The Dawn of a New Era Introducing Destination Management Organisations in Miri (Part 1)

By Prof. Andreas H. Zins

 

Miri and its potential as a tourist destination

Miri, often referred to as the ‘Oil Town’ of Malaysia, is a city with a rich history and a vibrant culture. Located in the northeastern part of Sarawak, it is the second-largest city in the state and serves as a gateway to the highlands and national parks of Borneo.

The city’s history dates back to the early 20th Century when it became the birthplace of Malaysia’s petroleum industry. The Grand Old Lady, Miri’s first oil well, is a testament to this history and is now a popular tourist attraction. However, Miri’s appeal extends beyond its oil heritage.

The city is a melting pot of cultures, with diverse communities coexisting harmoniously, each contributing to the city’s unique cultural fabric. From the colourful festivals of the indigenous communities to the mouth-watering local cuisine, Miri offers a rich cultural experience for visitors.

Miri’s natural beauty is another major draw for tourists. The city is surrounded by national parks, each offering unique attractions. The Niah National Park, for instance, is home to one of the largest limestone caves in the world, while the Lambir Hills National Park boasts stunning waterfalls and rich biodiversity. The city is also a gateway to the world-renowned Gunung Mulu National Park, a UNESCO World Heritage Site known for its karst features and biodiversity.

Despite these attractions, the tourism industry in Miri is still in its nascent stages. While the city receives a steady stream of domestic tourists, it is yet to fully tap into the international tourism market. The lack of a coordinated marketing strategy and the absence of a central body to manage and promote tourism are some of the challenges that the city faces.

The Sarawak Visitor Structure Model 2019 developed by Prof. Andreas H. Zins of Curtin University Malaysia estimates that 3.1 million overnight trips were made, and 4.8 million day-trippers travelled to Miri, in the (pre-COVID) year 2019, out of which about 10 per cent were considered coming for a business purpose, and the much larger proportion for leisure (including visiting friends and relatives and shopping).

The value generated by day-trippers accounts for about one quarter versus three quarters from overnight visitors, which amounts to about RM4.25 billion revenue for 2019 altogether. While the post-COVID recovery trajectory for Kuching appears to meet experts’ expectations, or even better, recent news about Miri’s tourism performance are far from satisfactory.

However, the potential for growth is immense. With its rich cultural heritage, stunning natural beauty, and strategic location, Miri has all the ingredients to become a leading tourist destination. The establishment of a Destination Management Organization (DMO) could be the catalyst that propels the city’s tourism industry to new heights.

 

What is a Destination Management Organisation (DMO)

As we embark on the journey to transform Miri into a leading tourist destination, it is crucial to understand the role of a Destination Management Organisation (DMO). A DMO is an organisation that promotes and manages tourism in a specific area. It acts as a conductor of an orchestra, coordinating the various stakeholders in the tourism industry to create a harmonious symphony of experiences for visitors.

DMOs play a vital role in the tourism ecosystem. They are responsible for promoting a destination to potential tourists, both domestically and internationally. This involves creating and executing marketing campaigns, managing the destination’s brand, and ensuring that the destination’s offerings align with the expectations and needs of tourists.

But the role of a DMO extends beyond marketing. DMOs are also responsible for managing the destination’s tourism resources. This involves coordinating with various stakeholders, including local businesses, government agencies, and the local community, to ensure that tourism development is sustainable and beneficial for all. DMOs also play a crucial role in  crisis management, helping the destination navigate challenges such as natural disasters or global events that could impact tourism.

To understand the potential impact of a DMO, let’s look at some examples of successful city or regional DMOs around the world. In Europe, Luzern Tourismus AG, the DMO for Luzern, Switzerland, has been successful in promoting the city’s diverse offerings, from its historic landmarks to its stunning natural beauty, to tourists around the world. The organisation’s efforts have helped boost tourism in Luzern (7.3 million day trip visitors, 1.4 million overnight arrivals), creating jobs and contributing to the city’s economic growth (SFR 1 billion GDP added in the canton).

In Australia, the City of Greater Geelong, despite being a smaller city, has made significant strides in promoting itself as a tourist destination. The Geelong Bellarine Tourism Board has been instrumental in this, showcasing the city’s unique blend of urban and coastal experiences, its vibrant arts scene, and its rich history. Their efforts have led to a steady increase in both domestic and international tourists, contributing to the local economy and enhancing the city’s profile.

These examples illustrate the potential impact of a DMO. By establishing a DMO in Miri, we have the opportunity to boost the city’s tourism industry, create jobs, contribute to the economy, and showcase the city’s unique offerings to the world.

 

Why does Miri need a DMO?

Tourism is a complex industry. It involves a multitude of stakeholders, each with its own interests and objectives. From hotel owners and tour operators to local authorities and the tourists themselves, the tourism industry is a web of interconnected players. In such a complex landscape, coordination and collaboration are key to success. This is where a Destination Management Organization (DMO) comes in.

A DMO serves as a central body that brings together the various stakeholders in the tourism industry. It provides a platform for dialogue and collaboration, ensuring that all stakeholders are working towards a common goal. In the case of Miri, a DMO could help coordinate efforts to promote the city as a tourist destination, manage its tourism resources, and ensure that the benefits of tourism are shared widely.

The need for a DMO in Miri is further underscored by the city’s unique context. As a city with a rich cultural heritage and stunning natural beauty, Miri has a lot to offer to tourists. However, without a coordinated approach to managing and promoting these resources, the city risks missing out on potential opportunities. A DMO could help ensure that Miri’s tourism offerings are effectively marketed to the right audiences and that the city’s tourism resources are managed sustainably.

The potential benefits of a DMO for Miri are immense. By coordinating the efforts of various stakeholders, a DMO could help boost the city’s tourism industry, creating jobs and contributing to the local economy. It could also help ensure that tourism development in the city is sustainable and beneficial for all. For instance, a DMO could help promote local businesses, ensuring that the benefits of tourism are shared widely. It could also help manage the city’s tourism resources, ensuring that they are used sustainably and that the city’s natural and cultural heritage is preserved for future generations.

A DMO could play a crucial role in shaping the future of tourism in Miri. By bringing together stakeholders, coordinating efforts, and promoting sustainable practices, a DMO could help ensure that tourism in Miri is not just a source of income, but a source of pride for the city and its residents.

 

Challenges in establishing a DMO

Establishing a DMO is not a task to be taken lightly. It requires careful planning, adequate funding, and the support of all stakeholders. These challenges, while significant, are not insurmountable. With a clear understanding of these challenges and a strategic approach to addressing them, we can pave the way for the successful establishment of a DMO in Miri.

The first challenge lies in the planning phase. A DMO is not a one-size-fits-all solution. It needs to be tailored to the specific needs and context of the destination it serves. In the case of Miri, this means considering the city’s unique cultural and natural offerings, its current tourism infrastructure, and the needs and interests of its local community. This requires extensive research and consultation, as well as a clear vision of what we want its tourism industry to look like.

The second challenge is securing adequate funding. Establishing and running a DMO requires significant resources. From hiring staff to running marketing campaigns, there are many costs associated with a DMO. Securing adequate funding is therefore crucial. This could come from a variety of sources, including government funding, membership fees from local businesses, and revenue from tourism-related activities. However, securing this funding requires a strong business case and the ability to demonstrate the potential return on investment (please read more about this challenge in the next issue of this series).

The third challenge is gaining the support of all stakeholders. A DMO is a collaborative effort. It requires the support of all stakeholders, from local businesses and government agencies to the local community and the tourists themselves. Gaining this support requires clear communication of the benefits of a DMO, as well as opportunities for stakeholders to be involved in the planning and decision-making process. Despite these challenges, the potential benefits of a DMO for Miri are immense. By overcoming these challenges, we can pave the way for a new era of tourism in the city.

 

The role of the community in establishing a DMO

The community plays a pivotal role in the establishment of a DMO. After all, a DMO is not just about promoting a destination to tourists; it is also about ensuring that tourism development benefits the local community. Community involvement is therefore not just desirable; it is essential.

The importance of community involvement in establishing a DMO cannot be overstated. The local community is not just a stakeholder in the tourism industry; it is also the custodian of the destination’s cultural and natural heritage. The community’s insights and perspectives can therefore provide valuable input into the planning and management of tourism in the city. Moreover, by involving the community in the establishment of a DMO, we can ensure that the organisation’s strategies and initiatives align with the community’s interests and needs.

So, how can the community contribute to the establishment of a DMO? There are several ways. Firstly, the community can provide input into the planning process. This could involve participating in consultations, providing feedback on proposed strategies, or even contributing to the vision for tourism in the city. The community’s insights and perspectives can help ensure that the DMO’s strategies and initiatives are grounded in the local context and align with the community’s interests and needs.

Secondly, the community can support the DMO’s initiatives. This could involve participating in tourism-related activities, supporting local businesses, or even volunteering for the DMO. By actively supporting the DMO, the community can help ensure its success.

Finally, the community can hold the DMO accountable. As a stakeholder in the tourism industry, the community has a right to know how the DMO is performing and where its funds are being spent. By holding the DMO accountable, the community can help ensure that the organisation is transparent, accountable, and delivering on its promises.

The community thus plays a crucial role in the establishment of a DMO. By involving the community in the planning process, supporting its initiatives, and holding it accountable, we can ensure that the DMO serves not just the interests of tourists, but also the interests of the local community.

 

Conclusion: The future of tourism in Miri

As we have explored throughout this article, the establishment of a DMO in Miri could mark a significant turning point for the city’s tourism industry. By coordinating efforts, managing resources, and promoting the city to the world, a DMO could help unlock Miri’s full potential as a tourist destination.

The potential impact of a DMO on Miri’s tourism industry is immense. With a DMO at the helm, we could see a more coordinated approach to promoting the city, with marketing campaigns – aligned with Sarawak Tourism Board (STB) strategies – that showcase the best of what Miri has to offer. We could also see more sustainable management of tourism resources, ensuring that our natural and cultural heritage is preserved for future generations. And most importantly, we could see a more inclusive approach to tourism development, with the benefits of all forms and segments of tourism being shared more widely among the community.

So, what are the next steps in establishing a DMO? The journey ahead is not without its challenges. It will require careful planning, adequate funding, and the support of all stakeholders. But these challenges are not insurmountable. With a clear vision, a strategic approach, and the involvement of the community, we can pave the way for the successful establishment of a DMO in Miri.

The establishment of a DMO in Miri is not just about boosting its tourism industry; it is about shaping the future of the city. It is about creating jobs, contributing to the economy, and showcasing the city’s unique offerings to the world. It is about ensuring that tourism in Miri is not just a source of income, but a source of pride for the city and its residents. Together, we can make this vision a reality. Stay tuned for more insights into this exciting opportunity for the city’s tourism industry.


Andreas H. Zins is a Professor of Tourism Management, the Director of the Regenerative Living Lab of Sustainable Tourism, and the previous the Dean of the Faculty of Business at Curtin University Malaysia. Prior to this appointment, he was Programme Director of a dual-degree programme and Full Professor of Tourism Management at MODUL School of Tourism and Hospitality Management Nanjing (affiliated to Nanjing Tech University Pujiang Institute), Adjunct Full Professor of Tourism Management at MODUL University Vienna, and Adjunct Associate Professor of Marketing at University of Economics and Business, Vienna, Austria. He served as Programme Director (Vice-Dean) for Business Administration study programmes at WU Wien and Academic Director for Certificate Programmes for the Tourism Academy Austria and the WU Wien Executive Academy. He has published five books, edited four other books, contributed 32 book chapters, 30 scientific articles in peer-reviewed journals, 48 contributions in refereed conference proceedings, 71 peer-reviewed conference presentations, 24 invited conference presentations, and 68 research reports. From 2013 to 2016, he served as editor-in-chief of the International Journal of Culture, Tourism and Hospitality Research. He is now editor-in-chief of the International Journal of Business Events and Legacies.