Abstract
Tourist destinations spend a considerable amount of energy attempting to understand their market, their competitive position, and how they can use this knowledge to successfully attract tourists. In order to understand how the Azores destination competes in the Scandinavian market, we developed a binary logistics model in which the dependent variable is 1 if the Azores was a tourist's first holiday destination choice and zero otherwise. For cases in which the Azores was not the first choice, we developed a binomial probit with the selection model to explain the reasons for a secondary choice. The formulation developed in this paper is innovative regarding two aspects: it considers two levels of tourism destination choice (first or second destination choice) and it includes the main regions competing with that destination (as perceived by tourists) as explanatory variables for a destination choice.
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