Tourism, one of fastest growing industry and the main source of foreign income for appreciable number of developing countries, bonds people to inspire nature, culture and heritage and experiences. Decade of 90's, Crouch and Ritchie developed a conceptual model combining attributes of Porter's Diamond model, Dwyer and Kim (2003) introduced an integrated model combining Diamond and Crouch and Ritchie models integrating endowed, created and supporting resources, destination management, government and industry specific attributes. Hence a new conceptual model has introduced by integrating main elements in national and firm competitiveness, Destination Competitiveness and Innovation focus within a cluster. Proposed conceptual model will shed more light for further studies on cluster competitiveness in macro-economic perspectives empirically.
Hospitality and Tourism are among the fastest-growing sectors and the source of foreign exchange with indirect-direct employments for quite an appreciable number of economies worldwide. The nature of the sector provides an avenue towards regional development through entrepreneurship venture creations, value addition to the abandoned resources, and regeneration of abandon natural resources with new themes as a novel approach. Tourism currently in a paradigm shift as a comparative advantage of destination is becoming less important than a competitive advantage. The traditional destinations are diminishing while creating novel destinations more relaxation-oriented while leading to residents' economically enriched livelihood. The paper critically analyzes the current tourism competitive position of Sri Lanka with a panel of five rival destinations by adopting shift-share analysis by developing two propositions. Regional Tourism arrivals in rival tourism destinations have been used to perform Shift-share analysis. Findings revealed (a) Sri Lanka as a destination is gaining the competitive advantage of four tourism regions out of six markets. The competitive strategies proposed as recommendations to gain market specialization to the regions with a competitive advantage; (a) market specialization by targeting the markets with a competitive advantage, (b) new marketing programs for markets with competitive disadvantage, and (c) collaborative programs among Asian tourism destinations. The results would be beneficial to Asian region tourism decision-makers trusted with the growth and application of competitive strategies.
In present dynamic era, Tourism considered as one of the key service sector industry as the competitive advantage is not a natural phenomenon but an innovation driven competitive strategies combined with the aspirations of visitors. Destination's enriched resources not determining the share of tourism, but the way they manage and integrate with other competencies to create the competitive advantage. Hence the main research question developed as, what competitive strategies way forward the regional competitiveness in Sri Lankan tourism and primary objective developed as to ascertain the elements of a new paradigm that would help Sri Lanka to become a competitive tourism destination within regional tourism market. For a panel of seven destinations, Econometric modeling employed to identify the variables that impact on tourism destination competitiveness with selected set of rival destinations. Model based on a utility function embedded in rational choice theory has developed and to discern whether the panel data set was stationary, panel unit root test has performed. Two variables, development and investment was not stationary, model slightly revised to log values and Generalized Leased Squares (GLS) have used to test the model. Results indicate, after removal of lagged value, all the variables were significant except for the investment. Results signals the vital role of the government policies to enhance the ability on overcoming distortions and enabling price to send signals to potential markets as with restoring price informative power of particular tourism destinations. The destinations could attract "tourism product' by considering more to preferences and tastes in a creative and innovative approach and consistent way as by adjusting and implementing strategies on non-price competition. Three competitive strategies have proposed (a) to shift management policies and strategies on real spending per arrival or tourism spending per tourist, (b) applying Non-price competitive strategies and (c) enhancing the national wealth of tourism destination from creating and well managing the destination resources
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