On November 12, President-elect Donald Trump announced the creation of the Department of Government Efficiency (DOGE), calling it “the Manhattan Project of our time.”
Led by Elon Musk and Vivek Ramaswamy, the initiative is poised to overhaul the very structure of the federal government through significant staff reductions and technological integration.
Among the ambitious goals: Eliminate $2 trillion from the $6 trillion annual federal budget and dismantle outdated regulations. The department plans public audits of all federal agencies to expose waste.
With a timeline of just 18 months, DOGE’s aggressive goals and high-profile leadership guarantee significant media coverage and public debate, making it one of the most visible government initiatives in recent history.
DMOs Are at Risk
The buzz and impact of DOGE’s federal proposals, combined with aggressive bureaucratic pushback, will likely create a media frenzy, inspiring state and local politicians to launch similar efficiency reviews — much like McCarthy-era actions led to widespread local initiatives in the 1950s.
Given their reliance on public funding, DMOs face unique risks that could leave them particularly exposed during these audits:
- No Presumption of Innocence: DOGE-inspired audits are inherently designed to uncover inefficiencies and waste. These auditors will begin with a bias towards finding mismanagement rather than giving the benefit of the doubt.
- Misinterpretation of Spending: Necessary DMO expenses, such as industry events, sales missions, or FAM trips, could be flagged as wasteful by auditors unfamiliar with traditional tourism marketing tactics.
- Lack of Transactional Data: DMOs operate indirectly, and in most cases, do not process transactions or bookings, making it challenging to prove direct ROI.
- Challenging Metrics: DMO metrics often fall into two extremes — high-level indicators like visitor numbers, spending, and jobs supported, or tactical measures like advertising impressions, website visits, and sales leads. It can be difficult to capture how marketing tactics translate into direct economic activity, making it challenging for auditors to grasp the tangible impact of the DMO’s efforts.
- Limited Advocacy: Audit processes are often closed to external stakeholders, leaving DMOs without the natural support from industry allies, elected officials, or local businesses.
What Happens if a DMO Audit Goes South?
If a DMO fails to adequately prepare for an audit, the consequences can be severe and long-lasting:
- Budget Cuts: Public funding could be significantly reduced or reallocated to other priorities.
- Staff Reductions: Loss of funding may force layoffs or restructuring, limiting the DMO’s ability to fulfill its mission.
- Loss of Responsibilities: Core functions of the DMO could be reassigned to other government departments, diminishing its autonomy.
- Reputational Damage: Perceived inefficiency or mismanagement can erode trust with stakeholders, elected officials, and the public, making future funding or support more difficult to secure.
What DMOs Must Do to Prepare
In the face of these challenges, proactive preparation is critical. DMOs must avoid being caught off guard or placed on the defensive unnecessarily. Here’s how to get ready:
- Anticipate Audits: Assume that audits will happen and prepare accordingly. Conduct internal reviews to identify potential vulnerabilities before they are exposed externally.
- Review Metrics: Assess all organizational initiatives (not just marketing efforts) to determine how each contributes to the agency’s goals. Clearly demonstrate the impact of each effort with measurable metrics that communicate their importance and value to the community.
- Evaluate Operational Efficiencies: Now is the time to scrutinize your operations. Make proactive changes where necessary and address any status quo practices that might raise red flags.
- Prepare Staff and Stakeholders: Communicate proactively to staff and stakeholders, before any audit, about ongoing efforts to improve DMO efficiency and to align programs and operations with organizational goals.
- Develop a Communication Plan: Create a plan to proactively communicate with staff and stakeholders ahead of an upcoming audit. Clearly outline the audit process, what they should expect, and the steps the DMO has taken to prepare. Additionally, prepare to respond to audit findings with clarity and confidence, highlighting the DMO’s positive contributions to the community and reinforcing its value and impact.
Turning Challenges into Opportunities
The scrutiny of the DOGE era is real, but it does not have to be a threat — it can be an opportunity for DMOs to lead by example. By embracing transparency, improving efficiency, and demonstrating their value and impact, DMOs can strengthen their reputation and position themselves as indispensable community assets.
DOGE Is Coming Fast — Don’t Wait For the Spotlight to Find You
Proactively prepare to protect your funding, operations, and reputation. This isn’t just a challenge — it’s an opportunity to refine metrics, maximize efficiency, and showcase the critical role your DMO plays in driving local economic growth.
Be ready when DOGE comes to your community — reach out today and see how we can help your DMO prepare, protect, and thrive!
Will Seccombe, President of Revolution Strategy and Undiscovered America TV, is a destination marketing futurist dedicated to helping destinations enhance their positive impact on communities through innovative strategies and forward-thinking solutions.