What is a major way in which DMOs are limited in their authority over private enterprises?

Destination Management Organizations (DMOs) primarily act as facilitators and coordinators for tourism and destination marketing efforts rather than direct regulators or owners of private enterprises. Because DMOs do not own the businesses in their destination, they cannot exert direct control over how these private entities operate. This lack of ownership means that they cannot enforce operational mandates or make unilateral decisions regarding business strategies, pricing, or procedures. Instead, DMOs work to encourage collaboration and provide support for marketing and development initiatives, relying on partnerships with private sectors to drive tourism and enhance the visitor experience.

The other choices imply a level of control or authority that DMOs do not possess. Mandating operational procedures and dictating pricing structures suggest a regulatory power that private businesses operate independently of, while claiming to have complete control over business strategies inaccurately depicts the relationship between DMOs and private enterprises. In practice, DMOs influence and support rather than control private sector operations.