Journal of Destination Marketing & Management ∎ (∎∎∎∎) ∎∎∎–∎∎∎

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Journal of Destination Marketing & Management

journal homepage: www.elsevier.com/locate/jdmm

Research Paper

Creating shared value in destination management organisations: The

case of Turisme de Barcelona
Joan Serra, Xavier Font n, Milka Ivanova
International Centre for Research in Tourism and Hospitality, Leeds Beckett University, LS6 3QW Leeds, United Kingdom

art ic l e i nf o a b s t r a c t

Article history: Creating shared value (CSV) involves connecting company success with social progress. This shared
Received 6 October 2015 element of CSV resonates with the mandate of destination management organisations to be accountable
Received in revised form to all stakeholders for the progress of the destination. This study tests the feasibility of a destination’s
17 May 2016
stakeholders adopting a CSV approach and by doing so, to take responsibility for that destination’s future.
Accepted 13 June 2016
Semi-structured interviews gathered opinions from 16 members of the General Council, the Executive
Committee, and the Steering Committee of the highly acclaimed Turisme de Barcelona (TdB), the official
Keywords: organisation for the promotion of tourism in Barcelona, Spain. The results show that the complexities of
Public-private partnership changing the organisation’s mandate, in a public-private partnership where consensus is needed, would
Responsibility
be extremely difficult to navigate. Even if possible, the outcomes would likely step on the toes of other
Policy
institutions. The feasibility of integrating CSV into the mandate, in order to move destination marketing
Stakeholders
Governance organisations towards destination management organisations is problematised as a 'wicked' problem
Foucault using Foucault's notion of power in stakeholder relationships. The results show the inherent difficulties
of introducing sustainability values into a multi-stakeholder, public-private partnership, and allow les-
sons to be drawn about how realistic CSV may be as a guiding philosophy.
& 2016 Elsevier Ltd. All rights reserved.

1. Introduction exchange for the short-term privatisation of benefits. There is a

high failure rate in collaborations for tourist destination market-
Tourist boards are under pressure to evolve (Presenza, 2006) ing, as a result of competing interests and inequitable distributions
from promotional entities into destination marketing organisa- (Fyall & Garrod, 2005). Coordination of such collaborative efforts
tions, and eventually into destination management organisations tend to be a political activity fraught with complexities, and while
(UNWTO, 2011). A more holistic marketing and management stakeholder coordination and partnerships for sustainability
function requires taking responsibility for the future of the tourism should focus on the equitable distribution of benefits and costs,
resources that are currently exploited and self-managed, and more often these so-called 'partnership's favour those that have
taking a more inclusive view of stakeholder needs (Gretzel, Fes- resources to defend their stake (Bramwell & Lane, 2000; Hall,
enmaier, Formica, & O’Leary, 2006). Responsible tourist destina- 1999). The euphemism ‘in the public interest’ is often used by
public-private partnerships to justify the short-term income and
tions are those that are committed to use tourism rather than
job creation benefits of tourism promoted (Hall, 1999).
accepting to be used by it (Goodwin, 2011). Effective leadership
While the literature on collaboration and partnerships was
and management are essential to get the most out of tourism in
limited 15 years ago (Bramwell & Lane, 2000), since then much has
terms of the quality of life of the locals (Timur & Getz, 2008).
changed: the literature is now extensive and this article attempts
The growing demands on destination marketing/management
to tackle the subject from a different angle. While acknowledging
organisations (DMOs) are consistent with society's increasing ex- that there is a substantial body of literature on stakeholder theory
pectation for inclusive governance (Ritchie & Crouch, 2003). Des- and public-private sector partnerships that would allow the data
tination collaborations have been used as market-based instru- to be reviewed from more established angles, this paper know-
ments to increase the yield of destination resources but their ingly takes the alternative path of using the concept of creating
utilitarian approach can undermine destination governance in shared value (CSV) to explore the opportunity that organisations
have to respond to present-day societal expectations. Porter and
n
Corresponding author.
Kramer (2011, p.4) state that ‘Shared Value involves creating eco-
E-mail addresses: [email protected] (J. Serra), nomic value in a way that also creates value for society by ad-
[email protected] (X. Font), [email protected] (M. Ivanova). dressing its needs and challenges’. CSV means closely addressing

http://dx.doi.org/10.1016/j.jdmm.2016.06.005
2212-571X/& 2016 Elsevier Ltd. All rights reserved.

Please cite this article as: Serra, J., et al. Creating shared value in destination management organisations: The case of Turisme de
Barcelona. Journal of Destination Marketing & Management (2016), http://dx.doi.org/10.1016/j.jdmm.2016.06.005i
2 J. Serra et al. / Journal of Destination Marketing & Management ∎ (∎∎∎∎) ∎∎∎–∎∎∎

the linkages between economic and social progress, and viewing make the more holistic mandate for the DMOs a reality and not
social progress as a key driver of the long-term creation of eco- just a paper-based exercise that moves it from marketing to
nomic value (Porter & Kramer, 2011). In terms of responsible management. DMOs need stronger links with local authorities and
tourism management it would mean being able to contribute to: the private sector, hence the creation of public-private con-
(1) promoting a wealthy tourism industry, (2) improving the sortiums, although they inevitably bring complex power struc-
locals’ quality of life, and (3) preserving the quality of the tures (Socher, 2000). The concept of governance is useful to un-
environment— all at the same time and with minimum trade-offs. derstand decision-making in organisational structures with mul-
DMOs that assume this kind of approach accept a much tiple actors who would otherwise have unclear responsibilities
broader mandate than simply the promotion, marketing and, to a (Ruhanen, Scott, Ritchie, & Tkaczynski, 2010). Governance refers to
large extent, management of the destination (Pike & Page, 2013). the mechanisms for self-control of individual and collective actors,
The aim of this study is to explore the value of CSV as a concept to which can include rules, contracts, negotiations, money or
explain the objectives and operations of a DMO and hence its knowledge (Raich, 2006). Destination governance follows a model
contribution to co-creating a more sustainable destination. The of corporate governance based on a stakeholder-oriented view,
study is structured as follows. First, the concepts of creating share defined as 'the sum of all institutions (rules, routines, and orga-
value, corporate social responsibility, responsible tourism and nisations) governing the relations between the stakeholders and
sustainable destinations are reviewed. Second, these concepts are the management of a company – particularly in the context of
considered in the context of the current roles of DMOs in general. decision-making and control'” (Pechlaner, Volgger, & Herntrey,
Third, the paper (1) explores the current role, and (2) identifies the 2012, p. 156). This loose approach results from an inability to
potential future roles specifically of Turisme de Barcelona (TdB), control destinations in the hierarchical way that companies would
the official organisation for the promotion of tourism in Barcelona, be controlled, accepting instead a more fluid cooperation between
Spain. Finally, the paper explores the extent to which TdB is ready stakeholders, in order to set common objectives and develop joint
to adopt a CSV approach by identifying the main drivers and strategies (d’Angella & Go, 2009; Jamal & Getz, 1995; Palmer &
limitations for it to do so. Bejou, 1995; Raich, 2006). Within the process of stakeholder col-
laboration, DMOs are tasked as being coordinators and network
managers (Pechlaner et al., 2012).
2. Literature review The increasing expectations placed on DMOs requires a new
paradigm to understand their mandate, which the present paper
Destination marketing has been acknowledged as a pillar of the suggests is best explained by the concept of CSV (Porter & Kramer,
growth and sustainability of tourism destinations in an increas- 2006). CSV involves businesses connecting company success with
ingly globalised and competitive market for tourists (UNWTO, social progress as an essential driver for long-term economic value
2011). DMOs have historically focused their efforts on promoting creation. 'Shared Value involves creating economic value in a way
destinations, developing a specific image, coordinating the public that also creates value for society by addressing its needs and
and private tourism industries, providing information to visitors challenges' (Porter & Kramer, 2011, p.4). This new understanding
and leading the promotional activities for the overall tourism in- of the role of companies couples innovation and better growth for
dustry at a destination (Prideaux & Cooper, 2002). Although this is businesses with greater benefit for society. Shared value is not
not new, what is new is the scale and extent to which it is done, understood as social responsibility or philanthropy, but a new way
especially in relation to urban tourism (Anholt & Page, 2011). to achieve economic success, being at the very centre of what
There is growing pressure for a more comprehensive destination companies do. For that, the CSV principle must be at the core
management to exercise greater control over the product offered business and not at the periphery. Porter and Kramer challenge
and to ensure a better visitor experience (Pike & Page, 2013). companies, governments and all kinds of organisations to take a
The adoption of public-private organisational models, with a lead in bringing business and society back together.
vast and diverse number of stakeholders within their governing Companies usually view value creation narrowly, optimising
bodies, has pushed DMOs to take on more 'sophisticated' roles short-term financial performance while missing the most im-
including management, planning and/or strategy (Bornhorst, portant customer needs and ignoring the broader influences that
Ritchie, & Sheehan, 2010; Morrison, Bruen, & Anderson, 1998). Hall determine their longer-term success. Hence old forms of business
(1999) recounts a number of examples where the DMOs have re- are increasingly viewed as an important cause of social, environ-
duced their management function to gain private-sector colla- mental and economic problems (Porter & Kramer, 2011). Yet they
boration on marketing activities. Ten years later, for many aca- argue that capitalism is the best vehicle known for meeting hu-
demics the ‘M’ in DMO refers to 'management' (Presenza, Sheehan, man needs and building wealth. The argument put forward by
& Ritchie, 2005). However, it is rare that DMOs can fully deliver Porter and Kramer is that businesses acting as businesses, and not
this broader brief due to their lack of authority and control over as charitable donors, are the most powerful force for addressing
the destination and the tourist services and products. Fyall (2011, the pressing issues the world faces. The solution, they suggest, is to
p. 345) argues, for example, that 'unless all elements are owned by redefine the purpose of organisations as creating shared value. The
the same body, then the ability to control and influence the di- difference between CSV and corporate social responsibility (CSR) is
rection, quality and development of the destination pose very real best understood in Fig. 1. CSV forces organisations to view social
challenges'. Marketing therefore remains the main function of progress as a crucial element of their strategy, while CSR pro-
DMOs (Prideaux & Cooper, 2002). grammes focus mostly on reputation and have only a limited
The present paper argues that a different approach is needed to connection to the business, making them hard to justify and

Fig. 1. Comparison between CSR and CSV. Source: (Vaidyanathan & Scott, 2012).

Please cite this article as: Serra, J., et al. Creating shared value in destination management organisations: The case of Turisme de
Barcelona. Journal of Destination Marketing & Management (2016), http://dx.doi.org/10.1016/j.jdmm.2016.06.005i
 J. Serra et al. / Journal of Destination Marketing & Management ∎ (∎∎∎∎) ∎∎∎–∎∎∎ 3

maintain over the long run. In contrast, CSV is integral to profit- the heart of their missions. Sheehan and Ritchie applied stake-
ability and competitive positioning, and it leverages the resources holder theory to assess destination stakeholders from the per-
of the enterprise to create economic value by creating social va- spective of DMOs, and concluded that 'the DMO is the most central
lues. This, however, requires organisations to reconsider their and most connected actor in the network' (2005, p. 731). Timur
previous assumptions regarding the existence of trade-offs be- and Getz conclude that 'DMOs are perceived to hold the greatest
tween corporate and social benefits (Vaidyanathan & Scott, 2012). legitimacy and have power over others regarding destination de-
Porter and Kramer (2011) suggest that organisations can create velopment' (2008, p.457). To do this, both innovation and a new
shared-value opportunities in three ways. First, by reconceiving way to lead and manage will be essential. A sort of self-governance
products and markets, which means to develop 'innovative pro- will be required that relies upon cooperation between stake-
ducts and services that better serve existing markets or allow ac- holders, and that aims to develop joint strategies and collective
cess to new ones' (Vaidyanathan & Scott, 2012, p.110). This requires action (Volgger & Pechlaner, 2013).
the identification of societal needs, benefits and harms that might This paper will investigate how realistic these expectations are
be incorporated in the organisations’ products and services. Sec- for a DMO. To do that, it will be necessary to look at the extent to
ond, by redefining productivity in the value chain, which requires which DMOs can make decisions. A useful approach is to look at
organisations to 'improve the quality, quantity, cost, and reliability the concept of power and discuss to what extent DMOs have the
of inputs, production processes, and distribution systems, while power to make decisions; as well as, more specifically, who within
simultaneously acting as a steward for essential natural resources the DMOs has the power to make decisions. The notion of power
and driving economic and social development' (Vaidyanathan & has been examined by a number of scholars. In connection with
Scott, 2012, p.110). Opportunities to create shared value arise from the power to make decisions, two views have emerged. One de-
taking responsibility for the way that an organisation's value chain scribes power as a hierarchical transmission between decision-
is affected by, and affects, many societal issues (natural resources, giver and order-taker. The modern structure of a bureaucratic state
health and safety, working conditions, etc), rather than seeing is considered to function like that (Parissi, 2010). However, other
these as externalities. Third, by enabling the development of local researchers, such as Foucault, understand power in a different way
clusters, which means that organisations need to compete and (Foucault's views have been examined in great detail by other
thrive by acknowledging that they do not operate in isolation. scholars but it is outside of the scope of this paper to discuss their
They need to invest in 'a strong competitive context that includes findings). For the purpose of this investigation, this paper will
reliable local suppliers, functioning infrastructure of roads, and accept the Foucauldian view that power is not static but relational,
telecommunications, access to talent, and an effective and pre- i.e. that it is not binary (with a ‘dominator’ and ‘dominated’), is
dictable legal and regulatory framework, among other factors' present in institutions of all kinds, is, performed through agents of
(Vaidyanathan & Scott, 2012, p.110). Organisations create shared ‘construction and exertion of knowledge’ and it is both repressive
value by building clusters to improve productivity while addres- and productive (Cheong & Miller, 2000). This understanding of
sing gaps or failures in the framework conditions surrounding the power will be used to analyse whether DMOs are in a position to
cluster; the most successful cluster development programmes enact and/or to enable the implementation of shared value
result from collaboration with the private sector, associations, throughout the complex network of stakeholders engaged in
government agencies and NGOs. destination management.
The CSV approach requires that social engagement be treated
as a long-term investment necessary for business success. Orga-
nisations must clearly define their priorities, taking into account 3. Methods
their business goals and their impact on society, so that reputation
and employee engagement are a consequence of the organisation's The purpose of this study is to explore the challenges a DMO
efforts, rather than a main driver. Although adopting a CSV ap- could face in attempting to manage a destination in a more in-
proach will be different for each organisation, Bocksette and clusive way by following the principles of CSV. This study conducts
Stamp (2011) identify three common lessons. First, organisations a reality check against prior expectations using a case study of the
should work from inside to outside and from top to bottom. Turisme de Barcelona (TdB), a public-private consortium created in
Shared value is about the strategic direction of the organisation so, 1993 by the City Council and the Chamber of Commerce. Barcelona
first of all, a clear vision should be identified, followed by work to was chosen as an example of how to manage increasing tourist
build this into the corporate DNA. Achieving this requires the total pressures through a pioneering public-private partnership, both
engagement of the top management: if they are not on board, the because of its importance as a tourist destination and because of
process is likely to fail. Second, it takes time to adopt a CSV ap- the numerous prizes it has received in the past. The findings of this
proach. Large doses of patience and tenacity are necessary to in- study are not intended to be a reflection on TdB per se but to
tegrate the concept into the whole organisation and its operations. provide a platform for honest debate on the applicability of aca-
Tracking results is essential to identify and show progress, and this demic issues to the reality of multi-stakeholder destination man-
takes a long time since CSV necessitates identifying the impact of agement. The willingness of TdB to be the testing ground for such
social investments. In order to avoid discouragement, it is bene- an issue reflects their transparent nature and willingness to be at
ficial to communicate early successes as soon as possible. It is also the forefront of this debate.
essential to build a robust framework to track progress and to The original objectives of TdB were to promote and provide
regularly update the strategy. Third, the process requires 'change information, to coordinate and boost supply, to manage tourist
managers'. CSV implies a change of paradigm. Under the CSR facilities and to study tourist markets (Turisme de Barcelona,
model, managers were focused on external relations, whereas 1993). However, the growth of tourists staying in hotels from
under the CSV model, managers need to be focused on change 1.8 million in 1990 to 7.5 million in 2013 has led to reprioritisation.
management, so they need to be strongly linked to the top and Since 2013, TdB's published aim has been to boost the financial
have real authority to act. impact of the sector, to promote a unique identity as a tourist at-
The present paper argues that CSV encapsulates the broader traction, to reconcile the needs of tourists and locals, and to ensure
leadership mandate required of DMOs to take leadership for des- the geographical and multi-sectorial distribution of tourism (Tur-
tinations to use tourism, rather than to be used by it (Goodwin, isme de Barcelona, 2014). The conclusions of TdB's Strategic
2011). There is an opportunity for DMOs to put societal needs at Tourism Plan 2015 show that tourism is one of the economic

Please cite this article as: Serra, J., et al. Creating shared value in destination management organisations: The case of Turisme de
Barcelona. Journal of Destination Marketing & Management (2016), http://dx.doi.org/10.1016/j.jdmm.2016.06.005i
4 J. Serra et al. / Journal of Destination Marketing & Management ∎ (∎∎∎∎) ∎∎∎–∎∎∎

pillars of the city's economy, but they acknowledge a growing The interviews were analysed following a content analysis
disaffection towards the tourism industry by some of the re- approach to organise and analyse data systematically. Content
sidents, institutions and organisations that do not directly benefit analysis, as a research method, is a systematic and objective means
from tourism (Barcelona Strategic Tourism Plan, 2015, 2010). of describing and quantifying phenomena (Krippendorf, 1980).
The lead author of this paper met with the General Manager of Franzosi defines it as 'objectively, systematically identifying spe-
TdB to gain organisational approval for the research and to agree a cific characteristics of a message' (2002, p. 547). Interviews were
purposive sample of stakeholders that would represent the three transcribed in full to allow the identification and selection of
organisational layers of governance. Following this, four inter- themes, based on a deductive approach (Elo & Kyngas, 2008). The
views were conducted with public-sector members of the General groups of analysis were selected and the answers were codified,
Council/Executive Committee, the highest representation and theme by theme, using several coding methods (Saldaña, 2009).
governance of TdB, who are appointed by the Barcelona City This approach allowed the building up of categories, based on the
Council. Seven interviews were conducted with members of the previous codes (Saldaña, 2009) and a categorisation matrix per
private governance layer, who are appointed members of the theme (Elo & Kyngas, 2008). The themes were illustrated through
General Council/Executive Committee by the Barcelona Chamber a selection of relevant quotes to offer trustworthiness, ex-
of Commerce; each member has further responsibilities for emplification, details and richness of arguments (Elo & Kyngas,
heading private sector programmes such as culture, shopping, 2008). Results tables were constructed to capture the categorisa-
congresses and sport tourism, representing over 900 businesses. tion, to identify patterns and to add richness to the analysis of the
Finally, five interviews of representatives of TdB's management results, with clear examples of what the interviewees said as well
layer were conducted with members of the Steering Committee, a as the tone and emphasis used, for each stakeholder group. The
body that includes the Director General and the key executives of data were presented in a more synthetic way than would usually
TdB. be adopted for qualitative data in order to protect the anonymity
Interviews were convened by the Executive Secretary of the of the respondents who might otherwise have been too easily
General Manager with his explicit support, which assured a high identifiable from quotes or the context of their answers.
degree of participation. Participation was voluntary, and a wide
range of possibilities to schedule the interview were offered. Par-
ticipants understood the confidentiality, anonymity and informed 4. Findings
consent elements of this study, as well as its sensitivity. Semi-
structured interviews were conducted by the lead author during Each of the tables in this section first mentions the number of
June and July 2014; each was recorded with the interviewees’ respondents on each view point and then provides example an-
permission and lasted 45–60 min. The interview questions were swers. The interviews started by discussing the main challenges of
adapted to get an appropriate flow and to make the interviewee TdB. The open nature of the question allowed for multiple re-
feel comfortable. The interviewees all knew the interviewer per- sponses, which were subsequently categorised under four themes
sonally. The interviews did not aim to capture the 'official' reality (see Table 1). Several interviewees spoke of preserving the desti-
of the organisations they represent but their personal opinions on nation, including the need for tourist dispersion, the promotion of
the realism behind CSV as a concept applied to the challenges of sustainable development and the need to become more involved
managing tourism in a city such as Barcelona. in the management of negative impacts. A second group talked

Table 1
What are the main challenges of TdB? (The number in brackets is the number of respondents who expressed that challenge: multiple answers were allowed).

Themes Example comments

Overall Public Private Management

Preserving the destina- The tourism model is unsustainable. We need a strategic troubleshooting unit. Stop promoting old icons and broaden the scope
tion (n ¼ 12). to continue growing.
Neighbourhoods need to be able to absorb Broaden the geography of tourism. Promote We need a constant commitment with sustain-
more tourists. new spaces to absorb tourism in the old part ability, specially the environment. But these deci-
of the city. sions affect our pockets (n ¼ 4).
We need less tourism pressure on the We cannot stop and allow growth to damage
streets (n ¼3). us, that's what I call sustainable tourism
(n ¼5).
Balancing needs (n¼ 5). We cannot afford resident disaffection. We We need to open dialogue with the com- It is time to rethink if TdB must return part of the
must make residents conscious of the munities that reject tourism (n ¼1). benefits pocketed by the sector to the citizens.
benefits.
TdB must represent the needs of the We must win the public-opinion battle.
citizens.
We need to better explain the wealth that We need to diversify the tourism benefits (n¼ 2).
tourism brings to the city (n¼ 2).
Governance changes More strategic alliances across sectors Give importance to under-represented We need better coordination with the Town Hall
(n¼ 5) (health, sport…) (n ¼1). stakeholders. (n¼ 1).
We need a more executive management
committee.
Shared vision between stakeholders (n¼ 3).
Marketing (n ¼ 12) Selling Barcelona is the core business of We must generate new products and More promotional budget to be the reference
TdB (n¼ 1). experiences. point; we have fallen asleep (n ¼4).
TdB must be able to generate more promo-
tional funds.
We are behind on the online strategy.
We need value-added tourism products
(n ¼7).

Please cite this article as: Serra, J., et al. Creating shared value in destination management organisations: The case of Turisme de
Barcelona. Journal of Destination Marketing & Management (2016), http://dx.doi.org/10.1016/j.jdmm.2016.06.005i
 J. Serra et al. / Journal of Destination Marketing & Management ∎ (∎∎∎∎) ∎∎∎–∎∎∎ 5

Table 2
Do the city's residents have negative perceptions of tourism?

Themes Example comments

Overall Public Private Management

Yes, and it is a serious Tourism needs to be sustainable to help residents It is strategic, requiring a crisis cabinet. It is worrying that the positive
problem (n ¼7). understand tourism as a shared benefit and not We could compromise the next 20 years of impact on residents is poor (n¼ 4).
an extractive industry (n ¼1). tourism (n ¼ 2).
It is real, but amplified due This is localised. It is a discourse that makes This is a political manoeuvre, but it is true that It's not so bad, but efforts are
to interests (n ¼8). sense in Venice but not here. people complain. needed to show the positive side
of tourism.
Journalists are irresponsible to bring this up It's part of our reality (n¼ 4). It is difficult; some areas are satu-
(n ¼ 3). rated (n¼ 1).
Not significant (n¼ 1). If you live facing Sagrada Familia, you should get
used to tourism. We pay a price for tourism welfare,
complaining is selfish (n¼ 1).

more tentatively about balancing the needs of tourism and the diverse membership (Paskeleva-Shapira, 2001), particularly set-
city, including the need for education and providing better value ting ambitious societal goals (Bocksette & Stamp, 2011).
for residents. A third group reflected on changes needed at gov- Most respondents saw room for further tourism development
ernance level, such as increased cooperation with the munici- (Table 3). Despite certain discourses on sustainable growth, the
pality, the inclusion of more stakeholders directly or indirectly emphasis was almost unanimously on growth through geo-
linked to the tourism industry, and the need for all members to graphical decentralisation and not a change of business model,
share a common vision. Finally a vocal group spoke of marketing which would be central to a CSV approach. The private sector
challenges in product development and diversification, specialised blamed the perception that tourism cannot grow on the public
segmentation, prioritisation of high value-added segments, in- sector's inability to enforce laws on noise and crowd management
crease of promotional resources and deployment of a genuine (particularly at night or in residential areas) and saw limiting
digital-marketing strategy. growth as a disservice to the residents as it might hinder potential
Interviewees were then asked whether they believed that re- improvements to their wellbeing (for similar rhetoric see Born-
sidents have a negative perception of tourism (Table 2). Seven horst et al., 2010). In contrast, the public sector said that it is po-
interviewees saw this as a serious problem of strategic importance litically and economically unwise to restrict a sector that has
for TdB, four of whom were part of the management team. Re- brought prosperity in times of financial crisis, although this opi-
presentatives of the public and private sectors were more likely to nion was expressed more reactively than proactively, as seen by
see it as a real problem but amplified due to political, sectoral or the quotes. The management interviewees were more openly cri-
media interests, what only occurred at specific times and places, tical about tourism development, and claimed that there is a need
and one private sector interviewee dismissed it entirely. There to cap growth, despite their being aware of the vested interests.
were no tangible ideas forthcoming on how to manage tourism The outcome is a DMO that continues to deliver promotional
differently and there was a general wish to dismiss the problem. services without enough strategic direction (Ritchie & Crouch,
The '2015 Strategic Tourism Plan' for the city reported the need for 2003) and that diffuses responsibility to society (Paskeleva-Sha-
tourism plans to be inclusive of the residents’ needs, yet the in- pira, 2001).
terviews suggested in practice this has not translated into changes Interviewees were asked whether locals were part of the target
in the management of tourism. This is evidence of how the need for TdB (Table 4), but the question received a lukewarm reception.
for collaborative management in DMOs (Timur & Getz, 2008) fails Some saw an opportunity to manage resident dissatisfaction and
at the hurdle of taking complex decisions in organisations with raise awareness of the benefits of tourism, for example by

Table 3
Has tourism in Barcelona reached its limit?

Themes Example comments

Overall Public Private Management

Yes, it must be stopped (n ¼2) We can love Barcelona to death and expel
the resident.
We have reached our limit.
Nobody has the guts to stop this (n ¼2).
A more sustainable growth model is We cannot stop this, so let's man- We need a sustainable model to ensure we Growth has to be more sustainable.
required (n ¼ 6) age the impact (n¼ 1). do not die of success.
Let's grow in an orderly fashion. We need to decide the type of tourism that
we want.
We need more earnings not more tourists Do we want to generate resident happi-
(n¼ 2). ness or resident income? (n¼ 3)
There is still much room to grow, with We can grow outside Barcelona. The problem is not growth but legal
some changes (n¼ 8) compliance.
The problem is in the old part of We cannot stop; we need to decentralise
the city only. and diversify.
We aren’t at the point of consider- We need to grow with quality.
ing the question (n¼ 3).
There are still neighbourhoods to develop
(n¼ 5).

Please cite this article as: Serra, J., et al. Creating shared value in destination management organisations: The case of Turisme de
Barcelona. Journal of Destination Marketing & Management (2016), http://dx.doi.org/10.1016/j.jdmm.2016.06.005i
6 J. Serra et al. / Journal of Destination Marketing & Management ∎ (∎∎∎∎) ∎∎∎–∎∎∎

Table 4
Are locals part of the target market for TdB?

Themes Example comments

Overall Public Private Management

Yes (n ¼4) There should be routes for residents only. We would kill two birds with one stone: we care
for what the residents want and sell them some-
thing too.
This would bring residents and tourists Of course, we haven’t done it because it was
closer together and create empathy. easier to reach the international market.
If we don’t do it, it is because hoteliers do Yes, we go abroad on holiday and we don’t know
not benefit (n¼ 2). what's at home (n ¼2).
Must be somehow con- It isn’t good to have uncoordinated mes- We need to show residents that tourism finances We need to communicate to local re-
sidered (n ¼ 8) sages between the Town Hall and TdB their access to culture. (n¼ 2) sidents. There is too much inbreeding
(n ¼2). (n ¼ 4).
No (n¼ 2) TdB's mandate is to promote the city abroad. Every This is for the Town Hall to address. Re-
entity has its task (n¼ 3). sidents could find it offensive (n¼ 1).

explaining that museums are co-financed by tourism. The public of the process, with a consequent loss of decision-making flexibility.
sector was more predisposed towards seeing residents as bene- The respondents from the public sector explained this response as
ficiaries of tourism, while the private sector was happy to leave the private sector's unwillingness to get involved with the negative
this in the Town Hall's hands, leaving TdB specifically as an in- impacts of tourism.
strument for tourism. None of the management interviewees While the evidence here shows the complexities of partner-
considered the locals as a genuine target of TdB, but took a reactive ships (Hall, 1999), a DMO would still need to do more than pro-
stance, stating “somehow they must be taken into account”. motion if it were to create shared value, for example: it would
To be fair, any DMO would be challenged by this question as need to adopt a more inclusive corporate governance model (Pe-
their traditional client is the overnight visitor. These reactive ap- chlaner et al., 2012) with an explicit vision and a robust strategy
proaches are more in line with reputation management CSR pro- inclusive of the critical issues and ambitious goals of shared value
grams (Vaidyanathan & Scott, 2012), as the city is not seen to (Bocksette & Stamp, 2011).
belong to the residents but to be a resource for exploitation This led on to a discussion of the suitability of the current
(Goodwin, 2011). This is far from Porter and Kramer's (2011) value governance format, in particular the balance between public and
creation by reconceiving products and markets, which in this case private entities and the organisational core functions (Table 6). The
would mean meeting social needs by developing innovative pro- statutes of TdB (1993) give a slight majority to the private sector,
ducts and services that would allow access to new markets. So, led by the Chamber of Commerce. The latter appoints the private
considering locals as a target for TdB, apart from being necessary representatives for the TdB and therefore decides which sub-sec-
for achieving a better fit between tourism and the city, would be a tors will have greater weight in the decision-making organs of
good way to create shared value. TdB, i.e. the General Council and the Executive Committee. There is
In response to the changes to TdB's strategic guidelines, which consensus that this private-sector driven format has made TdB
include extending management responsibilities beyond their tra- agile and responsive. Most interviewees would prefer minor ad-
ditional promotional functions, interviewees were asked what the justments without touching the foundations of the public-private
mandate for the organisation ought to be (Table 5). Given the relationship model, which is believed to have been successful so
public-private composition of TdB, some of the interviewees sup- far. Most respondents commented on the lack of representation
ported the idea that it might be a good place to develop tourism and decision-making weight of the sub-sectors that contribute to
policy, such as regulating tourist apartments. Most, however, re- delivering tourism services. Most interviewees, including some in
sponded that TdB should concentrate on its statutory mandate to the private sector, felt that hoteliers have disproportional power in
sell the city internationally. None of the three groups were in favour the governing bodies, which was logical at the time when the
of TdB becoming openly involved in tourism management, although statutes were agreed (i.e. in a post-1992-Olympics stage when
some did express a wish to integrate the functions (and people) that there had been an investment in facilities and there was a danger
currently lead the tourism management (within local government) of spare hotel capacity) but that this probably needed to be re-
with TdB. The private sector was categorically against the possibility viewed. However, overly rigid partnership structures can hamper
of TdB assuming a role beyond that of promotion and marketing, progress and be hijacked by those who benefit the most (Bramwell
arguing that it might potentially lead to a dangerous politicisation & Lane, 2000).

Table 5
Should the mandate for TdB be management or marketing?

Themes Example comments

Overall Public Private Management

TdB should be a key player in the global TdB would not manage facilities but I already think that many policies are This would help reduce disjointed de-
tourism policy (strategy, management would have a role in defining policies decided at TdB and then applied to the cision-making in product management
and promotion) (n¼ 5) (n ¼2). city… and that's good (n ¼1). and promotion (n ¼ 2).
TdB should focus primarily on promotion The Town Hall decides the strategic Each institution has a mandate, TdB mar- Our task is promotion.
and marketing (n¼ 11) frame and tourism policy, and TdB kets internationally. Tourism policy is for politicians.
sells it accordingly (n¼ 2). TdB could be politicised (n ¼6). The governance model would need to
change, there is no appetite for this
now (n¼ 3).

Please cite this article as: Serra, J., et al. Creating shared value in destination management organisations: The case of Turisme de
Barcelona. Journal of Destination Marketing & Management (2016), http://dx.doi.org/10.1016/j.jdmm.2016.06.005i
 J. Serra et al. / Journal of Destination Marketing & Management ∎ (∎∎∎∎) ∎∎∎–∎∎∎ 7

Table 6
Is TdB's governance model fit for purpose?

Themes Example comments

Overall Public Private Management

Major changes The 2015 tourism plan showed that tourism isn’t all We need to fundamentally reconsider our reason
(n¼ 2) good news and that has consequences for the health of being, but we rely on both the Chamber of
of the city, which makes us reconsider the mission Commerce and the City Council to take the first
and roles (n ¼ 1). step (n¼ 1).
Minor adjustments Changes were more aesthetic than real. Hoteliers The governance model needs clar- There are contradictions and those acting as
(n¼ 9) have excessive protagonism. ification, in particular the definition of buffers are paying the price (n ¼3).
functions for each stakeholder.
The executive committee is unmanageable- too big. More stakeholder groups should be
TdB cannot look away from the management of the included and decision-making re-
city (n¼ 2). weighted (n¼ 4).
No change (n¼ 5) The current pact works because it is still current and It works as it is, with private-sector We cannot complain. TdB works well and the
because the private sector is fronting it (n ¼1). primacy. management team is happy (n ¼1).
The model works due to the public-
private collaboration (n ¼3).

The contribution of TdB to society was also discussed (Table 7). However, the processes through which such involvement can be
The answers showed that this is neither a topic well understood managed effectively are still not well understood and neither are
nor one that is open for debate. Half the interviewees said that the the organisational structures that would support such cooperation
contribution is right, in so far as TdB generates income for the city (Harrill, 2009). DMOs are uniquely positioned to network with the
(assuming this leads to wealth distribution). Those that aimed for large number of communities and organisations that represent
greater benefits qualified their answers with comments on the diverse sectors of the economy, and to include them in processes
institutional rigidity of the governance model. There was a strong relating to strategic destination decision-making (Coles, Dinan, &
sense that the locals are an afterthought and not a key stakeholder. Hutchison, 2014; Cooper & Hall, 2008; Timur & Getz, 2008). This
The final questions asked the interviews to reflect on the lim- study has set out to investigate whether CSV would be a suitable
itations (Table 8) and drivers (Table 9) for CSV, once the concept framework to empower DMOs to achieve these new demands. A
was explained to each interviewee. To say that interviewees number of barriers to such a proposition were encountered, that
looked doubtful would be an understatement: most first reacted can broadly be categorised as relating to two distinct areas: (1) the
raising their eyebrows and with exclamations. The concept of CSV stakeholders’ engagement with the DMOs, and (2) the viability of
was seen as aspirational or plainly naïve. That most private-sector the concept of CSV as a way forward for destination development,
representatives chose not to comment is telling. The main lim- management and governance.
itations reported were organisational, an insufficiently long-term Among the stakeholders interviewed, there seems to be nom-
mindset of the private sector. Meaningful change would need to be inal agreement that dialogue with, and engagement of, all stake-
driven by an overhaul of the TdB's private-sector representatives holders is key to the long-term sustainability of tourism devel-
in order to change the organisational values, but respondents were opment in Barcelona. There is a shared understanding that tourism
quite dismissive of the likelihood of this happening soon and, cannot be successful without the support of the local commu-
consequently, the responses were rather hypothetical. Where nities, although for some participants this understanding does not
more specific answers were given, such as the use of taxes to translate into action or equitable representation. Moreover, there
improve the physical infrastructure used by residents (and tour- is a strong sense that disproportionate attention is paid to the
ists), these were generally in the form of appeasing concerns ra- negative consequences of tourism on the locals and not enough is
ther than genuine responses to a CSV approach. done to highlight the benefits. There is a real desire to ensure the
long-term sustainability of Barcelona as a tourism destination
(including careful management of impacts and growth) but,
5. Discussion alongside this, there is consensus that this can be achieved with-
out an extended mandate of the DMO or fundamental changes to
The existing literature maintains that the involvement of key the tourism model for the city. The DMO is perceived as func-
stakeholders is vital to tourism development and planning. tioning in a responsive and flexible way within its function as a

Table 7
Is TdB making an appropriate contribution to society?

Themes Example comments

Overall Public Private Management

Right (it provides economic It's enough (n¼ 1) Going further would be doing the City's The same institution cannot both manage and sell.
value) (n ¼8) job. TdB is an executive body to sell what has been
Tourism is 10–12% of the city's GDP decided at the City level (n ¼2).
and TdB contributes to this (n ¼5).
Insufficient (should provide But the governance model does not allow Citizens must see that their environ- This will require massive effort. The Chamber will
more social value) (n ¼ 8) any actions that do not contribute directly ment is improving thanks to tourism. have to take the first step.
to financial gains.
It is the city that attracts tourists, and TdB Higher tourist taxes need to bring tan- There's a conflict of interest between business effi-
has to contribute to returning value to the gible benefits through citizenship in- ciency and solving social problems (n¼ 3).
city (n¼ 3). vestments (n¼ 2).

Please cite this article as: Serra, J., et al. Creating shared value in destination management organisations: The case of Turisme de
Barcelona. Journal of Destination Marketing & Management (2016), http://dx.doi.org/10.1016/j.jdmm.2016.06.005i
8 J. Serra et al. / Journal of Destination Marketing & Management ∎ (∎∎∎∎) ∎∎∎–∎∎∎

Table 8
What are the limitations to the adoption of a CSV approach?

Themes Example comments

Overall Public Private Management

Business people (n¼ 6) The more inclusive private-sector pioneers are scarce. The vision is short term (n¼ 1). We need a new breed of business
people.
There is insufficient turnover of business re- Sometimes, it appears that selfish in-
presentatives and those in power do not have a suffi- terests reign over the collective well-
ciently long term focus (n ¼3). being (n¼ 2).
Organisational culture and The system for electing members of the decision-mak- There is no mature public-private The long-standing organisational cul-
power structure (n¼ 4) ing organs does not lend itself to a healthy and regular debate on the organisational man- ture stifles change.
renewal of representatives (n¼ 1). date (n ¼ 1). The Chamber of Commerce would need
to promote such change (n¼ 2).

marketing body. A concern expressed by the participants is that a perceived as the balancing point of social, economic and en-
management mandate would politicise the DMO, thus making it vironmental issues: the intermediary between the different sta-
less effective and less able to respond to the needs of the desti- keholders. This view of society and governance is consistent with
nation quickly and flexibly. that of the formal hierarchical order of transmissions of decision
These findings are not consistent with academic research that makers and decision-takers (Weber, 2006), where those who have
advocates for a shift in the mandate, functions and operations of formal power are assumed to be in charge of the decision-making
DMOs (Harrill, 2009; Hristov & Zehrer, 2015), i.e. for DMOs that are process (Parissi, 2010).
concerned not only with promotion and marketing but also with In this broader discourse on power and society, it is no surprise
leadership and management. However, the findings of this study to discover that the stakeholders do not see the need to create
are consistent with the more nuanced understanding of Sheehan, shared value that contributes to the whole of society, as this is the
Ritchie and Hudson (2007), who suggest that DMOs with public- role of the government. DMOs tend to be concerned with profit
private partnerships can be highly functional and productive de- generation through marketing and sales, rather than with larger,
spite also being problematic and political. These assertions, how- societal obligations. Key stakeholders have different levels of input
ever, are as relevant to the current TdB as they are to a DMO with over decisions but, ultimately, the power belongs to the governing
an extended management mandate: hence it is not surprising that bodies. Thinkers such as Foucault think of power as relational and
there is scepticism and resistance to CSV. Stakeholders in power capillary, or as a dispersed ‘way of knowing’ that courses through
are mostly content with the current status and feel that there is no group, institutional and organisational practices to thus govern the
need for a significant change in the way they operate. They are understandings that reside and proliferate therein (O’Farrell,
confident that the issues outlined can be handled within the 1997). Key stakeholders operate within established and dominant
current system. Implementing CSV would require a rebalance of narratives about their own institutional power and knowledge. In
power, a change of priorities and an extension of the mandate of this context, the sceptical reactions of some of the interviewees in
the DMO, none of which is desirable. The private sector is seen as response to the proposed new framework of institutional opera-
the key obstacle to implementation of a more sustainable ap- tions, management and strategies informed by CSV are under-
proach, such as CSV, but it is also acknowledged that for progress standable as the framework challenges the established regimes of
to be made a new ‘TdB with a more balanced upfront mandate’ truth about institutions (public and private), as well as their po-
with integrated tourism management is needed. sitions and responsibilities in society.
A DMO with these characteristics would then have the man- The Foucauldian notion of power posits that decision-making
date to act as an agent of change and become an agent of CSV. power resides in each group and institution, and is not limited to
However, it is clear from the interviewees' answers that such a the government. In this situation, every agent is responsible for
situation is not perceived to be realistic but is more a hypothetical the implementation of certain practices and policies that form the
proposition. The responsibility to make decisions, and hence the established ‘truth’ of the organisation. When these dominant un-
seat of power, is seen as belonging not to TdB, which is an ex- derstandings are at odds with one another in their purposes and/
ecutive body, but to the City. The role of the DMO is seen as merely or goals, change and progress are slow and decision-making
to implement the political decisions taken at local government is difficult and unproductive. In order for power and decision-
level. Government is seen as the actor with the power to make making networks to function effectively, they need to work
decisions and implement change. The local government is towards a common goal based on shared understandings, policies,

Table 9
What are the possible drivers to the adoption of a CSV approach?

Themes Example comments

Overall Public Private Management

Business people We need a breadth of fresh air; a new generation of The entry of new business values in positions The Chamber of Commerce must
(n¼ 5) business people, working alongside the old ones, to make of power (n ¼1). drive the change.
change possible (n¼ 2). People in power need to be gradually
replaced (n ¼2).
Governance (n ¼3) Additional resources from the tourist tax could be used to Integration of tourism management by the A brand new TdB with a more ba-
improve the citizen's environment (n ¼ 1). City with TdB to improve social added value lanced upfront mandate (n ¼1).
(n¼ 1).
Political (n¼ 2) Improved political coordination in the City (n ¼1). A stronger government would facil-
itate a change of direction (n¼ 1).

Please cite this article as: Serra, J., et al. Creating shared value in destination management organisations: The case of Turisme de
Barcelona. Journal of Destination Marketing & Management (2016), http://dx.doi.org/10.1016/j.jdmm.2016.06.005i
 J. Serra et al. / Journal of Destination Marketing & Management ∎ (∎∎∎∎) ∎∎∎–∎∎∎ 9

procedures and operations: something that may be very difficult stakeholder in tourism development difficult and complicated, and
to accomplish. The concept of CSV is designed to provide such a there is no obvious, easy resolution to this quandry. However, it
harmonising framework as it requires reconsideration of the pro- indicates that DMOs may be well positioned as an intersection of
ducts offered and the beneficiaries of those products, rather than the complex relational network of a destination.
simply increasing the volume of production in the hope of a The takeaway message from this discussion is that destination
trickle-down effect (Porter & Kramer, 2011). management is complex and multidimensional (a ‘wicked’ pro-
The views set out in this paper with regard to the viability of blem), which implies that solutions to the barriers and problems
the CSV as a framework for DMOs were not shared by the inter- presented herein may be only partial, imperfect and local (Brown,
view participants. The key barriers to implementation of the CSV Harris, & Russell, 2010). Such problems can be tackled by ap-
approach are outlined by the interviewees to be: (i) the people proaches that bridge the gaps between research-informed
currently involved in the destination-management processes and knowledge and decision-making processes in society (Ramadier,
organisations, and (ii) the level of engagement of the locals. The 2004). In its current state, the DMO is seen more as a possible
interviewees did not see the current people working within these agent of knowledge transfer for stakeholder networks (Hristov &
institutions and organisations as being able to implement the level Zehrer, 2015; Hristov & Petrova, 2015). A CSV approach requires an
of change required to successfully extend the mandate of DMOs in understanding of decision making and power relations that exist
line with a CSV framework. According to the views that they ex- between the engaged stakeholders. CSV proves a viable option for
pressed, new people with new ideas are needed for CSV to be the scope and scale of institutional change needed to engage in
successful. That, however, ignores the Foucauldian understanding more sustainable destination management and operations. The
that individuals are so steeped in the established institutional conclusion to this paper will now look at the specific implications
regimes of truth that they become what the French thinker names of CSV for DMOs.
'docile bodies', through which the institutionally-established truths
may circulate (Hollinshead, Ivanova, Caton, & Reisinger 2015). The
implication for the present case is that a ‘new generation of 6. Conclusions
business people’ or the replacement of people in power may not
be enough to remove the barriers to implementation of CSV. Barcelona has an innovative public-private partnership that is
Of course, in his thinking on the ability of individuals, or even part of the success of the city as a tourist destination. The awards
groups of people, to affect change at an institutional or organisa- won for their cooperative destination management (through the
tional level, Foucault at a later stage in his career became less City) and marketing (through TdB) are often referred to as inter-
deterministic. He considered the ability of the individual to be national models. Yet the '2015 Strategic Tourism Plan' has shifted
creative and innovative and bring about change. In the context of the organisation's priorities and the subsequent organisational
enabling change towards a more socially engaged tourism in- changes needed to deliver these new priorities will be difficult to
dustry, he thus suggested that it is not so much a need for new implement when, for most key stakeholders in management po-
people but more a desire for the people already in positions of sitions the current system is seen to work well. This is consistent
power to question the received truths and the ways through which with the finding that organisational structures such as those of
they are embedded, enacted and enforced institutionally. There DMOs, with complex decision-making processes and multiple
would need to be changes made to the ways that organisations are stakeholders (Bramwell & Lane, 2000; Fyall & Garrod, 2005), fail to
managed, to the ways they operate and to the policies and pro- serve the needs of sustainable collaboration partnerships (Hall,
cedures that they produce. This is consistent with the basic as- 1999), which are central to the concept of CSV. In its current state,
sumptions of the CSV concept, as discussed earlier in the literature if TdB were to adopt a CSV approach, it would find itself at the first
review. stage of Bocksette and Stamp's (2011) model for doing so: that is,
Another overlooked aspect, that could potentially create bar- the assumption of new and stronger commitments to social issues
riers to the implementation of CSV, is the participants’ attitudes and the subsequent redesign of organisational structures. The re-
towards the local communities and local residents. An improve- sults of the interviews conducted for this study show the limited
ment in the quality of life of locals would need to be a key driver of ability of this example DMO genuinely to be a management and
sustainable, long-term development of the industry, rather than leadership entity, as argued by Fyall (2011), Prideaux and Cooper
there being an assumption that it would simply emerge as a result (2002); and Ritchie and Crouch (2003).
of increased turnover. The interviews revealed a lack of under- The study does, however, several limitations. Some of these
standing on this point. For example, one respondent reflects on have already been discussed in the paper: for example: (i) the
how residents are an afterthought and placed the emphasis on treatment of diverse groups (such as local residents), and their
reactively educating the residents regarding the existing benefits, interests, as a monolithic whole, (ii) the only partial identification
rather than changing the model to consider the residents’ needs of all key stakeholders and their power relations, and (iii) the
proactively. Again, the expressed view here was that the residents limited interview questions that did not explore the CSV concept
are there to be acted upon, as opposed to them being key stake- in detail. Some of these limitations are outside of the scope of the
holders with decision making power. Such attitudes towards local study but others emerged due to a lack of access to, or limited time
residents are not new and, from a Foucauldian viewpoint of power, available of, the participants. Furthermore, some limitations did
are not surprising. not emerge until the data-analysis stage. Consequently, it is very
It is hard to define what constitutes local communities. They difficult to make specific recommendations on the application of
are rarely the monolithic whole they are sometimes assumed to CSV in the context of this study, apart from stating that CSV should
be. Instead, they may consist of diverse groups of people with be a viable concept and could be a possible way forward toward
different, often opposing, views and desires. Local residents may more sustainable development, but that there is a lack of evidence
also be part of the business community, or participate in governing of its capacity to be operationalised. The complex nature of the
practices etc. Local communities are not separate institutions; they multichannel networks engaged in destination management
consist of individuals that are subject to, or actively participate in makes providing specific recommendations difficult. Instead, this
and perform, discourses and praxis of the specular biases of paper has aimed to illuminate the complex context in which DMOs
whatever groups, institutions or organisations they belong to. This operate and outline some potential barriers to their increased
makes the inclusion of ‘the local community’ as a singular mandate to manage destinations in ways that would maximise

Please cite this article as: Serra, J., et al. Creating shared value in destination management organisations: The case of Turisme de
Barcelona. Journal of Destination Marketing & Management (2016), http://dx.doi.org/10.1016/j.jdmm.2016.06.005i
10 J. Serra et al. / Journal of Destination Marketing & Management ∎ (∎∎∎∎) ∎∎∎–∎∎∎

value to a larger number of stakeholders. Bocksette, V. & Stamp, M. (2011). Creating shared value: A how-to guide for the
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