Larry Dwyer

Destination Competitiveness: Determinants and Indicators

The paper develops a model of destination competitiveness that will enable comparisons between countries and between tourism sector industries. The model seeks to capture the main elements of competitiveness highlighted in the general literature, while appreciating the special issues involved in exploring the notion of destination competitiveness as emphasised by tourism researchers. Associated with the model is a set of indicators that can be used to measure the competitiveness of any given destination. These indicators, comprising both objective and subjective measures, were identified from the major elements comprising the generic destination competitiveness model and also from discussions at workshops held in Korea and Australia. This paper has four major objectives: to develop a model of destination competitiveness that identifies key success factors in determining destination competitiveness; to develop an appropriate set of indicators of destination competitiveness; to highlight the advantages and limitations of the model; and to identify areas for further conceptual and empirical research. The development of a model of destination competitiveness and an associated set of indicators allows identification of the relative strengths and weaknesses of different tourism destinations, and can be used by industry and governments to increase tourism numbers and expenditure, and enhance socioeconomic prosperity.

Evaluating tourism's economic effects: new and old approaches

Abstract Techniques such as multiplier analysis and Input–Output analysis are still very commonly used to make estimates of the economic impact of changes in tourism expenditure. These techniques have serious limitations, and as a result, alternative techniques have been developed to address the problems. Computable General Equilibrium (CGE) models are now extensively used, especially in Australia, the UK, the US and Canada, to estimate economic impacts of a wide variety of changes and policies, across most sectors. CGE techniques have been used in the tourism context, but so far, not extensively. Economic evaluation in tourism thus fails to achieve best practice. The paper presents arguments in support of CGE modelling as the preferred technique in analysing the economic impacts of tourism, and discusses its potential to drive future research in this area that is more relevant to real world tourism destinations.

The price competitiveness of travel and tourism: a comparison of 19 destinations.

Abstract This paper presents findings and conclusions from an examination of the price competitiveness of 19 tourism destinations. Using Australia as a base country, the paper compares the prices of a bundle of tourist goods and services in a range of competing destinations, through the development of indices of international price competitiveness. Two major categories of prices are distinguished — those relating to travel to and from a destination (travel cost) and those relating to prices within the tourism destination (ground cost).

Estimating the Impacts of Special Events on an Economy

Special events are typically regarded as major generators of economic activity and jobs. Despite its continued use in event assessment, Input-Output (I-O) analysis has been rejected in other areas of economic impact evaluation in favor of more rigorous evaluation techniques that recognize resource constraints in the economy and interindustry effects of demand shocks. This article discusses traditional and alternative perspectives on event assessment and the assumptions on which each approach are based. Illustrative results are then provided from a study that contrasted the economic impacts from a selected event analyzed by use of a traditional I-O approach, with estimates provided through the use of a more comprehensive computable general equilibrium (CGE) model. Issues involved in the wider use of CGE models for event assessment are discussed together with the need for further development in event evaluation techniques.

Economic significance of cruise tourism

Abstract Cruise business is a growing segment of the international tourism market. While there have been studies of its economic impacts on a national level, the issues of the costs and benefits and their distribution have received scant attention. This paper develops a framework for assessing the economic impacts of cruise tourism for a nation and its subregions. It further explores how the framework can be used to estimate the relevant benefits and costs. A case study of cruise tourism in Australia shows how the framework can be implemented and discusses some policy implications. This analysis can facilitate future research, empirical studies, and strategy development relevant to cruise tourism.

Assessing the Economic Impacts of Events: A Computable General Equilibrium Approach

This article explores the use of computable general equilibrium (CGE) analysis in evaluating the economic impacts of special events. It is argued that CGE analysis is preferred to input-output (I-O) approaches for assessing other than local economic impacts. The article illustrates several differences between the alternative forms of analysis in event assessment. These include assessing the differential effects of events on the host region, other regions, and nationally and the ability to estimate interindustry effects. The article then shows how CGE models can be adapted to estimate the displacement effects of events, their fiscal impacts, intraregional effects, event subsidies, and multistate effects. The article also discusses how event impacts will vary depending on the extent of integration between regional and national resource markets and regional and national product and services markets and how labor markets are modeled.

Attributes of destination competitiveness: a factor analysis.

A model is developed to capture the main elements of competitiveness highlighted in the general literature, while appreciating the special issues involved in exploring the notion of destination competitiveness as emphasized by tourism researchers. Associated with the model is a set of indicators that can be used to measure the competitiveness of any given destination. These indicators, comprising both objective and subjective measures, were identified from the major elements comprising the generic destination competitiveness model and also from discussions at workshops held in Korea and Australia in 2001. This article has three major objectives: to display a model of destination competitiveness that identifies key success factors in determining destination competitiveness; to display the findings arising from the application of factor analysis to survey data collected in a study of Australian and Korean tourism industry stakeholders; to explore issues for further research arising from the study.

Estimating the carbon footprint of Australian tourism

This paper explores the issues in estimating the greenhouse gas (GHG) emissions from the tourism industry and related activity in Australia. The scope of tourism consists of the economic activities defined as “tourism characteristic” and “tourism connected” as defined in the Australian Tourism Satellite Account (TSA). Two approaches are employed and contrasted – a “production approach” and an “expenditure approach”. Depending on the approach, tourism contributes between 3.9% and 5.3% of total industry GHG in Australia. The rationale for each approach is explained. The GHG emissions have been estimated for 2003–2004, the latest year for which detailed industry GHG emissions data are available in a form suitable for this type of analysis. Tourisms GHG emissions are compared with other industries in the Australian economy. The policy implications of the results are discussed. It should be possible to adopt a broadly similar method for any destination with TSA – enabling tourism stakeholders to play an informed role in assessing appropriate and effective climate change mitigation strategies for their destination.

Assessing the benefits and costs of inbound tourism

Abstract Inbound tourism brings both benefits and costs to a destination country. For policy reasons, it is necessary that the net benefits of inbound tourism be accurately assessed for different countries. With specific reference to Australia, this paper first presents reasons why gross expenditure by foreign tourists exaggerates the benefits from inbound tourism. Second, the paper identifies some distortions which, to varying degrees, exist in all economies and which affect the net national benefits from inbound tourism. These distortions arise from the presence of taxes and subsidies, market power, externalities, terms of trade effects, government revenue effects, labor market effects, and foreign exchange effects.

Inter-Industry Effects of Tourism Growth: Implications for Destination Managers

The study of the economic contribution of tourism has recently undergone a ‘paradigm shift’ as a result of the use of Computable General Equilibrium (CGE) models in place of input–output models. In a CGE model which incorporates a realistic set of economy-wide constraints, the effects of tourism growth on destination income and employment cannot be anticipated a priori. The development and application of this superior technique have major implications for the way that tourism economists must now think about the economic impacts of tourism and for the policy advice they give to decision makers in both the public and private sectors. This paper explores three areas in which CGE modelling has relevance for the destination management organization: tourism planning, cooperative destination marketing, and assessment of destination competitiveness.