Measuring and Explaining Competitiveness in the Context of Small Island Destinations

Abstract

This study measures and explains competitiveness among small island destinations. Current measures of competitiveness do not respond to the special needs of small island destinations. An alternative measurement suggests a more suitable Tourism Competitiveness Index (TCI), and through the application of panel regression analysis, tracks the most important factors affecting competitiveness among island destinations. The findings imply likelihood that more expensive destinations obtain a larger share of regional tourism revenues. The study concludes that providing a high-quality product may allow destinations to become and remain competitive.