What is right input-output ratio (ROI) in international tourism marketing?

This is a series of our tourism market analysis and wonders is tourism trade in Baltic and Nordic countries doing the right decisions when planning tourism marketing activities and how much there is an input what destination or company is doing in the market – and what are those decision-making methods and objectives at the moment.

Our previous article about this was published 9.9.2025: International tourism up 5 % in first half of 2025 despite global challenges. Read it from here: https://www.toolboxtravel.fi/2025/09/09/international-tourism-up-5-in-first-half-of-2025-despite-global-challenges/

Right Input-Output Ratio

In international tourism marketing, the “right” input-output ratio (ROI) varies a lot depending on the destination, objectives, and the measurement method. Below is a concise overview of research findings, practical rules of thumb, and a clear list of what to consider in input-output calculations (including a concrete euro-based example).

What research and benchmarks show

Large national campaigns often show high impact: for example, Brand USA studies (Oxford Economics) have reported that every budget dollar invested generated several tens of dollars in additional visitor spending (average results vary by year).

Public-private co-funded marketing programs have consistently demonstrated positive economic impacts on local economies — ROI analyses for Visit Florida, for instance, show clear multipliers on marketing dollars.

As a budget benchmark: marketing budgets in tourism & hospitality typically represent about 6–9% of revenue; Gartner’s benchmarks for travel & hospitality marketing budgets are around 7–8%, with an upward trend in 2023–2024.

For DMOs and destinations, common measurement tools include ROI studies on website engagement, econometric/marketing mix models, and targeted control experiments (geo-tests). Destination Analysts and similar firms offer standardized methodologies for measuring website ROI.

In practice: research suggests that each euro invested in international tourism marketing can return very different amounts (from a few euros to several tens of euros per marketing euro), depending on campaign scale, market, and measurement method.

Key considerations in input-output calculations — practical checklist

Define the objective: is the goal brand awareness, demand growth, overnight stays/arrivals, or direct visitor spending? Benchmarks differ by target.

1. Incremental vs. gross impact: calculate incremental results (campaign-driven uplift) rather than gross totals. Without controls, results may be overestimated.
2. Time horizon: impacts can unfold over 6–24 months. Define the campaign’s effect window clearly.
3. Attribution: use an appropriate attribution model (last click / multi-touch / MMM / econometrics). For large destination campaigns, MMM or econometric hybrids are most reliable.
4. Data sources: integrate bookings, overnights, average spend, site traffic, and surveys with tourism statistics and private sector data.
5. Multiplier effects: tourism has broader economic spillovers — visitor spending circulates through the economy. Oxford Economics / Tourism Economics models are often used.
6. Seasonality & pricing: seasonal patterns and currency fluctuations affect visitor spending and ROI. ETC/European reports highlight these dynamics.
7. Cannibalization / displacement: campaigns may shift domestic tourism or extend stays — include these effects.
8. Full cost accounting: include not just media spend but also content production, PR, events, staff, partnerships, and discounts.
9. Quality KPIs & long-term value: measure not only bookings but also CLV (customer lifetime value), repeat visitation likelihood, brand perception shifts, and satisfaction.

Simple calculation formula (per campaign/year)

Incremental revenue (€) = (Additional visitors) × (Average spend per visitor)

Marketing spend (€) = total campaign cost (media + production + other costs)

ROI (ratio) = Incremental revenue / Marketing spend

ROI (%) = (Incremental revenue − Marketing spend) / Marketing spend × 100

Example (concrete, in euros)

Suppose: campaign spend is €100,000. Campaign generates 2,000 incremental visitors, each spending €600.

Incremental revenue = 2,000 × €600 = €1,200,000

ROI (ratio) = €1,200,000 / €100,000 = 12 → i.e. €12 return per €1 spent

ROI (%) = (1,200,000 − 100,000) / 100,000 × 100 = 1,100%

This is illustrative; in real life, attribution (how many of those 2,000 truly came because of the campaign), cancellations, and partner/distribution commissions must be factored in.

Reliable measurement methods

1. Econometric / Marketing Mix Modelling (MMM): best for long-term and cross-channel analysis.
2. Geo-tests & control regions: excellent for isolating incremental impact in specific markets.
3. Digital attribution (UTM + GA4 + CRM): essential for online campaigns to track direct conversions.
4. Surveys / follow-up research: capture brand lift and offline attribution.
5. Third-party ROI studies: e.g. Tourism Economics, Oxford Economics — useful for public accountability and benchmarking.

Practical budget & target-setting advice

Budget-to-revenue ratio: in tourism, 6–9% of revenue is typical; for DMOs, the per-capita budget is often much smaller, but international campaigns require sufficient scale and repetition.

Smaller markets: test with pilot geo-campaigns first, then scale up.

Prepare data integration early (tourism stats, accommodation bookings, airlines, CRM) so ROI reporting is credible.

Case: Japanese Market and Finland

Based on the above calculations, we examined the Japanese market in relation to Finland. We included in our program Japan’s largest tourism fair, JATA 2025, which will be held in September in Tokyo. Our review focused on travelers arriving in Finland over the past three years (excluding overnight stays) as well as the length of their visits.

It is clear, as we have often highlighted, that international visitor flows are not evenly distributed. This can also be easily observed in the case of Japanese travelers to Finland. The main focus is on Finland’s capital, Helsinki, which dominates statistically. After Helsinki, Lapland—especially Saariselkä—is a popular destination. Other significant visitor flows go to Southwest Finland (Turku, Naantali), Pirkanmaa (Tampere), and North Ostrobothnia (Oulu).

In the attached statistics, we have ranked the regions according to both arrivals and tourism consumption. To make interpretation easier, we have created four color codes based on the calculations:

Green: The region should actively market to the Japanese market.

Yellow: Investment in the Japanese market is worth considering, though the level of investment should be carefully evaluated.

Red shades: Investment should be reconsidered, as the cost-benefit ratio is not significant. While individual companies might still benefit, the impact at the regional tourism level remains small.

It is also possible that some of these regions do not actively market to Japan but still receive some Japanese visitors. However, if marketing trips or other significant investments are made in Japan, it is worth seriously considering whether a better return on investment could be achieved in another market area—especially since public funding is often used for such efforts.

Read the statistics here:

Japanese Travellers in Finland 2023 – July 2025

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