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Transforming competitiveness into economic benefits: Does tourism stimulate economic growth in more competitive destinations?

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  • Webster, Craig
  • Ivanov, Stanislav

Abstract

This research note investigates the impact of a destination's competitiveness upon tourism's contribution to economic growth using a cross-section with 131 countries. Destination competitiveness is measured with the World Economic Forum's Travel and Tourism Competitiveness Index, while tourism's contribution to economic growth is measured with the growth decomposition methodology. Results reveal that destination competitiveness has no statistically significant impact on tourism's contribution to economic growth. Tourism policy implications and directions for future research are also discussed.

Suggested Citation

  • Webster, Craig & Ivanov, Stanislav, 2014. "Transforming competitiveness into economic benefits: Does tourism stimulate economic growth in more competitive destinations?," Tourism Management, Elsevier, vol. 40(C), pages 137-140.
    • Handle: RePEc:eee:touman:v:40:y:2014:i:c:p:137-140
    DOI: 10.1016/j.tourman.2013.06.003
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    1. Crouch, Geoffrey I. & Ritchie, J. R. Brent, 1999. "Tourism, Competitiveness, and Societal Prosperity," Journal of Business Research, Elsevier, vol. 44(3), pages 137-152, March.
    2. Iza Lejarraga & Peter Walkenhorst, 2010. "On linkages and leakages: measuring the secondary effects of tourism," Applied Economics Letters, Taylor & Francis Journals, vol. 17(5), pages 417-421.
    3. Stanislav Ivanov & Craig Webster, 2010. "Decomposition of economic growth in Bulgaria by industry," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 37(2), pages 219-227, May.
    4. Josef A. Mazanec & Amata Ring, 2011. "Tourism Destination Competitiveness: Second Thoughts on the World Economic Forum Reports," Tourism Economics, , vol. 17(4), pages 725-751, August.
    5. Stanislav Ivanov & Craig Webster, 2007. "Measuring the Impact of Tourism on Economic Growth," Tourism Economics, , vol. 13(3), pages 379-388, September.
    6. Tang, Chor Foon & Tan, Eu Chye, 2013. "How stable is the tourism-led growth hypothesis in Malaysia? Evidence from disaggregated tourism markets," Tourism Management, Elsevier, vol. 37(C), pages 52-57.
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