1. Commerce & Altruism: Getting the Balance Right Jude Leitch Northumberland Tourism FB:

3. Background to Northumberland’s Decision
2010
Funding cut 90%
2 month’s notice
Board initiated closure of company
We were a company set up to spend money. Without that funding we had to totally rethink our reason for being.

4. Business reaction Wanted DMO to continue (mostly)
Valued marketing, product development & lobbying
Couldn’t agree on best membership model
High service expectations in return for mship fee
Wanted direct involvement on board
Surveyed our businesses
Many have very long memories and were not unhappy to see the back of the RDA

5. Options 1. Close down 2. Generate new income/cut costs Find new
funding 
Membership organisation 
Commercial Model 
Really only had two choices
Although the ‘altruism’ message was important at this stage – ‘support us and work together’ , especially in convincing the council to continue to support a company now in a perilous financial situation, we were really forced to go commercial – and fast.

6. Implementing Commercial Focus
New board with commercial expertise New business plan Stopped – Business Support, Group Travel, International Marketing. Reduced costs – redundancies, reduced overheads, new systems. Launched suite of new products – value for money marketing opportunities for business.
Recruited new board – no room for business representation though!
Business plan focused on Marketing. Product Development and Comms & Engagement
Cut costs – redundancies – had to lose any positions that didn’t generate income
Slashed overheads – found free accommodation etc

7. 6 years on….. For our businesses
Major culture shift:
Then: Hobby businesses Perhaps not main income Form of retirement Reluctant to change Relied on visitor habits Promoted for free Significant Govt/LA support
Now:
New proprietors
Run as ‘businesses’
Entrepreneurial
Forced to adapt
Embracing new technologies
Changing visitor habits
Reduced destination funding
Pay for DMO services

8. 6 years on….. for Northumberland Tourism
Positive New DMP Support from LA retained Treat businesses with respect & trust Businesses value marketing products Achieving significant ROI Reintroduced services Tourism funding on horizon
Negative:
Uncertainty remains
‘Value of tourism’ message still to cut through
Marketing spend sig reduced
Reduced relevance for some businesses
Not engaging with all businesses
Attractions 80%
Accom 60%
Actvities 40%
Food & drink 30% ?
Reduced relevance – businesses becoming more media savvy, successfully using social media, some buy products but don’t engage beyond this and many others don’t contribute but benefit from DMO & partner activity.
Conclusion from negative points is that we’ve gone too far towards commercialism and could benefit from moving back towards a ‘partnership’ approach
The key message should be ‘We’re stronger together’, but this is being lost.

9. Action plan – addressing the balance
Engagement around DMP Regional ‘Case for Tourism’ New Digital strategy Strong Social Media pships Engagement with TAs & other destination associations Corporate Comms Champions programme