There is a vast body of literature about competition, competitive advantage and competitive identity in tourism industry. Competitiveness is grounded in the strategic and operational advantages businesses have been able to achieve and through the application of these concerns to tourism, the competitive advantage of destinations. Globalization is creating trends and expectations but there is also evidence to suggest that the strong sense of the local community is a vital part of the destination competitive advantage. Tourism competitiveness is rarely examined at the single business level as the complexity of the tourism system is based on interaction and interdependency. Therefore the concerns with strategy, structure and rivalry seems a little different within tourism – hence the growing concerns with network partnerships, clusters and co-operations within the tourism literature. Management of tourist services should satisfy the needs of the customer (tourist) and contributes to tourist well-being as well as it should contribute to well being of local community. This is the part of sustainable competitiveness concept.