartementaux du tourisme) and private
organizations involved in tourism and leisure activities. New members have to be approved by
the Board of Directors (a special commission).
All local tourism authorities at the regional level (Comits rgionaux du tourisme) are members
of MDLF. For an annual fee they can take part in all promotional activities arranged by MDLF.
The information gathered reveals the existence of a wide variety of NTO relationships with
regional/local tourism boards, the private sector and consultative/advisory bodies. Although in practice
the fundamentals of these relationships are similar (e.g. use of the Internet for marketing activities or
products), their translation into general schemes is rather complex.
This supports the view that the desire sometimes expressed by countries to adopt the best practices of
other nations is very difficult to fulfil. Nevertheless, it is possible to learn by comparing practices with
those of other countries.
Table 3 NTO relationship with regional/local tourism boards and the private sector, 2005
Formal Share of non-

Contractual (according to laws Informal governmental
or regulations) budget (%)
Australia P R/P 18
Chile P 0
France R/P 46
Hungary R P 10
Netherlands R/P 36
Norway P R 38
Peru P P 0
Portugal R P < 100
Spain R/P R/P 0

Thailand R/P 0
Tue, 18 Jul 2006 10:21:45
United Kingdom R/P 27
United States R/P

unknown
N=12; R = regional and local tourism boards; P = private sector
For a better understanding of the data in Table 3, it should be stressed that whereas some NTOs reported
on their relationships from the standpoint of inbound marketing, others focused more on the
organizational aspect.
NTO relationship with regional / NTO relationship with

local tourism boards the private sector
12 12
10 10
5
8 8
No. of NTOs
No. of NTOs
5 Informal Informal
6 Formal 6 Formal
(Laws, etc) 3 (Laws, etc)
4 2 Contractual 4 Contractual
2 2 4
3
0 0
N=10 N=12
Note: Where NTOs reported both formal and informal relations, the formal one (contractual and formal) was taken into account.
VisitBritain
VisitBritain consults regularly with the private sector on strategic issues, primarily through an
advisory committee which has extensive representation from both public and private sector
stakeholders.
VisitBritain also coordinates a high level Tourism Industry Emergency Response Group which
meets in times of crisis to agree on tourism industry response to events affecting the industry,
such as the 2005 London bomb blasts.
VisitBritain also offers a range of services and marketing opportunities to the industry, which can
be bought on an ad hoc basis.
2.2 Structure and Functioning of the NTOs

Whereas the previous section concentrated on the NTOs position within the national tourism structure,
this section will focus on topics relating to the organization and internal functioning of NTOs.
An itemized comparison of NTOs here is not useful, as the information is very country specific and
closely interrelated. For that reason, Chapter VI includes all relevant aspects for each country, which
Tue, 18 Jul 2006 10:21:45
will serve to illustrate how such an important issue is dealt with in some destinations.
unknown
2.2.1 Legal Status, Mission Statement and Objectives

Legal Status
Of the twelve countries reporting on this subject, nine have wholly public legal status. The inclusion of
external parties in direct or indirect monitoring of the NTO or in advising on its work, or their financial
participation in the execution of marketing activities, is not relevant in this respect.
Table 4 NTO legal status, 2005
Wholly public Public/private Wholly private
Australia X
Chile X
France X
Hungary X
Netherlands X
Norway X
Peru X
Portugal X
Spain X
Thailand X
United Kingdom X
United States X
N=12
On the other hand, the NTOs of Thailand and France have public/private status. The information that
Maison de la France (MDLF) provided refers to three distinct areas of relationship within the national
tourism structure. The first area is the relationship with the State. The second area relates to the regional
and local tourism authorities, and the third area includes the private sector. France has officially
organized its tourism structure for inbound marketing along these lines.
In the Netherlands, the NTO is a wholly private organization. The Netherlands Board of Tourism and
Conventions (NBTC) is a non-profit-making foundation under Dutch law that serves both Government
objectives and the interests of the national tourism industry.
Mission Statement and objectives

NTOs tend to adopt similar approaches to their missions and to their policy and strategic objectives.
Missions and objectives are often the subject of joint operations owing to the public status of most
NTOs. Public policymaking is distinct from the targets of individual enterprises. Far less importance is
attached to the competitive element in the public arena than in commercial enterprises. Only Tourism
Australia, recently reorganized, differs in this respect. Its Mission Statement includes competitiveness
as an element of the tasks it performs as a public body, while other NTOs place more emphasis on their
coordinating role and partnerships. Nevertheless, the Australian approach suggests that a change is
taking place in governments attitude to this question, which is becoming increasingly important.
Indeed, governments seem to be placing ever-more emphasis on mandates, structural positioning,
control and evaluation.

Tue, 18 Jul 2006 10:21:45
Servicio Nacional de Turismo/National Tourism Service (Chile)

unknown
General objective
To turn Chile into a world-class tourism destination, observing the principles of sustainable
tourism, and integrating the players in the marketing chain in a coordinated manner, in both the
supply of tourism products and services and the demand of intermediaries and potential tourists.
Not surprisingly, the direct or indirect benefits of tourism for employment and earnings are often
mentioned as important objectives. Other aspects are the introduction of (new) products and services
and the incentive to (innovative) investment in infrastructure, products and new markets. Support to the
industry and schemes encouraging them to invest in and improve the quality of services are also
important considerations. Sustainability and regional interests are additional key areas for NTOs, as is
their involvement with education. Branding and destination image are other factors mentioned in
connection with marketing policies. Recent developments in Portugal and Norway, for example,
support this conclusion.
Tourism Australia
Mission Statement
Tourism Australia is a leverage marketing organization that has adopted the vision to become
and remain the best National Tourism Organization on the planet.
Policy objectives
Sustainable economic benefit:

jobs growth;
growth in total visitors spend;
growth in dispersal/regional visitors spend;
increased international and domestic visitation (number of visitors, length of stay, spend per
person, spend per day).
Strategic objectives
To shift international consumers from a preference to visit Australia to an intention to visit

Australia within the next 12 months.
To complete the picture, it must be emphasized that many NTOs are entrusted with more tasks than
marketing inbound tourism alone. Therefore, other areas of responsibility also influence their
objectives.
Most of the objectives mentioned by NTOs are expressed in the form of active verbs indicating
intention; to contribute, to harmonize, to strengthen, to support, to increase or to stimulate.
Just as Tourism Australia is alone in including the competitive element in its mission statement, the
Tourism Authority of Thailand (TAT) is the only NTO that includes a measurable result in its policy
objectives. A mention of more concrete results is also made by Peru in one of its strategic objectives
to position Peru as the most attractive and accessible destination in South America.
These observations may further stimulate the general discussion on how NTOs should handle their
accountability in the future.
Tourism Authority of Thailand (TAT)

Tue, 18 Jul 2006 10:21:45
Mission Statement
The Tourism Authority of Thailand (TAT) aims at being a centre of excellence in promoting and
unknown
developing sustainable tourism, upholding Thai dignity and international standards and creating
equilibrium between the economy, society and the environment.
Policy objectives
To develop and promote Thailand as a quality, sustainable and competitive destination in the
world tourism market. This will eventually lead Thailand to become the Tourism Capital of
Asia.
Eight of the eleven NTOs reporting on this subject are also charged with tasks in the area of domestic
tourism. Only Turespaa, the Spanish NTO, and OTTI, the US NTO, have no direct responsibility for
domestic tourism, while in France it is only occasionally the case. The inclusion of domestic tourism
in the areas of competence of an NTO understandably exerts considerable influence on its internal
organizational structure. The various organization charts show that a specific place is generally reserved
for domestic tourism. In the Netherlands, the NTOs contribution to domestic marketing is wholly
financed by external partners. In Norway, it is the Ministry of Agriculture that finances domestic tourism
marketing and there is no involvement of the Ministry of Trade.
Innovation Norway
Our vision is: We give local ideas global opportunities.
2.2.2 NTO Structures

Although differences between NTOs are evident in nearly all cases, their structures are more or less
similar. In addition to general areas of management control, for example finance, human resources and
facilities, legal matters and corporate PR and public affairs, specific inbound marketing tasks are
usually divided between several major departments.
Nearly all the NTOs have a specific department dealing with offices abroad and new technologies.
Often there is a split between consumer marketing and business travel. Specific products, such as
events and MICE, culture or health tourism, are handled by the appropriate departments, as well as
sometimes regional destinations (a description of the organizational structure of each NTO will be
found in Chapter VI). As for research, sometimes it appears in conjunction with strategy or planning,
and if this is the case it is considered a general function, or it may be placed within the marketing
department.
2.2.3 Strategic and Operational Planning

Planning is essential to the process of marketing inbound tourism. In general, two planning systems are
in use: strategic planning for the long term, and operational planning for the shorter term.
Table 5 Strategic and operational planning
Operational
Strategic planning
planning
(long term)
(short term)
Time frame Time frame

No Incidentally Constantly
(years) (years)
Tue, 18 Jul 2006 10:21:45
Australia X 3 1
Chile X 2 2
unknown
France X 5 1
Hungary X 3 1
Norway X 5 1
Peru X 1 1
Portugal X 3 3
Spain X 4 1
Thailand X 1
United Kingdom X 3 1
United States X 1
N=11
For NTOs that develop and use strategic planning on a regular basis, the time frames usually vary
between three and five years. For operational planning, time frames generally range from one to three
years, but are in most cases of one year.
The establishment of objectives, the definition of main strategic lines, products, markets and chief
promotional activities are considered by NTOs to be the key elements of strategic planning. The
allocation of budgets and the development of performance indicators with their corresponding
evaluation also appear to be key factors. Chapter VI contains more detailed information on the actual
planning processes in each country.
Hungarian National Tourist Office (HNTO)

Strategic marketing planning
After analysing the current situation of tourism (e.g. macroeconomic and social environment,
main influencing factors/trends, international tourism trends, domestic demand, etc), objectives
are proposed (by the representatives regarding their markets, by regions, by product managers
and by the research department) and adopted (by the management/General Manager).
According to a scheme, representatives and tourism regions contribute to the strategic plan in
their fields of competence.
The draft of the strategic plan is reviewed and supervised by the tourism trade (main trade
associations, consultants, etc). The recommendations and further suggestions are then included
in the strategic plan.
There is a more or less explicit divide between the planning process itself and the parties involved in
it. In the case of Australia, this is clearly defined (see Chapter VI). Though described less explicitly by
the other NTOs, the same occurs in other countries. The structure of the tourism sector and the position
of the NTO in that structure determine the planning process as well as the parties that influence that
Tue, 18 Jul 2006 10:21:45
process.
The information supplied by participating NTOs shows that, in principle, the same major elements are
relevant to all engaged in the planning process. For example, the Portuguese Tourism Institute (ITP)
unknown
reports at length on the various elements that are dealt with (see Chapter VI).
Table 6a Major elements of the strategic planning process
Level of importance Total

Not
reporting
used Very Medium Low NTOs
National tourism policy objectives 9 9
Needs of the tourism industry 8 1 9
Trends in tourism demand (in the source markets) 9 9
Research on market potential 7 2 9
Research studies on image 7 2 9
Available budget 7 2 9
Operational costs 7 1 9
Assessment of the actual national tourism products 7 2 9
Other 1 1
N=9
Table 6b Major elements of the operational planning process
Level of importance Total

Not
reporting
used Very Medium Low NTOs
National tourism policy objectives 9 1 10
Needs of the tourism industry 9 1 10
Trends in tourism demand (in the source markets) 10 10
Research on market potential 6 4 10
Research studies on image 8 2 10
Available budget 10 10
Operational costs 9 1 10
Assessment of the actual national tourism products 7 2 1 10
Other 1 1
N=10
All NTOs include such general elements as national tourism policy objectives or the needs of the travel
industry in their planning processes, and nearly all regard them as very important. The fact that there
Tue, 18 Jul 2006 10:21:45
are only small differences in importance between the elements for strategic and operational planning
shows that there is a natural and desirable interrelation between the two.
unknown
As few countries had information on this subject, it is not possible to conclude that for strategic and
operational planning slightly less importance is attached to the assessment of actual national products
and research than to other elements. The chief, albeit small, difference is in the degree of importance
that NTOs attach to the available budget. Apparently, this is considered more relevant to operational
than to strategic planning. This may be the result of the budget cuts (and sometimes increases)
announced at short notice that many NTOs have experienced in the past. For strategic planning, the
budget will probably be regarded by many as a fait accompli, or as the consequence of the previous
strategic plan itself.
Turespaa (Spain)
In the preparation of the annual operational plan, proposals from the Autonomous Communities,
Tourism Boards, Municipalities, etc are taken into account, along with those of the Chambers of
Commerce, meaning that there is joint public-private participation in the setting of objectives
and strategic lines according to market and product.
Specifically, the process of operational planning begins with a report by Turespaas offices
abroad (Oficinas Espaolas de Turismo - OETs) which include information on the source
markets, the setting of a series of objectives and the assigning of weights to the most important
tourism products of a given market. Proposals received from the Autonomous Communities are
then reviewed in the light of the objectives set by the OETs.
Lastly, the operational plan of each OET is reviewed by Central Services and approved by the
Director-General of Turespaa for integration into the overall operational plan.
2.2.4 The Role of Research in Marketing Planning

Just as the budget is a constituent of planning, research is seen by many as performing the same role.
NTOs were asked to rank, in order of importance, six types of research most commonly used to support
the planning of inbound tourism marketing. Research should be regarded here as a source of market
intelligence (data, knowledge, results and trends) that can pave the way for planning.
The highest ranking was given to the collection of data on actual levels of demand, including arrivals,
overnights and the distribution of demand by regions, seasons and nationalities. Research on such
segments as age, income and purpose of visit ranks second, while research on trends and the
development of potential demand ranks third. Less interest is shown in segmentation studies. This areas
ranks fourth and is followed by research on marketing effectiveness. Research on image was ranked
last, a position that could however change in the case of long-term strategic planning.
The degree of unanimity in the ranking decreases in line with the ranking itself. This suggests that, next
to basic data, views on which types of research are necessary for planning differ considerably. The
Hungarian National Tourist Office, for example, observes that analysis of the macroeconomic situation
and dissemination of research findings among national partners and stakeholders are also important
considerations.
Table 7 Use of research in marketing planning (from 1 - most important to 6 - least important)
Level of importance
Types of research
1 2 3 4 5 6
Data collection on the actual level of demand (arrivals, nights, distri-
9 1 1
bution by region and/or season, share by nationality, etc)
Data collection on the structure of demand segments
1 5 2 3
(e.g. age, income, motives, etc)
Tue, 18 Jul 2006 10:21:45
Research on Image 2 1 2 4 3
Measuring marketing effectiveness 2 2 1 2 2
unknown
Trends and the development of potential demand 2 5 2 3 1

Special segmentation studies 2 1 1 1 3
Other
2.2.5 The Role of Evaluation Systems

Evaluation is an essential part of the planning process1. Hungary mentioned this already when
describing the importance of planning tools. Evaluation may be closely linked to research, as it too is
a planning support tool. Eleven of the twelve countries reporting on this subject said that they evaluate
their marketing activities. France mentioned that it will have an evaluation system in place in 2006. In
four countries, the evaluation is based on market performance indicators, such as the number of
international tourist arrivals or overnight stays and international tourism expenditure. Four of the eleven
NTOs report that their evaluation is based on a return-on-investment (ROI) analysis, whereby the results
of specific marketing activities are compared with tourism demand.
Four NTOs also use other indicators to evaluate their activities, such as:
the average cost to reach a person per type of activity;

the average discount received from paid advertising;
costs of advertising versus costs for destination pubic relations (PR);
visitors to websites and number of homepage hits;
the average price per square meter for stands at fairs;
the level of co-financing with tour operators;
the number of international meetings attracted;
the number of new catalogues issued by tour operators and the share of the destination in those
catalogues;
the number of local marketing campaigns and direct marketing actions.
1 For further information refer to Evaluating NTO Marketing Activities, UNWTO, 2003
When marketing activities are planned and carried out, it is important to predetermine the results that
should be achieved. Results from previous evaluation studies may be used as a reference for
determining such targets, while subsequent evaluation studies will reveal whether or not those targets
have been met. Eight NTOs say that this is the method they use.
The responsibility for predetermining these results is normally assigned to the general manager and/or
the board of directors. In some cases, the targets are agreed with the NTA. In Norway, the tourism
industry is involved in this process as well. Some NTOs report that the directors of their offices abroad
are also included in the evaluation process, and although they may suggest which activities should be
evaluated, it is the management at head office that determines whether or not the targets have been
met. The analysis and validation of evaluation reports are usually carried out by research departments
in conjunction with the NTO management.
2.3 NTO Staff

The marketing of inbound tourism by NTOs necessitates staff at both head office and the offices abroad.
This does not mean that the figures in Table 8 cover all the people involved in inbound marketing for
an NTO. As mentioned later on in this document, many NTOs use representations abroad to carry out
some of their marketing tasks. These representations differ completely from their own offices as they
are, for the most part, independent commercial concerns that handle some or the entire range of
Tue, 18 Jul 2006 10:21:45
marketing activities on a contractual basis. The employees engaged in marketing activities are not
regarded as NTO staff members. This is relevant too, as it is common practice to record all the costs of
these representations abroad as marketing costs, thus excluding them from operational costs.
unknown
NTO staff - Head office NTO staff abroad
50 50
6
40 40
21
No. of NTOs
< 50 none
No. of NTOs
30 30
50-99 19 < 50
50-99
20 100-199 20
14 100-199
=> 200 13 => 200
10 7 10
6
5 2
0 0
N=47 N=46
Table 8 shows that about one-third (35 per cent) of all NTO staff work in the offices abroad. The
differences that exist between countries may be explained by the variations in their marketing policies.
A concentration or centralization of tasks at head office may limit the number of staff needed abroad.
However, offices abroad that have greater independence and more responsibilities will probably need
more staff. A difference in strategy that necessitates a physical presence in foreign markets also
influences the staffing levels of offices abroad.
The disparities in turnover per employee (2005 budget/total number of staff) are also probably due, at
least in part, to differences in marketing policies. The types of marketing activities undertaken may also
be a factor to consider when analysing this information. Advertising, for example, though expensive,
can be handled in an NTO by a smaller staff. By contrast, more staff are needed when greater emphasis
is placed on such marketing activities as direct information.
For all the above reasons, it is difficult to make a meaningful comparison between countries on any
given aspect. This is borne out by the fact that there is no significant correlation between staff numbers
and offices abroad or between staff numbers and budgets.
Table 8 NTO staff (expressed in Full-Time Employees FTEs)
Staff Employees / Turnover /

Country Staff office employee
Total Head office Abroad abroad (x 1000 )1)
abroad (%)
Australia 252 133 119 47 7.9 362
Austria 189 72 117 62 4.2 244
Botswana 4 4 0 0
Canada 83 19 64 77 5.8 567
Chile 17 15 2 12 1.0 106
Colombia 27 15 12 44 1.9 60
Cyprus 144 59 85 59 4.3 361
Czech Repuplic 87 58 29 33 1.8 78
Denmark 98 40 58 59 6.4 279
Dominican Republic 549 499 50 9 2.8 32
El Salvador 10 10 0 0 27
Estonia 5 5 0 0 579
Finland 96 46 50 52 3.3 276
France 132 63 69 52 2.8 386
Germany 153 77 76 50 6.9 203
Greece 195 78 117 60 4.5 624

Tue, 18 Jul 2006 10:21:45
Guatemala 50 45 5 10 1.0 295

Honduras 20 13 7 35 1.8 118
Hungary 173 151 22 13 1.0 102
unknown
India 66 8 58 88 4.5 293

Ireland 144 39 105 73 7.5 459
Italy 256 110 146 57 7.7 194
Korea, Republic of 158 95 63 40 2.7 202
Lithuania 20 12 8 40 1.6 53
Luxembourg 19 19 0 0 157
Macao (China) 227 225 2 0.9 2.0 136
Malaysia 571 379 192 34 6.4 166
Malta 156 150 6 4 0.6 146
Mexico 175 125 50 29 2.8 685
Nepal 47 45 2 4 14
Netherlands 155 75 80 52 8.0 181
New Zealand 115 61 54 47 4.5 323
Peru 97 97 0 0 127
Philippines 620 589 31 5 2.2 22
Poland 93 52 41 44 3.4 82
Portugal* 48 48
Romania 79 59 20 25 1.3 72
Slovakia 21 15 6 29 1.0 300
Slovenia 32 29 3 9 1.0 266
South Africa 122 83 39 32 3.9 462
Spain 430 219 211 49 6.6 224
Sweden 50 21 29 58 4.1 280
Switzerland 173 83 90 52 4.1 250
Thailand 223 183 40 18 2.2 116
Tunisia 60 30 30 50 1.7 577
United Kingdom 426 190 236 55 10.3 168
United States 4 4 0 1,222
Total/average 6,871 4,447 2,224 35 4.2 220
N= 47/* Staff responsible for tourism marketing and promotion only.
1) 2005 budget/total number of staff.
2.4 Offices and Representations Abroad

As mentioned earlier, marketing policies have a bearing on the number of offices and representations
abroad. The term outlets will be used in this report to refer to both offices and representations.
Representations are, in most cases, independent commercial concerns that handle all, or part, of an
NTOs marketing activities abroad on a contractual basis. The contract is not however always with a
commercial undertaking. Portugal, Colombia and Norway, for instance, use national government
offices abroad that belong to other national bodies, such as those responsible for the promotion of other
exports. The contracts of most representations require them to work on an often limited number of
activities. The cost of such representations, including the cost of staff not on the NTO payroll, is covered
by the marketing budget.
Number of offices abroad Number of representations abroad
50 50
7
40 40
4 17
No. of NTOs
none none
No. of NTOs
5
30 <5
30 <5
5-9 12 5-9
Tue, 18 Jul 2006 10:21:45
20 20 20
10-19 10-19
=> 20 8 => 20
10 10
10 7
unknown
0 0 2
N=46 N=46
Besides offices and representations abroad, NTOs may have other arrangements, such as the use of
embassies and/or chambers of commerce. Another possibility is the use of telephone lines (in many
cases centrally located contact or call centres) for information and brochures.
According to the information provided, nearly 30 per cent of all outlets are representations. It is not,
however, possible to corroborate the view sometimes expressed that NTOs are in the process of closing
their own offices and investing more in representations. A reason for their closure may be the rapidly
expanding use of the Internet which may justify a change in the core business of offices abroad. This
possible shift from offices to representations is not evident in the table and was not borne out either by
a previous study (European Travel Commission Members survey of 2004).
It is important to note that the presentation in Table 10 (costs per outlet abroad) may be somewhat
controversial, as there are many differences between NTOs, which limits the usefulness of a linear
comparison. It is nonetheless considered here as a possible example of a global comparison indicator.
Table 9 NTO offices and representations abroad
Number of Share of representations

Number of offices representations
Country in total (%)
2004 2005 2004 2005 2004 2005
Australia 15 15 3 3 17 17
Austria 27 28 5 5 16 15
Botswana 0 0 3 3 100 100
Canada 15 11 0 0
Chile 2 2 0 0
Colombia 12 12 0 0
Cyprus 18 20 0 0
Czech Repuplic 13 16 12 14 48 47
Denmark 9 9 0 0
Dominican Republic 0 18 0 2 10
El Salvador 0 0 0 0
Estonia 0 0 7 7 100 100
Finland 15 15 1 1 6 6
France 25 25 8 9 24 26
Germany 11 11 18 19 62 63
Greece 25 26 0 0
Tue, 18 Jul 2006 10:21:45
Guatemala 6 5 0 0
Honduras 4 4 0 0
Hungary 19 21 9 2 32 9
unknown
India 13 13 0 0
Ireland 14 14 8 8 36 36
Italy 20 19 5 6 20 24
Korea, Republic of 20 23 0 0
Lithuania 4 5 0 0
Luxembourg 0 0 8 8 100 100
Macao (China) 1 1 13 14 93 93
Malaysia 30 30 16 16 35 35
Malta 11 10 11 11 50 52
Mexico 17 18 0 0
Nepal 0 0 2 2 100 100
Netherlands 9 10 4 4 31 29
New Zealand 13 12 3 3 19 20
Philippines 15 14 5 5 25 26
Poland 12 12 1 1 8 8
Portugal* 0 0 22 22
Romania 20 15 0 0
Slovakia 6 6 0 1 0 14
Slovenia 3 3 6 7 67 70
South Africa 10 10 0 0
Spain 31 32 0 0
Sweden 6 7 4 3 40 30
Switzerland 19 22 16 14 46 39
Thailand 18 18 21 21 54 54
Tunisia 17 18 2 3 11 14
United Kingdom 24 23 5 12 17 34
United States 0 0 0 0
Total/average 549 573 218 226 28.4 28.3
Ibid, excl. Dominican Rep.
539 545 218 224 28.8 29.1
and South Africa
Total/average for NTOs
343 350 176 182 33.9 34.2
with Offices & representations
N=46/* Representations refer to ICEPs (the organization responsable for promoting exports) offices abroad.
Table 10 Costs per outlet abroad (euro)
Total turnover (euro million) per Marketing turnover

(euro million) per
Country Office abroad Outlet abroad outlet abroad
2004 2005 2004 2005 2004 2005
Australia 6.0 6.1 5.0 5.1 3.6 3.6
Austria 1.7 1.7 1.4 1.4 0.9 0.9
Botswana 0.5 0.5
Canada 3.5 4.3 3.5 4.3 2.7 3.2
Chile 0.8 0.9 0.8 0.9 0.7 0.8
Colombia 0.1 0.1 0.1
Cyprus 2.9 2.6 2.9 2.6 2.0 1.8
Czech Repuplic 0.6 0.4 0.3 0.2 0.2 0.2
Denmark 3.1 3.0 3.1 3.0 2.0 1.9
Dominican Republic 1.0 0.9 0.7
Estonia 0.3 0.4 0.2 0.4
Finland 1.8 1.8 1.7 1.7 1.2 1.2
France 2.0 2.0 1.5 1.5 1.0 1.0
Germany 2.8 2.8 1.1 1.0 0.6 0.6
Tue, 18 Jul 2006 10:21:45
Greece 4.0 4.7 4.0 4.7 1.3 2.1

Guatemala 2.4 3.0 2.4 3.0 1.5 1.8
Honduras 0.7 0.6 0.7 0.6 0.5 0.5
unknown
Hungary 1.3 0.8 0.9 0.8 0.5 0.5

India 1.0 1.5 1.0 1.5 0.8 1.2
Ireland 4.2 4.7 2.7 3.0 1.7 2.0
Italy 1.9 2.6 1.5 2.0 0.4 1.0
Korea, Republic of 1.5 1.4 1.5 1.4 0.7 0.7
Lithuania 0.2 0.2 0.2 0.2 0.1 0.2
Luxembourg 0.4 0.4 0.2 0.2
Macao (China) 24.0 31.0 1.7 2.1 1.6 1.7
Malaysia 3.2 3.2 2.1 2.1 1.6 1.6
Malta 2.0 2.3 1.0 1.1 0.6 0.6
Mexico 5.2 6.7 5.2 6.7 5.2 5.1
Nepal 0.3 0.3 0.3 0.3
Netherlands 3.1 2.8 2.2 2.0
New Zealand 2.6 3.1 2.1 2.5 1.6 1.9
Philippines 0.8 1.0 0.6 0.7 0.2 0.3
Poland 0.7 0.6 0.7 0.6 0.6 0.5
Portugal 1.9 2.0
Romania 0.3 0.4 0.3 0.4 0.2 0.2
Slovakia 0.4 1.0 0.4 0.9 0.3 0.7
Slovenia 2.7 2.8 0.9 0.9 0.7 0.7
South Africa 5.3 5.6
Spain 2.7 3.0 2.7 3.0 1.8 1.9
Sweden 2.4 2.0 1.4 1.4 0.9 0.8
Switzerland 2.2 2.0 1.2 1.2 0.8 0.8
Thailand 1.4 1.4 0.7 0.7 0.4 0.4
Tunisia 2.1 1.9 1.9 1.7 1.4 1.1
United Kingdom 3.0 3.1 2.5 2.0 1.2 1.0
Total/average 2.42 2.53 1.74 1.81 1.17 1.22
Ibid, excl. Colombia, Domi-
2.40 2.58 1.70 1.81 1.15 1.21
nican Rep. and South Africa
N=44/See Annex IV for additional explanations; See Annex VI for amounts in US dollars
unknown
Tue, 18 Jul 2006 10:21:45
Chapter III
Budgets of
3.1 NTO Budgets and Funding

There is no set formula for establishing the necessary budget for marketing a country as a tourism
destination abroad. It is however generally agreed that a country should market itself internationally.
The importance of tourism for the national economy, expressed in terms of job creation and earnings,
is the fundamental rationale for governments financial involvement. The investment made by
governments in tourism is moreover reflected in the structure of the tourism industry. In most countries
the tourism industry is mainly made up of small and medium-sized enterprises (SMEs) that cannot
market themselves adequately abroad and that therefore require national support in the form of
government investment.
The importance of tourism to the national economy is one of the factors that influence the level of
Tue, 18 Jul 2006 10:21:45
support given by national governments to the marketing of inbound tourism. Political views on the
extent to which the government should support the private sector also play a part. And all these factors
are naturally closely linked to the availability of State funds which, in turn, depends on the size of the
unknown
country and the volume of tourism demand.
In view of the foregoing, the data on NTO budgets presented in Table 11 should be seen and interpreted
in relative terms. Comments on absolute amounts, and hence any direct comparison between
countries, however tempting that may be, are therefore to be avoided. The first and only meaningful
comparison between countries is the share of government investment in the total budget for marketing
inbound tourism.
As for government budgets, some remarks are in order. Government investment is generally based on
the available budget at national level and, in some countries, on funds levied by taxation. In Table 11,
the part of the budget that stems from taxes is also regarded as a contribution from the national
government. The same applies to the part of the budget that comes from international financial support
schemes, such as European Union funds, and that is forwarded by the national government to the NTO
for marketing inbound tourism.
Budgets made available by regional or local governments are regarded as budgets from other sources,
excluding the budget of Macao (China), which due to its specific status justifies the support to be
comparable to that of national governments for other NTOs. It should be noted that in only four other
countries, i.e. Colombia, Italy, Lithuania and Mexico, is the NTO budget partly financed by local
governments. Regional government investment at national level only applies in Colombia and Italy.
This is not to say however that funds from regional governments are not made available to NTOs by
other means. But in such cases, these funds are comparable to private sector investment in the NTOs
marketing activities. France is a good example of this approach.
Table 11 also shows the average share of government investment in the NTO budget. This share
increased by 0.9 percentage points, from 83.7 per cent in 2004 to 84.6 per cent in 2005, a
development that is consistent with earlier findings. Although not fully comparable, as not all the
countries observed in the survey are the same, a study by the European Travel Commission (ETC), dating
from 2004, revealed that the average government share in the NTO budget had also risen slightly
between 2002 and 2004. The opposite conclusion - that other parties, the private sector in particular,
participate comparatively less in financing inbound marketing by NTOs - may raise questions about the
reasons for that and stimulate discussion on the role and responsibility of national governments.

Table 11 Annual NTO budgets for marketing inbound tourism (euro)
Budget by the Governments

Total budget national
Change Change share of budget
Country (euro million) government
(%) (euro million) (%) (%)
2004 2005 2004 2005 2004 2005
Australia 89.3 91.1 2 74.3 74.7 0 83.2 82.0
Austria 45.5 46.2 2 30.0 30.0 0 66.0 64.9
Canada 52.8 47.1 -11 38.7 37.8 -2 73.3 80.3
Chile 1.7 1.8 10 1.7 1.8 10 100.0 100.0
Colombia 1.6 0.8 50.0
Cyprus 44.5 51.9 17 42.9 49.4 15 96.3 95.1
Czech Republic 7.2 6.8 -6 7.2 6.8 -6 100.0 100.0
Denmark 27.5 27.4 0 17.4 17.0 -2 63.4 62.3
Dominican Republic 10.7 17.7 66 10.7 17.7 66 100.0 100.0
El Salvador 0.3 0.3 4 0.3 0.3 4 100.0 100.0
Estonia 1.9 2.9 55 1.9 2.9 55 100.0 100.0
Finland 26.5 26.5 0 16.2 16.2 0 61.1 61.1
France 49.1 50.9 4 26.5 27.3 3 54.0 53.6
Germany 31.1 31.1 0 24.5 24.5 0 78.8 78.8

Tue, 18 Jul 2006 10:21:45
Greece 99.5 121.7 22 94.0 114.0 21 94.5 93.7

Guatemala 14.6 14.8 1 14.6 14.8 1 100.0 100.0
Honduras 2.6 2.4 -10 2.6 2.4 -10 100.0 100.0
unknown
Hungary 23.8 17.6 -26 22.0 15.9 -28 92.4 90.3

India 13.1 19.4 47 13.1 19.4 47 100.0 100.0
Ireland 59.5 66.0 11 56.9 64.2 13 95.6 97.2
Italy 37.6 49.8 32 29.1 43.2 49 77.2 86.7
Korea, Republic of 29.9 32.0 7 29.9 32.0 7 100.0 100.0
Lithuania 0.9 1.1 21 0.5 0.9 59 62.7 82.5
Luxembourg 3.0 3.0 0 2.0 2.1 0 68.8 68.9
Macao (China) 24.0 31.0 29 24.0 31.0 29 100.0 100.0
Malaysia 94.8 94.8 0 94.8 94.8 0 100.0 100.0
Malta 22.0 22.7 3 18.5 19.1 4 83.8 84.1
Mexico 88.3 119.9 36 68.0 92.3 36 76.9 76.9
Nepal 0.6 0.6 -2 0.6 0.6 -2 100.0 100.0
Netherlands 28.0 28.0 0 19.0 18.0 -5 67.9 64.3
New Zealand 34.1 37.1 9 33.7 36.6 9 98.9 98.7
Norway 21.2 28.5 34 7.3 9.2 26 34.3 32.2
Peru 11.8 12.3 4 11.8 12.3 4 100.0 100.0
Philippines 11.5 13.8 20 11.5 13.8 20 100.0 100.0
Poland 8.5 7.7 -10 7.9 6.9 -13 92.8 89.8
Romania 6.0 5.7 -6 6.0 5.7 -6 100.0 100.0
Slovakia 2.4 6.3 164 2.3 6.3 176 95.6 100.0
Slovenia 8.1 8.5 5 7.1 7.6 7 87.7 89.4
South Africa 53.4 56.4 6 36.1 44.5 23 67.7 78.9
Spain 85.0 96.2 13 85.0 96.2 13 100.0 100.0
Sweden 14.5 14.0 -3 10.7 9.9 -8 74.3 70.4
Switzerland 42.4 43.2 2 26.1 26.8 2 61.6 62.0
Thailand 25.4 25.8 1 25.4 25.8 1 100.0 100.0
Tunisia 36.4 34.7 -5 36.4 34.7 -5 100.0 100.0
United Kingdom 72.9 71.7 -2 52.3 52.3 0 71.7 72.9
United States 1.7 4.9 188 1.7 4.9 188 100.0 100.0
Total/Average 1,365.6 1,494.6 9 1,143.2 1,264.9 11 83.7 84.6
N=46/See Annex VI for amounts in US dollars.
Budgets of National Tourism Organizations 23
NTO funding sources
50
1
40 10
< 50% national gov.

No. of NTOs
30
15 50-74% national gov.
20 75-99% national gov.

100% national gov.
10 20
0
N=46
An analysis of the figures in Table 11 reveals that there is no correlation between absolute budgets and
governments share. Nevertheless, some additional interesting data are presented in the following
tables.
Table 12 Relationship between absolute increases in government investment and the share of
government investment in the total NTO budget
Tue, 18 Jul 2006 10:21:45
Increase in Average Share of government (%)

Number
government increase
of countries
investment 2005/2004 (%) 2004 2005
unknown
11% and more 16 26 86.5 88.1
Less than 11%

29 0 81.9 82.0
(incl. negative)
Total/average 45 11 83.7 84.6
Based on the average increase of 11 per cent in government investments between 2004 and 2005, a
division has been made between the NTOs recording above-average increase and those recording
below-average increases. Table 12 shows that government investment has not changed in two-thirds of
all countries recording a below-average change.
Table 13 reveals that in 2005 twenty-nine, i.e. about two-thirds, of the forty-five reporting NTOs had
an annual budget below the overall average.
Table 13 Relationship between absolute total NTO budgets and the share of government
investment in the total NTO budget
Average Average Share of

Number government (%)
Total budget in 2005 budget 2005 budget 2005
of countries
(euro million) (US$ million) 2004 2005
Euro 31.8 million ( US$ 39.6 million)

16 67.4 83.9 83.7 85.2
or more
Less than euro 31.8 million

29 14.3 17.8 83.6 83.0
(US$ 39.6 million) or more
Total/average 45 31.8 39.6 83.7 84.6

Table 14 Difference between Europe and other regions in the share of government investment in
the total NTO budget
Average Average Share of
Number government government government (%)
of countries investment 2005 investment 2005
(euro million) (US$ million) 2004 2005
Europe 25 26.9 33.4 79.8 80.5
Other regions 21 28.2 35.1 88.7 89.9
Total/average 46 27.5 34.2 83.7 84.6
It is also interesting to note that European governments invest less in NTOs than do governments of
other world regions (Table 14). The share of government investment in NTO budgets in Europe is some
9 percentage points below that of governments in non- European countries. It should however be
stressed that these conclusions, and any other comparisons, cannot be considered valid for NTOs in
general as only a limited number of non-European countries are included in this survey.
3.1.1 NTO Funding Systems

Tue, 18 Jul 2006 10:21:45
It has already been mentioned that, on average, governments finance more than 80 per cent of the NTO
budget. In many countries this is a subject for discussion as it relates to the responsibility of
governments for tourism. To what extent should parties that benefit from inbound tourism be more
unknown
involved in financing inbound tourism marketing so as to reduce the amount of public funds required
for this purpose? If it is decided that government responsibility is acceptable and warranted, the next
question is how much should it invest? Should this be in the form of a lump sum, and if so, for which
activities should it be earmarked or should this amount come from additional sources and, if so, from
which ones? Should it come from a combination of sources and include parameters that cater for both
public and private interests? To assist in this probably unending debate, some questions were asked
about present funding systems.
The first question relates to the system that the national government uses in allocating a budget to the
NTO. Is it a lump sum only, or does it include funds from other sources? The second asks whether the
government contributes a fixed amount or if it varies according to certain conditions or indicators. And
finally, if it is a variable amount, which indicators are used to establish it?
Of the fifty NTOs participating in this survey, 54 per cent, or twenty-seven of them, reported that their
budgets originated from their governments alone and were fixed amounts. These amounts are generally
established for periods of more than one year, although ad hoc changes may be made for specific
reasons, for example in a crisis or when specific activities necessitate an extra injection of funds.
Tourism demand therefore has no bearing on a governments budget allocation. Only ten NTOs (20 per
cent) reported that the budget they receive from the government varies according to certain conditions
or indicators.
Seven NTOs report that their budget comes from the national government and from other sources as
well, but that it does not reflect the results of tourism demand. In Austria, for example, the Chamber of
Commerce tops up the budget contributed by the Government by one-third and in Slovakia the
Government contributes another third on top of the budget received from the European Unions
Structural Fund. In Malta, all the bodies concerned with tourism, based on their economic activity, are
asked to contribute to the NTO budget. Hotels, for example, contribute according to their star rating
and number of rooms. Hungary also relies on a combination of various other sources of financing. In
Portugal the total budget that the Government makes available is financed by the revenue from
gambling, and in Greece a percentage of casino receipts is also allocated to the NTO budget.
Thirty-one NTOs in all report that their budgets consist of fixed amounts only and seven have a fixed
sum plus some variable amounts. Of the nineteen NTOs whose budgets vary according to certain
conditions or indicators, fourteen, or 58 per cent, are non-European (in contrast to 19 per cent for
European NTOs). The participation of such stakeholders as regional or local tourism boards or the
private sector is not a factor for fifty NTOs. As the answers provided do not give a full picture, it can
only be assumed that a maximum of fourteen NTOs have budgets influenced by the development of
tourism demand. This is the case of four NTOs in Europe (15 per cent) and of ten NTOs (41 per cent)
in other regions.
When data on demand are not a factor in deciding on government investment, this does not mean that
demand has no bearing at all on budget allocation. The three- to five- year budget allocation is often
decided in the light of an analysis of tourism demand, which includes benchmarking the performance
of competing destinations. Some NTOs whose annual budgets are reported as not influenced by data
on demand, mentioned this spontaneously.
It is, however, important to focus on the value of demand data as a tool for determining tourism
marketing budgets. From the government perspective, it is assumed that there is a link between
inbound results and marketing investment. If this view is taken, an increase in demand will justify an
increase in budget. NTOs within this system however argue that a decline in demand should not result
in a budget decrease; on the contrary, a downturn in demand calls for higher investment. They also
argue that annual fluctuations in demand, and subsequently in available budgets, make it more difficult
to plan and invest in long-term marketing policies.

Tue, 18 Jul 2006 10:21:45
It is of course acceptable for data on demand to be used for budgeting. But more factors may be
included in the decision-making process, for instance the importance of tourism for the national
unknown
economy, long-term objectives, fluctuations in the economy and exchange rates, or the proportion of
demand that is unlikely to be influenced by marketing.
The Tourism Satellite Account (TSA) may assist this process. A second consideration that may be used
in establishing budgets is the NTOs performance in meeting pre-defined objectives. This approach is
used in Romania and Colombia only. In both countries, international tourism receipts are used as the
relevant indicator for determining the variable part of the NTOs marketing budget. Colombia uses a
combination of international tourism receipts and international tourist arrivals at registered
accommodation units as a further reference tool. As already mentioned, the participation of
stakeholders, such as regional and local tourism boards or the private sector, has no bearing on the
budget that any national government allocates to its NTO.
Proexport (Colombia)
Governmental budgeting is based on the following variables:
International tourism receipts;

Number of international tourist arrivals at registered accommodation units.
The tourism goals for Colombias Proexport are determined in the light of the number of
international tourist arrivals in Colombia and their estimated expenditure in the country so to
have an approximate idea of the amount of income derived from tourism in the country.
Of the nineteen NTOs that have a fully or partly variable budget, no system is wholly comparable to
any other. This means that only a brief summary of available information is possible. A combination of
taxation and demand is the most common indicator.
Only two NTOs are wholly dependent on budgets that result from tourism taxes. Guatemala levies
a departure tax and a tax on accommodation. Nepal levies a departure tax too, but the amount
of revenue may be supplemented by the government if the private sector considers that it cannot
meet the NTOs needs;
In four countries, the annual budget comes from the government only and consists of a fixed
amount plus a variable amount that depends on the volume of tourism demand. Finland is the
only country that uses market share as a budgeting tool;
Taxes are most commonly levied on the following:

- international arrivals at frontiers;
- international departures at frontiers;
- food and beverages supplied by tourism establishments;
- accommodation establishments;
- car rentals;
- tour operator services;
- air tickets;
- arrivals at registered accommodation units;
- overnight stays at registered accommodation units.
Of the various indicators that reflect tourism demand and that can be used by the government to
determine the amount to be allocated to the NTO budget, the following were mentioned:
Indicators Number of mentions

Tue, 18 Jul 2006 10:21:45
International tourism receipts 11
Total arrivals at registered accommodation units 5

unknown
Total overnight stays at registered accommodation units 4
Total revenue from tourism taxes 2
International tourist overnight stays at registered accommodation units 2
International tourist arrivals at registered accommodation units 1
International tourism receipts from tourism taxes 1
In addition to the above, the following funding sources have also been mentioned:
- licensing;
- trust fund;
- interest and Value Added Tax (VAT);
- leasing fees;
- gambling/casino receipts;
- tender documents;
- currency exchange.
3.1.2 NTO Budget Allocation

3.1.2.1 Marketing and Operational Costs
Available information on total NTO budgets can be divided into operating costs and actual out-of-
pocket investment in marketing activities. Operating costs are the overheads involved in the facilitation
of marketing activities. They are the sum of such costs as salaries, rent, travel, stationery, bookkeeping,
human resources and currency exchange. The out-of-pocket costs represent all direct investment in
marketing activities, such as printing, advertising and participation in fairs. They also include the costs
of research, strategy development and coordination.
As budget allocation systems differ from country to country, caution should be exercised in drawing
conclusions from any of the tables presented in this report. There are also other differences to be taken
into account. For instance, some NTOs centre the execution of their inbound marketing activities at the
head office, which may result in lower operating costs abroad, especially when prices in the home
country are comparatively lower than those of the home countries of other NTOs. The mix of marketing
activities carried out also influences these differences.
NTO budget allocation, 2005 (%)
100
80
65
60
Marketing costs
%
40 Operational costs
20 35
0
N=46
Tue, 18 Jul 2006 10:21:45
In general, operating costs absorb, on average, slightly more than one-third of the total budget (Table
14). Although there is a strong correlation between total budgets and budgets for out-of-pocket
unknown
marketing activities, there is no substantial link between total budgets and the share of out-of-pocket
marketing costs in those total budgets.
As in the case of the relationship between budgets and government investment, it is surprising to
observe that here again there is a dividing line between the countries at around the two-thirds/one-third
mark. Of the forty-four NTOs with available data on this subject, twenty-nine spent equal or above-
average shares of their budgets on marketing costs (65.5 per cent).
In 2005, 9 per cent more of the budget was spent on marketing activities than in the previous year,
while operating costs rose by 4 per cent. This may suggest that any extra available budget is usually
spent on marketing. Nevertheless, although there are some indications of this, such a conclusion has
not been borne out by previous studies.
Table 15 NTO budget allocation (euro)

Share of marketing
Operating costs Marketing costs
(euro million) Change (euro million) Change costs in total budget
Country (%)
(%) (%)
2004 2005 2004 2005 2004 2005
Australia 24.8 26.9 8 64.5 64.2 0 72.2 70.5
Austria 15.7 16.4 5 29.8 29.8 0 65.5 64.5
Canada 12.0 11.9 -1 40.8 35.1 -14 77.2 74.7
Chile 0.2 0.2 8 1.5 1.6 10 89.3 89.5
Colombia 0.2 1.4 90.0
Cyprus 9.2 10.6 16 35.4 41.3 17 79.4 79.6
Czech Repuplic 1.7 1.4 -15 5.6 5.4 -3 77.1 79.3
Denmark 9.7 9.9 3 17.8 17.4 -2 64.9 63.7
El Salvador 0.1 0.2 76.6
Estonia 0.2 0.2 55 1.7 2.6 55 91.5 91.5
Finland 7.4 7.6 2 19.1 18.9 -1 72.0 71.4
France 14.3 15.3 4 34.4 35.6 4 70.0 70.0
Germany 14.5 13.5 -7 16.6 17.6 6 53.4 56.6
Greece 66.0 68.0 3 33.5 53.7 60 33.7 44.1

Tue, 18 Jul 2006 10:21:45
Guatemala 5.7 5.8 2 8.9 8.9 1 60.8 60.6

Honduras 0.7 0.6 -20 1.9 1.8 -7 73.5 76.4
Hungary 9.2 6.7 -27 14.6 10.9 -25 61.3 61.9
unknown
India 3.2 3.4 6 9.9 16.0 61 75.5 82.5

Ireland 21.4 23.0 8 38.1 43.0 13 64.1 65.2
Italy 26.5 24.2 -9 11.1 25.6 130 29.5 51.4
Lithuania 0.3 0.3 1 0.6 0.8 31 66.7 72.2
Luxembourg 1.3 1.4 5 1.7 1.6 -4 56.1 53.8
Macao (China) 2.1 5.9 185 21.9 25.0 14 91.3 80.8
Malaysia 23.2 21.6 -7 71.6 73.1 2 75.5 77.2
Malta 9.6 9.6 0 12.5 13.1 5 56.6 57.6
Nepal 0.02 0.02 29 0.6 0.6 -3 96.1 94.9
New Zealand 8.8 9.3 6 25.3 27.8 10 74.2 74.9
Norway 7.0 10.0 43 14.2 18.5 30 67.0 64.9
Peru 1.0 1.1 5 10.8 11.2 4 91.2 91.2
Philippines 7.4 9.0 21 4.1 4.8 19 35.4 35.0
Poland 1.3 1.4 10 7.3 6.3 -13 85.2 82.0
Portugal * 45.4 47.7 5
Romania 1.4 2.0 38 4.6 3.7 -19 76.5 65.5
Slovakia 0.6 1.6 168 1.8 4.7 163 75.3 75.0
Slovenia 1.8 1.9 6 6.3 6.6 5 77.8 77.6
South Africa 12.0 11.7 -3 41.4 44.8 8 77.5 79.3
Spain 30.7 35.9 17 54.3 60.3 11 63.9 62.7
Sweden 5.5 6.2 13 8.9 7.8 -13 61.7 55.5
Switzerland 16.1 15.3 -5 26.3 27.9 6 62.0 64.6
Tunisia 10.0 10.8 8 26.5 23.9 -10 72.7 68.9
Thailand 10.8 11.7 8 14.6 14.0 -4 57.4 54.4
United Kingdom 37.5 37.8 1 35.3 33.9 -4 48.5 47.2
United States 0.3 0.3 0 1.4 4.6 226 83.4 94.2
Total/average 447.3 467.4 4 791.3 859.7 9 63.9 64.8
Total/average 470.7 871.1 64.9
N=45/See Annex VI for amounts in US dollars/* Since data on operating costs are not available for Portugal, the information supplied
is presented here but has not been considered in computing the average.
3.1.2.2 Budget Allocation by Marketing Tools

All the tools available to an NTO are in principle used in marketing a tourism destination abroad. In
practice, however, only a limited and specific number of activities is developed.
NTOs were asked to report on their investment in the most common types of tourism marketing
activities. Not every NTO, was, however, able to state how such a budget is allocated, as the way in
which marketing activities are recorded differs considerably from NTO to NTO. Countries reporting
more than 60 per cent of their budget as others are not included in the analysis. What is more, some
countries use a combination of tools, especially for advertising. Only half of the NTOs distinguish
between radio and television advertising and advertising in print and other media (e.g. billboards or
buses, trams and coaches).
Use of the various types of marketing tool depends on several factors, such as the available budget, the
pattern of tourism demand in the source markets in which the marketing activities are carried out, and
sometimes on whether or not the NTO has offices in those markets. Other differences are due to the
known or perceived effectiveness of the selected tools, the preferences of participating partners and
many others considerations.
NTOs budget allocation by mar k e t i n g a c t i v i t y

Tourism Fairs, Tradeshows

Tue, 18 Jul 2006 10:21:45
& Workshops
13.6%
Information
unknown
10.4%
Advertising
43.3%
Support to the Industry
& Trade Fam Trips
9.7%
Media (Trips & PR)
6.6%
Internet
Other
3.4%
10.6% Market Research
2.3%
It is therefore more useful to look at the weighted averages than to compare absolute investments. It
will probably come as no surprise that advertising take up more than 40 per cent of the average
marketing budget and that nearly 11 per cent of that budget is spent on participation in fairs. Together
with information costs (10 per cent), these three tools absorb about two-thirds of the average marketing
budget. For the sake of clarity, it should be pointed out that advertising not only accounts for the lions
share of that budget, but also that the allocation to it correlates most closely to the total amount of the
budget. The share of advertising in the marketing budget also achieves the greatest consensus among
NTOs, but for both fairs and information the relationship is less clear-cut.
It is also interesting to look at the average budget allocated to market research. If we had included the
countries that could not provide sufficiently precise information on the various tools used but that were
able to report the exact details of their research budget, the average share of the budget allocated to
research would have risen from 2.3 per cent to 2.8 per cent. Moreover, in some countries Sweden for
example- market research is undertaken by other organizations than the NTO. This means that if
amounts invested by other organizations were added, the total for market research would be higher
than that specified.
Table 16 NTO budget allocation by marketing tools, 2005 (per cent)
Trade
Public Support
Adver- Tourism shows and Press Fam. trips Infor- Market
Country tisinga) fairs work-
Internet
trips
relations
trade b)
to the
mation research
Other
(PR) industry
shops
Australia 59 3 5 2 3 6 0 5 5 9 3
Botswana 14 41 1 3 41
Chile 8 25 8 1 6 2 17 26 6 1
Colombia 15 5 20 10 5 20 15 5 5
Cyprus 60 7 1 15) 10 10 4 2 6
Czech Repuplic 1 16 3 1 3 6 14 1 55
Denmark 13 0 8 13 5 3 48 5 5
El Salvador 29 27 3 1 4 3 8 12 13
Estonia 20 12 8 3 5 1 24 12 1 14
Finland 13 3 2 1 6 2 2 54 7 3 7
Greece 60 13 96) 6 0 12
Guatemala 69 9 5 1 1 1 1 6 3 3
Honduras 55 8 0 5 1 1 0 9 13 0 8
Hungary 16 21 9 6 105) 6 4 17 1 10
India 15 20 15 10 0 10 10 0 207) 0
Tue, 18 Jul 2006 10:21:45
Indonesia 37 24 3 5 1 1 7 17 5
Italy 551) 17 4 1 14 9 0 1
Korea, Rep. of 31 433) 5 9 4 8
unknown
Lithuania 0 70 4 14 5 19 58 5
Luxembourg 19 94) 4 25) 1 1 62 0
Macao (China) 34 11 8 3 3 5 1 6 28
Malaysia 61 3 3 4 1 29
Malta 41 6 0 1 0 7 4 31 4 0 6
Mexico 39 3 2 1 0 4 0 28 21 1
Nepal 20 40 5 3 5 4 1 2 16 4
New Zealand 67 1 9 6 8 2 3 5
Peru 57 20 3 0 3 4 7 4 2
Poland 3 24 2 6 2 4 0 2 12 1 43
Portugal 14 124) 3 4 1 2 6 11 3 44
Romania 3 39 23 4 8 23
Saudi Arabia 64 22 4 2 2 4
Slovakia 30 23 4 2 4 4 3 20 10
Slovenia 30 15 10 5 6 6 21 4 3
Spain 47 16 3 15 1 3 1 2 5 2 4
Sweden 722) 7 16 5
Switzerland 30 204) 10 5 2 2 1 26 2 2
Thailand 29 294) 1 135) 10 17
Tunisia 41 22 8 19 10
United States 72 3 4 5 16
Average 43.4 10.5 3.1 3.4 2.5 4.1 0.9 8.8 10.4 2.3 10.6
N=39; a) Includes radio, TV, print and other; b) Familiarisation trips

1) Includes internet;
2) Includes tourism fairs, tradeshows and workshops;
3) Includes tradeshows and workshops, press trips, PR and familiarisation trips;
4) Includes tradeshows and workshops;
5) Includes familiarisation trips;
6) Includes familiarisation trips and PR;
7) Includes support to the tourism industry.
3.1.2.3 Budget Allocation by Product

NTOs were also asked to report on the allocation of their marketing budget by types of tourism product
(Table 17). Only sixteen countries were able to give a precise breakdown. However, since these
countries differ as to the products they supply, the data received are of limited value. But as the relevant
appropriations account for nearly 30 per cent of the total marketing budget, it was considered useful
to present the findings for general information.
The answers of the reporting countries, though not necessarily representative of all the responding
NTOs or of NTOs worldwide, suggest that marketing sun and sea and the cultural product are
about of equal importance and together absorb about half the NTO budget. This may not be surprising
in itself, but it does support the generally accepted notion of the attractiveness of sun and sea and
culture as the main purposes of travel, as subsequently reflected in the marketing response of NTOs.
NTO budget allocation by product
Sun & Sea

22%
Cultural Tourism
26%
Tue, 18 Jul 2006 10:21:45
Active Tourism & Sports

Other 14%
6%
unknown
Touring
10% Countryside/
Mountain/Rural Tourism
MICE & Events 12%
11%
N=16
As for Meetings, Incentives, Conventions and Exhibitions (MICE), the sixteen countries able to
provide more or less precise information reported an average allocation of some 11 per cent of their
budgets to MICE marketing. Twenty other NTOs reported on the budget allocated to the promotion of
MICE tourism, but not to other products. For the thirty-six countries in total, the estimated average
allocation to MICE and events is 8.8 per cent. For the sake of clarity, it should be stressed that these
percentages cover the marketing not only of MICE tourism but also of events. Some NTOs spend
considerable amounts on events in their own countries as a tool for promotion abroad. The actual share
of MICE marketing for all NTOs is therefore likely to be considerable lower than the percentages
indicated.
It is also noteworthy the percentage allocated to the promotion of active tourism and sports (14 per
cent) and of countryside/rural/mountain tourism (12 per cent) which are more and more envisaged
as important products for diversification in several tourism destinations.
Table 17 NTO budget allocation by product, 2005 (per cent)
Cultural Countryside
Sun and Tourism Active Mountain/ MICE and Other
Country Touring Tourism Total
Sea (incl.City and Sports Rural Events Segments
Tourism) Tourism
Chile 17 25 25 25 2 6 100
Colombia 40 20 20 20 100
Denmark 42 23 15 15 6 100
Finland 14 38 11 19 12 7 100
France 20 20 10 5 20 25 0 100
Honduras 31 28 14 27 100
Hungary 5 4 92 100
Italy 25 30 25 10 10 100
Lithuania 10 10 10 15 15 15 25 100
Nepal 30 10 40 15 5 100
Peru 3 80 5 5 5 2 100
Poland 5 50 20 10 5 10 100
Slovakia 35 35 15 5 5 5 100
Spain 52 28 11 9 1 100
Switzerland 2 28 32 8 30 100
Tue, 18 Jul 2006 10:21:45
United Kingdom 31 31 31 7 100

Average 22 26 10 14 12 11 6 100
N=16
unknown
3.1.2.4 Budget Allocation by Source Markets

In addition to the allocation of the marketing budget by type of promotional tool and product, a third
possibility is to analyse budgets in relation to their allocation by markets. In making this analysis, it is
naturally essential to take into account the specific characteristics of each destination. NTOs in Asian
destinations, for example, will give priority to different source markets from those targeted by their
European counterparts. For that reason, the share of the five main source markets for inbound tourism
was taken for each destination.
Table 18 shows the average share of the five main source markets for inbound tourism and the share of
the marketing budget allocated to them. As not all NTOs could reply fully or precisely to this question,
only those that could rank the range of five were included. This is the case of a total of twenty-two
countries accounting for 53 per cent of the total marketing budget spent by the responding countries.
It should be pointed out that the ratio is based on budget data for 2005 to tourism data for 2004.
The data in Table 18 reveal a strong link between the budgets invested and the importance of the
markets. This is borne out by the total averages with a correlation of just over 0.97. This correlation does
not however necessarily hold true when specific countries are analysed. Although many countries do
invest according to the importance of their source markets, others adopt different policies. They may,
for instance, decide that demand from neighbouring countries is stable enough to allow them to
concentrate more of their available resources on less secure or new markets. It should also be explained
that some countries have entrusted larger shares of their budgets to the head office for allocation and
cannot therefore specify the exact amounts spent in the various source markets.
Table 18 Ranking of main source markets vs. NTO marketing budget allocation
Market by Importance 1 2 3 4 5 Other Total

Average Share in:
International tourist arrivals (%) 23.7 11.1 8.9 7.4 5.6 43.3 100
Budget allocation (%) 18.5 11.6 9.0 6.2 3.9 50.8 100
N=22
Budget allocation by source mar k et (euro million)

80
70
Germany
60
50
UK USA
Euro million
40
30
Tue, 18 Jul 2006 10:21:45
Japan
20
China
France Spain Italy Sweeden Denmark
10
unknown
0
N=47
So far as NTOs marketing investment is concerned, Germany is the leading source market, followed
by the United Kingdom and the United States. Although these amounts do not represent the total
amounts spent by NTOs in these countries, it is worth noting that in Germany, for instance, the 64
million euros spent by tourist-receiving countries is almost four times as much as the total spent abroad
by the German National Tourist Board (GNTB).
Table 19 NTO marketing budgets spent in main source markets, 2005
Total budget spent Total budget spent Number of times

Source Market
(euro million) (US$ million) mentioned
Germany 64.2 79.9 22
United Kingdom 43.7 54.4 20
United States 42.1 52.3 14
Japan 21.0 26.1 5
China 12.7 15.8 5
France 7.4 9.2 8
Spain 7.0 8.7 5
Italy 6.9 8.6 5
Sweden 6.9 8.6 3
Denmark 6.4 8.0 2
Australia 6.0 7.5 1
Netherlands 5.2 6.5 6
Belgium 4.8 6.0 3
N=22
3.1.2.5 Criteria for NTO Budget Allocation

Budget allocation is a subject of major interest to many NTOs and a source of continuous discussion,
even when budget allocation systems are based on objective factors. Many criteria are applied. Within
the wider framework of this report on NTO structures and budgets, it is only possible to touch on this
subject briefly.
Judging from the NTOs replies regarding the importance of the six proposed criteria most often used
for budget allocation, by far the main one is the actual importance of the source market, expressed in
terms of the share of demand for the destination. Section 3.1.2.4 (budget allocation by source market)
shows the close correlation between the division of the marketing budget and tourism demand (Table
18). This does not mean that in all cases the main markets automatically get the lions share of the
marketing budget. Some NTOs may consider demand to be fairly secure and prefer to invest in new
markets.
Besides market share, other criteria are considered relevant by NTOs when allocating their marketing
budget to a specific source market. The available annual budget ranks second, followed immediately
by expected or proven market potential. It has to be stressed that although there is not complete
unanimity on the ranking of the first three criteria, the NTOs replies coincided more precisely when
they were asked to rank those criteria than when they were asked to rank the other three. Ranked fourth
are the estimated costs of the planned activities and in fifth place the financial support expected from
third parties in marketing activities. Operating costs were ranked last, although not all the NTOs regard
Tue, 18 Jul 2006 10:21:45
this as the least important criterion. Their sixth place in the ranking can of course partly be explained
by the fact that they are less flexible than the annual budget invested direct in out-of-pocket marketing
activities.
unknown
Table 20 The ranking in importance of the main criteria for budget allocation (from 1 - most
important to 6 - least important)
Present market Financial sup-

Estimated
importance Total available port of third
Operating costs of Market
(Share in budget for parties in
costs planned potential
present current year marketing
activities
demand) activities
Rank 6 4 1 3 2 5
N=10
Some other criteria for budget allocation were also mentioned:
adjustment of the market to corporate strategy (France);

the existence of important events organized by others in which the NTO is given an opportunity
to join or to co-organize or co-finance (Hungary);
tourism expenditure of source markets (Hungary);
return on investment (Spain).
3.2 International Destination Marketing by Regional and Local Tourism

Boards
The marketing of inbound tourism developed at national level by the NTO may be supported by
regions, cities and private industry. They may participate in the NTOs marketing activities, but some
also act independently of their NTOs. When regions and cities market themselves independently, their
objectives are comparable to those of NTOs and again may include private sector participation.
The private sector markets itself primarily for its own commercial benefit, but in so doing it may be
instrumental in furthering destination objectives. In practice, however, it is extremely difficult to collect
and analyse data on the marketing of inbound tourism by the private sector and to assess its support to
destination marketing in particular.
Collecting data on budgets for inbound tourism marketing carried out by regions and cities
independently of their NTOs is not easy. As the activities they carry out are however very often
comparable to those of NTOs, including major public financing, and as they often cooperate closely
with each other, NTOs have been asked for their knowledge in this area. As explained above, therefore,
the information focuses on the marketing of inbound tourism outside the framework of joint promotion.
Of the forty-nine reporting NTOs, nineteen said that regional and local tourism boards did not perform
marketing activities themselves to boost inbound tourism.
Of the remaining thirty that acknowledged the existence of separate inbound marketing activities by
regions and cities, twenty-six were able to provide some information, but usually in general terms only.
Twelve NTOs had information on these budgets, almost always consisting of estimates. The figures
relate to total budgets and include operating costs, domestic marketing, joint marketing with the NTO
and other responsibilities. It is consequently impossible to establish meaningful comparisons with the
budgets presented previous tables. Chapter VI contains additional information on each country.
Tue, 18 Jul 2006 10:21:45
Austria
The budgets of Regional Tourism Boards amount to a total of approximately 65 million euros.
No information is available on the budgets of local tourism boards.
unknown
Canada
All thirteen Canadian provinces and territories have their own regional tourism bureaus. For
fiscal year 1 April 2002 to 31 March 2003, total direct and indirect spending on tourism by
provincial and territorial government in Canada was approximately 1 billion euros. In addition,
and within each province or territory, cities, towns, municipalities or economic regions may also
have their own destination marketing organizations (DMO). No information is available on the
total spending for this level of government/economic entity.
Greece
All thirteen regions (52 prefectures) spend approximately 10 million euros on promotional
activities.
Italy
Each Italian region, contributes to promotion abroad through its tourism office. The total amount
of their yearly budget is 200-300 million euros.
New Zealand
New Zealand has twenty-six Regional Tourism Organizations (RTOs) which are responsible for
the promotion of their specific regions. RTOs are funded by local government bodies (city
councils or regional councils) but to a far lesser extent than Tourism New Zealand (TNZ). Their
funding would range from about 2.6 million euros to about 0.1 million euros, depending on the
size of the region. These RTOs are responsible for promoting to the domestic and the
international market. Only the large ones act alone in the international markets. Most
concentrate on the domestic market and also work on a cooperative basis with TNZ when
promoting overseas.
Poland
Marketing outside the NTO framework is mainly carried out by big cities. The available budget
represents about 10 per cent of the NTO budget.
Switzerland
There are about 150 local and regional tourist boards and other tourism partners like public
transport companies that invest in Swiss tourism marketing. Some of the bigger ones also act
individually in their priority markets, especially overseas (Asia). Their budgets range from 65,000
euros to (in very few cases) a maximum of 2 million euros.
Tue, 18 Jul 2006 10:21:45

unknown
Chapter IV
SWOT Analysis of
Like other branches of the economy, the tourism sector is faced with strengths, weaknesses,
opportunities and threats. NTOs were asked what they regard or perceive as the main factors affecting
their performance.
More specifically, NTOs were asked to state, in the light of their experience, which factors they
regarded as having strengthened or weakened the NTOs position and functioning and as having been
instrumental in successes or constraints. They were also asked what they regarded as opportunities or
as threats to their position and how they would best deal with them.
VisitBritain
Tue, 18 Jul 2006 10:21:45
Positive factors that have strengthened the NTOs position and functioning and contributed to its
success:
unknown
Operating as a sophisticated marketing agency and acting as a primary route to market for
the industry, especially Small and Medium-Sized Enterprises (SMEs);
Strong, focused strategic leadership;
Anticipating the need for changing the way we do things at an early stage;
Gaining the respect of stakeholders, such as other domestic tourist boards and the industry.
Remarkably enough, the answers of nine NTOs revealed that the factors that had strengthened their
position and future opportunities outnumbered the weaknesses and threats. This may suggest that NTOs
have witnessed more positive developments than negative ones and have solid grounds for optimism
about their future position and results. Experience has however shown that NTOs have sometimes been
too optimistic, underestimating any weaknesses detected and wrongly disregarding threats.
As the positive and negative factors are of different types, it is not possible to weight them for a
conclusive overall result. Nevertheless, it is interesting to see which factors have been mentioned by
the various NTOs, as they may prove informative for others seeking the appropriate path to success. It
will be noted that the replies are extremely varied, reflecting the differing situations from country to
country. As these differences make an analysis of each NTOs replies superfluous, only a general
overview is given, and the factors are ranked according to the number of times they are mentioned.
Wherever factors are country specific, they have been reformulated in more general terms.
Strenghts
The first aspect relates to the positive factors that have, in the NTOs experience, strengthened their
position and functioning and been instrumental in their success.
The major strengths mentioned by NTOs concern public/private relationships and the NTOs relations
with other public bodies.

Major strengths include:
cooperation with partners in the private sector (5);

cooperation with partners in the public sector (5);
more emphasis on (new) marketing strategies and marketing activities (4);
innovation of relevant aspects (sectors and products) (2);
the use of mega events in marketing and branding (2);
investments in branding (2);
increased awareness of tourism in the government (2);
strong social interest in tourism;
effective supervision of tourism offices abroad;
operating as a sophisticated marketing agency and acting as a primary route to market for industry,
especially SMEs;
strong focus on strategic leadership;
anticipating the need for changing the way things need to be done at an early stage;
high capacity to react to unexpected events;
a decentralization process that has encouraged a greater focus on tourism products, regions and
source markets;
Tue, 18 Jul 2006 10:21:45
to possess and create tailor-made products and services catering for the varied needs of the
tourism industry;
committed/motivated employees;
unknown
creation of a national promotion and tourism development fund with significantly increased
financial resources;
being the sole provider of international tourism statistics;
setting priorities;
new website;
contact and call centre;
product-based marketing approach;
being a stable and safe destination;
high quality of the tourism product.
Weaknesses
The second aspect relates to the negative factors that have, in the NTOs experience, weakened their
position and functioning and created constraints.
In this case, funding appears as the major concern mentioned by NTOs, followed by economic factors
in source markets.
Main weaknesses mentioned include:
limited or insecure funding (4);

economic uncertainties in source markets, exchange rate, fuel prices, etc;
limited coordination and cooperation (including structures) (2);
less satisfying relationships with regions (2);
limited competition in terms of air capacity in some source markets;
lack of a consequent and long-term tourism policy;
increased competition among destinations;
insufficient use of sophisticated new technologies;
non-existence of an integrated online reservation system;
reorganization of the NTA.
SWOT Analysis of National Tourism Organizations 39
Opportunities
The third aspect relates to the factors that NTOs, based on their experience, regard as opportunities for
their positioning and functioning and how they make use of them.
Newly emerging generating markets, as well as new product development, are the most important
opportunities mentioned by NTOs.
new markets and higher quality products - including events and MICE (7);
innovative and better focused marketing (tools, products, regions) (4);
changing consumer behaviour/new trends (3);
Internet use (3);
more servicing (consumers and partners) (3);
more tailor-made solutions (2);
introduction of an adequate evaluation system for finer tuning between the promotional budget
and results;
unifying the relationship with top trade organizations;
securing better government and industry collaboration;
the development of a national tourism strategy based on industry input for more effective
policy-making and promotional implementation.

Tue, 18 Jul 2006 10:21:45
Threats
Finally, the factors that NTOs, based on their experience, regard as posing future threats to their
unknown
positioning and functioning and how they counter them.
Again, limited or insecure funding (7) is considered to be the chief threat to the performance of NTOs.
Other threats include:
economic uncertainties (as in source markets, exchange rates, fuel prices) (3);
increased competition among destinations (3);
aviation aspects (3);
problems resulting from terrorism and health crises;
external developments in the industry that cannot be influenced by the NTO;
awareness of tourism by national governments;
new distribution channels and new business models (including offline);
the notion that national tourism promotion should be funded by the private sector alone.
Portuguese Tourism Institute (ITP)

The progress of the new business model online, the new distribution channels, the increase of
low-cost companies and the profound market changes are becoming a challenge that NTOs will
have to face up to.
new distribution channels;

new business models (even offline);
increasing new supply and new and competitive destinations;
US dollar/euro exchange rate;
possible budget restrictions.
unknown
Tue, 18 Jul 2006 10:21:45
Chapter V
Additional Benchmarking
Just as the relationship between NTO budgets and outlets is a tool for some comparisons, the same
applies to the information presented in tables 21, 22 and 23. Table 21 is meant to relate the total NTO
budget to some demand parameters, such as international tourist arrivals, and international tourism
receipts. In table 22, the investment by the national governments is analysed in comparison with these
same indicators. Finally, table 23 is included to be used as a reflection for considerations on the
differences between the countries that are included in this report.
For a good understanding it is important to note that the data on international arrivals differs per
country. Whenever possible the series international tourist arrivals at frontiers (TF) has been used. When
that was not the case the more approximate available series was used.
Tue, 18 Jul 2006 10:21:45
Republic of Korea, New Zealand, South Africa Visitors arrivals at frontiers (VF)
Switzerland Tourists arrivals in hotel and

unknown
similar establishments (THS)
Austria, Czech Republic, Denmark, Germany, Luxembourg, Tourist arrivals in all commercial
Netherlands, Romania, Slovakia, Slovenia, Sweden establishments (TCE)
Remaining countries Tourists arrivals at frontiers (TF)
As for international tourism receipts and its comparison with international tourist arrivals it is important
to note that in some countries inbound tourism by daytrips, and subsequently spending, has a
prominent share in the total tourism receipts, making thus the value of travel receipts per arrivals much
lower. This is, for example, the case of the Netherlands where the volume of international tourism
earnings by overnight stays is significantly lower than the total volume of international tourism
earnings. In this case, a total of 4 euro billion is estimated to be spend by overnight visitors (estimates
made by Central Bureau of Statistics within the Netherlands TSA framework) compared to a volume of
8 euro billion overall). This influences also comparisons on the relationship between NTO budgets and
international tourism receipts. Nonetheless, for comparability reasons the present report includes
international tourism receipts as calculated by all countries in the framework of the Balance of
Payments Services Credit.
For comparability reasons, data on the budgets of NTOs referrers to 2004 as this is the latest year for
which tourism data per country was available.

Table 21 NTO budgets, 2004 (euro)

International
NTO budget per
tourism receipts per NTO budget per
Country international tourist Series
1 euro NTO budget inhabitant (euro)
arrival (euro)
(euro)
Australia 18.7 TF 117 4.5
Austria 2.3 TCE 272 5.6
Canada 2.8 TF 196 1.6
Chile 0.9 TF 525 0.1
Colombia a) 2.1 TF 516 0.0
Cyprus 19.0 TF 38 57.4
Czech Repuplic 1.2 TCE 463 0.7
Denmark 8.2 TCE 166 5.1
Dominican Republic 3.1 TF 240 1.2
El Salvador 0.3 TF 1,048 0.0
Estonia 1.1 TF 347 1.4
Finland 9.3 TF 63 5.1
France 0.7 TF 669 0.8
Germany 1.5 TCE 715 0.4
Greece 7.1 TF 104 9.3

Tue, 18 Jul 2006 10:21:45
Guatemala 12.3 TF 42 1.2

Honduras 3.9 TF 121 0.4
Hungary 1.9 TF 137 2.4
unknown
India 3.9 TF 292 0.0

Ireland 9.0 TF 58 15.0
Italy 1.0 TF 762 0.6
Korea, Republic of 5.1 VF 153 0.6
Lithuania 1.5 TF 756 0.2
Luxembourg 3.4 TCE 990 6.4
Macao (China) 2.9 TF 250 53.8
Malaysia 6.0 TF 70 4.0
Malta 19.1 TF 28 55.5
Mexico 4.3 TF 98 0.8
Nepal 1.8 TF 272 0.0
Netherlands b) 2.9 TCE 295 1.7
New Zealand 14.5 VF 117 8.5
Norway 5.9 TF 117 4.6
Peru 10.2 TF 73 0.4
Philippines 5.0 TF 141 0.1
Poland 0.6 TF 550 0.2
Portugal 3.9 TF 138 4.3
Romania 1.6 TF 68 0.3
Slovakia 1.7 TCE 304 0.4
Slovenia 5.4 TCE 162 4.0
South Africa 7.8 VF 85 1.2
Spain 1.6 TF 428 2.1
Sweden 4.8 TCE 343 1.6
Switzerland 6.5 THS 197 5.7
Thailand 2.2 TF 317 0.4
Tunisia 6.1 TF 42 3.7
United Kingdom 2.6 VF 301 1.2
United States 0.0 TF 35,299 0.0
Average 2.8 256 0.6
N=47; Figures in italic refer to budgets of 2004 in comparison with data of 2003. See Annex VI for amounts in US dollars.
a) 2005 budget; b) see note in the beginning of the chapter.
Aditional Benchmarking 43
Table 22 Government budgets, 2004 (euro)

Government budget per International tourism
Government budget per
Country international tourist arrival receipts per 1 euro
inhabitant (euro)
(euro) government budget (euro)
Australia 15.6 140 3.7
Austria 1.6 413 3.7
Canada 2.0 267 1.2
Chile 0.4 1,107 0.1
Colombia a) 1.0 1,031 0.0
Cyprus 18.2 39 55.3
Czech Republic 1.2 463 0.7
Denmark 5.2 261 3.2
Dominican Republic 3.1 240 1.2
El Salvador 0.3 1,048 0.0
Estonia 1.1 347 1.4
Finland 5.7 102 3.1
France 0.4 1,239 0.4
Germany 1.2 908 0.3
Greece 6.7 110 8.8
Guatemala 12.3 42 1.2

Tue, 18 Jul 2006 10:21:45
Honduras 1.7 283 0.2

Hungary 1.8 148 2.2
India 3.9 292 0.0
unknown
Ireland 8.7 60 14.3

Italy 0.8 987 0.5
Korea, Republic of 5.1 153 0.6
Lithuania 0.9 1,206 0.1
Luxembourg 2.3 1,438 4.4
Macao (China) 2.9 250 53.8
Malaysia 6.0 70 4.0
Malta 16.0 34 46.5
Mexico 3.3 127 0.6
Nepal 1.8 272 0.0
Netherlands b) 2.0 434 1.2
New Zealand 14.4 118 8.4
Norway 2.0 342 1.6
Peru 1.3 595 0.5
Philippines 5.0 141 0.1
Poland 0.6 593 0.2
Portugal 3.6 151 3.9
Romania 1.6 68 0.3
Slovakia 1.6 318 0.4
Slovenia 4.7 185 3.5
South Africa 5.3 126 0.8
Spain 1.6 428 2.1
Sweden 3.6 462 1.2
Switzerland 4.0 320 3.5
Thailand 2.2 317 0.4
Tunisia 6.1 42 3.6
United Kingdom 1.9 420 0.9
United States 0.0 35,299 0.0
Average 2.3 308 0.5
N=47; Figures in italic refer to budgets of 2004 in comparison with data of 2003 . See Annex VI for amounts in US dollars.
a) Budget of 2005; b) see note in the beginning of the chapter.
Table 23 General comparisons on the relevance of tourism, 2004 (euro)

International International International
International tourism receipts tourism receipts tourism receipts as
Country tourist arrivals per inhabitant per arrival % of exports of
per inhabitant (euro) (euro) services
Australia 0.3 523 1,997 52.7
Austria 2.4 1,516 640 32.6
Botswana 0.1 35 414
Canada 0.6 318 541 27.4
Chile 0.1 55 491 19.1
Colombia 0.0 20 1,068 52.0
Cyprus 3.0 2,247 753 44.5
Czech Repuplic 0.6 327 553 43.4
Denmark 0.6 842 1,357 15.1
Dominican Republic 0.4 287 741 93.6
El Salvador 0.1 41 280 36.6
Estonia 1.3 483 370 28.5
Finland 0.5 318 583 23.9
France 1.2 543 437 37.7
Germany 0.2 270 1,104 21.9
Greece 1.3 894 680 39.2

Tue, 18 Jul 2006 10:21:45
Guatemala 0.1 53 524 75.5

Honduras 0.1 45 473 71.4
Hungary 1.2 325 267 44.4
unknown
India 0.0 3 1,142 13.8

Indonesia 0.0 15 799 86.3
Ireland 1.7 867 523 9.3
Italy 0.6 494 773 42.2
Korea, Republic of 0.1 95 787 14.3
Lithuania 0.2 182 1,114 34.3
Luxembourg 1.9 6,369 3,371 11.0
Macao (China) 14.3 10,268 719
Malaysia 0.7 280 420 45.5
Malta 2.9 1,577 542 57.2
Mexico 0.2 82 419 77.1
Nepal 0.0 7 521 72.5
Netherlands a) 0.6 505 855 14.2
New Zealand 0.6 997 1,696 63.6
Norway 0.8 543 689 12.1
Peru 0.0 31 747 62.6
Philippines 0.0 19 706 54.9
Poland 0.4 121 328 44.7
Portugal 1.1 595 539 54.2
Romania 0.2 18 106 13.2
Saudi Arabia 0.3 199 683
Slovakia 0.3 133 517 23.9
Slovenia 0.7 651 874 46.9
South Africa 0.1 102 666 70.9
Spain 1.3 903 679 53.8
Sweden 0.3 552 1,651 16.3
Switzerland 0.9 1,096 1,244 24.4
Thailand 0.2 127 687 55.5
Tunisia 0.6 154 256 57.9
United Kingdom 0.5 364 792 16.1
United Strates 0.2 204 1,299 23.3
Average 0.2 137 715 28.8
N=50; Countries in italic refer to a comparison for 2003 tourism data/See Annex VI for amounts in US dollars; a) see note in the begin-
ning of the chapter.
Chapter VI

Country Profile
Australia - Tourism Australia
1 Structure and Functioning
Position of the NTO within the national tourism structure
Australian Government
State Government
Minister for Tourism

Tue, 18 Jul 2006 10:21:45
State Tourism Department of Industry,

Tourism Australia
Organizations Tourism & Resources
unknown
Regional Tourism
Organizations
Relation with the National [ ] The execution of the NTO activities is based on a written contract with the
Tourism Administration NTA, in which the NTO has to account for the execution of its work
(NTA) formally
[ ] The execution of the NTO activities is based on an informal contract with
the NTA (i.e. understanding and incidental verbal or specific written
aspects)
[ X ] The execution of the NTO activities is not based on a contract with the
NTA
Areas of NTA involvement in [ M ] Establishment of marketing objectives

the NTO activities [ H ] Definition of the NTO annual budget
Level of involvement:
N= None
[ H ] Financial accountability control
M= Medium [ T ] Definition of the system of financial reporting
H= High
[ M ] Definition of the level of salaries
T= Total
P= Part of a formal agreement [ M ] Definition of staffing numbers
[ M ] Annual marketing activity planning
[ M ] Strategic marketing planning
[ M ] Evaluation of accomplishment of pre-formulated targets
[ N ] Definition on opening/closing of offices abroad
[ ] Other

Legal status [ x ] Wholly public

[ ] Public/private
[ ] Wholly private
As Tourism Australia is an Australian Government Statutory Authority it has a
totally public legal status.
Mission statement and/or Mission Statement

policy objectives Tourism Australia is a leverage marketing organization that has adopted the
vision to become and remain the best National Tourism Organization on the
planet.
Policy objectives
Sustainable economic benefit:
- jobs growth;
- growth in total visitor spend;
- growth in dispersal/regional visitor spend;
- increased international and domestic visitation (number of visitors, length of
stay, spend per person, spend per day).
Strategic objectives and areas Strategic objectives

of responsibilities
Tue, 18 Jul 2006 10:21:45
International marketing objective: To shift international consumers from prefe-

rence to visit Australia to an intention to visit Australia within the next 12
months.
unknown
Domestic marketing objective: To unlock the size of the overall domestic market
and increase the amount of leave taken by Australians and ensure that Austra-
lia is in their consideration set of preferred holiday destinations.
Create positive awareness of Tourism Australia activities.
Areas of responsibility
Marketing Australia as a premier tourism destination both domestically and
internationally.
Internal structure and organization
Managing Director
Scott Morrison
Executive Assistant
Corporate International Australasia Marketing Research & Corporate

Affairs Marketing Marketing Strategy Services
Richard Beere Andrew McEvoy Ian Macfarlane Geoff Bucley John Hopwood
Corporate Asia Australia Consumer Marketing Tourism Research Risk &

Communications (incl. VJP & Brand) Australia Administration
Americas New Zealand
Government Marketing Market Research Finance
Relations Japan Partnership Communications and Insights
Marketing Human Resources
Middle East e-Strategy Strategy &
Industry/STO & Marketing Planning Information
UK/Europe Relations Technology (IT)
Tourism Events Aviation &
International Niche Market Australia Analysis
Operations Development
Trade Events
National Tourism Organizations Country Profile 47
Tourism Australia Organizational structure & unit overview
Tourism Australia
Australasia International Marketing Strategy & Research Enabling
Domestic Int. Operations Consumer Tourism Research Corporate Corporate

(Developing Marketing Australia Affairs Services
New Zealand Markets/HQ)
Advertising & Strategic Insights Finance
Niche Markets/ UK/Europe Design
Experiences Tourism & Aviation Risk Mgmt &
Americas International Media Economics Administration
Trade Events
Japan Strategy & Marketing Corporate Planning Technology
Partnership
Marketing Asia Tourism Events Human
(North&Southeast) Australia Resources
Major Events Business Events
Number of staff Head Office 133

Offices Abroad 119
Tue, 18 Jul 2006 10:21:45
Number of offices abroad NTO offices 15

Contractual representations 3
Strategic planning Years 3

unknown
Level of importance:
Elements used
N= Not used
V= Very important [ V ] National tourism policy objectives
M= Medium importance [ V ] Needs of the tourism industry
L= Low importance
[ V ] Trends in tourism demand
[ V ] Research on market potential
[ M ] Research studies on image
[ V ] Available budget
[ V ] Operational costs
[ M ] Assessment of the actual tourism products
[ ] Other
Process Parties involved
Objectives established Minister for Tourism

Tourism Industry Tourism Australia Board
TA Executive Leadership Team
Strategies developed
TA Board & Executive Leadership Team

Market allocation Key strategy Promotional TA Regional General Managers
identified/budget changes strategies TA Senior Managers
allocated identified developed
TA Executive Leadership Team

TA Regional General Managers
Performance indicators identified and implemented
TA Senior Managers
Strategies evaluated TA Executive Leadership Team

Operational planning Years 1

Level of mportance:
Elements used
N= Not used
L= Low importance
[ V ] Research studies on image
[ V ] Assessment of the actual national tourism products
[ ] Other
Operational planning process Parties involved
Strategies developed Executive Leadership Team

(Key strategic challenges identified; Budgets allocated; Regional General Managers
promotional strategies developed) Senior Managers
Tue, 18 Jul 2006 10:21:45
Strategies entered into planning communication document; Senior Managers/Planning Managers

Budget entered into finance system
unknown
Strategies tested shared with other business units Senior Managers, Executive Leadership Team
Strategies refined/Budgets amended Senior Managers, Executive Leadership Team,

Planning Managers
Draft Operating Plan completed and checked Planning Managers
Draft Operating Plan submitted to TA Board TA Directors
Feedback received from TA Board regarding required amendments
Amendments made to Operating Plan Head Office Planning Manager
Draft Operating Plan submitted to Minister for Tourism Managing Director
Feedback received from Minister for Tourism regarding required Minister for Tourism
amendments
Amendments made to Operating Plan Head Office Planning Manager
Operating Plan re-submitted to Minister for Tourism Managing Director
Approval received from Minister
Annual Operating Plan document distributed/ Executive Leadership Team

strategies implemented Regional General Managers
Senior Managers
Use of research in marketing [ 1 ] Data collection on the actual level of demand (arrivals, nights, distribution
planning by region and/or season, share by nationality, etc)
Ranking from 1 (most important) to 6
(least important)
[ 3 ] Data collection on the structure of demand segments (e.g. age, income,
motives, etc)
[ 6 ] Research on Image
[ 4 ] Measuring marketing effectiveness
[ 5 ] Trends and the development of potential demand
[ 2 ] Special segmentation studies
[ ] Other
2 BudgetN
Total budget (2005) 91 euro million / US$ 113 million
Budget sources National government 82%

Other sources 18%
Budget allocation Marketing 70%

Structure / Operational 30%
Tue, 18 Jul 2006 10:21:45
Financing system (budget [ X ] Budget comes from the general government budget
from the national [ ] Budget comes from the general government budget, plus from specific
government) tourism taxes
unknown
[ ] Budget comes only from specific tourism taxes

[ ] Budget comes from the general government budget, plus from other
sources (such as gambling, tax free receipts, VAT, etc)
Indicators impacting on No impact of variables

variable financial funds
Criteria for budget allocation [ 6 ] Operating costs

(least important)
[ 4 ] Estimated costs of planned activities
[ 1 ] Present market importance (share in present demand)
[ 2 ] Market potential
[ 3 ] Total available budget for current year
[ 5 ] Financial support of third parties for marketing activities
[ ] Other
Share in marketing
budget (%)
Budget allocation by Advertising (radio, TV, print and other) 59

promotional activity Tourism fairs 3
Tradeshows/workshops 5
Internet 2
Press trips 3
Public Relations 6
Familiarisation trips (trade) 0
Share in marketing
budget (%)
Support to the industry (e.g. cooperative marketing 5

with TOs, etc)
Information (incl. costs in the head office and offices 5
abroad, brochures and other printing material, and
mailing costs )
Market research 9
Other 3
Source markets Share in marketing

(share in inbound tourism, %) budget (%)
Budget allocation by main New Zealand (20%) 3

markets Japan (13%) 18
United Kingdom (13%) 17
United States (8%) 16
China (6%) 7
Tue, 18 Jul 2006 10:21:45
3 Relationship NTO / Other Tourism Bodies

unknown
Relationship with regional and [ ] Contractual

local tourism boards [ X ] Formal (e.g. according to laws, regulations, etc)
[ ] Informal
In developing its activities Tourism Australia is required, under law (Tourism
Australia Act 2004, Section 4.a), to consult with State and Territory tourism
authorities.
Marketing activities by State Tourism Organization budget allocations in 2004/05 were: New South
regional and/or local tourism Wales: AU 49.6 million, Queensland: AU 42.9 million, Victoria: AU 42.3 million,
boards beyond the NTO South Australia: AU 41.10 million, Western Australia: AU 39.4 million; Australian
Capital Territory: AU 18.4 million.
Relationship with the private [ X ] Contractual

sector [ ] Formal (e.g. according to laws, regulations, etc)
[ X ] Informal
In some cases, Tourism Australia contracts with the private industry on coope-
rative marketing campaigns though in other cases the relationship is informal.
Relationship with Tourism Australia consults with a range of government and industry partners
consultative/advisory bodies to seek joint marketing opportunities and share information and participation
in a number of industry and government forums that aim to strengthen the
relationship between the two parties.
Tourism consultative/advisory bodies with which Tourism Australia is currently
involved include: Australian Standing Committee on Tourism, Industry Imple-
mentation Advisory Group, National Tourism and Aviation Advisory Group,
Tourism in Australias Protected Areas Forum, National Incident Tourism Res-
ponse Plan, and State Tourism Organization CEO Forums.
Chile - Servicio Nacional de Turismo (National Tourism Service)

Position of the NTO within the The National Tourism Service liaises with the executive branch through the
national tourism structure Ministry of Economy, Development and Reconstruction. It works in a coordina-
ted manner with other public entities such as the Ministry of Foreign Affairs
through Direcom and Pro Chile; with the Ministry of Public Work to propose the
construction, expansion or improvement of infrastructure and facilities that
have to do with the development of tourism activity; with the National Environ-
mental Commission (CONAMA), for information in environmental impact stu-
dies; the Ministry of National Defence for the declaration of Sites and Areas of
Tourism Interest and the study of concessions at beaches, and the banks of
rivers and lakes; as well as other bodies whose work is related to the develop-
ment of tourism in Chile.
Ministry of Economy
Jorge Rodriguez Grossi

Tue, 18 Jul 2006 10:21:45
Subsec. SERNATUR
SERNA Oscar Foreign
CORFO Economy INE SERNAC SEC SERCOTEC
unknown
Fisheries Santelices Investment

and Fisheries Altamirano
Management Control
Secretariat
Head of Cabinet
Communication and RP
Internal Auditing
Development Subdir. Regions Subdir. Legal Affairs Operations & Control

Subdir.
Senior
Holidays
Programme Regional Metropolitan Local
Tourism Area Tourism Administrative Dept.
Directorates (12) Office Offices (2)
Planning Promotion
Dept. Dept.
Local Tourism
Informatics Offices (6)
Regional directorates Local offices

I Tarapac region VII Maule region (2) Arica and Valdivia (autonomous)
II Antofagasta region VIII Bio Bio region (6) Isla de Pascua
III Atacama region IX La Araucana region Chilln
IV Coquimbo region X Los Lagos region Osomo
V Valparaso region XI Aisen region Ancud
VI OHiggins region XII Magallanes region Puerto Natales
Palena
Tourism Administration (NTA) NTA, in which the NTO has to account for the execution of its work
formally
aspects)
NTA
Areas of NTA involvement in [ H ] Definition of the NTO annual budget

the NTO activities [ H ] Financial accountability control
N= None
[ H ] Definition of the system of financial reporting
M= Medium [ N ] Definition of the level of salaries
H= High
[ N ] Definition of staffing numbers
T= Total
P= Part of a formal agreement [ H ] Annual marketing activity planning
[ H ] Strategic marketing planning
[ H ] Evaluation of accomplishment of pre-formulated targets
[ H ] Definition on opening/closing of offices abroad
[ T ] Other: Definition of marketing objectives, namely:

Tue, 18 Jul 2006 10:21:45
General Objective
To turn Chile into a world-class tourism destination, observing the principles of
unknown
sustainable tourism, and integrating the actors of the commercialization chain

in a coordinated manner, in both the supply of tourism products and services
and the demand of intermediaries and potential tourists."
The specific objectives are:
a) To increase receipts from inbound tourism;
b) To increase the number of tourists from markets in which Chile has
competitive advantages (due to its products and lower cost);
c) To reduce the marked demand of markets with high foreign exchange
revenues in favour of those with greater influence of arrivals of visitors
from abroad;
d) To consolidate demand presence and the diversity of origin markets in
order to reduce vulnerability to economic situations at the regional level;
e) To restore the flow of Argentine tourists;
f) To carry out promotional actions in accordance with the needs of the
principal markets;
g) To strengthen Chile's positioning as a destination for recreational tourism,
meetings tourism and incentive trips;
h) To maximize publicity or presence in mass communication media for the
destination;
i) To increase the share of regions that have fund earmarked for tourism
development.
Legal status [ X ] Wholly public

[ ] Public/private
[ ] Wholly private
The National Tourism Service was created through Law Decree No. 1.224 of
1975, and its functions were defined as Research, Planning, Development, Pro-
motion, and Coordination of the national tourism activity. To this end it has a
National Directorate and Local Offices.

policy objectives To achieve coordinated and harmonious action by all the actors involved in the
development of the tourism activity, taking advantage of the synergies created
by public-private action in tourism in order to consolidate the activity, encoura-
ging the generation of new products, innovating in the development of new
markets, improving the quality of tourism services, promoting their growth,
quantitatively and qualitatively improving tourism promotion and the quality of
product supply, boosting investment, safeguarding the country's natural and
cultural heritage, and ensuring their sustainability.
Policy objectives
To propose to the Government the tourism policy for the country and to
prepare plans and programmes for tourism development in accordance with
such policy and in keeping with the national development plans and policies;
To prepare, through the Regional Tourism Directorates, the plans,
programmes, and projects for tourism development for each region and to
harmonize then with national plans and programmes;
To ensure compliance of the national tourism policy;
To orient, coordinate, and encourage activities of the public and private
sectors toward the achievement of tourism plans, programmes, and projects;
Tue, 18 Jul 2006 10:21:45
To propose to the public sector and to promote in the private sector, the
construction, expansion, or improvement of infrastructure and facilities that
have to do with the tourism activity whether directly or indirectly;
unknown
To disseminate, both within the country and abroad, the tourism attractions
and strengths of Chile, through the publication of magazines, brochures,
guides, notices and in general, the use of any publicity media;
To inform about scholarships for tourism studies and to act in the training of
the human resources required by tourism activity;
To ensure the veracity of the information on tourism values disseminated
nationally and internationally by the private sector and by public entities that
provide tourism services, in the form established by the regulations;
To negotiate the establishment of tourism information offices, both in the
country and abroad, having the capability in the latter case, to designate
representatives to carry out activities related to the tourism promotion of the
country;
To declare as National Holidays those events that, due to their importance,
constitute an instrument of national or international tourism promotion;
To stimulate the development of meetings tourism and other events that
may be of tourism interest;
Encourage the granting of incentive loans for tourism activities, and to
inform public institutions and bodies about applications for special loans for
tourism development;
To inform about tourism patent applications and to demand their
cancellation in cases determined by the Regulation;
To describe, register and classify companies, entities and establishments that
provide tourism services. (Text modified by D.L. N 3.477, of 1980, which
eliminated the function of control of tourism activity);
To authorize the temporary use of private residences for tourist
accommodation;
To join international tourism bodies and to participate in the meetings they
hold, when warranted by their importance;
To declare zones and centres of national tourism interest;

To inform on applications for the concession of seaside beaches and lakeside
and riverbank areas for the exclusive use of private individuals in accordance
with the corresponding regulations;
To cooperate with, and advise, the pertinent bodies regarding the provision,
conservation, valorisation, and operation of artistic, cultural, historical and
natural heritage of tourism interest;
To encourage the simplification of rules and procedures required for the
entry, stay, and departure of tourists in the country, proposing and
coordinating with the services responsible for the respective facilitation
measures;
To enter into agreements with natural or legal persons or with national,
international or foreign organizations, whether public or private, for the
purpose of promoting and facilitating tourism exchange and development;
To join and take part in the establishment and constitution of private-law,
non-profit corporations, whose main aim is the tourism promotion of Chile
abroad. Likewise, the Service has the power to participate in the dissolution
and liquidation of the entities of which it is a part, in accordance with the
statutes of such entities;
Tue, 18 Jul 2006 10:21:45
The Service, through its National Director or through his duly authorized
representatives, may participate in the management and administrative
organs established by the statutes of such entities, serving in posts that may
not be remunerated, and to make ordinary or extraordinary contributions
unknown
according to the resources allocated annually in its budget for such

purposes. The extraordinary resources annually contributed by the Service to
such corporations may only be used to fund programmes and projects
specifically aimed at tourism promotion, including all operational
expenditures deriving from them. The extraordinary contributions provided
by the Service may not be allocated to finance the ordinary administrative
expenditure of the corporations, such as remuneration for personnel, office
space rent or other similar costs;
In any case, the amount of resources that the Service provides to the
financing of tourism promotion programmes or projects, referred to in the
above points, may not exceed 50 per cent of its total value. However, in
qualified cases, the National Director of the Service, through a justified
decision, may authorize amounts that exceed such percentage;
The maximum amount of resources allocated to the purposes of the current
law will be determined annually in the Budget Law of the Nation;
To issue rules and instructions relative to tourism activity;
To propose annually to the President of the Republic the Income and
Expenditure Budget of the Service, which will be approved by supreme
decree;
To acquire or sell tourism promotion materials in accordance with the rules
established by the regulations;
To contract with, or engage, natural or legal persons, and public or private
organizations, whether national, foreign or international, for the
collaboration or coordination required for the optimum performance of the
functions of the Service;
To sell or grant concessions to goods that form part of its assets for the
purpose of their use in national tourism activity;
To conclude contracts and execute acts aimed at the achievement of its aims.

of responsibilities To generate and disseminate tourism information that is truthful, timely and
pertinent, contributing to strengthening the development of the sector and
guiding consumers of tourism products;
To position exportable tourism products in the international market,
strengthening Chile's tourism brand, tending to increase the resources for
promotion, orienting actions toward diversification to new markets and the
consolidation of existing markets, in alliance with the public-private sector;
To encourage the practice of domestic tourism, through the design and
execution of promotional actions and the creation and reinforcement of
public and private entities for the development of types of tourism and
tourism aimed at specific segments;
To contribute to the development of sustainable products and services in
priority tourism destinations and protected wilderness areas, promoting
infrastructure projects;
To raise the quality of tourism services through the design and execution of
actions in the areas of regulation, infrastructure, human resources, and
tourism awareness;
To strengthen public-private coordination and collaboration, orienting the
Tue, 18 Jul 2006 10:21:45
priority setting of tourism policies, programmes and projects, especially in

important areas such as development and investment.
Internal structure and The National Director of Tourism is in charge of the senior management and
unknown
organization administration. He is also to legally represent the Service, of which he is the top
chief.
In the National Directorate, the staff is distributed in the areas of technical sup-
port, called Development Sub-directorates and Regional Sub-directorates, and
in the areas of administrative and legal support corresponding to the Sub-direc-
torates of legal affairs.
The Development Sub-directorate is the unit through which the National Tou-
rism Service carries out the functions of research, planning, development and
promotion of national tourism, and is the Sub-director of the technical manage-
ment of the institution.
The Regional Sub-directorates are the units through which the National Direc-
torate coordinates with the Regional Directorates and Local Tourism Offices.
Legal Affairs, is the unit whose main responsibility is to ensure the legality of the
acts carried out by the Service, and to serve as the legal counsel of the National
Director of Tourism and through its lawyers, to attest and represent the Service
in trials.
The Regional Directorates and Local Offices, for their part, represent the Service
in their respective regions and provinces, and carry out in such regions and pro-
vinces the programmes of work defined in the Development Strategy of SERNA-
TUR.
For its part, the Sub-directorate of Operations and Control is the unit that is res-
ponsible for the administrative and financial management of the Service.
The Sub-directorate of Operations and Control, has an Administrative Depart-
ment whose main functions are:
To propose and implement the general administration and personnel
management policy of the Service;
To advise the National Director on all matters of administrative nature;
To plan and carry out studies aimed at administrative rationalization and
modernization, through the systematic analysis of structure, procedures,
methods and systems;
To exercise control over the National Directorate Staff and the Regional Staff
of the National Tourism Service, carrying out the instructions given by the
National Director to fill vacancies and make appointments;
In general, to carry out all administrative procedures and actions entrusted to
it by the National Director;
Following different processes for optimizing the structure in order to face
new modernizing challenges, and above all, to support de-concentration,
SERNATUR has the structure described below;
The Development Sub-directorate is composed of the Planning Department
and the Promotion Department.
Planning Department
To draw up and propose the objectives, policies, strategies and national
plans for the development of the tourism sector, in accordance with the
guidelines of the Supreme Government;
To participate jointly with the Regional Directorates in the definition and
formulation of regional policies, plans and programmes, and local
operational plans, in line with national policies and strategies;
To harmonize regional plans, programmes and projects with the national
tourism development policy;

Tue, 18 Jul 2006 10:21:45
To define and delimit tourism areas, generating special systems structured

upon poles or centres of development which contribute to organize and
galvanize national tourism;
unknown
To draw up plans for the physical organization of zones and centres of

national tourism interest;
To define plans, instruments and rules for land use and the physical
development in areas of tourism importance, in accordance with the needs
of the sector;
To inform on applications for lots and subdivision in rural areas of a tourist
nature;
To carry out the analysis, quantification and evaluation of tourism resources
and tourism support infrastructure;
To carry out studies and research of economic nature related to the
development of the tourism activity at the national and international levels;
To research, compile and process statistical information related to the
tourism activity.
Department of Promotion and Development
To propose tourism promotion policy, plans and strategies;
To inform and coordinate the Service's promotional strategies and actions
with the different sectors that intervene directly or indirectly in tourism
promotion, at the national and international levels;
To analyse the structure, characteristics, and functioning of markets of
tourism interest, in order to orient tourism promotion policies and strategies;
To create, whether directly or indirectly, promotional materials such as
advertising, brochures, booklets, books, maps, photographs, posters, film
documents, audiovisual materials and others, without prejudice to the
stipulations of Article 22 No. 3 of these Regulations;
To carry out, whether directly or indirectly, advertising messages and
campaigns for tourism promotion;
To distribute promotional materials directly in order to promote the
country's tourism products;
To supervise and coordinate the functioning of tourism information offices;

To organize and coordinate familiarization visits abroad carried out by the
Service and to collaborate in similar visits by related entities from the
markets to provide them with direct knowledge of the tourism products on
the part of service providers, intermediaries, distribution agents, etc;
To coordinate the policy of tourism training and capacity-building at the
national level;
To carry out all studies and actions necessary for the implementation and
execution of the tourism promotion policy and strategy;
To participate, directly or indirectly in seminars, talks, etc.
National Directorate
Communication and PR Internal Auditing
Development Subdir. Legal Affairs Regional Subdir. Operations and Control

Subdir.
Tue, 18 Jul 2006 10:21:45
Administrative Dept.
Planning Promotion
unknown
Dept. Dept. Regional Directorates

(12)
Local Offices (8)

Offices Abroad 2


Elements used No information available

Elements used No information available
Use of research in marketing [ 1 ] Data collection on the actual level of demand (arrivals, nights,
planning distribution by region and/or season, share by nationality, etc)
(least important)
motives, etc)
[ ] Other
2 BudgetN
Total budget (2005) 1.8 euro million / US$ 2.3 million

Other sources 0%

Structure/Operational 10%
Financing system (budget [ ] Budget comes from the general government budget
[ X ] Budget comes from the general government budget, plus from other
sources: percentage of embarking tax paid by every tourist arriving in the
country
Indicators impacting on [ ] International tourism receipts

variable financial funds [ ] Total receipts in tourism taxes
[ ] Receipts in tourism taxes from international tourists

Tue, 18 Jul 2006 10:21:45
[ ] Numbers of arrivals at registered accommodations in total

[ ] Number of arrivals at registered accommodations of international
tourists only
unknown
[ ] Numbers of nights at registered accommodations in total

[ ] Number of nights at registered accommodations of international tourists
only
[ X ] Other variables: Tourist arrivals to the country
Share in marketing
budget (%)
Budget allocation by Advertising (radio and TV) 4

promotional activity Advertising (print and other) 4
Tourism fairs 25
Internet 1
Press trips 6
Public Relations 2
Support to the industry (e.g. cooperative marketing 17
with TOs, etc)
mailing costs )
6
Market research
2
Other
Share in marketing
budget (%)
Budget allocation by product Sun and Sea

Cultural Tourism (incl. City Tourism) 17
Touring 25
Active Tourism and Sports 25
Countryside/Mountains/Rural 25
MICE and Events 2
Other segments 6

Budget allocation by main United States (9%) 12

markets Germany (3%) 14
Spain (3%) 14
Brazil (7%) 10
Others (78%) 50
Tue, 18 Jul 2006 10:21:45

unknown
Relationship with the private [ ] Contractual

sector [ X ] Formal (e.g. according to laws, regulations, etc)
[ ] Informal
Through the Corporacin de Promocin Turstica de Chile (Chile Tourism Pro-
motion Corporation), the Servicio Nacional de Turismo (National Tourism Ser-
vice) can include non-profit private-law corporations, composed of tourism
entrepreneurs and tourism associations.
Forming part of this Corporation are tourism-linked private entities as well as
the government represented by SERNATUR. The Corporacin de Promocin
Turstica de Chile unifies the promotional efforts of the private and public sec-
tors, in promoting Chile as a tourism destination in international markets. Its
work consists in channelling these efforts in such a way as to achieve the best
cost-benefit ratio in the promotion of the country abroad. Its aim is the gene-
ric promotion of the country as a tourism destination in conjunction with the
commercialization of the member tourism enterprises.
Relationship with The National Tourism Service liaises with the Consultative Commission for Tou-
consultative/advisory bodies rism and the Commission of Ministers for Tourism, on which the Executive
Committee of the Tourism Sector, chaired by the Service, depends. The func-
tion of the Consultative Commission for Tourism is to serve as a meeting point
for the Service, entrepreneurs, higher education institutions, non-governmen-
tal organizations, and other entities of the sector, in order to disseminate poli-
cies, plans and programmes developed by the Service, and to gather the opi-
nions, concerns and ideas of the tourism private sector.
France - Maison de la France

Position of the NTO within the Maison de la France (MDLF) is the French NTO under the authority of the
national tourism structure Ministry for Tourism.
The Direction du Tourisme is the central government body responsible for
national tourism administration.
The General Assembly of Maison de la France is chaired by the Ministry for Tou-
rism and the Minister for Tourism is part of the Board of Directors of Maison de
la France.
Relation with the National [ X ] The execution of the NTO activities is based on a written contract with the
formally
aspects)
[ ] The execution of the NTO activities is not based on a contract with the
Tue, 18 Jul 2006 10:21:45
NTA
Areas of NTA involvement in [ H ] Establishment of marketing objectives

the NTO activities
unknown
[ H ] Definition of the NTO annual budget

N= None
[ T ] Financial accountability control
M= Medium [ N ] Definition of the system of financial reporting
H= High
T= Total
P= Part of a formal agreement [ H ] Definition of staffing numbers
[ N ] Annual marketing activity planning
[ N ] Strategic marketing planning
[ ] Evaluation of accomplishment of pre-formulated targets
[ H ] Definition on opening/closing of offices abroad
[ ] Other
Legal status [ ] Wholly public

[ X ] Public/private
[ ] Wholly private
Maison de la France is a grouping of economic interests, so the State, the local
tourism authorities and the private sector are united in one public/private orga-
nization, to promote together France abroad as a tourism destination. ( Cf legal
status article 3).
More than 1,300 organizations are members of MDLF and constitute the Gene-
ral Assembly.

policy objectives Maison de la France s role is to promote and market France and French products
and services abroad.
MDLF is also responsible selectively for promoting French products or destina-
tions in France in case of one off situation.

of responsibilities Improving the attractiveness of France as a destination by revitalising its
image;
Creating value and boosting income from tourism;
Improving the promotion of tourism to all French regions;
Breaking down the seasonal aspect of French tourism.
MDLF is also responsible selectively for promoting French products or destina-
tions in France in case of one off situation.
Strategy and Forecasts CEO
Communication
New General
Marketing and Finances
Technologie Secretariat Partnerships
* Marketing * Internet * Human Resources

Tue, 18 Jul 2006 10:21:45
* Logistics * Databases * Legal Affairs

* Business travel * CRM * Facilities
* Products * Techniques
unknown
* Segments
* Culture
* Events

Offices Abroad 89


Process
N= Not used
V= Very important The Maison de la France 2005-2010 marketing strategy has been drawn up in
M= Medium importance the context of a very wideranging participatory approach.
L= Low importance The process has been made possible through the involvement of members of
MDLF, the Marketing Committee, the Directors of MDLF and the others Official
Bodies (AFIT).
Then the strategy has been approved by the Minister for Tourism.
The establishment of objectives, the definition of main strategic lines, products,
markets and of main promotional activities are included in this process.
Elements used
[ V ] National tourism policy objectives
[ V ] Needs of the tourism industry
[ M ] Available budget
[ ] Operational costs
[ M ] Assessment of the actual national tourism products
[ ] Other

Process
N= Not used
V= Very important The first step is the definition of main strategic lines. The second one is the esta-
M= Medium importance blishment of objectives, then the definition of markets. Afterwards, the main
L= Low importance promotional activities are defined, and then the products.
Elements used
[ ] Other
Tue, 18 Jul 2006 10:21:45

(least important)
motives, etc)
unknown
[ ] Measuring marketing effectiveness

[ ] Special segmentation studies
[ ] Other
2 BudgetN
Total budget (2005) 51 euro million / US$ 63 million

Other sources 46%

from the national government) [ ] Budget comes from the general government budget, plus from specific
tourism taxes

Criteria for budget allocation [ ] Operating costs

Ranking from 1 (most important) to 6 (least
important)
[ ] Estimated costs of planned activities
[ ] Other: adjustment of the market to the corporate strategies
Share in marketing
budget (%)
Budget allocation by Marketing activities aimed at the public 60

promotional activity Marketing activities aimed at tourism professionals 30
PR and Press 5
Market research 5
Budget allocation by product Sun and Sea 20

Touring 10
MICE and Events 25

Budget allocation by main Germany (18%) 11.6

Tue, 18 Jul 2006 10:21:45
markets United Kingdom (20%) 15.6

United States (14%) 12.6
Belgium (12%) 10.1
unknown
Italy (10%) 7.5

Relationship with regional and [ X ] Contractual
local tourism boards [ ] Formal (e.g. according to laws, regulations, etc)
[ ] Informal
Maison de la France is a grouping of economic interest based on partnership
with both local tourism authorities (Comits rgionaux et dpartementaux du
tourisme) and private organizations involved in tourism and leisure activities.
New members have to be approved by the Board of Directors (a special com-
mission).
All the local tourism authorities at the regional level (Comits rgionaux du
Tourisme) are members of MDLF. Each year they have to pay a fee and in return
they can take part in all promotional activities arranged by MDLF.
Marketing activities by Each Regional Tourism Board, departmental tourism boards and tourist offi-
regional and/or local tourism ces are funded, but the relevant regional or local authority to carry out promo-
boards beyond their NTO tional international marketing activities.
They have at their disposal around 50 million euros in total for international
marketing (excluding domestic marketing).
Most of these bodies are members of Maison de la France and participate in
promotional actions with Maison de la France according to their strategy.

[ X ] Informal
As MDLF has been created to be a membership organization, all private orga-
nization involved in the field of tourism and leisure activities and wishing
taking part in promoting France abroad can become a member of MDLF (after
agreement by the Board of Directors). The payment of an annual fee is the tes-
timony of the contractual relationship between MDLF and its members.
Relationship with Maison de la France is a member of the Conseil National du Tourisme, advisory
consultative/advisory bodies body to the Minister for Tourism.
Tue, 18 Jul 2006 10:21:45

unknown
Hungary - Hungarian National Tourist Office (HNTO)

Position of the NTO within the The Hungarian National Tourist Office (HNTO) is the national tourism marketing
national tourism structure organization which has a single shareholder, the Prime Ministers Office. The
Minister without Portfolio in Charge of Regional Development and Convergen-
ce within the Prime Ministers Office exercises the owners rights of the HNTO.
As of January 1, 2005, the Hungarian Tourist Authority (HTA) has the right to act
on behalf of the shareholder of the Hungarian National Tourist Office.
The HNTO was set up as a legal successor of the National Tourist Office (Orsz-
gos Idegenforgalmi Hivatal, OIH) on March 1, 1994 under the name Hungarian
Tourism Service (Magyar Turisztikai Szolglat). The name was modified to Hun-
garian National Tourist Office on January 1, 1996.
formally

Tue, 18 Jul 2006 10:21:45

aspects)
unknown
NTA
The Hungarian Tourist Authority has a delegate in the Board of Directors and in
the Supervisory Committee of the HNTO. This way the HTA can participate in the
decision-making, and main professional issues i.e. long term and short term
planning, adopting of the annual marketing plan, following up the marketing
plan, management of the financial and human resources, selection of the repre-
sentatives abroad, etc.
Areas of NTA involvement in [ M ] Establishment of marketing objectives

N= None
M= Medium [ H ] Definition of the system of financial reporting
H= High
T= Total
P= Part of a formal agreement [ P ] Definition of staffing numbers
[ M ] Definition on opening/closing of offices abroad
[ ] Other

[ ] Public/private
[ ] Wholly private
The HNTO is the national tourism marketing organization which has a single
shareholder, the Prime Ministers Office.

policy objectives The main objective of the HNTO is to contribute to the increase of receipts rea-
lized in Hungary from domestic and inbound tourism by promoting Hungarys
tourism attractions and services. That helps to create jobs in the Hungarian eco-
nomy, contributes to the balanced development of the GDP of the country and
influences favourably the current account of the balance of payments.

of responsibilities - Building and improving the image of Hungary and raising the awareness of
the country as a tourism destination in Hungary and abroad;
- PR and promotion in Hungary and abroad;
- Providing tourist information to domestic tourist and foreign visitors staying
in Hungary, to potential travellers, to decision makers and to Hungarian and
foreign tourism professionals;
- Supporting regional cooperation in tourism marketing;
- Providing unbiased assistance to help Hungarian tourism companies to
penetrate domestic and foreign markets.
Promoting domestic and inbound tourism.
Tue, 18 Jul 2006 10:21:45
Internal structure and The management of the HNTO is compiled by the Board of Directors and the
organization Supervisory Committee.
The HNTO performs its marketing activities with the help of the head office, its
unknown
domestic network (including regional marketing directorates (7) and tourist

project offices (2), and the Tourinform network (app. 150 offices), and with the
help of its representations abroad (23 offices in 2005). The marketing activities
are co-ordinated and supervised by the Marketing Directorate at the head offi-
ce.
According to the decentralization process beginning Autumn 2004, tourism
products (core products i.e. health tourism, MICE, cultural and activity tourism),
tourist regions and foreign representations gained more responsibility and
tools/resources which resulted in more focused and more efficient marketing
activities.

Offices Abroad 22


Process
N= Not used
V= Very important After analysing the current situation of tourism (e.g. macroeconomic and
M= Medium importance social environment, main influencing factors/trends, international tourism
L= Low importance trends, domestic demand, etc), objectives are proposed (by the representati-
ves regarding their markets, by regions, by product managers and by the rese-
arch department) and adopted (by the management/General Manager).
According to a scheme, representatives and tourist regions contribute to the
strategic plan regarding their competence.
The draft of the strategic plan is reviewed and supervised by the tourism trade
(main trade associations, consultants, etc). The recommendations and further
suggestions are included then in the strategic plan.
Elements used
[ V ] Other: Evaluation of the marketing activities

Process
N= Not used
V= Very important After analysing the current situation of tourism (e.g. macroeconomic and social
M= Medium importance environment, main influencing factors/trends, international tourism trends,
L= Low importance domestic demand, etc), objectives are proposed (by the representatives regar-
ding their markets, by regions, by product managers and by the research
department) and adopted (by the management/General Manager).
Tue, 18 Jul 2006 10:21:45
According to a scheme, representatives and tourist regions contribute to the

marketing plan regarding their competence. This planning process includes the
marketing tools and concrete activities. The draft of the marketing plan is revie-
wed and supervised by the tourism trade (main trade associations, consultants,
unknown
etc). The recommendations and further suggestions are included then in the
marketing plan.
Furthermore, the SQE based database about the marketing activities is updated
which contains all the marketing activities and cooperation opportunities for
the trade/private sector/tourism companies.
Elements used
[ V ] Others: New marketing tools, innovation; cooperation with the travel
trade; evaluation of the marketing activities.
(least important)
motives, etc)
[ 7 ] Other: Analysing the environment (mainly macroeconomic)
[ 8 ] Other: Dissemination of the research results to the travel trade and to the
general media (e.g. publications Tourism in Hungary in year XXX and
Turizmus Bulletin quarterly review, direct mail, Internet, presentations,
press releases, personal consultation/information providing).
2 BudgetN
Total budget (2005) 17.6 euro million / US$ 22 million

Other sources 10%

Revenues from marketing activities (e.g. participation fees in fairs & exhibi-
tions in the NTOs stand, advertising in the NTOs brochures). Others (e.g.
receipts from tender documents, VAT, financial receipts from currency
exchange).
Tue, 18 Jul 2006 10:21:45


unknown

important)
[ 6 ] Other: Important events organized by other public institutions (e.g. Year
of Hungarian Culture organised by the Ministry of Culture and Heritage)
where the HNTO has a good opportunity to join and/or also has an
outstanding role as co-organizer/co-financer
[ 7 ] Other: Tourism expenditure of the source markets
Share in marketing
budget (%)
Budget allocation by Advertising (radio, TV, print and other) 16

promotional activity Tourism fairs 22
Internet 6
Press and trade familiarisation 10
Public Relations 6
Support to the industry 4
(e.g. cooperative marketing with TOs, etc)
mailing costs)
Share in marketing
budget (%)
Market research 1.5

Other 9.6
Note: according to the decentralization process in
autumn 2004, the different marketing activities/tools
are mostly managed by the departments responsible
for product development, regional marketing directo-
rates and representations abroad.
Budget allocation by product Sun and Sea 5.0

Cultural Tourism (incl. City Tourism) -
Touring -
Active Tourism and Sports -
Countryside/Mountains/Rural -
MICE and Events 3.5
Other segments: Health tourism 1.9
Not specified 89.6

Tue, 18 Jul 2006 10:21:45

unknown
Budget allocation by main Germany (32%) 4.4

markets Austria (7%) 2.1
Italy (6%) 2.1
United Kingdom (6%) 2.4
United States (5%) 2.6
3 Relationship NTO/Other Tourism Bodies

[ ] Informal
The regional marketing directorates (7) and regional tourist project offices (2),
operating in the nine tourist regions of Hungary, form part of the domestic net-
work of the Hungarian National Tourist Office. Their activities are co-ordinated
by the Domestic Network Directorate which has its own budget as well.
Regional offices are responsible first of all for strengthening the identity of
each region, the convergence of rural Hungary, raising awareness of the
countryside and for motivating regional service providers to develop and
maintain top quality tourist products. According to the annual marketing plan,
regional offices carry out marketing activities, maintain contacts to the local
service providers and provide them up-to-date market information, co-opera-
te in different marketing activities with the service providers, participate in the
evaluation of regional tenders.
Marketing activities by A wide array of regional and local organizations/institutions and private enter-
regional and/or local tourism prises (e.g. Budapest Tourism Office, travel trade associations, counties, muni-
boards beyond their NTO cipalities local governments, Nature Parks, hotel chains) are also responsible
for/contribute to tourism marketing.

[ X ] Informal
Industry professionals (e.g. from the hotel industry, hospitality) are also delega-
ted into the Board of Directors of the HNTO.
Cooperation with the travel trade is in the focus of the marketing activities of
the HNTO which means common marketing activities (e.g. advertising, cam-
paigns, events, exhibitions/fairs, brochures). Among the partners, trade asso-
ciations, transportation companies, airlines, hotels, and other service providers
can be found.
Individual tourism companies and service providers can join the marketing
activities of the HNTO (e.g. advertising in brochures, presence on the Internet,
participation in fairs/events) with the help of the SQE based database of the
marketing activities.
Relationship with The tourism management in Hungary is also assisted by the National Tourism
consultative/advisory bodies Board which is the consultative body of the Minister without Portfolio in Char-
ge of Regional Development and Convergence.
Regarding the relationship with the HNTO, the National Tourism Board partici-
pates indirectly in the decision-making (e.g. forming and adopting the annual
Tue, 18 Jul 2006 10:21:45
marketing plan, evaluation of tenders, reports on the marketing activities fulfi-

lled by the HNTO).
In the case of main professional issues (e.g. strategic planning, marketing plan),
unknown
the Association of Hungarian Tourism Consultants also participates.

Netherlands - The Netherlands Board of Tourism and Conventions

(NBTC)

Position of the NTO within the No official structure exists. The Netherlands Board of Tourism and Conventions
national tourism structure is financed by the Ministry of Economic Affairs. It cooperates with the regional
tourism boards, regional convention boards and the tourism industry.
formally
aspects)
NTA

Tue, 18 Jul 2006 10:21:45
[ ] Public/private
[ X ] Wholly private
Internal structure and A new internal structure is in development.

unknown
organization

Offices Abroad 80

Strategic planning Years No information available

Process Comparable with any other marketing planning systems
Operational planning Years No information available

Process Comparable with any other marketing planning systems
2 BudgetN
Total budget (2005) 28 euro million / US$ 34.8 million

Other sources 36%


Budget allocation by main Germany (27%) 28

markets United Kingdom (18%) 16
United States (9%) 7
Belgium (8%) 6
France (5%) 2

[ ] Informal
Regional and local tourism boards can, as independent organizations, partici-
pate in the marketing activities of the Netherlands Board of Tourism and Con-
ventions (NBTC). They are free to participate and pay for NBTCs services as
contractual partners.
Tue, 18 Jul 2006 10:21:45
Marketing activities by Regional and local tourism boards do not market themselves abroad to stimu-
regional and/or local tourism late inbound tourism to their regions or cities.
boards beyond their NTO
unknown

[ ] Informal
The private tourism industry can participate in the marketing activities of the
Netherlands Board of Tourism and Conventions (NBTC). They are free to parti-
cipate and pay for NBTCs services as contractual partners.
Norway - Innovation Norway

Position of the NTO within the As of 1 January 2004 Innovation Norway took over the tasks of the Norwegian
national tourism structure Tourist Board, the Norwegian Trade Council, the The Norwegian Industrial and
Regional Development Fund, SND and the Government Consultative Office for
Inventors, SVO.
Innovation Norways objective is to promote private and socioeconomic profita-
ble business development throughout the country, and to release the commer-
cial opportunities of the districts and regions by encouraging innovation, inter-
nationalisation and image-building.
formally
aspects)
Tue, 18 Jul 2006 10:21:45
NTA
Areas of NTA involvement in [ H ] Establishment of marketing objectives 1

unknown

N= None
[M ] Financial accountability control
M= Medium [ ] Definition of the system of financial reporting
H= High
[ N ] Definition of the level of salaries
T= Total
P= Part of a formal agreement [ N ] Definition of staffing numbers
2
[ M ] Definition on opening/closing of offices abroad
1
Knowledge of Norway as a tourism destination
2
Number of international arrivals

[ ] Public / private
[ ] Wholly private
Innovation Norway is a state owned company with a totally public legal status.
Innovation Norway is owned by the Ministry of Trade which is also responsible
for tourism, but it is also serves the Ministries of Agriculture, Fisheries and Local
Government and Regional Development. Abroad, Innovation Norway is wor-
king closely with the Ministry of Foreign Affairs.

policy objectives We give local ideas global opportunities.
Policy objectives
Innovation Norways objective is to promote private- and socio-economic profi-
table business development throughout the country, and to release the com-
mercial opportunities of the districts and regions by encouraging innovation,
internationalisation and image-building.

of responsibilities Marketing, financing and advisory to the Norwegian Tourism Industry within
the vision: We give local ideas global opportunities.
Innovation Norway is undertaking domestic marketing for Norway as a destina-
tion on behalf of the Ministry of Agriculture.
CEO
Gunn Ovesen
Staff/support Strategic projects

Finn Kr. Aamodt Randi Hestnes
Customer interface Norway Market abroad Services/products

Kolbjrn Almlid Harald Nvdal Roar Tobro
Tue, 18 Jul 2006 10:21:45
Innovation Norway employs more than 700 people. It has offices in all the Nor-
wegian counties and in more than 30 countries world wide.
unknown
The head office is situated in Oslo. Innovation Norway has five divisions:
Customer Interface Norway;
Market Abroad;
Services/products;
Staff/support;
Strategic projects.
Innovations Norways services for the tourism industry are managed from Divi-
sion Services/products, while operative branding/marketing is operated at our
offices abroad (Market abroad). Financial and competence products are opera-
ted from Customer interface Norway.

Offices Abroad not available
Number of offices abroad NTO offices > 30

Contractual representations not available

Process
N= Not used
V= Very important Innovation Norway has established an advisory board with representatives from
M= Medium importance the Norwegian Travel Industry which is involved in strategic planning. Defini-
L= Low importance tion of main strategic lines and markets is established by the Executive Board.
Elements used
[ M ] Needs of the tourism industry
[ M ] Available budget
[ M ] Operational costs
[ ] Other

Process
N= Not used
V= Very important In the case of operational planning, this is undertaken on project basis. For
M= Medium importance example, promotional activities in each market abroad are based on coopera-
L= Low importance tion with industry partners which are investing in the marketing activities.
Elements used
[ M ] Research on market potential
[ M ] Operational costs
Tue, 18 Jul 2006 10:21:45
[ ] Other
unknown

(least important)
motives, etc)
[ ] Other
2 BudgetN

Other sources 68%

Financing system (budget from [ X ] Budget comes from the general government budget
the national government) [ ] Budget comes from the general government budget, plus from specific
tourism taxes


(least important)
[ ] Other

Budget allocation by main mar- Germany (28%) 39

kets Denmark (14%) 20
Sweden (11%) 14
Netherlands (10%) 8
United Kingdom (8%) 19

Tue, 18 Jul 2006 10:21:45

unknown
[ X ] Informal
Innovation Norway has formal contracts on issues like content on web portal
(www.visitnorway.com) and authorisation of Tourist Information Centres, etc.

[ ] Informal
All marketing activities abroad are based upon cooperation with the tourism
industry (normally 50-50 split on marketing costs). In addition, Innovation Nor-
way has invested NOK 1,5 billion during the last five years in financial inves-
tments (grants and loans) in the Norwegian Tourism Industry.
Relationship with Norway has no other public consultative/advisory bodies for Tourism.
consultative/advisory bodies
Peru - Promperu

Position of the NTO within the Promperu Comisin de Promocin de Peru (Peru Promotion Commission) was
national tourism structure created by Supreme Decree of 19 February 1993. By legal decree of 17 July 1996
the law regarding Promperu was created attributing the institution the aim of
designing the information policy and centralize the decision taking process for
the promotion of the image of Peru, as well as to orient the promotion strategy
of investment, tourism and trade. Promperu is incorporated in the Ministry of
Foreign Trade and Tourism (MINCETUR) by Law nr 27790.
According to the law that defines the organization and functions of the Ministry
of Foreign Trade and Tourism (MINCTUR), Promperu is an Executive Unit within
MINCTUR. Its aims are to execute policies and strategies regarding domestic and
inbound tourism, as well as to develop the image of Peru abroad in terms of tou-
rism promotion.
Its is also important to note that according to the Law nr 27889, which creates
the Fund and the Extraordinary Tax for Tourism Promotion and National Deve-
lopment (US$15), Promperu is considered responsible for 80 per cent of the

Tue, 18 Jul 2006 10:21:45
application of the receipts originated from this tax.
unknown
formally
aspects)
NTA
Areas of NTA involvement in [ N ] Establishment of marketing objectives

the NTO activities [ N ] Definition of the NTO annual budget
N= None
[ N ] Financial accountability control
M= Medium [ N ] Definition of the system of financial reporting
H= High
[ N ] Definition of the level of salaries
T= Total
[ N ] Strategic marketing planning
[ N ] Evaluation of accomplishment of pre-formulated targets
[ N ] Definition on opening/closing of offices abroad
[ ] Other

[ ] Public/private
[ ] Wholly private

policy objectives To lead the national and international promotion of the Peruvian tourism, with
the participation of all social stakeholders involved in the tourism sector and the
population in general, optimizing the use of resources.
Policy objectives
To contribute to the improvement of the image of Peru as a tourism destination,
the sustainable increase of receipts from inbound tourism and the dynamics of
the national economy through domestic tourism.

of responsibilities - Position Peru as the most attractive and accessible destination in South
America;
- Increase inbound and domestic tourism;
- Promote the diversification of tourism supply;
- Develop an adequate system of tourism information and assistance.
Promperu is also responsible for domestic tourism.
PROMPERU
Consultive
Directory Committees
Internal Auditing
General Manager Advisories
Logistical
Coordinator
Tue, 18 Jul 2006 10:21:45
Sub Dept. of
Administration Legal Department
Human
Resources
Administration and
unknown
Coordinator Sub Dept. of Planning, Budget and

Finance Department
Informatics Development
Account Department
Sub Dept. of
Treasurer Finance
Dept. of Marketing Dept. of Domestic Dept. of Inbound

and Image Tourism Tourism
Sub Dept. of Sub Dept. of Sub Dept. of Sub Dept. of Sub Dept. of
Events Communication Market Research Domestic Inbound
and Information Tourism Tourism
Tourism
National International Market Regional Market
Press Publications Creative Information
Events Events Research Coordinators Coordinators
Coordinator Coordinator Coordinator and
Coordinator Coordinator Coordinator (4) (4)
Assistance
Coordinator

Offices Abroad 0


Process
N= Not used
V= Very important The establishment of objectives, the definition of main strategic lines, of pro-
M= Medium importance ducts, of markets and of main promotional activities are included, just as bud-
L= Low importance get allocation and the performance indicators and corresponding evaluation
process.
Elements used
[ V ] Needs to the tourism industry
[ ] Other

Process
N= Not used
V= Very important The establishment of objectives, the definition of main strategic lines, of pro-
M= Medium importance ducts, of markets and of main promotional activities are included, just as bud-
L= Low importance get allocation and the performance indicators and corresponding evaluation
process.
Elements used
Tue, 18 Jul 2006 10:21:45

unknown

[ ] Other
important)
motives, etc)
[ ] Other
2 BudgetN

Other sources 0%

from the national [ X ] Budget comes from the general government budget, plus from specific
The budget of PROMPERU comes from two sources: the ordinary (resources
from the national government) and resources from Law 27889, which creates
an extraordinary tax of US$15,00 to inbound tourism air tickets for a 10 year
period (2003 -2013).
Resources from the national government (called ordinary traditional resources)
are determined by the Ministry of Economy and Finance (Ministerio de Econo-
ma y Finanzas - MEF) according to the rules on public spending and austerity
that the government defines for each fiscal year. PROMPERU, as any other
public institution draws each year (in June) its annual budget and it is the MIJ
which defines the amount to be received by each public institution. One can
say that these are variable amounts as they change every year according to the
budgetary aims defined by the government for all public sector (receipts and
expenditure estimates in accordance with intention agreement signed with
IMF).
Tue, 18 Jul 2006 10:21:45

unknown

(least important) )
[ ] Other
Share in marketing
budget (%)

Tourism fairs 18
Internet
Press trips 3
Public Relations 4
Support to the industry
Information (incl. costs in the head office and offices
mailing costs)
Market research 2
Other 12
Share in marketing
budget (%)
Budget allocation by product Sun and Sea 3

Touring 5
MICE and Events 2


markets United Kingdom (5%) 15
Germany (3%) 10
Spain (3%) 10
France (4%) 5
Tue, 18 Jul 2006 10:21:45

unknown

[ ] Informal
There is a law from the central government regarding the relation with the
regional/local government. The country initiated in 2002 a process of regiona-
lization which is still in progress. Within this process, responsibility over certain
areas will be transferred to regional government bodies. In the case of Prom-
peru there is a process of coordination and specific agreements with almost all
regions in which there Promperu has information offices (IPeru).
Marketing activities by Regional and local tourism boards do not market themselves abroad to stimu-
regional and/or local tourism late inbound tourism to their regions or cities.

[ X ] Informal
There are coordination committees between Promperu and the associations
of the private sector. Within theses committees Promperu informs and coordi-
nates the promotion activities, participation in trade fairs abroad and other
activities which may be of interest to the private sector. There is a coordinated
action.
Relationship with consultative/ No relationships exists.

advisory bodies
Portugal - Portuguese Tourism Institute (ITP)

Position of the NTO within The Portuguese Tourism Institute (ITP) is a public institute and a distinct legal
the national tourism entity with administrative and financial autonomy and its own assets.
structure Its activity is exercised under the aegis of the Ministry of Economy and Innova-
tion, depending directly from the Secretary of State for Tourism.
Its main partners are:
Regional Agencies for Tourism Promotion;
Offices Abroad (under ICEP/IAPMEI aegis) currently with a contractual
representation relationship with ITP;
Local Governments (for the autonomous regions of Madeira and Aores).
Ministries Board
Tue, 18 Jul 2006 10:21:45
Ministry of Economy and

Innovation
unknown
Secretary of State for Tourism
CEPT
Regional Offices
of the Ministry
of Economy NEPT DGT ITP IGJ INFTUR ICEP
Offices Abroad
Private Entities Municipalities Regional ARPTs Regional and Local

Governments Tourism Bodies
RT CMT JT
Hierarchic Organization CEPT Strategic Council for Tourism Promotion CMT Tourism Municipalities
Horizontal Organization NEPT Executive Council of Tourism Promotion JT Tourism Local Boards
Consultative Members DGT Directorate General for Tourism ARPS Regional Promotion Associations
Tourism Promotion ITP Portuguese Tourism Institute
IGJ Gambling Inspections Directorate
INFTUR National Institute for Tourism Education and Training
RT Tourism Regions
Relation with the National [ ] The execution of the NTO activities is based on a written contract with
Tourism Administration (NTA) the NTA, in which the NTO has to account for the execution of its work
formally
[ X ] The execution of the NTO activities is based on an informal contract
with the NTA (i.e. understanding and incidental verbal or specific
written aspects)
NTA

the NTO activities [ T ] Definition of the NTO annual budget
N= None
H= High
[ T ] Definition of the level of salaries
T= Total
P= Part of a formal agreement [ T ] Definition of staffing numbers
[ H ] Annual marketing activity planning
[ H ] Evaluation of accomplishment of pre-formulated targets
[ P ] Definition on opening/closing of offices abroad

Tue, 18 Jul 2006 10:21:45
[ ] Other

unknown
[ ] Public/private
[ ] Wholly private
The Law 77/2004 (March 31) changed the statutes of the former Institute for
Tourism Funding and Support (IFT) and ICEP Portugal, setting up the Portu-
guese Tourism Institute (ITP). Thus, all competences in the matter of Tourism
where transferred from ICEP Portugal to ITP. The ITP is a public institute and a
distinct legal entity with administrative and financial autonomy and its own
assets. Its activity is exercised under the aegis of the Economy and Innovation
Ministry, depending directly from the Secretary of State for Tourism.
Mission statement and/or policy Mission Statement

objectives Direct or indirect support for strengthening, modernization and
development of the business structures of the tourism sector;
Promotion and development of infrastructures and investment in the
tourism sector, as part of the construction of a strategic partnership
between public policy and the initiatives of private economic agents;
Promotion of Portugal as a renowned tourism destination.
Policy objectives
Actively cooperate in the study and definition of financial measures for the
tourism sector;
Cooperate in the study and definition of support measures for business
structures in the tourism sector;
Promote the execution of economic policy measures that lie within its
powers;
Ensure the management of programmes or aids for the tourism sector,
under the terms of applicable legislation;
Provide direct and indirect technical and financial support to companies of
the tourism sector;
Promote the creation of new companies, whenever these contribute to the

development of tourism;
Participate (including acquisition of shareholdings), in companies,
institutes, associations or other public or private bodies, when such
participation contributes towards the development of tourism;
Cooperate with other public or private entities in initiatives that may
contribute towards the fulfilment of the Institute's statutory objectives;
Support strategic plans for tourism development, as well as investment
projects in the tourism sector;
Stimulate enterprises, and their development, taking into account the
strengthen of both the competitiveness and the productivity of the
national tourism sector;
Promote and disclose Portugal (domestic and external markets) as a quality
tourism destination;
Undertake the study of both evolution and markets trends, namely through
closely accompanying competitor destinations performance; observing
demand trends and behaviour and measuring Portugals attractiveness
and its offer behaviour;
Make strategic and operational information available to the tourism sector,
Tue, 18 Jul 2006 10:21:45
namely in what concerns source markets and international trends (both

national and international);
Promote re-qualified tourism products and support the development of
unknown
new national destinations and products.

of responsibilities Analysis, study and constant follow-up of source markets, segments and
tourism products evolution;
Specialized advisory in communication: MICE, Golf, and new tourism
products;
Trade missions for identifying new market opportunities;
Integrated strategy for regional destinations offer/products in accordance
with their complementarities and coherence, bearing in mind the
market/client objectives;
Implement quality Certification Programs to all Portuguese tourism offer in
the market;
Product testing accompanied by experts on organizing, offering and
attractiveness of demand segments;
Firm position of national products/brands in promotional brochures,
websites and other information supports in order to achieve added value in
selling Portugal Brand through the Tour Operators (TOs);
Development of new operations through strategic TOs: reinforcing
national destinations (increasing and improving national tourism offer);
Joint promotional activities with tour operators and representatives of
distribution channels, both at image and market level;
Training and incentive activities reinforcing better selling strategies in the
distribution channels;
Development of new air routes to Portugal;
Endorsing sponsorship of events to reposition Portugals image and
strength the destination visibility.
The Portuguese Tourism Institute (ITP) may:
Grant loans, at particular low interest rates or normal rates, and manage
such loans;
Grant direct or indirect matching funds and subsidies, including low rents
and low interest rates;
Participate in co-financing and refinancing operations in association with
other bodies;
Make financial investments with the Institute's revenues;
Deposit sums that are due to the Institute and define the manner in which
such sums will be invested and managed, in accordance with applicable
regulations;
Provide and receive guarantees;
Issue bonds and any other credit securities, except for short-term securities;
Participate in the shared capital of any company, institute, association or
other private or public body, already constituted, or to be constituted,
when such a participation contributes towards the development of
tourism;
Tue, 18 Jul 2006 10:21:45
Acquire participations in funds that are specifically designed for investment

in tourism;
Prepare studies and projects, able to contribute towards the development
of tourism, in close collaboration with organizations under the aegis of the
unknown
Secretary of State for Tourism;

Participate in promotional initiatives, in Portugal and abroad, and
professional training in the area of tourism, in close collaboration with
organizations created for such purposes which operate under the aegis of
the Minister of the Economy;
Monitor the use of granted loans, subsidies and matching funds, in order to
ensure that the obligations assumed by the beneficiaries are complied
with;
Undertake the study and prospect of markets; detect businesses
opportunities; follow-up competitors behaviour; identify distribution and
commercialization channels;
Develop and participate in concrete measures related with the Portugal
Tourism Brand promotion, our products and regional brands;
Support national enterprises in their investments in foreign countries and
their presence in the proper distribution channels;
Cooperate with all national entities involved in economical agreements in
the tourism sector, as well as its execution;
ITP is also responsible for domestic tourism promotion.
Ministry of Economy
Secretary of State for Tourism
Portuguese Tourism Institute (ITP)
Directive Council
Legal Department (GJ) General Council
Planning and Management

Control (GPCG) Control Commission
Internal Auditing (GA) Credit Council

Tue, 18 Jul 2006 10:21:45
Informatics (GI)
unknown
Development and Investment Analysis Administration/ Tourism Promotion Dept.

Communication Dept. and Follow-up Dept. (DPT)
(DDC) (DAAI) Finance Dept. (DAF)
Promotion North Credit International Projects and Partnerships

Information South Accounting Comunication and Publications
Development Follow-up Personnel Product Development
Administration Information for Professional Management
Partnerships Management
Events Management
Incentives Management (MICE)
Content Management
Consumer Information Management
Institutional Support
Domestic Tourism
Planning and budgetary control
Department for Development and Communication (DDC)

It is responsible for information and development, and a separate unit has been
created for each area.
The Promotion Unit is responsible for the Institute's communication with
the general public, including production of information materials,
organization of events and advertising initiatives;
The Information Unit is responsible for: provision of front desk information
to potential investors; and back-office design of the content of information
materials; dissemination of incentive systems; preparation and
implementation of training and information initiatives; management of the
Tourism Investor Support Network (TISN), and ensuring the smooth
functioning of the Tourism Investor Support Office and the PRIME Investor
Office implemented within the ITP.
The Development Unit is responsible for managing financial incentives

related to public-sector investments, by drawing up proposals for the
management of consigned funds resulting from the concession of betting
activities; socio-economic analysis of public investment projects;
negotiation and preparation of corresponding contracts; supervision of
the financial and physical execution of projects. The unit is also responsible
for the preparation and supervision of external co-operation projects,
preparation and monitoring of studies and management of the
Programme of Study Scholarships for Masters Degrees and Doctorates in
the Tourism area.
Department of Finance and Administration (DAF)
It is responsible for credit management, accounting, personnel, treasury
management and general administration, via five distinct operational units.
Credit Management Unit
Accounting Unit
Personnel Unit
Treasurer's Unit
Administrative Unit
Department of Investment Analysis and Supervision (DAAI)

Tue, 18 Jul 2006 10:21:45
This Department is responsible for analysing and drawing up contracts and

supervising all applications to the various incentive programmes available for
private-sector investment.
unknown
Department of Tourism Promotion (DPT)

It is responsible for domestic and international promotion and divulgation of
Portugal as a tourism destination and Brand; the study of markets evolution,
especially in terms of the promotional activities of competitor countries, tou-
rism demand patterns and trends, and the attractiveness of Portugal and its
tourism supply.

Offices Abroad Since 2004, ITP uses ICEPs 22 representations and staff in a
contractual basis.
Number of offices abroad NTO offices

Contractual representations Since 2004, ITP uses ICEPs 22 representations
and staff in a contractual basis.

Elements used
N= Not used
L= Low importance
[ ] Other
Market Intelligence
Analysis, studies, and constant follow-up of markets, segments and
tourism products evolution;
Specialized advisory in communication: MICE, Golf, and new tourism
products;
Trade missions for market prospecting and new opportunities
development;
Integrated strategy for destinations offer/products in accordance with
their complementarities and coherence, bearing in mind the market/client
objectives;
Quality Certification Programs to all Portuguese tourism offer in the
market;
Product testing accompanied by experts on organizing, offering and
attractiveness of demand segments.
Image and communication
Global image (umbrella) campaign, comprising different intensity levels in
accordance with market priorities;
Communication campaigns to reinforce the image and notoriety of
Portugal, under a joint framework for all national brands and sales
Tue, 18 Jul 2006 10:21:45
promotion initiatives;
Reposition Portugals image through campaigns aiming to upgrade the
value of national destinations;
unknown
Tactical campaigns directed to the end consumer, orientated by segment/

product;
Promotional actions in order to reaffirm the notoriety of the 7 national
tourism brands; this will be achieved through a matrix of concepts
(products versus motivations);
Program to deepen tourists faithfulness to Portuguese destinations
(Portugal magazine and client card Active Portugal);
Close follow-up on international events in order to raise Portugals position
as a privileged host destination (Active portfolio);
Enhance the potential of all closely followed positive mediate events,
through selective means of communication.
Promotion
Selective presence in international tourism Trade Fairs (with animated
stand);
High qualification standards for Workshops and Road Shows organized
events;
Selectiveness and specification of partners to adjust interests interface;
Educational visits organized to tourism specialized trade and media;
Stock exchange areas for tourism professionals and enterprises, organized
by product (BTC);
General actions that may contribute to the development of new
entrepreneurship strategies for cooperation, internationalization as well as
competitiveness gains;
Direct demonstration actions to the demand segments, in order to
stimulate the creativity and professionalism of Portuguese enterprises
(Active Portugal 2002, Adventure Portugal, Spicy by Nature, Portugal
Eventive);
General promotional activities oriented towards product/destination/
segment demand.
Partnerships
Regional Agencies for Tourism Promotion (7): organization and promotion
of local tourism offer on a market/client basis (private and public partners);
Inter-regional marketing programs specific tourism products/segments
promotion (wine routes, ethnic segment);
Joint promotion programs, oriented on a product and market basis;
Strategic partnerships in order to create new air routes developed with TOs
and airlines (regular, charter, Low Cost Carriers);
Strength market research and cooperation, together with local
associations and opinion leaders.

Elements used
N= Not used
L= Low importance
Tue, 18 Jul 2006 10:21:45
unknown
[ ] Other
Commercial Support
Firm position of national products/brands in promotional brochures,
websites and other information supports in order to achieve added value
in selling Portugal through the TOs;
New operations development through strategic TOs: reinforcing national
destinations (increasing and improving national tourism offer);
Joint promotional actions with operators and retail, both at image and
market level;
Training and incentive actions reinforcing better selling strategies in the
distribution channels;
New air routes development to Portugal;
Endorsing sponsorship actions to reposition Portugals image and
strengthen national destinations visibility.
Information
Maximize usage of new information technologies, commercialization and
active relation client/offer (www.visitportugal.com);
Call Centres: professional assistance to both potential and actual tourists;
CRM Customer Relationship Management - system development
sustained by marketing strategies based on one-to-one communication
(under development);
Press Consultancy in 6 Markets mean of selective information diffusion,
as well as personalized support to media channels;
Press Analysis in 19 Markets.
important)
motives, etc)
[ ] Other
2 BudgetN
Total budget (2005) 47.7 euro million (marketing budget only) / US$ 38.3 million
Budget sources National governmen 90%

(Marketing costs only) Other sources 10%
from the national government)
[ ] Budget comes from the general government budget, plus from specific
Tue, 18 Jul 2006 10:21:45
tourism taxes
unknown

The total budget comes from the national government financed by gambling
receipts.

[ ] Financial support of third parties for marketing activities is not used
[ ] Other
Share in marketing
budget (%)
Budget allocation by Advertising (radio, TV, print and other) 13.6

promotional activity Tourism fairs, tradeshows and workshops 12.4
Internet 2.6
Press trips 4.3
Public Relations 0.9
Familiarisation trips (trade) 2.4
Support to the industry (e.g. cooperative marketing 6.4
with TOs, etc)
Information (incl. costs in the head office and offices 10.8
mailing costs )
Market research 3.0
Other 43.6
Share in marketing
Share in inbound tourism, (%)
budget (%)
Budget allocation by main Spain (49%) 10.7

markets United Kingdom (16%) 7.1
Germany (7%) 7.5
France (7%) 5.1
Netherlands (4%) 2.9

[ ] Informal
This process, initiated in May 2003, is based on a set of contractual agree-
ments, valid from 2004 to 2006, signed between public national and regional
authorities responsible for tourism promotion abroad (Icep Portugal, Confede-
rao do Turismo Portugus Confederation of Portuguese Tourism, Associa-

Tue, 18 Jul 2006 10:21:45
o Nacional das Regies de Turismo National Association of Tourism

Regions, Secretaria Regional do Turismo e Cultura da Madeira e Secretaria
Regional da Economia dos Aores - Azores and Madeira Tourism Secretaries).
unknown
Its a model based on one side, on private/public partnerships, having private

companies as associated, and on the other, on regionalisation, based in the
relationship of ITP, responsible for the promotion of Portugal as a country
brand, and seven regional tourism promotional agencies (RTAs).
Marketing activities by ITP and the RTAs are both responsible for domestic marketing. ITP and the
regional and/or local tourism Regional Agencies for Tourism Promotion perform inbound tourism marke-
boards beyond their NTO ting.
There is a formal contract between ITP and the Regional Agencies for Tourism
Promotion that enables them to promote their brands and products. The
Regional Agencies for Tourism Promotion have two different regional plans: a
contractual plan financed by a part of ITPs budget (as mentioned above) that
includes public/private partnerships and a private marketing plan financed by
their own sources.

[ X ] Informal
The relationship of ITP with the private industry and/or private sector associa-
tions is based on informal (and fruitful) cooperation.
Relationship with The relationship between ITP and tourism consultative/advisory bodies is
consultative/advisory bodies occasional; for example for specific tasks, such as press consultancy or specific
studies.
Spain - Turespaa

Position of the NTO within the Turespaa is an autonomous entity attached to the Ministry of Industry, Tourism
national tourism structure and Trade through the State Secretariat of Tourism and Trade. Within this State
Secretariat is the General Secretariat of Tourism, within whose structure Tures-
paa exists.
Turespaa has a differentiated public legal personality, its own assets and trea-
sury, as well as management independence and full acting and legal capacity.
The Ministry of Industry, Tourism and Trade is in charge of the strategic mana-
gement, evaluation, monitoring of the results of its activities and the monitoring
of efficiency through the State Secretariat of Tourism and Trade.
The presidency of the body corresponds to the Secretary of State of Tourism, the
First Executive Vice-Presidency to the Secretary-General of Tourism, and the
Second Vice-Presidency to the Director-General of Turespaa.
Tue, 18 Jul 2006 10:21:45
formally
unknown
aspects)
[ X ] The execution of the NTO activities is not based on a contract with the NTA
Areas of NTA involvement in [ T ] Establishment of marketing objectives

the NTO activities [ T ] Definition of the NTO annual budget
N= None
[ T ] Financial accountability control
M= Medium [ T ] Definition of the system of financial reporting
H= High
[ T ] Definition of the level of salaries
T= Total
P= Part of a formal agreement [ T ] Definition of staffing numbers
[ T ] Annual marketing activity planning
[ T ] Strategic marketing planning
[ T ] Evaluation of accomplishment of pre-formulated targets/results
[ T ] Definition on opening/closing offices abroad
[ ] Other
As for evaluation Turespaa acts in accordance with an annual Operational Plan,
which establishes indicators in order to make it possible to measure the degree
of achievement of each objective.

[ ] Public/private
[ ] Wholly private
Turespaa is an autonomous entity under Article 43.1.a) of Law 6/1997, of 14
April, on the Organization and Functioning of the General State Administration,
attached to the Ministry of Industry, Tourism and Trade through the State Secre-
tariat of Tourism and Trade.
Turespaa has a differentiated public legal personality, its own assets and trea-
sury, as well as management autonomy and full legal capacity to act, and within
its sphere of competence, it has the administrative powers needed to achieve its
aims, in the terms stipulated in its statute, except for the power of expropriation.

policy objectives The promotion of Spanish tourism in international markets.
Policy objectives
To plan, develop, and execute actions for the promotion of Spanish tourism
in international markets, to support the marketing of Spanish tourism
products abroad, and to collaborate with the Autonomous Communities,
local entities and the private sector in programmes for the promotion and
marketing of their products abroad;
The management and operation of tourism establishments entrusted to it, as
well as to carry out the appropriate investments in own assets, attached
assets, or assets whose use has been conceded to it by other public bodies or
entities; in particular, establishing the strategy and planning of the actions
of Paradores de Turismo, S.A.

of responsibilities The Plan of Objectives for the Promotion of Tourism Abroad establishes five
axes of action, for each of which objectives are established for the different pro-
ducts and markets:
Market research
The aim is to promote the analysis of international tourism demand and impro-
Tue, 18 Jul 2006 10:21:45
ve the knowledge of the travel trade in the different tourism markets, and to
facilitate access to this type of knowledge by actors of the sector.
Brand image and communication
unknown
The aim is to strengthen the positioning of Spain's tourism brand in internatio-

nal markets, by including in its brand attributes those corresponding to the dif-
ferent tourism products and destinations of Spain.
Product development and commercialization
Facilitating the commercialization of tourism products in line with the needs
and opportunities present in international markets for each segment. Suppor-
ting the creation of product clubs, and the use of marketing techniques that
promote the use of the most effective distribution channels in each case.
Online marketing
Exploiting the potential of new technologies for tourism marketing, and espe-
cially the Internet's capacity to serve as a tool for information, promotion and
facilitation of trade.
Excellence in the internal management of the organization
Turespaa acts in accordance with an annual Operational Plan, which establis-
hes indicators in order to make it possible to measure the degree of achieve-
ment of each objective.
Turespaa has three areas of responsibility:
Development and execution of plans for promotion and support for the
commercialization of Spanish tourism products in foreign markets;
Planning, definition of objectives, including the analysis of markets and the
creation of plans for promotion and commercialization support, already
mentioned;
Management of heritage and resources.
Turespaa has no competences in the promotion of domestic tourism.
Internal structure and Turespaa is an autonomous entity whose presidency corresponds to the State
organization Secretary of Trade and Tourism. The executive first vice-presidency corresponds
to the Secretary-General of Tourism and the second vice-presidency corres-
ponds to the Director-General of Turespaa.
It has three Sub-Directorates General and a network of 32 tourism offices abro-
ad:
Sub-Directorate General of Promotion and Marketing of Tourism Abroad;
Sub-Directorate General of Planning and Coordination of Spanish Tourism
Offices;
Sub-Directorate General of Economic-Administrative Management.

Offices Abroad 211


Process
N= Not used
V= Very important In the Plan of Objectives for the Promotion of Tourism Abroad various actors are
Tue, 18 Jul 2006 10:21:45
M= Medium importance involved (business associations, tour operators, the Spanish Federation of
L= Low importance Municipalities and Provinces, and especially the Autonomous Communities),
mainly in three phases:
unknown
1. Access to the analysis of the assessment and study carried out, both general
and on all the generating markets, and on the situation of international
tourism in each Autonomous Community;
2. At the time of the formulation of the basic outline of the plan, which includes
the definition of its lines of action, objectives, products and priority axes of
action in each generating market where Turespaa is present;
3. In the creation and execution of the Operational Plan which specifies the
calendar of activities that Turespaa and its network of Spanish Tourism
Offices are to carry out in each market.
Elements used
[ H ] National tourism policy objectives
[ H ] Needs of the tourism industry
[ H ] Trends in tourism demand
[ H ] Research studies on image
[ H ] Available budget
[ H ] Operational costs
[ H ] Assessment of the actual national tourism products
[ ] Other

Process
N= Not used
V= Very important In the preparation of the annual operational plan, proposals from the Autono-
M= Medium importance mous Communities, Tourism Boards, Municipalities, etc. are taken into account
L= Low importance along with those of the Chambers of Commerce, thus producing mixed partici-
pation in the setting of objectives and strategic lines by market and product of
the operational plan.
Specifically, the process of operational planning begins with a report by the

offices abroad (OET) on the market, setting a series of objectives and assigning
weights to the most important tourism products of their market. Then, propo-
sals are received from the Autonomous Communities, which are studied in the
context of the objectives set by the OETs. Lastly, the operational plans of each
OET are revised at the Central Services and the operational plan is approved by
the Director-General of Turespaa, integrating into the plan the operational
plans of each OET.
Elements used
[ H ] National tourism policy objectives
[ H ] Needs of the tourism industry
[ H ] Trends in tourism demand
[ H ] Research studies on image
[ H ] Available budget
[ H ] Operational costs
[ H ] Assessment of the actual national tourism products
[ ] Other
Tue, 18 Jul 2006 10:21:45
planning distribution by region and / or season, share by nationality, etc)
(least important)
unknown
motives, etc)
[ ] Other
2 BudgetN

Other sources 0



important)
[ 4 ] Return on investment
Share in marketing
budget (%)
Budget allocation by Advertising (radio and TV) -

promotional activity Advertising (print and other) 46.7
Tourism fairs 16.1
Tradeshows/workshops 3.2
Internet 14.9
Press trips 1.1
Public Relations 3.4
Tue, 18 Jul 2006 10:21:45
Familiarisation trips (trade) 0.8

Support to the industry 1.9
unknown

mailing costs)
2.3
Market research
4.2
Other
Budget allocation by product Sun and Sea 51.8

Cultural Tourism (incl. City Tourism) 27.7
Touring -
Active Tourism and Sports 11.2
Countryside/Mountains/Rural -
MICE and Events 8.7
Other segments: various (e.g religious and gay tou- 0.6
rism)

[ X ] Informal
Formal relationships
Turespaa has agreements with the Autonomous Communities, whether bila-
teral or multilateral, in order to carry out three main types of actions:
Joint international advertising campaigns for tourism destinations and
products;
Sending of tourism promoters of the Autonomous Communities (interns)
to tourism offices abroad;
Providing content to the Spain.info website.
Furthermore, agreements can be signed with the Autonomous Communities

for other specific promotional actions.
Consejo Espaol del Turismo (Spanish Tourism Council)
This collegial body includes representatives of the State Administration, the
Autonomous Community governments, local governments and the tourism
business sector. Its aim is to define a common strategic policy in tourism mat-
ters and to establish a channel for the participation of the actors involved.
Plan of Objectives for the Promotion of Tourism Abroad (strategic action
plan)
Turespaa draws up an Operational Plan each year, which establishes all the
promotional activities to be carried out during the year, including the propo-
sals of the Autonomous Communities.
Informal relationships
As for informal relationships, Turespaa shares the results of the market stu-
dies it carries out and maintains a constant line of dialogue with the Autono-
mous Communities.
Marketing activities by Regional governments perform marketing tourism activities. Some of them
regional and/or local tourism make it via Turespaa.
boards beyond their NTO The estimated total amount of the regional governments budgets adds up to
Tue, 18 Jul 2006 10:21:45
9 million euros.

unknown
sector [ X ] Formal (e.g. according to laws, regulations, etc)

[ X ] Informal
Formal: Through the Spanish Tourism Council.
Informal: Turespaa maintains a permanent line of dialogue with the most
representative associations of the private sector.
Relationship with Consejo Espaol del Turismo (Spanish Tourism Council)

consultative/advisory bodies This Council meets at least once a year in a plenary session, and at least twice
a year in Executive Committee sessions.
The Plenary session is chaired by the Minister of Industry, Tourism and Trade.
Serving as vice-president is the Secretary of State of Tourism and Trade (Presi-
dent of Turespaa) and as Secretary the General Secretary of Tourism (Execu-
tive First Vice-President of Turespaa).
Thailand - Tourism Authority of Thailand (TAT)

Relation with the National [ ] The execution of the NTO activities is based on a written contract with
Tourism Administration (NTA) the NTA, in which the NTO has to account for the execution of its work
formally
[ X ] The execution of the NTO activities is based on an informal contract
with the NTA (i.e. understanding and incidental verbal or specific written
aspects)
NTA

N= None
H= High
[ H ] Definition of the level of salaries
T= Total
Tue, 18 Jul 2006 10:21:45

[ H ] Annual marketing activity planning
unknown
[ N ] Evaluation of accomplishment of pre-formulated targets/results

[ H ] Definition on opening/closing offices abroad
[ ] Other

[ X ] Public/private
[ ] Wholly private
The Tourism Authority of Thailand is a state enterprise organization with a
public/private legal status.

policy objectives TAT aims at being a center of excellence in promoting and developing sustaina-
ble tourism, upholding the Thai dignity and international standards, and crea-
ting equilibrium of the economy, society and environment.
Policy objectives
To develop and promote Thailand as a quality, sustainability and competitive
destination in the world tourism market. This will eventually lead Thailand to
become the Tourism Capital of Asia.

of responsibilities TATs current objective is marketing Thailand as a quality destination.
TAT is responsible for both the international and domestic market.
Minister of Tourism & Sports

TAT Board of Directors
CEO
International Publicity and

Administration Tourism Products Domestic Markets Marketing Public Relations
Policy and Domestic International Advertising

General Aspects Planning Promotion Promotion and PR
Human Resources Investments Domestic Offices East Asia Marketing Services
Budget and Product Promotion Europe Information

Accounting Technology
Events Americas
Tue, 18 Jul 2006 10:21:45

Offices Abroad 40
unknown


Process
N= Not used
V= Very important The process of marketing planning normally follows the steps:
M= Medium importance Situation Analysis (where are we now);
L= Low importance
Marketing Objective (where do we want to go);
Strategy and Implementation;
Control and Evaluation.
Elements used
[ ] Other

Elements used
N= Not used
V= Very important [ M ] National tourism policy objectives
M= Medium importance [ M ] Needs of the tourism industry
L= Low importance
[ ] Other
(least important)
motives, etc)
Tue, 18 Jul 2006 10:21:45

[ ] Other
unknown
2 BudgetN

Other sources 0

Financing system [ X ] Budget comes from the general government budget

(budget from the national [ ] Budget comes from the general government budget, plus from specific
Indicators impacting on [ X ] International tourism receipts

[ X ] Numbers of arrivals at registered accommodations in total
tourists only
[ X ] Numbers of nights at registered accommodations in total
[ ] Number of nights at registered accommodations of international
tourists only
[ ] Other variables
The budget is made of a fixed part, some annual increase and a variable sum.
The latter depends on tourism demand and on special needs that arise for
example from economic downturn, natural disasters, marketing trends, etc.

important)
[ ] Other
Share in marketing
budget (%)
Budget allocation by Advertising (radio, TV, print and other) 29.5

promotional activity Tourism fairs, tradeshows and workshops 28.9
Internet 1.1
Public Relations + all familiarisation trips 13.1
Support of tourism industries (e.g. cooperative mar- -
keting with TOs, etc)

Tue, 18 Jul 2006 10:21:45
mailing costs)
Market research -
Other 17.1
unknown
Share in marketing
Share in inbound tourism (%) budget (%)
Budget allocation by main Malaysia (12%) 3.1

markets Japan (10%) 14.8
China (7%) 6.2
Korea, Republic of (8%) 2.8
Hong Kong (China) (6%) 3.0

[ X ] Informal
The relationship is mostly on consultative basis (meetings, seminars, works-
hops, etc).
Marketing activities by There are some marketing activities and related efforts from individual or rela-
regional and/or local tourism ted tourism associations, but mostly the marketing performance and budget
boards beyond their NTO allocation is from NTOs.

[ X ] Informal
The relationship is mostly on a consultative basis (meetings, seminars, works-
hops, etc).
Relationship with The Tourism Authority of Thailand is related to the Tourism Council of Thai-
consultative/advisory bodies land (TCT), which acts as intermediary between the NTO, the NTA and the pri-
vate sector (tourism related associations).
Tue, 18 Jul 2006 10:21:45

unknown
United Kingdom - VisitBritain

Position of the NTO within Within Great Britain, the UK Parliament at Westminster has devolved responsi-
the national tourism bility for tourism in Scotland and Wales to the Scottish Parliament (SP) and the
structure Welsh Assembly (WA) respectively. The SP and the WA each funds its own tou-
rist board, the Scottish Tourist Board trading as VisitScotland (VS), and the Wales
Tourist Board (WTB) to promote their country overseas and domestically.
Within the UK Government at Westminster, the Department for Media Culture
and Sport has responsibility for tourism in England but, with agreement from
the SP and the WA, continues to fund VisitBritain to promote Great Britain over-
seas. VB is accountable, by statute to the SP and the WA as well as to the UK Par-
liament at Westminster.
There is no legal relationship between VB, VS and WTB, but they work co-opera-
tively together.
Within the English Regions, the Regional Development Agencies RDAs (9)
have responsibility for inbound and domestic tourism to their regions. The
RDAs are funded by the UK Parliament at Westminster through the Department

Tue, 18 Jul 2006 10:21:45
of Trade & Industry. The RDAs deliver their tourism responsibilities via regional
tourist boards, or in some cases, a larger number of regional delivery partners.
Again, there is no legal relationship, but they work co-operatively together.
unknown
To complicate matters further, the London Development Agency, which is one

of the RDAs, is also accountable to the Greater London Authority, which is an
elected body, and is responsible, under statute, for the promotion of London as
a destination, and as a gateway to the rest of Great Britain.
Scottish Nat. Ass. Dep. Trade and Greater London

Dep. Media, Culture and Sports
Executive Wales Industry Author.
Visit Wales Tourist Visit 9x London Devel.

Scotland Board Britain RDA Agency
Visit Britain
14 Regional 4 Regional 9 Regional Visit

Hubs Partnerships Bodies London
120
DMOs
Industry
Relation with the National [ X ] The execution of the NTO activities is based on a written contract with
Tourism Administration the NTA, in which the NTO has to account for the execution of its work
(NTA) formally
[ ] The execution of the NTO activities is based on an informal contract
aspects)
NTA
Areas of NTA involvement in [ P ] Establishment of marketing objectives

the NTO activities [ P ] Definition of the NTO annual budget
N= None
[ P ] Financial accountability control
M= Medium [ P ] Definition of the system of financial reporting
H= High
[ H ] Definition of the level of salaries
T= Total
[ M ] Strategic marketing planning
[ P ] Evaluation of accomplishment of pre-formulated targets/results
[ M ] Definition on opening/closing offices abroad

Tue, 18 Jul 2006 10:21:45
[ ] Other
The establishment of marketing objectives relates to targets on generating
additional visitor spend, achieving regional and seasonal spread of visitors, the
unknown
participation in our marketing campaigns by the industry and implementing

the marketing strategy.
Evaluation relates to a methodology agreed with DCMS and endorsed by the
National Audit Office.

[ ] Public/private
[ ] Wholly private
VisitBritains legal status is a statutory body incorporated by the Development
of Tourism Act, 1969.

policy objectives To build the value of tourism to Britain, generating additional revenue throug-
hout Britain and throughout the year, by creating world-class destination
brands and marketing campaigns. It also builds partnerships which and pro-
vides insights to other organisations which have a stake in British and English
tourism.
To build the value of tourism in England, by working in partnership to develop
and promote a quality destination.
Policy objectives
To advise Ministers and public bodies on matters relating to tourism in Great
Britain.
Strategic objectives and areas Strategic objectives (2005/2006)

of responsibilities Overseas Targets:
Return on Investment*: Generate additional spend of at least 887.5 million
by overseas visitors, resulting from VisitBritains marketing activities and a
short term return on investment of at least 25:1;
Regional Spread*: Achieve at least 55 per cent of the additional spend

outside of London. The targets for 2005/06 for the return on investment and
regional spread have been reduced from 2004/05 to reflect the impact of
shifting resources to emerging markets and withdrawing significant activity
from four near European mature markets;
Seasonal Spread*: Achieve at least 36 per cent of the additional spend
between October and March;
Customer service standards*: Overseas offices and the Britain and London
Visitor Centre to achieve a customer contact standards score of at least 990
out of 1,200;
Britains image as a tourist destination*: Press and PR activities to achieve an
average evaluation score of at least 3.9 out of 5;
Growth markets*: Transfer 1m of funds into growth markets and work
towards achieving an incremental spend of 70m by 2007/8 from growth
markets;
Partner satisfaction: Develop targets to measure partner satisfaction;
Customer database: Increase the number of qualified records to 6.3 million;
E-newsletter: Achieve an e-newsletter open rate of 40 per cent and a click
through rate of 10 per cent;
Tue, 18 Jul 2006 10:21:45
Online registration: Convert 10 per cent of web enquiries to complete online

registration;
Enquiries: Grow the number of visitors to www.VisitBritain.com.
unknown
Domestic Targets:
Return on investment*: Generate a return on investment by domestic visitors
to England of at least 12:1;
Seasonal spread*: Achieve at least 49 per cent of the additional spend
between October and March;
Stakeholder marketing support*: Generate at least 3.5m partner support for
domestic marketing campaigns;
Consumer database: Grow the national consumer database to one million
contacts;
Campaigns: Launch a programme of enjoy England marketing activity and
two product campaigns;
England International Marketing: Generate a return on investment of 30:1;
On line: Grow the number of visitors to visitengland.com.
Infrastructure costs:
Reduce VisitBritains expenditure on infrastructure by 10 per cent by the end
of 2005/06.
Areas of responsibility:
Promotion of Great Britain overseas;
Promotion of England within Great Britain;
Encouraging the provision and improvement of visitor facilities in Great
Britain;
Advising Ministers and public bodies on matters affecting tourism in Great
Britain.
* Targets contained in the Funding Agreement between VisitBritain and the Department for
Culture, Media and Sport.
Internal structure and VisitBritain has a non executive board of 8 which is headed by a part-time Chair-
organization man to whom the Chief Executive reports. Beneath the Chief Executive there
are 7 divisions each headed by a director/executive:
Britain International: overseeing all international operations and directing
international branding and marketing strategies;
England Marketing: responsible for the creation and delivery of all
enjoyEngland domestic and international marketing activities; leading on
VisitBritains Quality Agenda and accreditation services;
Strategy and Communications: responsible for strategy development,
stakeholder relations, government affairs, VB tourism policy remit, corporate
public relations and publicity for the destination;
Commercial and Marketing Services: responsible for working with
industry and strategic partners to create added value services for both
international and domestic visitors, including publishing services, business
visitor marketing, industry relations and EnglandNet;
Corporate Services: responsible for ensuring effective corporate and
financial management, planning and controls are maintained, business
planning, risk management and business continuity;
People and Performance: responsible for defining, developing and
Tue, 18 Jul 2006 10:21:45
implementing organisational development and HR strategies to ensure

effective global people development within VisitBritain;
Technology: responsible for assisting the organisation in meeting its
corporate and new media objectives, responsible for the development and
unknown
delivery of VisitBritains technology strategy through delivering systems and

related business processes, via a structured project management approach.
Overseas, our country managers report to 4 hub general managers who report
in turn to the Director of Britain International. The 4 hubs are: The Americas,
Asia Pacific, Northern Europe and Southern Europe/Middle East/Africa.

Offices Abroad 236


Process
N= Not used
V= Very important VisitBritain consults with all key stakeholders.
M= Medium importance Elements used
L= Low importance
[ ] Other

Process
N= Not used
V= Very important Operational planning is dealt with in our annual business planning round. The
M= Medium importance business planning process includes key consultation points with stakeholders.
L= Low importance Elements used
[ ] Other
Tue, 18 Jul 2006 10:21:45

(least important)
motives, etc)
unknown

[ ] Other
2 BudgetN

Other sources 27%

Indicators impacting on [ ] International tourism receipts

tourists only

[ ] Number of nights at registered accommodations of international tourists
only
[ X ] Other variables

(least important)
[ ] Other
Share in marketing
budget (%)
Budget allocation by Partnership Marketing, Media and Public Relations 44

promotional activity Publishing 14
Commercial activities (including subsidiary) 19
Tue, 18 Jul 2006 10:21:45
Distribution 10
CRM and database 9
Research and evaluation 4
unknown
Budget allocation by product Sun and Sea -

Touring 31
Active Tourism and Sports, Countryside, Mountains/ 31
Rural
MICE and Events 7
Other segments -


markets Germany (6%) 4
France (6%) 2
Ireland (6%) 2
Spain (5%) 2

[ X ] Informal
The Chairman of the Visit Scotland and the Wales Tourist Board are ex officio
members of the VB Board. The Chairmen of the Regional Development Agency,
with lead responsibility for tourism, attends VB Board meetings as an observer.
The Memoranda of Understanding in place sets out how VB will work with the
VisitScotland, the Wales Tourist Board and the RDAs.
At Executive level, VB consults with tourism board and RDAs stakeholders on
business planning and strategy development, and all of the parties meet regu-
larly in various forums. In particular, VB works through a Tourist Boards Marke-
ting Group.
Marketing activities by The marketing activities by the regional and/or local tourism boards are exten-
regional and/or local tourism sive covering both the domestic and international marketing of their
boards beyond their NTO regions/destinations.
Tue, 18 Jul 2006 10:21:45

[ X ] Informal
unknown
VisitBritain consults regularly with the private sector on strategic issues, prima-
rily through an advisory committee which has extensive representation from
both public and private sector stakeholders. It offers a range of services and
marketing opportunities to the industry, which can be bought on an ad-hoc
basis.
VisitBritain also coordinates a high level Tourism Industry Emergency Respon-
se Group, which meets in times of crisis to agree tourism industry response to
events affecting the industry, such as the 2005 London bomb blasts.
United States of America - Office of Travel and Tourism Industries

(OTTI)

Position of the NTO within The International Trade Administration (ITA) is the trade promotion branch of
the national tourism the U.S. Department of Commerce. Within ITA, the Manufacturing and Services
structure and the U.S. Commercial Service are the two primary government agencies that
are actively involved in outreach to support travel and tourism exports.
<http://www.ita.doc.gov>.
Manufacturing and Services Office of Travel & Tourism Industries (OTTI) serves
as the National Tourism Office for tourism policy coordination, research, and
representation internationally. It is also the primary source of international tra-
vel statistics in the United States, and provides technical assistance in conjunc-
tion with the Commercial Service for expanded exports. OTTI is also the lead on
the U.S. International Tourism Promotion Campaign. To learn more:
<http://www.tinet.ita.doc.gov>.
As many federal agencies have a purview over tourism-related issues, the Offi-
ce of Travel and Tourism Industries is committed to a federal team-oriented

Tue, 18 Jul 2006 10:21:45
approach to create a more diversified and seamless force to assist the industry.
The OTTI serves as the secretariat for the Tourism Policy Council, an interagency
forum involving 15 agencies of the federal government. This council offers a
unknown
coordinated approach for federal policy deliberations affecting travel and tou-
rism. Along with the U.S. Commercial Service, the OTTI organized and hosted an
interagency Travel and Tourism Team Training with the Department of Com-
merce and nine other federal agencies with organizational goals promoting and
facilitating tourism to the U.S. The goal of the meeting was to enhance program
awareness and learn how to achieve mutual goals; to develop plans of action to
coordinate communication, training, and trade events; and to forge productive
federal partnerships in support of the U.S. travel and tourism industry. There are
projects currently in play with, for example, the Departments of State, Interior,
Homeland Security, and Transportation.
The Office of Travel and Tourism Industries (OTTI) offers export assistance to
American travel and tourism industry suppliers, from communities to individual
establishments, through consultations using market analysis and intelligence.
Working in conjunction with the promotional efforts of the Commercial Service
officers nationwide and around the globe, these services offer in-depth market
conditions and industry knowledge to position a specific market to expand this
vital export, encouraging more international travelers to visit the USA.
OTTI provides all of the international market and economic research data for
configuring the balance of trade and GDP as well as value added calculations
through the US Tourism Satellite Account (TSA). This includes the administra-
tion of a comprehensive primary research program of international air trave-
llers.
Tourism Administration NTA, in which the NTO has to account for the execution of its work
(NTA) formally
[ ] The execution of the NTO activities is based on an informal contract
aspects)
NTA

[ ] Public/private
[ ] Wholly private
The Office of Travel and Tourism Industries is an office within the US Depart-
ment of Commerce, which is a department within the Federal Government of
the United States. The Office was formed under the National Tourism Organiza-
tion Act of 1996.

policy objectives The Office of Travel and Tourism Industries is dedicated to helping US busines-
ses gain access to and compete in the global marketplace.
Policy objectives
To assist travel and tourism businesses by advancing policies and programs
that strengthen economic development and export opportunities.
Strategic objectives and areas Areas of responsibility:

of responsibilities Research;
Policy;
Export Assistance/Outreach;
Tue, 18 Jul 2006 10:21:45
US Promotion Campaign (Internationally only);

Publications.
OTTI is not responsible for domestic tourism.
unknown
Director
Research Admin. Policy & Planning Industry Relations
Deputy Director Program Analyst Deputy Director Deputy Director
Senior Research Secretary Policy Analyst International Trade

Analyst Specialist
2 Market Research
Analysts
Program Assistant
Number of Staff Head Office 12

Offices Abroad 0

The NTO coordinates with the services of the US Foreign & Commercial Service
offices which are located in 93 countries, as well as 105 domestic offices, for
export promotion activities.
Strategic planning OTTI is not involved in long-term strategic planning.


Process
N= Not used
V= Very important OTTI is involved with:
M= Medium importance Establishment of objectives;
L= Low importance
Definition of main strategic lines;
Definition of markets;
Definition of main promotional activities;
Budget allocation;
Definition of performance indicators and correspondingly evaluation
process.
Elements used
Tue, 18 Jul 2006 10:21:45
[ L ] Assessment of the actual national tourism products
[ ] Other
unknown
(least important)
motives, etc)
[ ] Other
2 BudgetN
Total budget (2005) 4.9 million euros / US$ 6.1 million

Other sources 0


(least important)
[ X ] Other: adjustment of the market to the corporate strategies
Share in marketing
budget (%)

Internet 3
Public Relations 4
Market research 5
Other 16
Tue, 18 Jul 2006 10:21:45

unknown

[ X ] Informal
Outreach is carried out through the tourism trade specialists and research
analysts at OTTI. Outreach involves a concerted effort with convention and visi-
tor bureaus to reach communities, trade associations to reach industry players,
state tourism offices, and other federal agencies involved in tourism-related
activities or products. A key partner in the effectiveness of our export assistan-
ce efforts is the Commercial Service, both domestic and foreign, in the Interna-
tional Trade Administration. This covers over 100 export assistance offices
throughout the U.S., and over 150 foreign commercial service offices in more
than 80 countries throughout the world.
Marketing activities by Travel Industry Association budget not available.

regional and/or local tourism State Tourism Boards budget not available.
Convention and Visitors Bureaus budget not available.
See for more information 2003-2004 Survey of US State and Territory Tourism
Office Budgets, TIA, July 2004.

[ X ] Informal
OTTI has an informal relationship with the Travel Industry Association (TIA) plus
contractual cooperative programs with TIA to expand the international tourism
campaign.
Relationship with The U.S. Travel and Tourism Promotion Advisory Board (Board) recommends
consultative/advisory bodies to the Secretary of Commerce the appropriate coordinated activities with
regards to funding for the Travel and Tourism Advertising and Promotional
Campaign (Campaign). Pursuant to Pub. L. No. 108-7, Division B, Section 210,
the Secretary of Commerce, shall in consultation with the private sector,
design, develop and implement an international advertising and promotional
campaign, which seeks to encourage foreign individuals to travel to the United
States for the purposes of engaging in tourism related activities.
In addition, the Board advises the Secretary on government policies and pro-
grams that affect the United States travel and tourism industry and provide a
forum for discussing and proposing solutions to industry-related problems.
The Board acts as a liaison among the stakeholders that are represented by
the membership, and provides a forum for those stakeholders on current and
emerging issues in the travel and tourism industry.
The OTTI implements on behalf of the Secretary of Commerce, the advice of the
Board by running the promotional campaign and forming policy based on
input from the national strategy.
Tue, 18 Jul 2006 10:21:45

unknown
Annex I
Questionnaire on NTO Budgets
QUESTIONNAIRE ON
NATIONAL TOURISM ORGANIZATIONS BUDGETS
INBOUND TOURISM MARKETING
Introductory Notes:
For easy and efficient answering it is advisable to read the whole Questionnaire carefully before
you start to answer;
Please include answers on budgets whenever possible in amounts and state for each question the
currency used, and give only values in percentages when mentioned specifically;
If you think that specific explanatory remarks are relevant to understand the information on your
National Tourism Organization (NTO), please feel free do so too wherever you feel relevant;
In case of doubts during the fulfilment of the questionnaire please do not hesitate to contact Mr
Tue, 18 Jul 2006 10:21:45
Herman Bos (hhbos@wanadoo.nl or + 31 (0) 715 768 140) from Tourism Strategy Consultants for
any clarifications.
unknown
Country:
Institution / NTO:
Contact person:
Position:
Tel.: Email:
Question 1
What is the total annual NTO-budget for inbound tourism marketing, what are its sources and its
basic allocations? This means, when the case, the exclusion of budgets for domestic marketing,
investments in supply/products and other possible NTO-tasks.
Currency: 2004 (amount) 2005 (amount)

Total budget
FROM (sources):
National government
Regional governments
Local governments
Other (e.g. from the private industry, in cash or in kind for specific marke-
ting activities, etc)
TO (budget allocation):
Operating costs (all operating costs, as for e.g. salaries, rents, travel and
other overhead costs as e.g. for bookkeeping and human resources depart-
ments, both in the head office and in the offices abroad)
Marketing costs (all direct costs for marketing activities and directly marke-
ting supporting activities, as for e.g. research, strategy development, coor-
dination, etc)

Remarks: The sum per annum of the amounts given from the sources mentioned must add up to the
total budget. It might be possible that when the NTO-budget is partly funded by external sources, some
difficulties may arise on the division of the amounts. When accurate allocation between the groups in
amounts is difficult, please regard the total sum as 100% and estimate per annum the shares of the
different groups. If done this way, please indicate the use of percentages in writing.
Question 2
Do other regional/local tourism boards in your country perform marketing activities to stimulate
tourism to their regions/cities by themselves abroad, so not via the NTO?
[ ] No
[ ] Yes
If yes, please indicate which tourism boards and give if possible an estimated amount of their
yearly budget. When no estimate is possible, please give a general qualification on the total
amounts in comparison to the NTO budget.
Question 3
Tue, 18 Jul 2006 10:21:45
3-a What is the financing system of the NTO budget coming from the national government?
unknown
[ ] Budget comes from the general government budget

[ ] Budget comes from the general government budget, plus from specific tourism taxes
If including specific tourism taxes, please indicate its type of levying, so e.g. per arrival or night
and, in the case of a mix, what is the share of the taxes in the total budget.
[ ] Budget comes from the general government budget, plus from other sources (such as
gambling, tax free receipts, VAT, etc)
Please specify its types and shares in the total budget.
3-b Is the NTO budget as originated from the national government a fixed amount or does it vary
according to certain conditions/indicators?
[ ] Fixed amounts only Please continue with Question 4

[ ] Fixed amounts, plus variable amount depending on the results of tourism demand
[ ] Fixed amounts, plus variable amount depending on the performance of the NTO regarding
pre-defined objectives
[ ] Fixed amount, plus variable amount depending on the participation of other stakeholders
(regional/local tourism boards and/or private industry)
[ ] Variable amount only, depending on the results of tourism demand
[ ] Variable amount only, depending on the performance of the NTO regarding pre-defined
objectives
[ ] Variable amount only, depending on the participation of other stakeholders (regional/local
tourism boards and/or private industry)
[ ] A mix of the three above mentioned variable amount systems
[ ] Other
Please specify:
Annex I - Questionnaire on NTO Budgets 117
3-c When a part of the governmental funding is based on the results of tourism demand (Question
3-b) what kind of variables influence it?
[ ] International tourism receipts

[ ] Total receipts in tourism taxes
[ ] Number of arrivals at registered accommodations of international tourists only
[ ] Number of nights at registered accommodations of international tourists only
[ ] Other variables
Please specify if the last item is the case and/or when more than one variable is in use.
Question 4
What is in 2005 the NTO marketing budget allocation by type of marketing activity for the promotion
of inbound tourism?
Tue, 18 Jul 2006 10:21:45
If no accurate data per given type of activity are available, please use estimated percentages
and use the second column.
unknown
Marketing Activities Amount (currency) In Percentage

Advertising (radio and TV)
Advertising (print and other)
Tourism fairs
Tradeshows/workshops
Internet
Press trips
Public Relations
Familiarisation trips (trade)
Support to the tourism industry (e.g. cooperative marketing with TOs,
etc)
Information (including costs in the head office and offices abroad, bro-
chures and other printing material, and mailing costs)
Market research
Other. Please specify:
Total marketing budget
Question 5
What is in 2005 the budget allocation by type of product within the total budget for inbound tourism
marketing?
If no accurate data per given type of activity are available, please use estimated percentages
and use the second column.
Marketing Activities Amount (currency) In Percentage

Sun and Sea
Cultural Tourism (including City Tourism)
Touring
Active Tourism and Sports
Countryside/Mountains/Rural Tourism
MICE and Events
Other segments. Please specify:
Total marketing budget
Tue, 18 Jul 2006 10:21:45
Question 6
unknown
6-a What is in 2005 the share of the marketing budget allocated to the five main source markets
within the total budget for marketing inbound tourism?
Share in Inbound Tourism (%) Share in the Marketing

Main Markets (in terms of total tourist arrivals - or if
Budget (%)
other indicator, please specify which)
1.
2.
3.
4.
5.
6-b Is the share as given in 6-a for marketing costs by market a share of the total budget or of the
direct marketing budget only?
[ ] The mentioned percentage is the share in the total budget

[ ] The mentioned percentage is the share in the direct marketing budget (so excluding
operating costs)
Annex I - Questionnaire on NTO Budgets 119
Question 7
What is in 2005 the actual number of total staff employed for inbound marketing?
Location Total Number of Staff in Full Time Jobs

Head Office
Offices Abroad
Please report only people who are in the NTO regular payroll. Please report in full time jobs and
for that please recalculate, if existing, the jobs of part time employees into full time jobs. E.g. two
persons with a half time job can be recalculated to one full time job, three persons with a job in
working hours of 40% to a full time job can be recalculated to 1.2 full time jobs.
Question 8
What is the number of offices and other representations abroad?
Tue, 18 Jul 2006 10:21:45
2004 2005
Own NTO-offices: offices that are fully operated by the NTO with its staff
unknown
on the NTO-payroll
Contractual representations: representations that have a commercial
contract with the NTO for marketing activities
THANK YOU VERY MUCH FOR YOUR KIND SUPPORT!

unknown
Tue, 18 Jul 2006 10:21:45
Annex II
Questionnaire on NTO Structure and Functioning
QUESTIONNAIRE ON
THE STRUCTURE AND FUNCTIONING OF NATIONAL
TOURISM ORGANIZATIONS (NTOs)
Introductory Notes:
For easy and efficient answering it is advisable to read the whole Questionnaire carefully before
you start to answer;
If you think that specific explanatory remarks are relevant to understand the information on your
NTO, please feel free to do so wherever you consider them relevant;
Though many questions relate to the NTO in totality, please answer them from the perspective of
marketing inbound tourism;
In case of doubts during the completion of the questionnaire please do not hesitate to contact Mr
Tue, 18 Jul 2006 10:21:45
Herman Bos (hhbos@wanadoo.nl or + 31 (0) 715 768 140) from Tourism Strategy Consultants for
any clarifications.
unknown
Country:
Institution / NTO:
Contact person:
Position:
Tel.: Email:
A The National Tourism Organization (NTO) within the National

Tourism Structure
Question 1
Please describe the position of your NTO within the structure of tourism in your country, including
the existing relationships between the different organizations. If possible please draw or attach a
chart.
Question 2
2-a Is the execution of the NTO activities based on a contract with the national government (NTA)?
[ ] No
[ ] Yes, its is based on an informal contract, i.e. primarily on understanding and incidental
verbal or specific written aspects
[ ] Yes, it is based on a contract in writing in which the NTO has to account for the execution
of its work formally

2-b Below some possible conditional areas for governmental involvement in marketing inbound
tourism by NTOs are mentioned. Please tick per item to what extent are they important in the
relationship between the NTO and the government (NTA).
Involvement
Part of a
None Medium High Total Formal
Agreemen
Establishment of marketing objectives
Please identify which type:
Definition of the NTO annual budget
Financial accountability control (afterwards)
Definition of the system of financial reporting
Definition of the level of salaries
Definition of staffing numbers
Annual marketing activity planning
Strategic marketing planning
Evaluation of accomplishment of pre formulated targets/
results. If yes, please specify how
Definition on the opening/closing of offices abroad

Tue, 18 Jul 2006 10:21:45
Other. Please specify

unknown
Question 3
What is the relationship of your NTO with the regional/local tourism boards?
[ ] Contractual
[ ] Formal (e.g. according to laws, regulations, etc)
[ ] Informal
In any of the cases please provide a brief description:
Question 4
What is the relationship of your NTO with the private industry (per se and/or with private sector
associations)?
[ ] Contractual
[ ] Formal (e.g. according to laws, regulations, etc)
[ ] Informal
In any of the cases please provide a brief description:
Question 5
Please describe, if existing, the relationship of your NTO with existing tourism consultative/advisory
bodies.
Annex II - Questionnaire on NTO Structure and Functioning 123
B The structure and functioning of the NTO
Question 6
What is the legal status of your NTO? Please attach a copy of the legal status if possible.
[ ] Wholly public
[ ] Public/private
[ ] Totally private
In any of the cases, please provide a brief description:
Question 7
Please give the current Mission Statement of your NTO and/or describe its policy objectives (s)
comparable to that.
Mission Statement:
Policy objectives:
Tue, 18 Jul 2006 10:21:45
Question 8
unknown
What are the strategic objectives and areas of responsibilities of your NTO?
Strategic objectives:
Areas of responsibility: (please indicate specifically if the NTO is also responsible for the
promotion of domestic tourism).
Question 9
Please provide a functional description of the internal structure of the NTO, including the directive
board and all NTOs departments. Include please an organizational/funcional chart.
C Planning procedures: strategic and operational planning
Question 10
10-a Does your NTO develop long-term strategic marketing planning?
[ ] No Please continue with Question 11

[ ] Yes, incidentally
[ ] Yes, constantly
10-b What is generally the time frame of your strategic marketing planning?
_________________ years
10-c Please describe the process of strategic planning, including parties involved (e.g. NTA, regional/
local tourism boards, private sector, advisory boards, etc) in correlation with:
Establishment of objectives;
Definition of products;
Budget allocation;
Definition of performance indicators and corresponding evaluation process.
10-d Please tick per possible elements, their use and importance in your strategic marketing planning
process.
Importance when used

Not
used Very Medium Low
important importance importance
National tourism policy objectives
Tue, 18 Jul 2006 10:21:45
The needs of the tourism industry

Trends in tourism demand
Research on market potential
unknown
Research studies on image

Available budget
Operational costs
The assessment of the actual national tourism products
Question 11
11-a What is generally the time frame of your operational marketing planning?
_________________years
11-b Please describe the process of operational planning, including parties involved (e.g. NTA,
regional/local boards, private sector, etc) in correlation with:
Establishment of objectives;
Definition of products;
Budget allocation;
Definition of performance indicators and correspondingly evaluation process.
Annex II - Questionnaire on NTO Structure and Functioning 125
11-c Please tick per possible elements, their use and importance in your operational marketing
planning process.
Importance when used

Not
used Very Medium Low
important importance importance
National tourism policy objectives
The needs of the tourism industry
Trends in tourism demand
Research on market potential
Research studies on image
Available budget
Operational costs
The assessment of the actual national tourism products
11-d The allocation of the annual budget for marketing activities abroad over different countries is
generally based on various criteria. Six of them are mentioned here-under. If preferred you may
add more. Could you please indicate the importance of the various criteria for your NTO in
Tue, 18 Jul 2006 10:21:45
terms of budget allocation? Please rank them from 1 (most important) to 6 (least important).
unknown
Rank importance
Operating costs
The estimated costs of the planned activities
The present market importance (share in demand)
The market potential
The total available budget for current year
The financial support of third parties for marketing activities
Question 12
NTOs generally use research to support inbound tourism marketing planning. Research can be
subdivided into various types. Six of them are mentioned here-under. If prefer you may add more.
Could you please indicate the importance of the various types of research for your NTO and rank
them from 1 (most important) to 6 (least important).
Research Rank importance

Data collection on the actual level of demand (arrivals, nights, distribution by
region and/or season, share by nationality, etc.)
Data collection on the structure of demand segments (e.g. age, income, moti-
ves, etc)
Research on Image
Measuring marketing effectiveness
Trends and the development of potential demand
Special segmentation studies
D NTO Evaluation System
Question 13
13-a Does your NTO dispose of an evaluation system?
[ ] No Please continue with Question 14

[ ] Yes, but only globally
[ ] Yes, based on market performance indicators (numbers of arrivals, nights, spending, etc)
[ ] Yes, by calculations on the return of investment (ROI) by comparing results of specific
marketing activities with results on demand
[ ] Yes, based on other criteria
If based on other criteria, please specify:
13-b If your NTO disposes of an evaluation system are the objectives used to implement it predefined
(i.e. established before the execution of the marketing plan)?
[ ] No
Tue, 18 Jul 2006 10:21:45
[ ] Yes,
Please indicate who is responsible for the definition of usage and for the analysis and validation
unknown
(in terms of accomplishment or not).
E SWOT analysis
Question 14
14-a Can you, based on your experience, indicate what you regard as the positive factors that
strengthened your NTOs position and functioning and were instrumental to successes?
14-b Can you, based on your experience, indicate what you regard as the negative factors that
weakened your NTOs position and functioning and were instrumental to constraints?
14-c Can you, based on your experience, indicate what you regard as opportunities for your NTOs
position and functioning and how to make use of them?
14-d Can you, based on your experience, indicate what you regard as future threats for your NTOs
position and functioning and how to solve them?
Please return this questionnaire and if possible, copies of:
a) your annual report;

b) your annual marketing plan;
c) your strategic marketing plan;
d) an organizational chart of your NTO;
e) any other relevant documents that inform on marketing, strategy, structure, organization and
functioning of your NTO.
By email or normal mail to:
Mr Herman Bos (hhbos@wanadoo.nl)

Tourism Strategy Consultants, Het Wedde 51
2253 RB Voorschoten, The Netherlands
Annex III
Participating Countries
Country Organization
Australia *) Tourism Australia
Austria Austrian National Tourist Office
Botswana Department of Tourism
Canada Canadian Tourism Commission (CTC)
Chile *) Servicio Nacional de Turismo (SERNATUR)
Colombia Ministerio de Comercio, Industria y Turismo
Cyprus Cyprus Tourism Organization
Czech Republic Czech Tourism Authority (Czech Tourism)
Denmark VisitDenmark
Dominican Republic Secretaria de Estado de Turismo
El Salvador Miniterio de Turismo
Estonia Estonian Tourist Board
Finland Finnish Tourist Board
France *) Maison de la France
Germany Deutsche Zentrale fr Tourismus (DZT)
Greece Greek National Tourist Office (GNTO)
Guatemala Insituto Guatemalteco de Turismo (INGUAT)
Tue, 18 Jul 2006 10:21:45
Honduras Instituo Hondureo de Turismo

Hungary *) Hungarian National Tourist Office (HNTO)
India Ministry of Tourism
Indonesia Ministry of Culture and Tourism
unknown
Ireland Tourism Ireland

Italy Italian State Tourist Board (ENIT)
Korea, Republic of Korea Tourism Organization
Lithuania Department of Tourism
Luxembourg Luxembourg National Tourist Office
Macao (China) Macao Government Tourist Office
Malaysia Ministry of Tourism
Malta Malta Tourism Authority
Mexico Secretara de Turismo
Nepal Nepal Tourism Board
Netherlands *) Netherlands Board of Tourism and Conventions (NBTC)
New Zealand Tourism New Zealand (TNZ)
Norway *) Innovation Norway
Peru *) Comisin para la Promocin del Per (Promperu)
Philippines Department of Tourism
Poland Polish Tourist Organization
Portugal *) Portuguese Tourism Institute/Instituto de Turismo de Portugal (ITP)
Romania National Authority for Tourism
Saudi Arabia Supreme Commission for Tourism (SCT)
Slovakia. Slovak Tourist Board
Slovenia Slovenian Tourist Board
South Africa South African Tourism
Spain *) Turespaa
Sweden Sveriges Reseoch Turistrd
Switzerland Switzerland Tourism
Thailand *) Tourism Authority of Thailand (TAT)
Tunisia Tunisian National Tourism Board
United Kingdom *) VisitBritain
United States *) Office of Travel and Tourism Industries
N=50 *) Countries that have participated by answering both questionnaires

unknown
Tue, 18 Jul 2006 10:21:45
Annex IV
Methodological Notes
Countries are presented in alphabetical order.
In case that for a country no data were available, the country has been omitted in a table.
Some NTOs that are also responsible for marketing domestic tourism could not fully separate data
precisely. In those cases the relevant data were recalculated, most often by using pro rata
assumptions.
In case of a deficit in spending for a given year it is assumed that this deficit is paid from reserves.
The origin of the reserves is expected to be the result of government investments in previous years.
In order to balance income and spending, the budget is increased by the deficit and its budget
Tue, 18 Jul 2006 10:21:45
source is regarded to be the national government. With a surplus the opposite procedure has been
used.
Receipts based on taxes are regarded as government funding, as they are by public law the result
unknown
of governmental involvement.
In some countries regional governments support international destination marketing to the benefit
of other bodies than the national boards. These budgets are excluded in this report.
The financial/fiscal year in some countries is not the same as the calendar year. In those cases, the
data are regarded as those calendar years that are the best comparable.
Averages are calculated only for those countries that had data available in the year(s) under
consideration.
The information on 2005 is based on current preliminary budgets. The precise amounts will not
be available before mid 2006. It is to be expected that for the majority of cases the final figures
will only deviate marginally from the budgeted ones.
External data that are used for references have the following sources:
- data on international tourist arrivals, international tourism receipts and exchange average
rates: UNWTO;
- data on inhabitants: the US Census Bureau, midyear figures;
- data on the export of services (Travel, Credit in the Balance of Payment): IMF.
When budgets were given in national currencies, they have been recalculated with the average
exchange rate of 2004 into US dollars and euros. In 2005, the average exchange rate of the US
dollar against the euro is the same as in 2004. (1 US dollar = 0.8039 or 1 = 1.2439 US
dollars).
When questions arose on the comparability of specific data the NTO was consulted. In a very few
cases this has not been possible. In those cases changes have been made when it was assumed
that this could be done acceptably justified. When this was not the case, the information has not
been used.

When in question 6 the information was given as related to the total budget, everything has been
recalculated into marketing costs, assuming that operational costs will be more or less parallel to
the marketing costs.
Data on South Africa are based on the annual report and include domestic tourism marketing.
Data on staffing and offices in Malta relate to the situation before the recent reorganization.
For the Netherlands, data on the marketing budget includes operational costs.
Offices abroad are offices that are fully operated by the NTO with its staff on the NTO-payroll.
Contractual representations are organizations/companies that have a commercial contract with

the NTO for marketing activities.
In Table 10, the second and third columns result from the division of the total budget by the
number of offices abroad. In the fourth and fifth column the total budget is divided by the sum of
the number of offices and representations. Offices and representations together are expressed in
the word outlets. The sixth and seventh column are comparable to the fifth and sixth column,
but in these the marketing budget is used as nominator (in stead of the total budget).
Tue, 18 Jul 2006 10:21:45

unknown
Annex V
Bibliography
Cockerell, N. (1994), The changing role of International Travel and Tourism Organizations, in Travel and Tourism
Analyst, The Economist Intelligence Unit, page 69, London.
European Travel Commission (1999), ETCs Member survey, ETC, Bruxelles.
Lavery, P. (1996), Funding of National Tourist Organizations in Travel & Tourism Analyst, The Economist
Intelligence Unit, page 80, London.
Maison de la France (2000), Analyse Comparative des Structures et Budgets des Principaux Offices Nationaux de
Tourisme, MDLF, Paris.
Messe Berlin/NIT (1997), Organisationsstrukturen im Internationalen Destination Marketing, NIT, Kiel.

Tue, 18 Jul 2006 10:21:45
Ministry of Economic and Business Affairs and The Danish Tourist Board (2003), Tourism Policy, Government
Investment and Foreign Bed-nights Stayed in Denmark, Sweden, Finland, the Netherlands, Ireland, Austria,
Germany, Mecklenburg-West Pomerania and Great Britain, Ministry of Economic and Business Affairs and DBT,
unknown
Copenhagen.
Organisation for Economic Co-operation and Development (2000), Draft Recommandations for National Tourism
Organizations, OECD, Paris.
Organisation for Economic Co-operation and Development (1998), The changing role of National Tourism
Administrations, OECD, Paris.
Swedish Tourist Authority (2003), A study of National Tourism Organizations in Selected European Countries, STA,
Stokcholm.
The Changing Role of National Tourism Organizations (2004), City Profiles, no. 18, The Travel Business
Partnership, London.
Travel Industry Association of Americas (2004), 2003-2004 Survey of US State and Territory Tourism Office
Budgets, TIA, Washignton DC.
Touche Ross Management Consultants (1993), Success factors in Tourism Policies in the European Community
Member States, TRMC, London.
Tourism Strategy Consultants (2004), Dilemmas in Destination Marketing, TSC, Chamonix.
Van der Sluys, I (1997), Cross-border Cooperation in European Tourism Promotion, Netherlands Institute of Tourism
and Transport Studies, Breda.
World Tourism Organization (2005), Structures, Spheres of Competence and Activities of National Tourism
Administrations, UNWTO, Madrid.
World Tourism Organization (2002), Promotion of the Tourist Image of European Destinations on Competitive
International Markets, UNWTO, Madrid.
World Tourism Organization (1999), Budgets of National Tourism Administrations 1993-1997, UNWTO, Madrid.
World Tourism Organization (1999), The Future of National Tourism Offices, UNWTO, Madrid.
World Tourism Organization (1997), Cross-border Cooperation in European Tourism Promotion, UNWTO, Madrid.

World Tourism Organization (1997), Tourism Promotion in Foreign Markets, UNWTO, Madrid.
World Tourism Organization (1995), Marketing Plans and Strategies of National Tourism Administrations, UNWTO,
Madrid.
World Tourism Organization (1995), Budgets and Marketing Plans of National Tourism Administrations, UNWTO,
Madrid.
World Tourism Organization (1994), Budgets of National Tourism Administrations, UNWTO, Madrid.
World Tourism Organization (1984), Budgets of National Tourism Administrations 1981-1982-1983, UNWTO,
Madrid.
World Tourism Organization and Dijksterhuis A. (1994), Measuring the Performance of National Tourist
Organizations Marketing, UNWTO, Madrid.
World Tourism Organization and European Travel Commission (1997), Faced with Worldwide Competition and
Structural Changes: What are the Tourism Responsibilities of European Governments, UNWTO/ETC, Madrid.
World Tourism Organization and Keller P. (1997), Governments Need to Stay Involved in Tourism, UNWTO,
Madrid.
Some specific studies in and on other European and non-European countries, Various/Confidential, 2000/2004.
Tue, 18 Jul 2006 10:21:45

unknown
Annex VI
Tables in US dollars
Table 24 Annual NTO budgets for marketing inbound tourism (US dollar)
Budget by the Governments
Total budget national
Change Change share of budget
Country (US$ million) government
(%) (US$ million) (%) (%)
2004 2005 2004 2005 2004 2005
Australia 111.1 113.3 2.0 92.4 92.9 0 83.2 82.0
Austria 56.6 57.5 2.0 37.4 37.4 0 66.0 64.9
Canada 65.7 58.5 -11.0 48.1 47.0 -2 73.3 80.3
Chile 2.1 2.3 10.0 2.1 2.3 10 100.0 100.0
Colombia 2.0 1.0 50.0
Cyprus 55.4 64.5 16.0 53.3 61.4 15 93.6 93.6
Czech Republic 9.0 8.5 -6.0 9.0 8.5 -6 100.0 100.0
Denmark 34.2 34.1 0.0 21.7 21.2 -2 63.4 62.3
Dominican Republic 13.3 22.0 66.0 13.3 22.0 66 100.0 100.0
El Salvador 0.3 0.3 4.0 0.3 0.3 4 100.0 100.0
Estonia 2.3 3.6 55.0 2.3 3.6 55 100.0 100.0
Finland 32.9 33.0 0.0 20.1 20.2 0 61.1 61.1
France 61.1 63.3 4.0 33.0 34.0 3 54.0 53.6

Tue, 18 Jul 2006 10:21:45
Germany 38.7 38.7 0.0 30.5 30.5 0 78.8 78.8

Greece 123.8 151.4 22.0 116.9 141.8 21 94.5 93.7
Guatemala 18.1 18.4 1.0 18.1 18.4 1 100.0 100.0
unknown
Honduras 3.3 2.9 -10.0 3.3 2.9 -10 100.0 100.0

Hungary 29.6 21.9 -26.0 27.4 19.8 -28 92.4 90.3
India 16.3 24.1 47.0 16.3 24.1 47 100.0 100.0
Ireland 74.0 82.1 11.0 70.8 79.9 13 95.6 97.2
Italy 46.8 61.9 32.0 36.1 53.7 49 77.2 86.7
Korea, Republic of 37.3 39.8 7.0 37.3 39.8 7 100.0 100.0
Lithuania 1.1 1.3 21.0 0.7 1.1 59 62.7 82.5
Luxembourg 3.7 3.7 0.0 2.5 2.6 0 68.8 68.9
Macao (China) 29.8 38.5 29.0 29.8 38.5 29 100.0 100.0
Malaysia 117.9 117.9 0.0 117.9 117.9 0 100.0 100.0
Malta 27.4 28.3 3.0 23.0 23.8 4 83.8 84.1
Mexico 109.9 149.2 36.0 84.5 114.8 36 76.9 76.9
Nepal 0.8 0.8 -2.0 0.8 0.8 -2 100.0 100.0
Netherlands 34.8 34.8 0.0 23.6 22.4 -5 67.9 64.3
New Zealand 42.5 46.2 9.0 42.0 45.6 9 98.9 98.7
Norway 26.4 35.5 34.0 9.0 11.4 26 34.3 32.2
Peru 14.7 15.3 4.0 14.7 15.3 4 100.0 100.0
Philippines 14.3 17.1 20.0 14.3 17.1 20 100.0 100.0
Poland 10.6 9.5 -10.0 9.8 8.6 -13 92.8 89.8
Romania 7.5 7.0 -6.0 7.5 7.0 -6 100.0 100.0
Slovakia 3.0 7.8 164.0 2.8 7.8 176 95.6 100.0
Slovenia 10.1 10.6 5.0 8.8 9.5 7 87.7 89.4
South Africa 66.4 70.2 6.0 45.0 55.4 23 67.7 78.9
Spain 105.7 119.7 13.0 105.7 119.7 13 100.0 100.0
Sweden 18.0 17.4 -3.0 13.3 12.3 -8 74.3 70.4
Switzerland 52.7 53.7 2.0 32.5 33.3 2 61.6 62.0
Tunisia 45.3 43.1 -5.0 45.3 43.1 -5 100.0 100.0
Thailand 31.6 32.1 1.0 31.6 32.1 1 100.0 100.0
United Kingdom 90.6 89.2 -2.0 65.0 65.0 0 71.7 72.9
United States 2.1 6.1 188.0 2.1 6.1 188 100.0 100.0
Total/Average 1,698.7 1,859.1 9.0 1,422.1 1,573.4 11 83.7 84.6
2006 World Tourism Organization - ISBN 978-92-844-1148-1 N=46
Table 25 NTO budget allocation (US dollar)
Share of marketing
Operating costs Marketing costs
(US$ million) Change (US$ million) Change costs in total budget
Country (%)
(%) (%)
2004 2005 2004 2005 2004 2005
Australia 30.9 33.5 8 80.2 79.9 0 72.2 70.5
Austria 19.5 20.4 5 37.1 37.1 0 65.5 64.5
Canada 15.0 14.8 -1 50.7 43.7 -14 77.2 74.7
Chile 0.2 0.2 8 1.9 2.0 10 89.3 89.5
Colombia 0.2 1.8 90.0
Cyprus 11.4 13.2 18 44.0 51.4 4 79.4 79.6
Czech Republic 2.1 1.7 -15 6.9 6.7 -3 77.1 79.3
Denmark 12.0 12.4 3 22.2 21.7 -2 64.9 63.7
El Salvador 0.1 0.3 76.6
Estonia 0.2 0.3 55 2.1 3.3 55 91.5 91.5
Finland 9.2 9.4 2 23.7 23.5 -1 72.0 71.4
France 18.3 19.0 4 42.8 44.3 4 70.0 70.0
Germany 18.0 16.8 -7 20.6 21.9 6 53.4 56.6

Tue, 18 Jul 2006 10:21:45
Greece 82.1 84.6 3 41.7 66.8 60 33.7 44.1

Guatemala 7.1 7.2 2 11.0 11.1 1 60.8 60.6
Honduras 0.9 0.7 -20 2.4 2.2 -7 73.5 76.4
unknown
Hungary 11.4 8.3 -27 18.2 13.6 -25 61.3 61.9

India 4.0 4.2 6 12.3 19.9 61 75.5 82.5
Ireland 26.6 28.6 8 47.4 53.5 13 64.1 65.2
Italy 33.0 30.1 -9 13.8 31.8 130 29.5 51.4
Lithuania 0.4 0.4 1 0.7 0.9 31 66.7 72.2
Luxembourg 1.6 1.7 5 2.1 2.0 -4 56.1 53.8
Macao (China) 2.6 7.4 185 27.2 31.1 14 91.3 80.8
Malaysia 28.8 26.9 -7 89.1 91.0 2 75.5 77.2
Malta 11.9 12.0 1 15.5 16.3 5 56.6 57.6
Nepal 0.0 0.0 29 0.8 0.8 -3 96.1 94.9
New Zealand 11.0 11.6 6 31.5 34.6 10 74.2 74.9
Norway 8.7 12.4 43 17.7 23.0 30 67.0 64.9
Peru 1.3 1.4 5 13.4 14.0 4 91.2 91.2
Philippines 9.2 11.1 21 5.0 6.0 19 35.4 35.0
Poland 1.6 1.7 10 9.0 7.8 -13 85.2 82.0
Portugal * 36.5 38.3 1.8
Romania 1.8 2.4 38 5.7 4.6 -19 76.5 65.5
Slovakia 0.7 2.0 168 2.2 5.9 163 75.3 75.0
Slovenia 2.2 2.4 6 7.8 8.2 5 77.8 77.6
South Africa 14.9 14.5 -3 51.5 55.7 8 77.5 79.3
Spain 38.2 44.7 17 67.6 75.0 11 63.9 62.7
Sweden 6.9 7.8 13 11.1 9.7 -13 61.7 55.5
Switzerland 20.0 19.0 -5 32.7 34.7 6 62.0 64.6
Tunisia 12.4 13.4 8 32.9 29.7 -10 72.7 68.9
Thailand 13.5 14.6 8 18.1 17.5 -4 57.4 54.4
United Kingdom 46.7 47.1 1 43.9 42.1 -4 48.5 47.2
United States 0.4 0.4 0 1.7 5.7 226 83.4 94.2
Total/average 556.4 581.4 4 984.0 1,069.4 9 63.9 64.8
Total/average 585.8 1,098.3 64.9
N=45; * Since data on operating costs are not available for Portugal, the information supplied is presented here but has not been
considered in computing the average.
Annex VI - Tables in US Dollars 135
Table 26 Costs per outlet abroad (US dollar)
Total turnover (US$ million) per Marketing turnover

(US$ million)
Country Office abroad Outlet abroad per outlet abroad
2004 2005 2004 2005 2004 2005
Australia 7.4 7.6 6.2 6.3 4.5 4.4
Austria 2.1 2.1 1.8 1.7 1.2 1.1
Botswana 0.6 0.6
Canada 4.4 5.3 4.4 5.3 3.4 4.0
Chile 1.0 1.1 1.0 1.1 0.9 1.0
Colombia 0.2 0.2 0.2
Cyprus 3.1 3.2 3.1 3.2 2.4 2.6
Czech Republic 0.7 0.5 0.4 0.3 0.3 0.2
Denmark 3.8 3.8 3.8 3.8 2.5 2.4
Estonia 0.3 0.5 0.3 0.5
Finland 2.2 2.2 2.1 2.1 1.5 1.5
France 2.4 2.5 1.9 1.9 1.3 1.3
Germany 3.5 3.5 1.3 1.3 0.7 0.7
Tue, 18 Jul 2006 10:21:45
Greece 5.0 5.8 5.0 5.8 1.7 2.6

Guatemala 3.0 3.7 3.0 3.7 1.8 2.2
Honduras 0.8 0.7 0.8 0.7 0.6 0.6
unknown
Hungary 1.6 1.0 1.1 1.0 0.6 0.6

India 1.3 1.9 1.3 1.9 0.9 1.5
Ireland 5.3 5.9 3.4 3.7 2.2 2.4
Italy 2.3 3.3 1.9 2.5 0.6 1.3
Korea, Republic of 1.9 1.7 1.9 1.7 0.9 0.8
Lithuania 0.3 0.3 0.3 0.3 0.2 0.2
Luxembourg 0.5 0.5 0.3 0.2
Macao (China) 29.8 38.5 2.1 2.6 1.9 2.1
Malaysia 3.9 3.9 2.6 2.6 1.9 2.0
Malta 2.5 2.8 1.2 1.3 0.7 0.8
Mexico 6.5 8.3 6.5 8.3 6.5 6.4
Nepal 0.4 0.4 0.4 0.4
Netherlands 3.9 3.5 2.7 2.5
New Zealand 3.3 3.8 2.7 3.1 2.0 2.3
Philippines 1.0 1.2 0.7 0.9 0.3 0.3
Poland 0.9 0.8 0.8 0.7 0.7 0.6
Portugal 2.3 2.4
Romania 0.4 0.5 0.4 0.5 0.3 0.3
Slovakia 0.5 1.3 0.5 1.1 0.4 0.8
Slovenia 3.4 3.5 1.1 1.1 0.9 0.8
South Africa 6.6 7.0
Spain 3.4 3.7 3.4 3.7 2.2 2.3
Sweden 3.0 2.5 1.8 1.7 1.1 1.0
Switzerland 2.8 2.4 1.5 1.5 0.9 1.0
Thailand 1.8 1.8 0.8 0.8 0.5 0.4
Tunisia 2.7 2.4 2.4 2.1 1.7 1.4
United Kingdom 3.8 3.9 3.1 2.5 1.5 1.2
Total/average 3.0 3.1 2.2 2.3 1.5 1.5
Ibid, excl. Colombia Domi-
3.0 3.2 2.1 2.3 1.4 1.5
nican Rep. and South Africa
N=44/See Annex IV for additional explanations.

Table 27 NTO budgets, 2004 (US dollar)
International tourism
NTO budget per
receipts per 1 US$ NTO budget per
Country international tourist Series
NTO budget inhabitant (US$)
arrival (US$)
(US$)
Australia 21.3 TF 145 5.6
Austria 2.9 TCE 339 6.9
Canada 3.4 TF 243 2.0
Chile 1.2 TF 653 0.1
Colombia a) 2.6 TF 644 0.0
Cyprus 23.6 TF 47 71.4
Czech Republic 1.5 TCE 576 0.9
Denmark 10.2 TCE 206 6.3
Dominican Republic 3.8 TF 298 1.5
El Salvador 0.3 TF 1,304 0.0
Estonia 1.3 TF 432 1.7
Finland 11.6 TF 78 6.3
France 0.8 TF 832 1.0
Germany 1.9 TCE 889 0.5
Greece 8.9 TF 129 11.6

Tue, 18 Jul 2006 10:21:45
Guatemala 15.3 TF 53 1.5

Honduras 4.9 TF 150 0.5
Hungary 2.4 TF 171 3.0
unknown
India 4.8 TF 363 0.0

Ireland 11.3 TF 72 18.6
Italy 1.3 TF 948 0.8
Korea, Republic of 6.4 VF 190 0.8
Lithuania 1.8 TF 941 0.3
Luxembourg 4.2 TCE 1,231 8.0
Macao (China) 3.6 TF 311 66.9
Malaysia 7.5 TF 86 5.0
Malta 23.7 TF 35 69.1
Mexico 5.3 TF 122 1.0
Nepal 2.4 TF 338 0.0
Netherlandsb) 3.6 TCE 366 2.1
New Zealand 18.1 VF 145 10.6
Norway 7.3 TF 146 5.8
Peru 12.7 TF 91 0.5
Philippines 6.2 TF 175 0.2
Poland 0.7 TF 684 0.3
Portugal 4.9 TF 172 5.4
Romania 2.0 TF 84 0.3
Slovakia 2.1 TCE 378 0.5
Slovenia 6.7 TCE 201 5.0
South Africa 9.8 VF 106 1.5
Spain 2.0 TF 532 2.6
Sweden 6.0 TCE 427 2.0
Switzerland 8.1 THS 245 7.1
Thailand 2.7 TF 395 0.5
Tunisia 7.6 TF 52 4.5
United Kingdom 3.3 VF 375 1.5
United States 0.0 TF 43,909 0.0
Average 3.5 318 0.7
N=47; Figures in italic refer to budgets of 2004 in comparison with tourism data of 2003; a) Budget of 2005; b) see note in the begin-
Annex VI - Tables in US Dollars 137
Table 28 Government budgets, 2004 (US dollar)
Government budget per International tourism

Government budget per
Country international tourist arrival receipts per 1 US$
inhabitant (US$)
(US$) government budget (US$)
Australia 17.7 174 4.6
Austria 1.9 513 4.6
Canada 2.5 332 1.5
Chile 0.6 1,377 0.1
Colombia a) 1.3 1,289 0.0
Cyprus 22.7 49 68.7
Czech Republic 1.5 576 0.9
Denmark 6.5 325 4.0
Dominican Republic 3.8 298 1.5
El Salvador 0.3 1,304 0.0
Estonia 1.3 432 1.7
Finland 7.1 127 3.9
France 0.4 1,541 0.5
Germany 1.5 1,129 0.4
Greece 8.4 137 11.0
Guatemala 15.3 53 1.5

Tue, 18 Jul 2006 10:21:45
Honduras 2.1 352 0.2

Hungary 2.2 185 2.7
India 4.8 363 0.0
unknown
Ireland 10.8 75 17.8

Italy 1.0 1,227 0.6
Korea, Republic of 6.4 190 0.8
Lithuania 1.1 1,500 0.2
Luxembourg 2.9 1,789 5.5
Macao (China) 3.6 311 66.9
Malaysia 7.5 86 5.0
Malta 19.9 42 57.9
Mexico 4.1 158 0.8
Nepal 2.4 338 0.0
Netherlandsb) 2.5 540 1.4
New Zealand 17.9 147 10.5
Norway 2.5 425 2.0
Peru 1.6 740 0.1
Philippines 6.2 175 0.2
Poland 0.7 737 0.3
Portugal 4.4 188 4.9
Romania 2.0 84 0.3
Slovakia 2.0 395 0.5
Slovenia 5.9 229 4.4
South Africa 6.6 156 1.0
Spain 2.0 532 2.6
Sweden 4.4 575 1.5
Switzerland 5.0 399 4.4
Thailand 2.7 395 0.5
Tunisia 7.6 52 4.5
United Kingdom 2.3 522 1.1
United States 0.0 43,909 0.0
Average 2.9 383 0.6
N=47; Figures in italic refer to budgets of 2004 in comparison with tourism data of 2003; a) Budget of 2005; b) see note in the begin-
Table 29 General comparisons on the relevance of tourism, 2004 (US dollar)
International International International

International tourism receipts tourism receipts tourism receipts as
Country tourist arrivals per per inhabitant per arrival % of exports of
inhabitant (US$) (US$) services
Australia 0.3 650 2,484 52.7
Austria 2.4 1,885 796 32.6
Botswana 0.1 43 515
Canada 0.6 395 673 27.4
Chile 0.1 69 611 19.1
Colombia 0.0 24 1,329 52.0
Cyprus 3.0 2,795 937 44.5
Czech Republic 0.6 407 688 43.4
Denmark 0.6 1,047 1,688 15.1
Dominican Republic 0.4 357 922 93.6
El Salvador 0.1 51 349 36.6
Estonia 1.3 601 461 28.5
Finland 0.5 395 725 23.9
France 1.2 676 544 37.7
Germany 0.2 336 1,373 21.9
Greece 1.3 1,112 845 39.2

Tue, 18 Jul 2006 10:21:45
Guatemala 0.1 66 652 75.5

Honduras 0.1 56 589 71.4
Hungary 1.2 405 333 44.4
unknown
India 0.0 4 1,421 13.8

Indonesia 0.0 19 994 86.3
Ireland 1.7 1,078 651 9.3
Italy 0.6 614 962 42.2
Korea, Republic of 0.1 118 979 14.3
Lithuania 0.2 227 1,385 34.3
Luxembourg 1.9 7,923 4,194 11.0
Macao (China) 14.3 12,773 894
Malaysia 0.7 349 522 45.5
Malta 2.9 1,962 674 57.2
Mexico 0.2 102 522 77.1
Nepal 0.0 8 647 72.5
Netherlands 0.6 629 1,064 14.2
New Zealanda) 0.6 1,240 2,109 63.6
Norway 0.8 675 858 12.1
Peru 0.0 39 930 62.6
Philippines 0.0 23 878 54.9
Poland 0.4 151 408 44.7
Portugal 1.1 740 670 54.2
Romania 0.2 22 132 13.2
Saudi Arabia 0.3 247 849
Slovakia 0.3 166 643 23.9
Slovenia 0.7 810 1,087 46.9
South Africa 0.1 127 829 70.9
Spain 1.3 1,123 844 53.8
Sweden 0.3 686 2,054 16.3
Switzerland 0.9 1,363 1,547 24.4
Thailand 0.2 157 855 55.5
Tunisia 0.6 191 318 57.9
United Kingdom 0.5 453 985 16.1
United States 0.2 254 1,616 23.3
Average 0.2 171 889 28.8
N=50; Countries in italic refer to a comparison for 2003 tourism data; a) see note in the beginning of the chapter.

2006 Structures and Budgets of National Tourism Organizations

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2006 Structures and Budgets of National Tourism Organizations

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Structures and Budgets of

National Tourism Organizations

Structures and Budgets of National Tourism Organizations, 2004 - 2005

Published and printed by the World Tourism Organization, Madrid, Spain

delimitation of its frontiers or boundaries.

World Tourism Organization

Permission to photocopy UNWTO material in Spain must be obtained through:

1.2 General Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.3 Technical Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2.1 The NTO within the National Tourism Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2006 World Tourism Organization - ISBN 978-92-844-1148-1

A n n ex I - Questionnaire on NTO B u d g e t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

A n n ex II - Questionnaire on NTO S t r u c t u r e a n d F u n c t i o n i n g . . . . . . . . . . . . . . . . . . . . . . 121

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Table 1 NTA/NTO relationship, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Table 8 NTO staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Table 9 NTO offices and representations abroad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

2006 World Tourism Organization - ISBN 978-92-844-1148-1

2006 World Tourism Organization - ISBN 978-92-844-1148-1

Tue, 18 Jul 2006 10:21:45

Budgets and funding sources

Offices and staff

2006 World Tourism Organization - ISBN 978-92-844-1148-1

1.1 Purpose and Objective of the Study

1.2 General Notes

their overall importance in terms of world and regional tourism;

2006 World Tourism Organization - ISBN 978-92-844-1148-1

1.3 Technical Limitations

The Structure and Functioning of

2.1 The NTO within the National Tourism Structure

Tue, 18 Jul 2006 10:21:45

2006 World Tourism Organization - ISBN 978-92-844-1148-1

and the Government Consultative Office for Inventors (SVO).

Innovation Norways objective is to promote private and socioeconomic profitable business

Innovation Norway has five divisions:

Customer Interface Norway;

Table 1 NTA/NTO relationship, 2005

Portugal X < 100

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Table 2 Areas of NTA involvement in NTO structure and functioning

Strategic marketing planning 2 2 5 1 1 10

Establishment of marketing objectives 1 2 4 2 1 10

Definition of the NTO annual budget 1 0 6 2 1 10

Subsequent financial accountability

Definition of the system of financial

Annual marketing activity planning 3 3 1 0 10

Evaluation of accomplishment of pre

Opening and closing of offices abroad 2 3 3 1 1 10

Formal Share of non-

Portugal R P < 100

Spain R/P R/P 0

United Kingdom R/P 27

United States R/P

N=12; R = regional and local tourism boards; P = private sector

NTO relationship with regional / NTO relationship with

2.2 Structure and Functioning of the NTOs

2.2.1 Legal Status, Mission Statement and Objectives

Wholly public Public/private Wholly private

Mission Statement and objectives

control and evaluation.

Servicio Nacional de Turismo/National Tourism Service (Chile)

Sustainable economic benefit: