Tourism Destination Competitiveness: A Supply and Demand Perspective

Abstract

Over the past three decades, destination competitiveness has gained prominence as a significant topic of tourism research due to its recognition as a critical factor for the success of tourism destinations (Buhalis, 2000; Enright & Newton, 2004). As a result, a myriad of scholars have dedicated themselves to the investigation of the competitive position of different destinations in an attempt to fully understand the factors that lead to enhanced and sustained competitiveness (e.g. Crouch, 2010; Crouch & Ritchie, 1999; 2012; Dwyer & Kim, 2003; Heath, 2003). Despite the progress made in understanding and explaining this complex phenomenon, the measurement of destination competitiveness remains characterized by inconsistency and over-compartmentalization with little signs of consensus in terms of a common approach (Bahar & Kozak, 2007; Milicevic, Mihalic & Sever, 2017). What is measured and how, varies greatly and consequently there is little comparability between studies which hinders theory development. In general, studies on destination competitiveness measurement take either a supply or demand approach. Those adopting a supply approach normally survey different stakeholder groups on the supply side (e.g. local authorities, businesses, residents) while those taking a demand approach survey tourists to evaluate a destination’s competitiveness.Inspired by the principles of stakeholder theory (Freeman, 1984), the main argument of this research posits that instead of the dichotomous choice between a demand and a supply approach, the measurement of destination competitiveness can and should be performed using a combination of both. Such an approach ensures the simultaneous inclusion of all relevant destination stakeholders: on the one hand those responsible for the production of the tourism product and, on the, other those responsible for the consumption of the tourism product. Consequently, the broad aim of this research was to investigate destination competitiveness from a holistic stakeholder perspective that includes both supply and demand.A mixed method design was adopted to address the overall aim and specific research objectives. This research began with a qualitative phase to gain a better understanding of the different conceptions of destination competitiveness according to destination stakeholders. The research then followed with a quantitative phase that explored the differences between supply- and demand- side stakeholders in their perceived assessment of destination competitiveness. Finally, this research proposed and employed an evaluative framework for destination competitiveness that combines the demand and supply perspectives as an alternative to traditional measurement approaches: the Supply-Demand Analysis of Competitiveness.Overall, the findings reveal that destination stakeholders conceptualise and assess destination competitiveness differently. Specifically, it was found that there are three distinct and hierarchically related conceptions of destination competitiveness: destination competitiveness as perception of a destination, destination competitiveness as performance, and destination competitiveness as a long-term process. Furthermore, findings show significant differences in the measurement of destination competitiveness between supply- and demand- side stakeholders. These findings emphasize the need for destination competitiveness to be measured in a holistic way utilizing a combined approach to measurement. Accordingly, the findings suggest that the Supply-Demand Analysis of Competitiveness can be a useful framework for destinations and researchers who aim to understand and assess the competitive position of a destination.