Tourism destination competitiveness and tourism performance

Abstract

Purpose This study aims to examine the relationships between tourism destination competitiveness (TDC) determinants and tourism performance. This study specifically assessed the soundness of the TDC attributes and evaluated their ability in explaining tourism performance. Design/methodology/approach The Dwyer and Kim’s (2003) destination competitiveness integrated model (IM) was used. Secondary data of 115 nations available from the Travel and Tourism Competitiveness Index (TTCI) and other international reports were also used. The hypothesised relationships were tested via partial least square-structural equation modelling (PLS-SEM). Findings This study confirms that the core resources, complementary condition, globalisation and tourism price significantly explain tourism performance. Results have shown differences in the competitiveness level and actual performance among nations, highlighting specific limitations of the current TDC model and TTCI report reliability. Research limitations/implications Future study could segment the sample base on destinations characteristic and then analyse it based on smaller sub-samples of similar destinations. Moreover, drivers of destination performance in developed and less develop destinations are quite diverse. Practical implications The incorrect competitiveness ranking evaluation will affect inward investment decisions. This study framework enables policymakers to arrive at more informed decisions than merely relying on the original competitiveness rankings. Originality/value The widespread acknowledgment of the importance of competitiveness for a tourism destination's success suggests that there is a crucial need for sound benchmarking of countries’ competitive capabilities. The proposed competitiveness determinants aid the policymakers in identifying the best competitiveness and tourism performance predictors, as well as how to identify crucial factors affecting the rankings.