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A Model of Tourism Destination Competitiveness1 - The Case of The Italian Destinations of Exc
A Model of Tourism Destination Competitiveness1 - The Case of The Italian Destinations of Exc
ISSN: 2346-206X
revistaturismoysociedad@uexternado.ed
u.co
Universidad Externado de Colombia
Colombia
Goffi, Gianluca
A Model of Tourism Destination Competitiveness: The case of the Italian Destinations Of
Excellence
Turismo y Sociedad, vol. 14, 2013, pp. 121-147
Universidad Externado de Colombia
Bogotá, Colombia
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Abstract
Tourism worldwide is becoming increasingly
competitive. Competitiveness has been asso-
Gianluca Goffi, PhD
ciated in the tourism literature as a critical ele-
Ph. D. en Economía Empresarial Università Politecnica ment for the success of tourism destinations.
delle Marche-Italia. Funcionario Público Departamento de Particular emphasis is placed on identifying
and analysing the various factors that influen-
Industria, Artesanado y Trabajo Regional Marche-Italia.
Investigador en el Observatorio Regional del Mercado
de Trabajo Marche-Italia. Doctorando en Economía y ce the competitiveness of tourism destina-
Management. Universita di Urbino-Italia tions. The paper extends the Richie & Crouch
(2000) model and develops a set of indicators
[gianluca.goffi@uniurb.it].
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trabajo es comprobar si –y en qué medida– el The aim of the paper is to test whether and
actual conjunto de indicadores integrados to what extent the current set of indicators
en el modelo actual puede ayudar a explicar integrated into the present model can help
la competitividad de un destino turístico. El explaining the competitiveness of a tourism
modelo se ha probado en un conjunto de datos destination.
único de 610 destinos italianos de Excelencia.
Análisis de Componentes Principales se apli- The model is tested on a unique dataset of 610
ca en las respuestas a los ítems que miden la Italian destinations of excellence. To reduce
competitividad del destino. the large set of variables to a smaller set the
paper uses a principal component analysis
Palabras clave: Destino Turístico, Deter- (pca). pca is applied on the responses to the
minantes del Destino Competitivo, Modelo items measuring destination competitiveness.
de Competitividad, Indicadores de Compe- The results from the pca provide a reduced set
titividad. of variables that helps explain the groups of
attributes which constitute the main determi-
Introduction nants of destination competitiveness.
Developments in international tourism have The output is reasonably similar to the co-
intensified competitiveness between tourism rresponding elements of the model; some
destinations. Nowadays, in the increasingly differences were expected because of the
competitive world tourism market, maintai- aggregation issue. pca confirms the crucial
ning competitiveness is a major challenge role played by the key attractors and by the
for many destinations. Many research studies tourism services, and highlights the importan-
have been produced to clarify the concept ce of tourism policy and destination manage-
of destination competitiveness. Most of the ment attributes.
studies have been limited to single aspects of
destination competitiveness. Less attention The paper is structured as follow. Section 2
has been devoted to develop a comprehensive summarizes the recent empirical and theoreti-
framework of the various components deter- cal models on the destination competitiveness
mining the competitive position of a tourism issue. Section 3 explains the development of
destination. The most well known model on the present model. Section 4 offers insights
overall tourism competitiveness is that of into the model, illustrating the determinants
Crouch & Ritchie (1999) and Ritchie & and the indicators. Section 5 describes the
Crouch (2000, 2003). Italian tourism system. Section 6 illustrates
the research methodology and provides a dis-
The paper extends the Ritchie & Crouch cussion of the main results. Some conclusions
(2000) model, adding further determinants are drawn in the last section of the paper.
to their original competitiveness model. The
paper also develops a set of indicators that
provides an integrated framework of the di- 1. Competitiveness of Tourism
fferent issues concerning competitiveness. Destinations
With respect to other empirical models (Sirše
& Mihalič, 1999; Dwyer, Livaic, Mellor, Competitiveness has been associated in the
2003; Enright & Newton, 2004; Gomezelj tourism literature as a crucial factor for the
& Mihalič, 2008), the present set of indica- success of tourist destinations Many defini-
tors is especially focused on sustainability. tions of tourism destination competitiveness
have been proposed. Buhalis (2000) defines
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competitiveness as «the effort and achieve- a part of the concept of sustainable develop-
ment of long-term profitability, above the ave- ment; the report of the World Commission on
rage of the particular industry within which Environment and Development, known as the
they operate as well as above alternative in- “Bruntland Report” propose this definition:
vestment opportunities in other industries». «sustainable development is development that
In Hassan’s view, competitiveness concerns meets the needs of the present without com-
«the destination’s ability to create and inte- promising the ability of future generations to
grate value-added products that sustain its meet their own needs» (wecd, 1987).
resources while maintaining market position
relative to competitors» (H assan , 2000: While there seems to be a consensus in the li-
239). According to Dwyer & Kim (2003) terature about the main objectives of competi-
destination competitiveness is «the ability of tiveness, there are various ways of explaining
a destination to deliver goods and services and measuring competitiveness in tourism
that perform better than other destinations on literature. Many models were developed to
those aspects of the tourism experience consi- explain and/or measure destination competi-
dered being important by tourists» (Dwyer & tiveness. Some of them are theoretical.
Kim, 2003: 375). Ritchie & Crouch (2003)
describe competitiveness as the «ability to The model of Ritchie & Crouch (2000,
increase tourism expenditure, to increasingly 2003), is the most well-known conceptual
attract visitors while providing them with sa- model of destination competitiveness in
tisfying, memorable experiences and to do so tourism literature and has been the starting
in a profitable way, while enhancing the well- point for many other research studies about
being of destination residents and preserving destination competitiveness. The model dis-
the natural capital of the destination for future tinguishes 36 attributes of competitiveness
generations». classified into five key factors. Dwyer &
Kim (2003) translate the model of Ritchie &
These findings support the view that «to be Crouch (2000) into specific indicators. The
competitive a destination’s development of model explicitly identifies new key factors
tourism must be sustainable, not just econo- as demand condition and situational condi-
mically and not just ecologically, but socially, tions to contribute to determine destination
culturally and politically as well (...). Com- competitiveness.
petitiveness is illusory without sustainability»
(Ritchie & Crouch, 2000:5). Sustainability De Keyser & Vanhove (1994) develop a
has become a prevailing issue in tourism li- theoretical model underlining the macroeco-
terature (among others, Krippendorf 1987, nomics factors influencing tourism industry,
Inskeep 1991, Müller 1994, Clarke 1997, along with other factors as supply, transport,
Middleton & Hawkins 1998, Hassan 2000, demand and tourism policy. Hassan’s model
Hall 2000, Ritchie & Crouch 2003, Wall (2000) highlights the importance of envi-
& Mathieson 2006) and in many World re- ronmental sustainability, as one of the four
ports (unwto 1998, 1999, 2004) or European determinants of tourism competitiveness.
reports (European Union 2006). Sustainabi- Heath’s model (2002) presents an integrated
lity is much more than only a function of the consideration of the several issues involving
natural environment (Global Environmental the concept of competitiveness.
Facility, 1998). Since the 1980s sustainabili-
ty has been used more in the sense of human Other models of destination competitiveness
sustainability. This has resulted in the most are empirical. They were applied with the aim
widely quoted definition of sustainability as of analyzing the competitive position of par-
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ticular destinations (Sirše & Mihalič, 1999; perceptions (Haahti and Yavas, 1983; Ko-
Dwyer, Livaic, Mellor, 2003; Enright zac & Rimmington, 1998, 1999; Bahar &
& Newton, 2004; Gomezelj & Mihalič, Kozac, 2007; Cracolici & Nijkamp, 2008).
2008). Each one of these empirical models Enright & Newton (2004) claim that tou-
provides very useful insights into destination rists could quite easily evaluate the standard
competitiveness. They focus on several issues components of destination attractiveness,
and they consist of different determinants and but are less able to know the various factors
various indicators. that influence and determine the competitive
position of a tourism destination.
However, it is argued that none of the models
above provides a comprehensive treatment of Thus, a second approach is based on the em-
the various issues that regards each determi- pirical evaluation of a number of subjective
nant of destination competitiveness. indicators of tourism competitiveness, sur-
veyed on key tourism stakeholders (Sirše
Different approaches for explaining and mea- & Mihalič, 1999; Faulkner, Oppermann,
suring competitiveness of tourism destina- Fredline, 1999; Dwyer, Livaic, Mellor,
tions can be distinguished from the literature. 2003; D wyer et al., 2004; E nright &
Indicators of destination competitiveness can Newton, 2004, 2005; Kaynak & Maran-
be classified in objectively or subjectively du , 2007; G omezelj & M ihalič , 2008;
measured variables. Bornhorst, J. R. B. Ritchie, Sheehan,
2010; Crouch, 2010). Gomezelj & Mihalič
For what concerns the first category, studies (2008) assert that the understanding of people
such as Gooroochurn & Sugiyarto (2005), who have some significant knowledge of what
Cracolici & Nijkamp (2006), Mazanec, makes a tourism destination competitive can
Wober, Zins (2007), Cracolici, Nijkamp, supply a helpful point of departure for analy-
Rietveld (2008), Croes (2010), Zhang et ses such as this. This last approach has been
al. (2011) make use of published secondary followed in the paper.
data as indicators of competitiveness. Quan-
titative data have often been applied because
these were seen as more precise and accurate. 2. A Model of Destination
However, Crouch (2010) points out that Competitiveness
using quantitative data is “quite doubtful”
for several reasons. First, the volume of in- The paper extends the Richie & Crouch mo-
dicators could be massive and discouraging. del (2000) and groups some of the elementary
Second, finding available data for each mea- determinants of destination competitiveness
sure of destination competitiveness would be differently than does the Ritchie & Crouch
very problematic. Third, many of the feature model (2000). The model identifies seven
measures are multidimensional, abstract or key determinants of destination competiti-
inaccurate. Fourth, many indicators are not veness, as shown in fig. 1: core resources
always quantifiable and may be necessary and key attractors; tourism services; general
subjective. infrastructures; conditioning and supporting
factors; tourism policy, planning and develo-
Concerning the second category – qualitati- pment; destination management; demand. As
ve data or “soft measures” – two approaches can be seen in the fig. 1, there is a separation
could be found in tourism literature. In the between resources and services that transfer
first approach, competitiveness is measured the value directly to the tourist and activities
using survey data of tourists’ opinions and supporting or conditioning their performan-
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ces. This is based on the “value fan” configu- in the management of the core resources and
ration by Flagestad & Hope (2001), which also influence the availability and quality of
takes as a reference Porter’s (1985) value tourism services.
chain model and Stabell & Fjelstad (1996,
1998) studies. The elements “core resources and key attrac-
tors”, “tourism policy, planning and develop-
The boxes “tourism policy, planning and de- ment” and “destination management” derive
velopment” and “destination management” from the Richie & Crouch model (2000).
are grouped within a larger box; moreover They lump together under the label “suppor-
“tourism policy, planning and development” ting factors and resources” two subcompo-
is linked forwards to the box “destination nents as “hospitality” and “infrastructure”.
management”. This indicates that while tou- In this model they are regarded as separate
rism policy set a framework within which a factors from “conditioning and supporting
competitive destination can be developed on factors”. Many authors (Pearce, 1981; Mur-
the long term, destination management deals phy, 1985; Inskeep, 1991; Gunn, 2002) un-
with its various factors in a short time hori- derline the importance of these components,
zon, in order to ensure economic profitability, regarding them as separate primary elements.
and avoiding degradation of the elements Moreover, respect to Ritchie & Crouch
that forms the competitive position of a des- (2000), the model explicitly recognizes the
tination. The one-directional arrows from demand factor as a fundamental determinant,
this larger box indicates that it can influence as illustrated by Dwyer & Kim (2003).
both the conditioning and supporting factors
and the availability and quality of general It is proposed a set of indicators that is con-
infrastructures; it can play an important role sidered useful for analyzing the competiti-
7. DEMAND
Support activities
and resources
5. TOURISM POLICY
PLANNING AND
DEVELOPMENT
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Quality of accommodations 12
The majority of the indicators proposed refer
to sustainability issues. From a sustainabili- Quantity of accommodations 12
ty perspective, the indicators comprised by Environmental friendliness of
the current empirical models of destination accommodations
12
competitiveness (Sirše & Mihalič, 1999;
Dwyer, Livaic, Mellor, 2003; Enright & Food services quality 8
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Determinants and indicators PCA solution Determinants and indicators PCA solution
Cooperation between public and priva- 3.1 Core resources and Key Attractors
1
te sector for local tourism development
Core resources and key attractors are the
Emphasis on community participatory
1 fundamental reasons why visitors choose one
process in tourism planning
particular destination over another. There are
6) DESTINATION MANAGEMENT various types of attractors (natural, cultural,
Effectiveness of destination positioning 6
events, activities, etc.); they provide the foun-
dation for a memorable experience.
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Natural resources can be considered among capacity of events to attract high number of
the most important resources for a tourism tourists and generate tourism expenditures
destination. A natural resource is something making an important economic contribution
that exists in nature which can be used by to tourist destinations is well documented
humans, also for tourism purposes, at current (Getz, 1997; Shone & Parry, 2001; Van
economic, social, cultural, and institutio- der Wagen, 2002; Yeoman et al., 2003; Raj
nal conditions. In recent years, increasing et al., 2008; Allen et al., 2008; Bowdin et
awareness among tourism researchers of the al., 2010; Robinson, 2010). The assortment
relations between tourism and natural resou- of activities is of rising significance as the
rce management has resulted in a significant visitors ever increasing seek experiences that
body of academic literature examining this overtake the more inactive tourism of the past
issue. Mihalič (2000) points out that a well- (Poon, 1993). Entertainment, also, can be a
managed destination environment is the best key supplier to the tourism sector (Hughes,
destination advertiser. «A destination needs 2000). It may occupy a major position in the
to protect the integrity and the attraction of its destination competitive strategy, depending
own product, plus guard against the action and on its perceived uniqueness rather than on its
rivalry of competitors» (Murphy 1995: 166). quantity (Dwyer & Kim 2003).
Cultural resources are represented by three in- Shopping is for many tourists one of the most
dicators: “historical and archaeological sites”, popular activities. Shopping tourism can also
“artistic and architectural features”, “cultural be seen as a vehicle to revitalize traditio-
attractors”. «Culture, broadly defined, is a nal urban centres, deteriorating resorts and
second very powerful dimension of desti- even rural areas (Jansen-Verbeke, 1991).
nation attractiveness» (Ritchie & Crouch, Timothy (2005) provides a comprehensive
2003:115). In the last two decades, many texts examination of the relationships between
were published about this subject of rising tourism, leisure and shopping.
interest (Richards, 1996, 2007; Richards &
Munsters, 2010; Boniface, 1995; Walle, “Gastronomy and typical products” is also
1998; McKercher & du Cros, 2002; Sigala included among the key attractors. Systematic
& Leslie, 2005; Smith, 2003, 2009; Smith & research on gastronomy and tourism has been
Robinson, 2006). A high proportion of inter- neglected until recently. Gastronomy is one
national travellers are now considered cultural of the most important elements affecting the
tourists (Richards, 1996). The culture and authenticity of a tourism destination (Sedmak
heritage attractors of a destination provide a & Mihalič, 2008). Hjalager & Richards
significant force for the potential visitor (Rit- (2002) explore the role of gastronomy as a
chie & Zins, 1978; Cohen, 1988; Prentice, source of regional identity, and also a source
1993; Murphy, et al., 2000). of economic development related to tourism.
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The “quality of the environment” is related to source use, organization, human resource);
the attractiveness of the destination: tourism structures (e.g. government, quasi-govern-
and environment are in a very complex rela- ment, and non-governmental organizations);
tionship (Butler, 2000). In a progressively scales (international, transnational, national,
more competitive business situation, the en- regional, local, site) and over different times
vironmental quality of the tourist destinations scale (Hall, 2000). Getz (1986) reviews 150
represents a vital ingredient. models of tourism planning and classifies
them into several categories. Getz (1987)
The attribute “safety” is also included in this identifies four broad traditions in tourism
determinant. During the vacation there is planning, not mutually exclusive: boosterism,
a possible risk of violence against tourists. an economic/industry-oriented approach, a
Security problems are higher in particular physical/spatial approach, and a community
destinations which are facing rapid develo- oriented approach.
pment. Supposed risks and safety concerns
were found to be stronger predictors of not An important objective of tourism planning
choosing regions for vacation (Sonmez & is to combine the tourism development with
Graefe, 1998). the social and economic life of a community
(Gunn, 2002). Destination areas need to be
3.5 Tourism Policy, Planning and planned with sensitivity to social, environ-
Development mental, and economic impacts in order to
minimize user conflicts and environmental
There is an extensive literature on tourism stress. Insufficient attention to factors deter-
planning with various emphases, including mining economic, social and environmental
Gunn’s concentration on spatial planning sustainability, have the potential to lead to un-
(Gunn, 2002), Murphy’s work on a com- desirable consequences (Hall, 2000). That is
munity approach (Murphy, 1985), Hall’s the reason why various indicators comprised
emphasis on the various levels of planning by this determinant refer to environment pro-
(Hall, 2000) and Inskeep’s comprehensive tection and minimization of negative social
approach (Inskeep, 1991). «Tourism policy and cultural impacts.
can be defined as a set of regulations, rules,
guidelines, directives and development/pro- This determinant also refers to variables
motion objectives and strategies that provide concerning the public sector commitment
a framework within which the collective and to maximizing economic impact of tourism
individual decisions directly affecting long- on local community. Any tourism strategy
term tourism development and daily activities must be able of meeting the economic needs
within a destination are taken» (Goeldner & of the residents over the long terms (Ritche
Ritchie, 2003: 413). & Crouch, 2003). In many authors’ view,
economic benefits from tourism should be
Hall (2000) states that tourism planning distributing among the population (among
needs a comprehensive and integrated ap- others, Müller, 1994; Ritchie & Crouch,
proach, which recognizes that resources, 2003; Wall & Mathieson, 2006). Tourism
services, facilities and infrastructures are inte- industry must concentrate the efforts on in-
rrelated with one another and with the social, creasing the utilization of local labour; this
cultural and natural environment. Planning also depends on the public sector commitment
for tourism is rarely exclusively devoted only to tourism and to hospitality education. The
to tourism and takes place in many forms (e. emphasis on community empowerment is
g. development, infrastructure, land and re- also essential in order to increase the capacity
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market into different groups, and selecting moment. Mihalic (2000) asserts that a well-
one or more segments as a target to be reached managed destination environment is the best
with a distinct marketing mix (Wilkie, 1986). destination advertiser. Ritchie & Crouch
For what concerns destination positioning, (2000) use the word “stewardship” to give
many definitions exist in literature. Heath special emphasis on caring for the long-term
and Wall (1992:136) assert that positioning well being of the natural resources. In order
regards the development and the communi- to protect the integrity of the attractions of a
cation of significant differences between the destination, it is fundamental to monitor tou-
offer of a region compared to competitors’ rism impacts. Monitoring tourism impacts im-
offer which address to the same market seg- plies systematic investigation of the changing
ment. Ahmed (1991) and Grabler (1997) effects of tourism (Laws, 1995).
also recognize that an accurate positioning
strategy for a destination requires a compari- Tourism is a composite sector, including
son with the competitors. Richie & Crouch a network of interconnected stakeholders
(2003: 200) define the destination’s position and organisations, both public and private,
in the market «how a destination is perceived working together. Private-public sector con-
by potential and actual visitors in terms of the figuration through partnership is difficult to
experience (and associated benefits) that it achieve but would be highly desirable (Go &
provides relative to competing destinations». Govers, 2000). Tourism is a very fragmented
Pike & Ryan (2004) list the key constructs to and heterogeneous industry with many small
be considered to enhance destination position businesses. A dmo (destination management
effectiveness. organization) serves as a coordinating bo-
dy for the many organizations involved in
Many other variables are included in this tourism. A primary aim of the dmos is to
determinant. “The effectiveness in crafting promote partnerships among the various
tourism experiences” is of rising significance operators. dmos, whose jurisdictions may
as the visitor ever increasing seeks experien- cover a country, state/province, region, or a
ces that overtake the more inactive tourism specific city/town, are a critical component of
of the past (Poon, 1993). A progressively the tourism industry. dmos can take various
more important factor of the tourism system forms, may have low/high level of formali-
is the “traveller guidance and information”; zation, can have various juridical status and
nevertheless, Gunn (2002) notes that many type of organizations. dmo members may
public tourism agencies still confuse informa- include governmental bodies, business asso-
tion with promotion. The “visitor satisfaction ciations, individuals or firms that directly or
management” is also a fundamental issue. indirectly support tourism (hotels, restaurants,
Evidence has shown that visitor satisfaction tour operators). The effectiveness of the dmo
relates to product development and quality can play a critical role, helping local firms to
issues that can only be met through both build sustainable competitive advantage and
improved training and cooperation between to create competitive advantage for the entire
the public sector and the tourism industry destination (Sainaghi, 2006).
(Baum, 1995).
3.7 Demand
“Stewardship of the natural environment”
and “tourism impacts monitoring” are also While the centre of the focus of the Ritchie
considered in this determinant. The manage- & Crouch competitiveness model is the
ment of the natural environment is one of the supply-side, Dwyer & Kim (2003) emphasize
most important issues facing the world at the that focusing only on the supply-side factors
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Spain (Eurostat, 2008). Tourism generates ture regarding the number of accommodation
868,500 jobs directly in 2011 (3.8% of to- facilities shows that Italy has 145,358 accom-
tal employment), but the total contribution modation facilities and 4.598 million bed
of tourism to employment is estimated at spaces (total accommodation). It can count
2,176,000 jobs (10.4% of total employment) on 33,967 hotels (from five-star luxury to
(wttc, 2012). one star) and 2.227 million bed spaces (Istat,
2011). The Italian hotel market is the second
Nonetheless, Italian tourism faces many biggest in the world; nevertheless it appears
problems, including areas of management extremely fragmented and relatively low
(specifically marketing and promotion), quality: 32% of the hotels are one or two stars
policy and regulation, infrastructures, qua- (Istat, 2011). The accommodation supply is
lity of accommodation facilities. Italy is the constituted by 23.4% hotels and 76.6% of
26th ranked country in the World Economic other accommodation facilities. However,
Forum’s Travel & Tourism Competitiveness other accommodation facilities account for
Index (compared to France’s 7th, usa 6th and 51.6% of total beds, suggesting that they are
Spain’s 4th position) and is ranked 18th in Eu- on average smaller in size than hotels. Chain
rope (wef, 2013). penetration is minimal in Italy accounting
for 6% of the room stock (Mintel, 2004).
Although various limitations have been iden- The Italian tourism supply is dominated by
tified by Crouch (2007) in the reliability and companies which are family-owned. Italy’s
validity of this index, it can give a starting company structure in this industry has one
point in order to identify the main problems of the highest proportion of micro (one to
and weaknesses of the Italian tourism system. nine employees) and small companies (<50
These include policy rules and regulations, employees) in the eu: 62,3% under 20 em-
where Italy ranks 100th out of 140 countries, ployees, compared to the 54,8% of France,
government prioritization of the tourism in- to the 24,7% of Spain, and 20,4% of the uk
dustry (79th) and effectiveness of marketing (oecd, 2010). There are advantages to such
and branding (116th).There is also insufficient an industry structure as market niche advan-
focus on developing the sector in an environ- tages, flexibility, personalized services, but
mentally sustainable way (Italy ranks 119th in on the negative side, small family-owned
the sustainability of tourism industry develo- and managed hotels often suffer from limited
pment). The country continues to suffer from marketing skills, lack of planning, gaps in hu-
a lack of price competitiveness (134th). In man resource management and difficulties in
addition, wef ranks its quality of air transport financing (Buhalis, 1994; Buhalis & Main,
infrastructure 67th; Italy is ranked 81st in terms 1998; Weiermair, 2000).
of international air transport network and
110th in terms of ground transportation net- Most of the tourism activity in Italy is gene-
work. The country, compared to some of the rated by the domestic demand which weights,
main competitors in Europe is lagging behind on average, 57% for arrivals during the pe-
in terms of recent transport infrastructure de- riod 1998-2007 (Massidda & Etzo, 2012).
velopment (oecd, 2011). oecd (2011) study Domestic travel spending generates 67.5%
on Italian tourism seems to confirm many of of direct tourism gdp in 2011 (wttc, 2012).
the indications emerging from the wef report. Short domestic trips in Italy represented 46%
of total holiday trips (Eurostat, 2010).
Italy ranks 2nd worldwide for accommoda-
tion capacity after the United States, and 1st Italy can count on thousands of touristic sites,
among European countries. The general pic- 4,739 museums, 393 archaeological sites,
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hundreds of medieval villages and historic • Blue Flag, awarded by Foundation for
churches, which are distributed all over the Environmental Education – fee (117 mu-
national territory (FareAmbiente 2011). Ne- nicipalities in the sample);
vertheless, tourist arrivals, especially interna-
tional tourists, are concentrated in big cities, • Blue Sail, awarded by Legambiente/
in the coastal areas, or in ski resort destina- League for the environment (295 muni-
tions. This is also due to the fact that many cipalities);
Italian regions have identified tourism as a
major industry for their economic develop- • Orange Flag, awarded by Italian Touring
ment, but «regional structures for developing Club (181 municipalities);
and promoting tourism products are often too
dispersed and they sometimes lack the capa- • The Most Beautiful Villages in Italy,
city to operate effectively on foreign markets. awarded by National Association of Ita-
(…) Evidence indicates that there is a lack of lian Municipalities – anci (199 munici-
clarity and co-ordination on promotion acti- palities).
vities between the government, regions, pro-
vinces and municipalities» (oecd, 2011: 17). The main aim of these awards is the promo-
tion of the diversity, value and authenticity
Due to the problems and weakness described of Italian destinations of excellence, both
above, combined with the increasing compe- coastal (“Blue Flags” and “Blue Sails”) and
tition of new destinations, Italy lost the top non coastal (“The Most Beautiful Villages”
position in the ranking of the most visited and “Orange Flags”). They are also aimed at
countries in the world that it held in 1970. establishing a platform for encouraging tou-
Formica & Uysal in 1996 stated that «the rism excellence in various forms.
life-cycle analysis reveals one important trend
that can lead Italy out of decline, a movement “Blue Flag” is an internationally recognized
towards a ‘high-qualitative learning’ type of voluntary eco-label run by the Foundation
tourism. The tendency toward this type of for Environmental Education (fee) that is
tourism is demonstrated by the growing inter- awarded to beaches and marinas that satisfy
est in green, rural and historically appealing stringent environmental quality standards
places. Italy’s landscapes and cultural places and management (fee, 2006); approximately
are in an excellent position to benefit from 3850 beaches and marinas in 46 countries we-
this trend» (Formica & Uysal, 1996). Many re awarded. In Italy, a roughly similar award,
small destinations located on the mainland namely the “Blue Sail”, was introduced by
still have high growth potentials in Italy. Si- Legambiente, the main environmental orga-
milar considerations can be extended to many nization in the country.
small and medium seaside destinations rich
in history and culture, where tourism is well The awards “The Most Beautiful Villages”
developed but highly seasonal. and “Orange Flags” are directed to small
towns and villages on the mainland not ex-
These above are the main reasons why 610 ceeding 15,000 inhabitants. Admission to the
Italian small and medium destinations of Club of “The most beautiful villages in Italy”
excellence were chosen as case study. Spe- requires the meeting of a number of prere-
cifically, destinations of excellence that have quisites, both structural, such as the quality
been awarded with important International of the public and private building heritage,
and National Certifications were selected: and general, regarding the quality of life in
the villages in terms of activities and services
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for the people. The “Orange Flag” is an Italian a hotel association, a hotel director was con-
recognized voluntary label that is awarded by tacted). They were first contacted by phone
Italian Touring Club to municipalities satis- to explain the objective of the study. A link
fying similar criteria to the above. to the web-survey was sent them after the
first contact.
5. Research methodology and results A total of 550 usable surveys were returned
from 370 different municipalities. The res-
In order to generate the desired empirical da- ponse rate was very high, 45,1%, in line with
ta, a survey instrument was created itemising the average response rates of similar studies
the elements that were supposed to influence (Baruch & Holtom, 2008). A principal com-
destination competitiveness. The data was ponent analysis (pca) was performed using
collected with a web survey. The web survey stata version 11.0 on the responses to the 64
required respondents to rate their own tou- questionnaire items measuring destination
rism destination’s performance, on a 5-point competitiveness. The most common approach
Likert scale, on each of the 64 competitive- is the Kaiser criterion that recommends to
ness indicators, against a reference group retain only components with a latent root or
of destinations. «It would be meaningless eigenvalue greater than 1. The final structure
to ask respondents to give absolute ratings was based on the Varimax rotation method.
for any destination on any given attribute of Finally, reliability coefficients (Cronbach’s
competitiveness» (Dwyer, Livaic, Mellor, Alpha) were also computed for the items
2003). This is motivated by the fact that a gi- that formed each component. The reliability
ven location is not competitive in a vacuum, coefficients exceeded the minimum standard
but against competing destinations (Kozac of 0.70 suggested by Nunnally (1978), Kli-
& Rimmington, 1999, Enright et. al., 1997; ne (1993) and Pallant (2001). Thus, the re-
Enright & Newton, 2005; Bahar & Ko- sults indicate that these multiple measures are
zac, 2007; Gomezelj & Mihalič, 2008). highly reliable for measuring each construct.
As a consequence, the web survey began by
asking respondents the identification of the Principal Component Analysis produced 13
main competitive locations (maximum 5). components which significantly explain the
variation in responses. They explain 69.66%
The questionnaire was pretested on five hotel of the total variance, which is reasonable for
managers, on five tourism researchers and on a dataset of this kind. Dwyer et al. (2004)
five head of tourism public offices. On the obtained similar results after applying a pca
basis of the pre-test, some indicators were to a similar set of indicators. First, it has to be
simplified and/or rewritten. The final draft taken into account the heterogeneity of the 64
of the model was screened by a panel of both variables that constitute the model. Second, it
academics and practitioners. has to be considered that the dataset is made
up of a mixed group of different destinations:
A total of 1.220 key tourist stakeholders from from small villages on the mainland, to well
610 Italian municipalities were contacted in known coastal resort destinations with tens
the period from April to July 2011. For each of hotels and thousands of tourist arrivals
destination two stakeholders, one from the every year.
public sector and one from the private sector,
were chosen: the head of the tourism office The 13 components produced by the pca are
and the head of the local hotel association (in discussed one by one below. The amount of
small tourism destinations, in the absence of the variance explained by each component is
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specified in parentheses. The indicators in- characteristics are connected with the concept
cluded in each component can be seen in the of responsible tourist behaviour.
column “pca solution” of the Tab.1.
Component 5: Managerial Competencies of
Component 1: Sustainable Tourism Policy Local Tourism Firms (3.28%). This compo-
and Destination Management (35.94%). The nent is associated with 4 variables comprising
first component consists of 17 variables, ac- the management capabilities and professional
counting by itself for a high percentage of the skills of the business operators, the use of IT
total variance. All these variables are included and the presence of local tourism firms.
in the 5th and 6th determinants of the model.
It includes indicators regarding an integrated Component 6: Destination Marketing
and sustainable approach to tourism planning. (2.99%). “Effectiveness of destination posi-
They refer to the collaboration in the decision- tioning”, “market segmentation” and “aware-
making process of tourism development and ness of the destination” are the three variables
to the emphasis on minimizing negative im- comprised by this component.
pacts of tourism on natural, cultural and social
resources. It also involves some destination Component 7: Quality of natural resources
management variables related to the steward- (2.73%). “Natural resources” and “environ-
ship of the natural environment and to the mental quality” are two of the three indica-
monitoring of the tourism impacts. tors included in this component; the attribute
“safety” is also included. A possible explana-
Component 2: General Infrastructures tion is that this element is probably interpreted
(5.06%). The second component comprises as the absence of natural calamities. This is
8 items, six of which lend themselves to the most likely related to the fact that security
infrastructure label (3rd determinant). This is not a problem in most of the destinations
component covers the road system and trans- surveyed.
portation, the communication system and the
medical care facilities and sanitation. It is Component 8: Gastronomy (2.29%). “Gas-
also composed by further attributes related tronomy and typical products” and “food
to general infrastructures: “accessibility of services quality” are two of the three variables
destination” and “proximity to other tourist incorporated in this component. The third va-
destinations”. riable, “local supply of goods” highlights the
association between authenticity of a tourism
Component 3: Events and Activities (3.56%). destination and local products and producers.
The third component contains 4 items: events,
leisure activities, nightlife and shopping. Component 9: Historical and Artistic Featu-
They are often the primary motivations res (1.93%). This component is represented
to visit a destination. This element can be by 3 variables: “historical and archaeological
significantly influenced by the destination sites”, “artistic and architectural features”,
management. “cultural attractors”.
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Component 12: Tourist Accommodations They distinguish them from attributes clo-
(1.69%). This component refers to “quality”, sely linked to the marketing and to the visitor
“quantity” and “environmental friendliness” satisfaction management: these dimensions
of tourist accommodations. are included under two separate headings.
The “emphasis on maximising local econo-
Component 13: Emphasis on maximising mic development” is regarded as a distinct
local economic development (1.65%). This component from other tourism policy issues.
component includes three variables regarding This support the view that public sector com-
the public sector commitment to maximizing mitment on generating economic benefits for
economic impact of tourism on local com- locals is fundamental in order to increase the
munity. well-being of the residents. It implies that
both the optimal satisfaction of visitor needs
and economic wealth of the community have
Conclusions great importance. These determinants are
those over which public sector has a high
The paper has displayed a model of destina- degree of control.
tion competitiveness and discussed the results
of a survey, based on indicators associated Four components – “quality of natural resou-
with the model. The results of the principal rces”, “historical and artistic features”, “gas-
component analysis show a coherent struc- tronomy” and “events and activities” – refer
ture of the interrelations among the compe- to the first determinant of the model: “core
titiveness indicators. It seems to confirm the resources and key attractors”. Even if some
validity of the model. relationship may exist between these ele-
ments, this signifies that in the respondents’
The results show that 13 components can be minds there is a clear distinction of the types
extracted from the variables defined above. of primary resources. It could imply that not
Their structure is reasonably similar to the 7 only they need to be separately characterized
determinants of the model. It was not expec- and promoted, but that different marketing
ted that the pca would precisely reproduce strategies may also be implemented to reach
the same aggregation of the assumed model. each target consumer group.
As is common in pca, the first component The demand factor (7th determinant of the
comprises a large number of variables and is model) is represented by the component
fairly general. However, it strongly encom- “responsible tourist behaviour”. It implies
passes the tourism policy and destination that respondents clearly distinguish demand
management variables. This denotes that res- condition, along with other components, as
pondents display a distinction between tou- a crucial determinant of strategic decision
rism policy/management variables and other making.
measures of destination competitiveness. It
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