Key factors in tourism management to improve competitiveness in Latin America

Abstract

PurposeThis paper analyzes tourism competitiveness in Latin America, providing a country-level ranking of tourism competitiveness. The study also identifies which areas of management to focus on in order to increase competitiveness in each case.Design/methodology/approachThe study is based on the variables used by the World Economic Forum (WEF) to measure tourism competitiveness. The DP2 distance method is used to create a synthetic indicator. This method helps identify which areas best explain differences in competitiveness between countries.FindingsIn tourism, the most competitive Latin American countries are Costa Rica, Chile, Panama, Mexico and Uruguay. The areas that best explain the differences between countries relate to cultural and natural resources, the implementation of information and communication technologies (ICTs), international openness and transport infrastructure. These are therefore priority areas for tourism managers.Practical implicationsThis paper provides detailed analysis for each country. The situation in each country is presented in terms of the key areas highlighted by the analysis. This approach can aid the individual decisions of companies and public managers, thus enhancing tourism competitiveness. This greater competitiveness can strengthen the tourism sector, which is crucial in uncertain times.Originality/valueBased on a synthetic indicator, this research offers the first country-level analysis of tourism competitiveness in Latin America. The study is also novel in its ability to detect the areas where action should be taken to improve tourism competitiveness. This analysis offers an alternative to the WEF Travel and Tourism Competitiveness Index (TTCI), which has certain weaknesses. The results can help enhance tourism competitiveness in Latin American countries through the specific recommendations presented in this paper.