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DESTINATION MADRID: MARKETING STRATEGIES AND THE ROLES OF THE PRIVATE AND PUBLIC SECTORS IN TOURISM

Introduction

            Tourism at the global level is increasingly becoming competitive and Madrid remains one of the most preferred destinations across the world, despite the rising competition. According to Moutinho (2011) and Pearce (2012), destinations attract specific numbers of tourists based on factors like heritage, security, transportation options, ease of obtaining visas and even the environmental factors of the destination. Nonetheless, marketing remains one of the strongest drivers of tourism across the globe and thus tourism managers across the world always identify different approaches to marketing that would ensure their destinations remain competitive. In Madrid, there are numerous attractions like Prado Museum and the Bueno Retiro Park. However, these attractions have to be packaged and effectively presented to potential tourists to influence them into visiting the locations at the present and in future. In general, the approach should ensure sustainability of trade in the location. This study acknowledges that to ensure effective marketing, tourist managers need to form Destination Marketing Organizations (DMOs), which combine funding and input from both the public and private sectors towards promoting and marketing tourist destinations. The roles and impacts of these DMOs will, therefore, be discussed further based on their applications in Madrid. This study, therefore, seeks to note whether DMOs are actually able to sustain the attractiveness of a location like Madrid in the long-term, and whether the approach can be applied over or along with the use of innovations popularized in the tourism business.

Overview of Tourism in Madrid

            Madrid is the largest city in Spain and third largest in the EU. It is sometimes referred to as the Lonely Planet since it is argued to have the best tranquility, ambience and liveliness that cannot be experienced in any other part of the world. With a population of about 3.2 million people, the city is renowned for its influences in entertainment and one of its most popular entertainment facility is the Royal Theatre which includes an Opera House; sports due to the two most popular football clubs, Real Madrid and Atletico de Madrid; politics since it is the capital city of Spain and houses the administrative organs of Spain and the City; fashion due to its renowned fairs like Cibeles Madrid Fashion Week; education due to some of the best universities ; science and a strong culture notable in their architecture, historical information in museums and in statues displayed across the city. In this regard, it is considered as one of the largest global cities in the world since these facilities and resources allow the city to engage with people from across numerous parts of the world. Economically, Madrid is also competitive as its GDP is considered as the third largest in the EU region (De la Escosura, 2016).

            It is possible to assume that the attractive nature of Madrid may have influenced the selection of the country as the headquarters of the World Tourism Organization (WTO). If this selection was based on the nature or standards of tourist attractions in the city, then the selection is widely undisputable. However, if there were other factors that may have contributed to the selection of Madrid, besides its quality attractions and tourist features, then the notable attractions in the city will always overshadow other reasons that caused the selection of the city as the headquarters of the largest tourist organization in the world. After all, Madrid has rich culture and a sense of tranquility that makes it irresistible as location for such organizations and institutions (Garin-Munoz, 2004). Notably, the city is also the headquarters of international Spanish language promoters and regulators like the Standing Committee of the Association of Spanish Language Academies among others. Nonetheless, this great interest in Madrid is not only evident in the modern times after the 21^st century, but also in the historical times during the 9^th century when Muslims first inhabited the location to advance their trade. After constructing fortresses and successfully conducting trade in the city, they were subdued by Christians at about 1085 and this marked the beginning of the Roman Empire reigns in the city. The Christians were later attacked by the royal empires formed later and thus the city became part of the current monarchies still existing in Europe in the 21^st Century.

            These historic events greatly influenced the current Madrid. To begin with, the architectural designs notable in the city are mainly as a result of both the royal reigns and Christian rule in the city. One building that incorporates both designs is the 17^th Century Plaza Mayor that was constructed during the reign of Phillip the third (Phillip III).This building was used as a commercial services and ceremonies like canonization of saints and proclamation of the newly appointed kings. Currently, the building is widely utilized for local ceremonies and commercial services including being one of the main tourist attractions of Madrid. The early European art introduced during the kingdoms periods is also preserved and exhibited in museums across the city. One such museum is the Thyssen-Bornemissza Museum which contains numerous European arts used in the period between the 13^th and 20^th centuries. To enhance visitors’ experiences in the museum, other forms of art have been included like the modern, pop, and American paintings leading up to the over 1000 pieces of artistic items in the museum.

            The outdoor tourism is also promoted further by the wide collection of urban sculptures spread all over the city. Such include the Fountain of Neptune, sculpture of Don Quixote and Sancho Panza found at the Plaza de Espana and the Faunte de Cibeles or fountain of Cybeles. Besides the sculptures and architecture, Madrid is also renowned for its tranquility and sense of peace generated by the gardens, water points and green environment notable in the city. One place that offers a peaceful relaxation due to its ambience is the Buen Retiro Park. The Centro de Arte de Reina Sofia center also displays contemporary art in a modern garden that is well maintained to offer a sense of relaxation and peace. Furthermore, upon visiting Madrid, one is not obliged to stay in expensive hotels but can chose their preferred hotels based on their budgets and travel plans while in the city. Some budget restaurants available through numerous online platforms include Room Mate Mario and Mayerling Hotel that feature small to large rooms with minimalist décor, but guarantee quality services across the board. Midrange hotels include Artrip Hotel and others which are mostly located near tourist destinations like museums and offer small to large rooms. Finally, there are luxurious hotels like Hotel Atlantico that feature vast decors, unique designs and offer a variety of services like transportation to airports and preferred destinations.

Roles of DMOs and the Relationship between Public and Private Organizations

            According to Line and Wang (2017), destination marketing organizations are local-based institutions developed through a partnership between the public and private stakeholders and volunteers to promote a location towards increasing the number of tourists and visitors within a location. In Spain, there are over 10 such DMOs and each of these organizations focuses on promoting tourist locations like Madrid to the world. Nonetheless, Line and Wang (2017) admit that the formation of DMOs is not only aimed at ensuring a destination is popular, but to also ensuring that the industry is generally sustainable within the location. For this reason, stakeholders within the DMOs would collectively fund or even work with volunteers in the rehabilitation of attraction sites, management of the environment in these sites and even protection of the facilities or upgrading them towards maintaining the set standards. Notably, tourist attractions in Madrid like the sculptures and parks are consistently maintained through cleaning, renovations, and repainting under the sponsorship of the DMOs. This strong collaboration ensures that tourist resources in the city are sustainable at the present and in future.

In the International Tourism Fair held in January 2017, Madrid was able to present its most notable tourist attractions in the fair through a partnership between the Madrid Destino Tourism Department and the Madrid City Council.  In the fair, innovative technologies were used to make Madrid stand mimic specific tourist destinations in Madrid (Madrid Destino, 2017). Adequate information was provided through a digital database informing potential tourists of the annual events to expect in Madrid, destinations to consider, and other cultural data available in Madrid (Madrid Destino, 2017). The use of such technologies and marketing techniques can be costly, but this event was successful since the partnership between the private and public stakeholders led to availability of resources to ensure marketing approaches at the fair were maximized. Furthermore, though such partnerships, the tourism industry can effectively employ staff to assist in managing tourist resources and even guide tourists while in the country. This is effective in two ways: it leads to continued economic growth of tourism as a form of trade is improved and sustained, and the employment opportunities created support the well-being of Madrid residents for a better well-being.

A review of Madrid Convention Bureau’s website shows all tourist activities that one can do, sites that can be visited, and food places. Tourists are also requested to be assisted in planning and managing their trip. A convention bureau operates in the same way as a DMO and in order to effectively ensure maximized services as noted in this research, it will have to conduct adequate research regarding their locations and resources available. Whenever the convention bureau popularizes the 400^th anniversary of the Plaza Mayor, it must have the history of the plaza and all information regarding the annual celebrations held for the building.  In this regard, research is a major part of the DMOs operations and existence. Nonetheless, since it is a partnership between the local communities and organizations, research initiatives can be effectively conducted through a collaborative approach leading to the preservation of histories and heritage, and development of new information as discovered through research. The local communities also benefits from the tourist attractions within their locations. This is achieved when the DMOs popularize the local communities and their resources, and even guide them on how to interact with tourists. When marketing restaurants within different locations, the local communities, who in most cases are the main people running these businesses, get the opportunity to have their facilities presented to the tourists in the most inexpensive ways. This collaboration between the private and public institutions ensures that the cost of marketing is subsidized yet yielding maximum results for stakeholders within the location. Finally, through the contacts made due to this collaboration, vendors can be connected with supplies to ensure that the industry is consistently able to support and sustain itself as a strategy towards growing in future.

In the recent years, especially since 2014, the Madrid Convention Bureau (MCB) acknowledges that there has been a rise in tourism revenues through meetings, incentives, conferences and events (MICE) when compared to the traditional forms of tourism. In order to grow this sector, as it remains potentially strong in future, MCB is conducting numerous marketing initiatives that will continue to open up Madrid through noted segments. Such initiatives include participating in international fairs abroad, hosting meetings in the fairs and exhibiting the available facilities though these fairs. Notably, since the initiative to target MICE in the tourism goals, Madrid has seen an influx in tourists to the extent that bed capacity in luxury hotels in the city has increased by 4,000 within the noted period (Madrid Convention Bureau, 2017). A rise in demand for luxurious accommodation illustrates the continued appreciation for Madrid and the success of the markets in the city towards promoting the tourist activities in the city. This increase also represents the emerging business opportunities and growth in the hotel industry. All these would lead to an improvement in the economic opportunities of the city and increase in revenues at the present and in future. This collaboration between the public and private sectors is indeed enhancing present goals to grow the industry and ensuring that in the future, the industry remains profitable to all stakeholders including the local communities.

Marketing Strategies and Communications for Tourism Destinations

            As aforementioned, marketing remains one of the main components of tourism in any part of the world. Notably for MCB, marketing is a continuous process determined by the target markets, available technologies, and preferred strategies. Similarly marketing of tourist destinations is not only a factor of naming new or preferred destinations, but also a mix of brand development, product packaging, and approaches to communication and information transfer. In 2015, the Tourism Association of Madrid, which is also a DMO working in the location, presented the 2015 to 2019 tourism plan and strategy in which it noted that it will aim at increasing tourists population into the country by 30%, which would represent over 13million visitors into the country during the period. To achieve this, the organization noted that based on its research, there are 18 markets across the world that would lead to attainment of this population and 8 regions which will drive tourist traffic into the country. Their research, as conducted for them by the THR consulting company was also able to establish six key competencies of Madrid that would be popularized during the period to enhance tourism. Notably, the most initial factor prior to marketing is research as it enables the marketer to target based on proper understanding of their strengths and potential in future. This strategy also ensures that the marketing initiatives are relevant, objective and impactful.

            Another common factor in the current marketing and communication strategies is the use of advanced technologies that mainly incorporate virtual or visual systems. Although this has been common since the earliest use of photography, current systems are more advanced and able to simulate the expected or potential environment as would be experienced by tourists. This increases the desire to be part of the noted experience. For instance, during the International Tourism Fair held in Madrid on January 2017, the Madrid stand exhibited Madrid and its attractions using LED stands that featured Madrid skyline and moving images of the attractions (Madrid Convention Bureau, 2017). Virtual observation decks were also included to allow customers to have a simulated 360^o view of Madrid from the Faro de Moncloa Tower. Additionally, a computer based informational system was available at the exhibition for tourists to gain data about numerous attractions and tourism related activities that could be done in Madrid. Notably, these marketing strategies bring the city close to the targeted market, allowing them to have experience in order to elevate their desires for the location and even improve their understanding of the location. The wide information provided through these platforms ensures that the targeted tourist is effectively informed of the attractions that meet the strategic goals of a location. For instance, one of the key target areas in the 2015-2019 plan for Madrid was the Spanish lifestyle and these could effectively be displayed through the LED screens causing tourist to desire to learn more about these lifestyles. Technology is, therefore, a major factor in the current marketing strategies.

            Another marketing strategy in the tourism industry is the use of travel packages that allow tourist to have access to both attractions and accommodation facilities for convenience and ease of travel. This strategy always involves mentioning of savings especially in the tourist’s finances while promising numerous interesting activities based on the marketing strategies and tourists’ preferences. Evidently, the Madrid Convention Bureau and the Tourist Association of Madrid websites feature specific travel plans that are aimed at attracting tourists through affordable to cheap deals. Another key selling proposition for Madrid is the infrastructural developments that remind people of their ability to maneuver through the city with great ease and visit numerous places within a short period. The capacity to accommodate many people, especially in MICE segment, is increasingly popularizing Madrid as a conference and meeting location. To market such factors, DMOs in the country popularize the increasing bed capacities of their luxurious hotels while illustrating diverse accommodation options that could be considered in the location. Another critical factor in the marketing initiatives is emphasizing diversity as most locations like Madrid offer a variety of activities like cultural heritage centers and even sporting options. For instance, in the 2015 to 2019 plan, the city targets to host some of the best football match involving the two rival teams within the city: Real Madrid and Atletico de Madrid.

Components for Destination Marketing

            Destination marketing, as noted above, involves communication of a wide variety of benefits to be gained by customers through visiting a destination. In this regard, marketing will always aim at emphasizing variety of products or services, cultural foundations of the location as the basis of the location, and the visiting or travelling packages that would ensure affordability of the travel. Marketing will also focus on using visual illustrations to focus attention of the target market to the specific components like cultures, heritage and ambience. Another critical aspect in destination marketing is emphasis on numbers. Statistics on number of annual visitors, functions available per day, and the facilities available for use give the location popularity while enhancing the stature of the location as a preferred destination.

Factors Influencing Destination Marketing

            Destination Marketing is affected by numerous factors. One of the main factors is the fact that the trade is seasonal where during high season, a location can experience an influx in tourist numbers whereas in low season, there would be a decline in the number of tourists. These seasons are widely determined by weather patterns with most tourists preferring to travel during dry and hot weather or whenever the conditions are ideal to prevent any chances of contraction of diseases (George et al, 2016). Inbound and domestic tourism are also critical factors in destination marketing initiatives. With increase in domestic tourism, marketers change their marketing strategies to support these internal tourists as they have long-term benefits to the country although their short-term contributions can be lower than the inbound tourists (Garin-Munoz, 2004). However, in some locations, the inbound tourists or foreign based tourists can be the main source of income for the country and this would cause the marketing team to focus on external marketing. It is also clear that availability of resources within a location will always influence destination marketing initiatives like the extent to which visual technologies are used and what platforms could be used to conduct marketing.

Conclusion

                        Madrid as a destination offers the ultimate touring experiences for visitors. This is widely marketed by its DMOs which utilize technologies and creativity to make the destination visible to entire world. According to the research, the role of the DMOs in marketing destinations include: increasing the capacity to promote destinations through combination of resources, developing strategies for effective marketing, guiding the tourism goals to match the needs of the market and to ensure comfort for the visitors while promoting revenue generation for the locals. Such goals are being achieved by bureaus like the Madrid Convention Bureau that works with local tourist institutions like the Tourist Association of Madrid. Based on the short and long-term plans set through these organizations, tourism as a trade is promoted and its benefits transferred even to the locals within the destination. These roles of the DMOs should therefore cause further co-operation with such bureaus for the benefit of Madrid and other destinations across the world. The use of technologies and similar resources is also enhanced when DMOs work with local organizations to enhance local capacities. This paper therefore recommends the continued use of DMOs as part of the strategies towards marketing and growing the popularity of destinations.