Improving destination competitiveness in South Africa: A DEA approach

Abstract

The notion to travel to a tourist destination is often based on competitiveness aspects. The efficiency of these target markets is, however, not clear, and this article will determine the efficiency of tourists visiting South Africa, which will be categorised according to demographic aspects in relation to cost and competitiveness. Empirical evidence by means of the data envelopment analysis model found that South Africa is currently facing poor price competitiveness in different markets from tourists across different demographic backdrops. Results indicated that age, gender, time spent and continent of origin cause tourists to perceive South Africa as a price competitive tourist destination, differently. Being able to determine these efficiencies for different demographical markets, destination marketing officers will be able to use competitiveness and cost attributes as indicators to which markets will respond. Tourism councils must ensure that the correct information reaches visitors through advertising and marketing campaigns, as visitors’ expectations must be managed to improve the perceived price competitiveness of South Africa’s tourism industry. The findings have clear implications for DMOs’ managers regarding the designed marketing campaigns for South Africa as a tourist destination, especially for segments under investigation in this study.