Relationship between price competitiveness, tourist arrivals, and tourism receipts in European countries
Abstract
The price of goods and services represents an important factor of attracting tourists and improving destination competitiveness. However, a question arises, whether lower prices in tourism contribute to a greater number of tourist arrivals and higher tourism receipts. The purpose of this paper is to analyse a relationship between price competitiveness and tourist arrivals and tourism receipts in European countries. By means of a cluster analysis, the paper examines the homogeneity of European countries in terms of tourism price competitiveness on the basis of the Travel and Tourism Competitiveness Report for 2017. The results of the research showed that European countries are not homogeneous as far as tourism price competitiveness is concerned. Moreover, countries with a lower price competitiveness level attract a greater number of tourists and yield greater tourism receipts in comparison to the countries with a greater price competitiveness level.
References
Bahar, O. & Kozak, M. (2007). Advancing destination competitiveness research: comparison between tourists and service providers. Journal of Travel & Tourism Marketing, 22(2), 61–71.
Croes, R. (2013). Evaluation of tourism competitiveness and its effects on destination management: making a difference in Costa Rica? Diálogos Revista Electrónica de Historia, October 2013, 115–133.
Crouch, G. I. (1992). Effects of income and price on international tourist demand. Annals of Tourism, 19(4), 643–664.
Crouch, G. I. (2007). Measuring tourism competitiveness: Research, theory and the WEF index. Pp. 73-79 in M. Thyne, K. R. Deans & J. Gnoth (Eds.), Australian and New Zealand Marketing Academy (ANZMAC) Conference, Dunedin, New Zealand: ANZMAC.
Dragićević, V., Jovičić, D., Blešić, I., Stankov, U. & Bošković, D. (2012). Business Tourism Destination Competitiveness: A Case of Vojvodina Province (Serbia). Economic Research-Ekonomska Istraživanja, 25(2), 311–331.
Dupeyras, A. & Maccallum, N. (2013). Indicators for Measuring Competitiveness in Tourism: A Guidance Document (OECD Tourism Papers 2013/02), OECD Publishing.
Dwyer, L. & Forsyth, P. (2009). Tourism Price Competitiveness. The Travel and Tourism Competitiveness Report. Geneva: World Economic Forum.
Dwyer, L., Forsyth, P. & Rao, P. (2000). The price competitiveness of travel and tourism: a comparison of 19 destinations. Tourism Management, 21(1), 9–22.
Dwyer, L., Forsyth, P. & Rao, P. (2000). The price competitiveness of travel and tourism: a comparison of 19 destinations. Tourism Management, 21(1), 9–22.
Dwyer, L., Forsyth, P. & Rao, P. (2001). PPPs and the Price Competitiveness of International Tourism Destinations. Joint World Bank – OECD Seminar on Purchasing Power Parities: Recent Advances in Methods and Applications, Agenda item no. 9, 30 January - 2 February 2001, Washington D.C.: OECD, The World Bank Group.
Dwyer, L., Knežević Cvelbar, Lj., Edwards, D. & Mihalič, T. (2012). Fashioning a destination tourism future: The case of Slovenia. Tourism Management, 33(2), 305–316.
Dwyer, L., Mistilis, N., Forsyth, P. & Rao, P. (2001). International Price Competitiveness of Australia’s MICE Industry. International Journal of Tourism Research, 3(2), 123–139.
Göral, R. (2016). Price competitiveness of international tourism destinations and tourism demand, tourism receipts relationship. European Journal of Multidisciplinary Studies, 1(2), 195–203.
Hotel News Resources (2004). WTTC launches new travel & tourism competitiveness statistics, 18 November 2004. Retrieved from https://www.hotelnewsresource.com/article13837.html
Jovanović, S., Janković-Milić, V. & Krstić, B. (2014). Homogeneity analysis of south-eastern European countries according to tourism competitiveness performances. Economic Research - Ekonomska Istraživanja, 27(1), 207–220.
Kovačić, Z. (1998). Multivariate analysis (in Serbian). Beograd: Ekonomski fakultet.
Krstić, B., Jovanović, S., Janković-Milić, V. & Stanišić, T. (2016). Examination of travel and tourism competitiveness contribution to national economy competitiveness of sub-Saharan Africa countries. Development Southern Africa, 33(4), 470–485.
Manojlović, I., Pavlović, S. & Aćimovac, B. (2014). Assessment of the tourist destinations competitiveness on the example of key resources of cities in Serbia (in Serbian). Pp. 145-174 in D. Šabić (Ed.), Zbornik radova - Geografski fakultet Univerziteta u Beogradu, No. 62. Beograd: Geografski fakultet.
Marakova, V., Dyr, T. & Wolak-Tuzimek, A. (2016). Factors of tourism’s competitiveness in the European Union countries. E&M Ekonomie a Management, 19(3), 92–109.
Navickas, V. & Malakauskaite, A. (2009). The possibilities for the identification and evaluation of tourism sector competitiveness factors. Engineering Economics, 61(1), 37–44.
Omerzel-Gomezelj, D. & Mihalič, T. (2008). Destination competitiveness - Applying different models, the case of Slovenia. Tourism Management, 29(2), 294–307.
Petrović, J. & Milićević, S. (2017). Consumer protection as a factor of destination competitiveness in the European Union. Amfiteatru Economic, 19(45), 432–446.
Petrović, J., Milićević, S. & Djeri, L. T. (2017). The information and communications technology as a factor of destination competitiveness in transition countries in European Union. Tourism Economics, 23(6), 1353–1361.
Plessis, E. & Saayman, M. (2017). Aspects contributing to tourism competitiveness of South Africa. Tourism Economics, 24(2), 146–156.
Popescu, D., Oehler-Şincai, J. M., Bulin, D. & Tănase, A. (2018). Cee-16: A cluster analysis based on tourism competitiveness and correlations with major determinants. Amfiteatru Economic, 20(12), 833–853.
Rudančić-Lugarić, A. & Gračan, D. (2013). Competitiveness of a tourist destination – Rijeka Carnival case study (in Croatian). Ekonomski vjesnik, 26(1), 271–282.
Thitthongkam, T. & Walsh, J. (2011). An analysis of factors influencing the competitiveness of the Thai tourism industry. Pp. 138–141 in 2010 International Conference on Business and Economics Research, 1. Kuala Lumpur, Malaysia: IACSIT Press.
Utami, R. C., Hartono, D. & Awirya, A. A. (2016). Analysis of the competitiveness of Indonesia tourism price compared to the competitors (demand elasticity approach). Jurnal Ekonomi Pembangunan, 17(1), 108–124.
WEF (2015). The Travel and Tourism Competitiveness Report 2015. Geneva, Switzerland: WEF.
WEF (2017). The Travel and Tourism Competitiveness Report 2017. Geneva, Switzerland: WEF.
The Author wishes to submit the Work to SJM for publication. To enable SJM to publish the Work and to give effect to the parties’ intention set forth herein, they have agreed to cede the first right to publication and republication in the SJM Journal.
Cession
The Author hereby cedes to SJM, who accepts the cession, to the copyright in and to the paper.
The purpose of the cession is to enable SJM to publish the Work, as first publisher world-wide, and for republication in the SJM Journal, and to grant the right to others to publish the Work world-wide, for so long as such copyright subsists;
SJM shall be entitled to edit the work before publication, as it deems fit, subject to the Authors approval
The Author warrants to SJM that:
- the Author is the owner of the copyright in the Work, whether as author or as reassigned from the Author’s employee and that the Author is entitled to cede the copyright to SJM;
- the paper (or any of its part) is not submitted or accepted for publication in any other Journal;
- the Work is an original work created by the Author;
- the Author has not transferred, ceded, or assigned the copyright, or any part thereof, to any third party; or granted any third party a licence or other right to the copyright, which may affect or detract from the rights granted to SJM in terms of this agreement.
The Author hereby indemnifies the SJM as a body and its individual members, to the fullest extent permitted in law, against all or any claims which may arise consequent to the warranties set forth.
No monetary consideration shall be payable by SJM to the Author for the cession, but SJM shall clearly identify the Author as having produced the Work and ensure that due recognition is given to the Author in any publication of the Work.
Should SJM, in its sole discretion, elect not to publish the Work within 1 year after the date of this agreement, the cession shall lapse and be of no further effect. In such event the copyright shall revert to the Author and SJM shall not publish the Work, or any part thereof, without the Author’s prior written consent.