Institutional Tourism Crisis: Could the Private Sector Be the Solution?


Tourisme institutionnel : un secteur en quête de légitimation... Atout France comme exemple à suivre ? - Depositphotos.com, 3d_generator

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More than six months after the melodrama that shook institutional tourism with the hypothetical closure of the Val-de-Marne Departmental Tourism Committee, the sector is sinking deeper into crisis.

Admittedly, the structure has not yet closed its doors, but it must operate without the department’s 900 000 euros subsidy, which greatly jeopardizes its future.

And if Val-de-Marne Tourism is still standing, Solutions & Co. is no longer.

The Pays de la Loire Economic Development Agency, which encompassed the Regional Tourism Committee, was liquidated, because the region “does not have the means to maintain such an agency“.

Its president explained to our colleagues at La Tribune that France has entered “the era of exigency, where every public euro must be a useful euro“. Tourism professionals will appreciate being described as useless.

Ce n’est pas tout, car Gironde Tourisme va connaître le même sort.

If the explanation lies in the department’s heavy deficit, the mayor of Lacanau regards the CDT as “useless” and denounces a “millefeuille institutionnel“, unable to “implement a concrete action“.


A sector seeking legitimacy: Atout France as a model to follow?

The politicization of the debate, added to exhausted public finances, seems increasingly to threaten this sphere of the tourism industry.

The presidential deadline should not really reassure the leaders and employees of the various structures, as a disengagement by the State becomes more openly acknowledged.

The crisis is intensifying, because we are now witnessing not only budget cuts but closures as well. The fact is there. Communities have less money.

In this context, and to stem the bleed, the profession should come together and propose measures to rationalize what sometimes resembles an institutional mille-feuille
“, contextualizes Jean Pinard.

It would be possible to better distribute the housing tax. Imagine that in Paris, out of the 120 million euros in revenue from this tax, only 4 million goes back to the tourism office.

We should also question private players: how to mobilize Club Med, Belambra and all those actors who keep the destinations alive
.”

While some operators struggle to justify their budgets and their missions, faced with the rise of artificial intelligence, networks and the omnipresence of OTAs, public authorities have a free hand to cut budgets, or even eliminate levels.

Among these bad news, there are nonetheless solutions, as notably demonstrated by Atout France’s GIE.

Founded in 2009, the group of economic interest (GIE) enables governance and financing of the agency to include not only the French administration but also private players.


Private funding: the Dordogne Périgord Tourism case

Atout France is not the only case study, a CDT has also taken this turn.

You have to go to the Southwest, to a territory of character offering visitors caves, castles and a plethora of the most beautiful villages in France.

It is in Dordogne that we go. In this territory, tourism is omnipresent. It represents just over one billion euros in turnover and consumption in the department each year, for 19 million overnight stays.

Volumes higher than 2019, a year when the sector simply weighed 22% of the local GDP.

Post-Covid, with the fall in transfer duties coupled with the collapse of the real estate market, we saw our subsidies begin to drop.
The decrease is 100,000 euros for 2023, 2024 and 2025.
For us, tourism is not just about promotion or marketing; it is also about networking, animation, and support
“, explains Christophe Gravier, director of Dordogne Périgord Tourism.

We therefore created a first club on relationship marketing, where we bring along the offices. This allowed us to pool certain tools, such as the newsletter and a shared database that we manage.
Then, while discussing with on-the-ground operators the financing issue of the CDT and their needs, we realized there was private demand
.”


Dordogne Périgord Tourism: “We rested on the housing tax or subsidies”

The structure thus saw 300,000 euros disappear in total over three years, out of nearly 2 million euros of annual budget. But from faint signals and discussions at events, the operator organized itself.

It launched two clubs, but above all emerged an offer based on new services capable of bringing added value to private players in the region.

This led us to create a somewhat hybrid structure and to reinvent the CDT’s classic economic model. Being a bit provocative, I would say that, for convenience, we had relied for years on the housing tax, additional taxes, or subsidies.
This drop in budget forced us to wake up.

Either we retraced our steps into engineering, or we wanted to maintain an ability to support on the marketing and communications front. In that case, we had to do it differently.

Rather than remaining in a logic of image marketing and notoriety, we considered that this communication would be more relevant if it were invested for the benefit of professionals, in a performance-based logic“, wants to highlight Christophe Gravier.

One of the clubs addresses heritage topics, whether caves, remarkable gardens or castles.

Members pay a membership fee that funds a marketing pool, from which managers of these sites can draw to finance training actions, gain perspective on new technologies, carry out commercial outreach, or launch campaigns on social networks.

We try to deliver a set of services with real added value, while ensuring we do not compete with the work done by tourist offices or the CRT. We operate in a cluster logic“, defines the leader.

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The second club focuses on iconic sites and products. It brings together the entire excellence chain, including truffles, foie gras, walnut production, as well as 4- and 5-star hospitality.

A third club is expected to be launched in 2026 on nature sports, as Dordogne is a hub for hiking and canoeing, and a fourth is under development around oenotourism.


A beneficial shift for private actors and the CDT budget

This transformation has benefited both private players and the CDT budget. In just two years, 150,000 euros were collected. Moreover, partners contribute funds allowing nearly 50% of the action plan of the organization to be financed.

A change that has not completely questioned Dordogne Périgord Tourism’s role.

We remain the department council’s arm to deploy its tourism policy, that does not change.
Anyway, private operators have the flow, the traffic. Rather than chasing audience or imposing an image that already exists, at least for Dordogne, we come to support them and amplify the impact of their investments.


We are a small team of 15 people. We had to shift our logic to integrate a commercial, representational side into our work, and the need to bring added value. Because if the clubs bring nothing to the business leaders, next year they will not renew the experience.

We are, I think, closer to the ground and to the expectations of the actors


Amara Nambinga

Amara Nambinga

I write about tourism, culture, and emerging destinations with a Namibian perspective. Through my articles, I try to highlight the places, people, and travel stories that show how Africa and the wider world are changing.