“The DMO is our iPhone” –

Deputy Premier says “revolutionary change” is necessary for growth

BY OLIVIA ROSE

Deputy Premier Hon Erwin ‘Jay’ Saunders has likened the Government’s bold decision to transition the Tourist Board to a Destination Management Organization (DMO) to that of Apple’s co-founder and former CEO Steven “Steve” Jobs “risky” but rewarding move to enter the mobile phone market.

“The Tourist Board while we may think, was doing well, the Tourist Board is our iPod, the DMO is our iPhone”, he said during a sitting of the House of Assembly on Wednesday, April 26, 2023.

Saunders who is also the territory’s Minister for Finance, Investment and Trade drew a parallel between the two decisions which he described as “revolutionary”, noting that while drastic change often seems “questionable” at first, and is usually met with heavy pushback, it is essential for exponential growth.

He said: “Everyone who knows the history of business knows that sometimes even when something is doing well, sometimes you have to make a revolutionary change in order to get to where you really want it to be.”

He pointed out that under Steve Jobs, Apple had a track record of cannibalizing its own products.

In 2005, when the demand for the iPod Mini remained huge, the Nano was launched, effectively destroying the revenue stream of an existing product and while iPod sales were still going through the roof, Jobs launched the iPhone which combined iPod, cell phone, and Internet access into a single device.

Three years after the iPhone’s launch, iPad made its debut and raised the prospect of cutting into Mac desktop computer sales. So resolute was Apple’s determination in trading a highly profitable business for an unknown future that Jobs reportedly said “If you don’t cannibalize yourself, someone else will.”

Saunders opined that it was this approach that made Apple one of the most influential companies in the world.

He said: “In 2006, iPod sales and related services accounted for 50% of Apple's total revenue. “But despite the success of the iPod, Steven Jobs launched the iPhone in 2007, knowing that this would render the iPod obsolete.

“ iPod sales reached a peak in 2008 and the rest as we know it is history.

“Apple revenues went from $19.3 billion in 2006 to $182. 8 billion in 2014.

“Apple is the largest company in the world by market cap, they're worth $2.5 trillion today.

“A gutsy move to disrupt a product that accounted for 50% of your total revenue, and was still in the growth mode.

“Sometimes you have to disrupt yourself”, he underscored.”

In this vein, the Deputy Premier posited the DMO is being positioned to catapult the territory’s bread-and-butter tourism industry to new heights.

He continued: “ Apple which went from almost being bankrupt and having to go to Microsoft for $50 million to make payroll to being the largest company in the world today because it wasn't afraid to disrupt itself to go from good to great.

“And this is what we're doing … maybe we didn't address it properly, maybe we didn't answer every question properly, but I want the public to know the Tourist Board while doing very, very well is the iPod, but what we're doing with the DMO is moving to the iPhone.”

The Government’s recent move to dismantle the Tourist Board, the entity responsible for the management and marketing of the tourism sector for decades, has been met with public outrage and fierce criticism from the Parliamentary Opposition and members of the public.

However, Premier Honorable Washington Misick said the territory will go from average growth to exceptional performance with the introduction of the DMO.

The increased wealth is estimated at $640m- a sum that considers direct, indirect and induced economic impacts, compared to business as per usual without the DMO, out of that $640m, the direct economic impact on hotels and restaurants will be $467m, and a $173m of indirect and induced economic impact, Misick said at a recent press conference.nal budget is an indicator of government’s ability to deliver public services and achieve development objectives.