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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
194 Think Tank XV A vacation from capitalism; what happens when the ‘mas... file 2922 Jul 27, 2015

Philosophical and theoretical debates in tourism must be situated not just within economic and cultural contexts, but also political and social ones (Ataljevic, Pritchard & Morgan, 2007). Tourism is more than an ‘industry,’ Freya Higgins...

Author: Amy Savener 

Year: 2015 

193 Think Tank XV The role of interpretation in mindfulness/mindlessness... file 2918 Jul 27, 2015

Cultural tourism is recently receiving increasing attention from southern African countries (The South African National Heritage and Cultural Tourism Strategy, 2012; Van Veuren, 2001). Cultural tourism is promoted as a local development stra...

Author: Haretsebe Manwa, Dudu Boemah & Emile Coetzee 

Year: 2015 

192 Think Tank VIII Tourism-led Amenity Migration and the Transformation o... file 2916 Oct 13, 2013

Global economic and political change has stimulated an explosion in tourism-led migration flows resulting in unprecedented transformation in the form and condition of impacted communities (Woods, 2006). This increase in human migration to ar...

Author: Alison M. Gill 

Year: 2008 

191 Think Tank XII Identifying Issues with Tourist Wayfinding: A Collabor... file 2914 Nov 06, 2013

This paper reports on a study that was conducted in conjunction with Destination NSW, the government tourism authority for the state of New South Wales in Australia. The purpose of the study was to examine tourist wayfinding behaviour in Syd...

Author: Tony Griffin & Deborah Edwards 

Year: 2012 

190 Think Tank XII Does Migration Have a Bigger Impact on VFR than Total ... file 2902 Nov 06, 2013

As an important global market by purpose of travel, visiting friends and relatives, VFR, is closely associated with the history and development of international migration patterns which are a more permanent form of travel. Further, the impor...

Author: Larry Dwyer, Neelu Seetaram, Peter Forsyth & Brian King 

Year: 2012 

189 Think Tank IX The elusiveness of sustainability in tourism: The cult... file 2894 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 

188 Think Tank XII Residents' Perceptions on Event Impacts an Relocation ... file 2867 Nov 06, 2013

Social exchange theory and the mobility paradigm are used to understand residents’ perceptions on the impacts of the 2012 Olympic Games and their relocation intentions. Confirmatory factor analysis on a sample of 212 residents of London city...

Author: Girish Prayag & Talia Alders 

Year: 2012 

187 Think Tank VIII An Assessment of Efforts to Enhance the Quality of Lif... file 2844 Oct 13, 2013

Quality of life studies are usually either objective or subjective in nature. Objective quality of life studies concentrate on social indicators whereas subjective quality of life studies attempt to assess the perceived satisfaction that in...

Author: Turgut Var, Erhan Ada, Gökce Ozdemir & Deniz Hasirci 

Year: 2008 

186 Think Tank XII Unsustainable Travel Development: The Case of Aviation... file 2823 Nov 06, 2013

Considering the apparent importance of low-cost aviation, and its dramatic development, there is remarkably little research done about its consequences on European mobility. A few studies have mapped the development of networks (cf. Dobruszk...

Author: Jan Henrik Nilsson 

Year: 2012 

» Think Tank IX Tourism Price Competitiveness: a neglected ‘value’ in ... file 2817 Oct 13, 2013

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, ...

Author: Larry Dwyer & Peter Forsyth 

Year: 2009 

184 Think Tank VI Authenticity in Cultural Heritage Tourism as a means t... file 2808 Oct 13, 2013

This work aims through a clarification of philosophical assumptions to define authenticity in a dialogical perspective on the premise that there is a linkage between authenticity and sustainability. This paper will to discuss the development...

Author: Bente Bramming 

Year: 2006 

183 Think Tank V Tourism in Small Communities: Risks and Benefits file 2782 Oct 13, 2013

This paper presents the findings from a Sustainable Tourism Co-operative Research Centre study into the risks associated with the social impacts of tourism on a small community in the Australian state of Tasmania. This state is known for its...

Author: Leo Jago, Margaret Deery & Liz Fredline 

Year: 2005 

182 Think Tank XI An introduction of the Global Sustainable Tourism Coun... file 2781 Oct 14, 2013

The purpose of this presentation is to introduce the Global Sustainable Tourism Council and Criteria, in an effort to encourage the Criteria as part of a framework for sustainable tourism education. The history of the GSTC and Criteria will...

Author: Kelly Bricker 

Year: 2011 

181 Think Tank X The Role of Face-to-face Communication and Networking ... file 2772 Oct 13, 2013

Despite the advent of improved electronic communications technology, face-to-face communication and networking remain the most effective means of enhancing business performance and innovation, particularly for more complex products. During ...

Author: Leo Jago & Margaret Deery 

Year: 2010 

180 Think Tank IV Environmental Attitudes of Tourism Activity Providers ... file 2760 Oct 13, 2013

This paper looks at the issue of environmental awareness and the related topic of 'ecolabels' in a New Zealand context, adopting a supplier's perspective to gain a greater insight into the attitudes of those managing and providing tourism pr...

Author: Christian Schott 

Year: 2004 

179 Think Tank IV Tourism focused NGO's - An Online Content Analysis file 2740 Oct 13, 2013

The number of Non-Governmental Organizations (NGOs) increased from 31,246 to 37,281 (19.3%) between 1990 and 2000, (Human Development Report, 2002). The importance of NGOs is documented in United Nations Local Agenda 21 Chapter 27, 'Strength...

Author: Meng-Mei Chen & James Holleran 

Year: 2004 

178 Think Tank IV After the Sydney Olympic Games: Sustainable Infrastruc... file 2734 Oct 13, 2013

Olympic Games epitomize the definition of a mega event, due to the size and scope that these events have in terms of participation, worldwide viewing and infrastructure development. However with the commercialization of these events over the...

Author: Sacha Reid 

Year: 2004 

177 Think Tank XIII The Politics of Community-Based Tourism Planning in th... file 2725 Nov 06, 2013

The management of protected areas has to deal with a wide range of challenges, amongst these, a growing array of social, political and economic expectations. In this regard, protected areas are increasingly expected to particularly serve as ...

Author: Anna Hübner & Truong Si Hong Chau 

Year: 2013 

176 Think Tank VII Thematic Analysis of Sustainable Tourism and the Tripl... file 2708 Oct 13, 2013

The relationship between the themes in sustainable tourism publications and the Triple Bottom Line (TBL) was explored in this article. A categorised list of 3719 sustainable tourism articles was thematically analysed to determine the conten...

Author: Michael Hughes & Jack Carlsen 

Year: 2007 

175 Think Tank IV Sustainable Tourism and Innovation in Mobile Tourism S... file 2676 Oct 13, 2013

This paper presents a joint public and private sector research project entitled Mobile Digital City and Nature Walks - the development of content and software for a mobile tourism device. Focusing on sustainable tourism, marketing and innova...

Author: Janne J. Liburd 

Year: 2004 

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