A Competitive Advantage Model for Indonesia’s Sustainable Tourism Destinations from Supply and Demand Side Perspectives

Abstract

Indonesia is a multicultural country with a diversity of flora and fauna, which makes Indonesia one of the most attractive tourist destinations in the world. In 2019, the Indonesian tourism industry became the second-largest foreign exchange contributor. However, there is not yet a competitive advantage model for tourist destinations that are in accordance with the unique geographic, demographic, and socioeconomic characteristics of Indonesia. The aim and novelty of this research is to formulate a competitive advantage model for Indonesian tourist destinations by providing dimensions/indicators based on an analysis of the intersection of the supply side and demand sides of the six super-priority destinations. This study used mixed research methods; data analysis was carried out using the Importance–Performance Analysis (IPA), Exploratory Factor Analysis (EFA), and the Measurement model using SmartPLS 3 software. The data were obtained from 190 respondents from the supply side and 808 respondents from the demand side using multistage sampling techniques. The study provides 63 indicators in 12 dimensions of competitive advantage for Indonesian tourist destinations. Thus, these indicators are able to provide more efficient guidance to stakeholders in managing cost-effective strategies to improve the competitive advantage of their tourist destinations.