IHIF signals for destination marketing in secondary and regional markets
Capital is quietly rewriting the map of destination marketing priorities. As investors at IHIF shift allocations from saturated gateway cities toward secondary destinations, regional DMOs and tourism marketing organizations gain a rare window to reposition their tourism destination portfolios before budget cycles catch up. For hotel group executives and offices de tourisme, this season is the moment to align travel tourism narratives, tourism data practices and cooperative marketing campaigns with where the money is actually going.
Global tourism is expanding again, with international visitors projected to reach around 1.58 billion and US visitor spending forecast at roughly 164.8 billion USD according to recent industry outlooks from UN Tourism and the U.S. Travel Association, which reshapes how destinations compete for both tourists and capital. That growth is not flowing evenly; investors are targeting local destinations with resilient year round demand, diversified tourism industry bases and clear destination marketing strategies that balance residents, people flows and visitor behavior. For regional marketing organizations and travel agencies, the key is to show how their tourism destination can convert this demand into profitable hotel sales, higher value travel and measurable media marketing performance.
At IHIF, investors repeatedly ask which destinations have DMOs that act like disciplined marketing companies rather than seasonal promotion offices. They want to see tourism marketing plans that integrate digital marketing, social media, online ads and content strategies into one coherent report, not a patchwork of campaigns. For offices de tourisme and régions, this is where marketing helps most; a clear destination marketing narrative, backed by hard data on visitors and tourists, works best to position a place as a long term asset rather than a short term travel promotion.
Margin pressure, cooperative marketing and what it means for DMOs
Operating margins dominated corridor conversations at IHIF this spring. Rising labour, energy and regulatory costs are compressing hotel profitability, which directly affects how much private partners can co invest in tourism marketing and destination marketing campaigns. When Sojern reports that cooperative marketing now features in around 80 % of DMOs, based on its recent survey of destination marketing organizations published in 2023, it signals not a trend but a structural shift in how destinations fund media marketing and digital marketing activity.
For regional DMOs, this margin squeeze means that every euro invested in travel tourism promotion must show a clear link to incremental visitors, higher quality tourists and stronger year round demand. Marketing organizations that can prove, with robust data, how joint marketing campaigns and online ads lift both occupancy and average daily rate will win more support from hotel groups and travel agencies. Those that cannot will see partners redirect budgets toward performance driven marketing companies or in house media teams that promise faster sales impact and clearer answers to hard asked questions about ROI.
This is where destination marketing leaders need to think like portfolio managers rather than campaign coordinators. The destinations that will keep investor attention are those where DMOs use learning from each season to refine marketing plans, segment people by behavior and adjust content and event planning to smooth peaks and fill shoulder periods. A practical example comes from the way Visit California and several US regions used playful California trivia in 2022–2023 as a strategic toolkit for tourism boards, turning what looks like light content into a data rich test bed for understanding which stories, channels and formats work best for different visitor segments; the same logic can be applied in Europe this summer, as shown by regions that have reported double digit lifts in campaign driven occupancy and ADR when they apply similar test and learn approaches and publish post campaign reports with specific metrics.
ESG repricing and the new rules of tourism asset value
Another clear IHIF signal is the ESG repricing of tourism assets. Investors are now discounting destinations where unmanaged visitor behavior strains local communities, while rewarding tourism destinations that align destination marketing with sustainability, climate resilience and resident wellbeing. For offices de tourisme and régions, this means that travel tourism growth without social licence is no longer bankable growth.
Destination marketing organizations that integrate ESG into their marketing campaigns can reposition their destinations as lower risk, higher quality assets in a global portfolio. That requires more than a sustainability page on a website; it demands data on visitors, transparent report structures and content that shows how tourism marketing helps protect landscapes, heritage and local people rather than overwhelm them. When DMOs use social media, digital marketing and online ads to steer tourists toward lesser known destinations, off peak seasons and public transport, they are not just doing good PR, they are actively protecting long term asset value.
Some of the most advanced examples come from places like Destination Canada, which links destination marketing to community outcomes and has reported measurable lifts in visitor spend and regional dispersal from campaigns that highlight local culture and low impact experiences in its 2019–2022 annual reports, and from regions using unexpected fun facts about Morocco in North Africa for tourism leaders as a way to frame culture led, lower impact travel. For European régions, the lesson is clear; ESG aligned marketing plans, co designed with residents and private actors, will increasingly determine which destinations attract capital, which hotels secure better financing terms and which DMOs are seen as credible stewards rather than pure promotion agencies. In this environment, marketing helps not only sales but also long term resilience.
Why DMOs need an IHIF presence and the three questions to bring home
IHIF is often treated as an investment conference for deal makers, not a working lab for destination marketing strategy. That is a missed opportunity for DMOs, offices de tourisme and regional tourism marketing organizations, because the conversations in Berlin about travel, tourism and capital allocation run two or three budget cycles ahead of most public sector planning. Having someone from your équipe on the ground, or at least reading the right briefings, helps align your tourism marketing agenda with where hotel and infrastructure investors believe destinations are heading.
For DMO leaders, three questions stand out this season. First, which parts of your destination portfolio are most attractive to capital, and how can destination marketing content, social media and digital marketing be sharpened to support those specific locations without neglecting smaller local destinations? Second, how can your marketing plans, event planning and media marketing mix be redesigned so that cooperative campaigns with hotels, attractions and travel agencies work best for both margin protection and long term brand building? Third, what new data, reporting tools and learning processes do you need so that every major campaign generates a clear report on visitor behavior, people flows and tourism industry outcomes that investors can trust?
These questions are not theoretical; they shape how you brief your équipe, structure your next season of marketing campaigns and negotiate with partners. A useful reference point is how some US regions have used strategic naming of the Florida Keys for destination marketing leaders to reposition sub destinations within a broader brand architecture, aligning investor narratives, visitor expectations and local community priorities. As one industry definition reminds us, “What is destination marketing? Strategic promotion of locations to attract visitors.”; the destinations that treat IHIF as a strategic listening post, not just a networking event, will be the ones whose DMOs, hotels and public authorities move in lockstep as the next tourism cycle unfolds.
Frequently asked questions about destination marketing and IHIF signals
How does IHIF influence regional destination marketing strategies ?
IHIF gathers hotel owners, investors and operators who decide where capital flows, which makes it a leading indicator for destination marketing priorities. When these actors favour certain destinations or tourism segments, DMOs can adjust marketing campaigns, content and event planning to align with that demand. For regional offices de tourisme, tracking IHIF outcomes helps refine marketing plans before budget decisions lock in.
Why are secondary destinations gaining more investor attention now ?
Secondary destinations often offer lower acquisition costs, room for growth and less regulatory friction than major cities. Investors see potential for higher long term returns when tourism marketing and destination management can build demand without overwhelming local people or infrastructure. DMOs that present clear data on visitors, behavior and seasonality are better placed to capture this interest.
What role does ESG play in destination marketing today ?
ESG factors now influence both asset valuation and visitor choice, so they must sit at the core of destination marketing. DMOs that show how tourism helps protect heritage, reduces emissions and supports residents can differentiate their destinations in a crowded global market. This requires integrating ESG messages into social media, digital marketing and on the ground visitor management, not treating them as a separate campaign.
How can cooperative marketing improve DMO effectiveness under margin pressure ?
Cooperative marketing allows DMOs, hotels, attractions and travel agencies to pool budgets for larger, more targeted campaigns. When structured with clear KPIs and transparent reporting, these partnerships can stretch limited funds while still driving sales, occupancy and higher value tourists. The key is to design marketing campaigns where each partner sees how the shared investment works best for their own objectives.
What data should DMOs prioritise to convince investors and partners ?
DMOs should focus on reliable data about visitor volumes, spend, length of stay and seasonal patterns, broken down by key segments. Combining this with insights into channel performance across online ads, social media and other media marketing helps show which activities generate measurable results. Clear, regular reporting builds trust with both public funders and private investors in the tourism industry.