Understanding the factors that contribute to tourism competitiveness in developing economies is essential for policymakers, industry stakeholders, and researchers, as these countries still struggle to fully capitalize on their tourism potential. The residents’ perspective, often overlooked in Tourism Destination Competitiveness (TDC) models, is crucial because they are the primary stakeholders who directly experience the consequences of tourism activities in their daily lives. Their positive attitudes can contribute to a welcoming and friendly environment, enhancing the competitiveness of the destination in the global tourism market. Up to now, there have been a few studies that relate residents’ attitudes to tourism destination competitiveness. However, none have focused on developing a tailor-made model for measuring residents’ perspectives on TDC. To develop such a specific model and contribute to the existing theory in this area, our research applied a multi-step approach, including a literature review of existing models, pilot testing for indicator selection, and model validation through CFA. The data were collected through a survey of residents in Serbia, chosen as an example of a developing country. The final model of the study consists of five factors: Natural and Cultural Resources, Quality of Tourist Offer and Infrastructure, Situational Framework of Tourism Development and Management, Destination Perception and Experience, and Pollution, containing 32 indicators. Practical applicability of the model and theoretical contributions are discussed in the paper, as well as the TDC evaluation for Serbia.