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RESOURCES: PAPERS & PRESENTATIONS

Author : Larry Dwyer & Peter Forsyth
School/Work Place : University of New South Wales, Australia (Larry Dwyer) & Monash University, Australia (Peter Forsyth)
Contact : l.dwyer@unsw.edu.au, peter.forsyth@buseco.monash.edu.au
Year : 2009

Price competitiveness is one of the most important factors in the overall tourism competitiveness of a country or a destination. There is widely accepted evidence that prices are one of the most important factors in decisions about whether, and where, to undertake trips. This is reflected in the Travel &Tourism Competitiveness Index (TTCI), where, in Pillar 10, Price Competitiveness is assessed using four sets of hard data, on Ticket Taxes and Airport Charges (10.01), National Purchasing Power Parity prices (10.03) Fuel Price levels (10.04) and the Hotel Price Index (10.05).

Not surprisingly, given its importance, many have developed or used indicators of Tourism Price Competitiveness. These indicators vary considerable. It is possible to find indicators based on detailed prices which tourists pay in different countries, along with some highly aggregated and proxy measures. Different indicators shed light on different aspects of competitiveness, and the measures which are most useful for a purpose depend on what questions are being explored. Some of the key aspects which condition which indicators should be used are:

  • The need for accuracy and tourism specific detail versus timeliness. More detailed and accurate measures involve more data collection and processing, and thus they take longer to produce. If timeliness is of essence, it may be necessary to rely on broader proxies for price competitiveness which can be obtained readily.
  • The need for cross country (or cross destination) comparisons of the prices tourists are actually paying. If cross country comparisons of tourism competitiveness at a point of time are required, it is necessary to obtain data on the prices of tourism goods and services in different countries. There are relatively few sources of these data, and they tend to appear with a lag.
  • The need for estimates of changes in relative price competitiveness over time. For some purposes, only the change in relative price competitiveness of countries is needed. If so, changes in the patterns of competitiveness can be estimated using price change data (often obtained from countries’ CPI statistics) and exchange rate data. These are much more easily obtained than actual cross country price comparisons.
  • The need to provide overall summary measures of a country’s price competitiveness at a point of time or changes in it over time. It may be useful to have summary measures which can tell whether, overall, a country’s price competitiveness in tourism has risen or fallen. Such measures require that the detailed measures of price competitiveness be aggregated in some way.

Measures of tourism price competitiveness of countries or destinations (such as individual regions or cities) form part of more general work on destination competitiveness. Destination competitiveness is a general concept that encompasses price differentials coupled with exchange rate movements, productivity levels of various components of the tourist industry and qualitative factors affecting the attractiveness or otherwise of a destination. The development of the Travel & Tourism Competiveness Index allows tourism stakeholders in both the private and public sector to: identify key strengths and weaknesses of their destination from the visitor perspective; highlight opportunities for tourism development; and develop strategies to counter possible threats to future visitation. The focus of this review is country or destination price competitiveness.

In this chapter we outline a range of tourism price competitiveness indicators which have been developed and used. Some are more useful and valuable than others, and all have their advantages and disadvantages. We begin by motivating the review with a discussion of the importance of price as a factor determining competitiveness. We then explore some comprehensive measures of cross country price competitiveness. After this, we note some measures which can be used for examining changes in patterns of competitiveness over time, and patterns of competitiveness in specific sectors. Next we outline some summary measures which can be used to track a country’s or sectors’ competitiveness over time. The determinants of price competitiveness are then briefly reviewed, and the impacts on it of government policy and macroeconomic conditions are briefly discussed. We conclude by putting the measures into perspective with a review of the properties and potential uses of the different measures.


List of Articles
No. Subject Viewssort Date
234 Think Tank XIII Tourism development led by the Third Sector - Impacts ... file 3663 Nov 06, 2013

Most tourism development is initiated and led by either the private or the public sector. These projects’ potential impacts on host communities have been explored since the 1980s, and they are now relatively well known. This is not the case ...

Author: Julia N. Albrecht & My N. D. Tran 

Year: 2013 

233 Think Tank IV Sustainability in a Mature Mass-Tourism Destination: T... file 3652 Oct 13, 2013

Most destinations are struggling to achieve sustainability for their economies, their environments, their cultures and their tourism industries. This laudatory, idealistic and complex process involves many sectors of the industry, the commun...

Author: Pauline Sheldon, John Knox & Kem Lowry 

Year: 2004 

232 Think Tank XII Causality Between Inbound Tourism and Economic Growth:... file 3640 Nov 06, 2013

This paper examines the existing studies of the relationship between inbound tourism and economic growth. After a brief discussion of general economic growth theory and the reasons why a positive causal relationship may exist between export ...

Author: Mondher Sahli & Simon Carey 

Year: 2012 

231 Think Tank XIV Local Networks as Sustainable Policy Instruments: A Ca... file 3631 Jun 27, 2014

In this case study, a communication network among local hotel managers was examined, first to assess the extent of communication among hotel managers, and second to identify influential members within the network. Communication with respect ...

Author: Karen Irene Thal & Tracy Burkett 

Year: 2014 

230 Think Tank XIII Building community capacity by developing regional bus... file 3625 Nov 06, 2013

Tourism is often proposed as a strategy for community development, especially in rural or remote regions where traditional industries, such as agriculture, are experiencing an economic downturn and there are limited alternative opportunities...

Author: Anna Blackman 

Year: 2013 

229 Think Tank VII Getting Fit to Innovate: TUI's InnOlympics file 3625 Oct 13, 2013

Tether (2003) describes innovation within service industries as having a Cinderella status - marginal and neglected. The traditional approach to thinking about innovation has been to concentrate on manufacturing and within that, the role of...

Author: Graham Miller & Caroline Scarles 

Year: 2007 

228 Think Tank XIV Sustainable Tourism Mobility: Recommended Strategies f... file 3599 Jun 26, 2014

Transport is a vital and integral component of the tourism system yet it contributes the most emissions in tourism (Dubois, Peeters, Ceron, & Gössling, 2011; Peeters & Dubois, 2010). In line with the global concerns for sustainabilit...

Author: Diem-Trinh Le-Klähn 

Year: 2014 

227 Think Tank V Ecolabels and Green Globe 21: Awareness and Consumer A... file 3573 Oct 13, 2013

A case in point is New Zealand, where tourism has long been recognised as an important economic force; this is aptly illustrated by the sector’s contribution of 9.6% to the country’s GDP in 2003 (TRCNZ, 2005). The resource at the heart of mu...

Author: Christian Schott 

Year: 2005 

226 Think Tank VIII A Framework for Work-Life Balance Practices in the Tou... file 3534 Oct 13, 2013

This paper addresses the key issues surrounding the debate over work-life balance. It provides an overview of current thinking in the general work environment, with specific focus on the issue within the tourism industry. This paper present...

Author: Margaret Deery & Leo Jago 

Year: 2008 

OPA: 2008 Outstanding Paper Award Winner 

225 Think Tank IX The Role of Values in Sustainable Tourism Education file 3521 Oct 13, 2013

This presentation discusses the role of values in the context of sustainable tourism education. However, it does not seek to engage in the debate about the definition of Sustainable Tourism nor the differences between this concept and Sustai...

Author: Christian Schott 

Year: 2009 

224 Think Tank V Managing of Public Risks in Tourism: Towards Sustainab... file 3495 Oct 13, 2013

How to manage risks that endanger development of tourism but that are caused by tourism itself? An industry-based model is presented as an analytic tool and adapted to the situation in tourism. It is argued that development of tourism lacks ...

Author: Yoram Krozer & Else Redzepovic 

Year: 2005 

223 Think Tank X Agenda 21, the Internet and Globalization – Creating a... file 3490 Oct 13, 2013

This paper discusses the contemporary meeting of three large-scale systems or processes - Agenda 21, the Internet and globalization - and what this historical conjunction means for networking sustainable tourism development. It is important...

Author: Gordon Sillence & Herbert Hamele 

Year: 2010 

222 Think Tank XIV Tourism Concessions in National Parks: Neo-liberal Too... file 3479 Jun 26, 2014

For the tourism sector the government aims to “Grow the number of new business opportunities on public conservation land in order to deliver increased economic prosperity and conservation gain” (New Zealand Government, 2012: 23). In relation...

Author: Valentina Dinica 

Year: 2014 

221 Think Tank XII Enhancing Social Capital through Networking for Sustai... file 3467 Nov 06, 2013

Social capital has been recognised as a factor affecting sustainable development in every discipline. A network or a partnership is identified as a “structural” form of social capital and a tool to empower participants in the networks. There...

Author: Attama Nilnoppkun 

Year: 2012 

220 Think Tank V Analysing the Risk of Drowning at Surf Beaches file 3458 Oct 13, 2013

Surf beach drowning is an example of a tourist injury problem in Australia. In this paper, a process is outlined to identify and tease out the roles and relationships among causal risk factors, markers of risk, and components of risk exposur...

Author: Damian Morgan 

Year: 2005 

219 Think Tank XIII City Slicker to Roo Carer: The Journey of a Wildlife V... file 3445 Nov 06, 2013

The level of interest and participation in voluntourism has progressively become a major sector in contemporary tourism. The notion of combining a novel and pleasurable tourism experience with the fulfillment of contributing a worthwhile cau...

Author: Eunice Tan 

Year: 2013 

218 Think Tank IV Possibilities for Sustainable Tourism Management in Ac... file 3442 Oct 13, 2013

Sustainability is an inevitable concept in tourism which heavily depends on natural resources and environment with its products and services. Here prevention and controlling water, air and noise pollution, habitat degradation is more importa...

Author: Meryem Atik, Türker Altan & A. Akin Aksu 

Year: 2004 

217 Think Tank IV Attitudes towards Environmental Responsibility among S... file 3415 Oct 13, 2013

The first step in creating a more environmentally sound hotel industry should be a performance analysis of the hotel sector from an environmental perspective. An assessment measuring the level of environmental awareness among hoteliers and t...

Author: Paulina Bohdanowicz, Vlasta Zanki-Alujevic & Ivo Martinac 

Year: 2004 

216 Think Tank IX The elusiveness of sustainability in tourism: The cult... file 3403 Oct 13, 2013

Sustainable tourism is perhaps the most prominent feature of contemporary tourism discourse. However, despite its prominence for several decades, achieving sustainability remains as elusive as ever. This paper explores the concept of the cu...

Author: Freya Higgins-Desbiolles 

Year: 2009 

215 Think Tank X Re-thinking Resort Growth and Governance: An Evolution... file 3396 Oct 14, 2013

Rapid growth in resort areas, combined with environmental and market stresses, has recently created concern amongst resort decision-makers about future paths of development. Growth models have operated effectively in maintaining resort comp...

Author: Alison M. Gill & Peter W. Williams 

Year: 2010 

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