Definitely a boondoggle, maybe scammy. There are many organizations out there that invite dancers, gymnasts, cheerleaders, models etc. to these types of events. They over charge and under deliver. If not a full on scam its just a money maker for the IDO owners, not for local tourism and its not a feeder to a career or other levels of the sport.

How was the dance studio invited or contacted. Has the studio attended before and what does the owner/coach say the the kids will get out of it? Just a great experience? You can provide much better experiences for $7k somewhere else.

Ask if the coach gets reimbursed if she brings a certain number of dancers. Is this just a paid vacation for the coach?

Don't be just another Dance Mom, you can say no. That could be a better money/ priority lesson for your daughter than you forking over a ton of cash for her pre-teen vacation.