The document discusses various conceptual models for understanding tourism destination competitiveness, including Porter's model of competitive forces. It describes several approaches: Porter's model of competitive forces and generic strategies; Ritchie and Crouch's model of destination competitiveness; Dwyer, Forsyth and Rao's price competitiveness approach; the Bordas demand model; and the WES approach. It also discusses elements of destination management, including marketing, organization, quality of service, information/research, human resource development, finance, resource stewardship, visitor management, and crisis management.

1. Welcome to
Competitive
Tourism Destination
Conceptual Models Developed
to enhance Competitiveness
Dr. Myrza Rahmanita, SE, M.Sc

2. COMPETITION AND THE TOURISM
DESTINATION

3. The idea of the competitive
destination contains two
elements
Destination and
Competitiveness

4. DESTINATION

5. COMPETITION

6. Elements of destination competitiveness

7. Effects on destination competitiveness

8. After you have knowledge about
elements idea
of the competition, next you will
learn model competitive forces of
M. Porter.

9. What is
Model Competitive Forces
of M. Porter?

10. MODEL COMPETITIVE
FORCES OF M. PORTERThe price-competitiveness
approach of Dwyer, Forsyth and
Rao
The Bordas demand model
The WES approach
The Poon concept

11. The conceptual model of
destination competitiveness of
Ritchie and Crouch
The ‘Porter diamond’, or the
determinants of competitive advantage
The competitive forces and generic
strategies of M. Porter
MODEL COMPETITIVE
FORCES OF M. PORTER

12. MODEL COMPETITIVE FORCES OF M. PORTER
The competitive forces and generic strategies
of M. Porter1

13. MODEL COMPETITIVE FORCES OF M. PORTER
The ‘Porter diamond’, or the determinants of
competitive advantage2

14. MODEL COMPETITIVE FORCES OF M. PORTER
3 The Poon concept

15. The WES approach
( Exchange rate currency X in currency units Y) [
𝐶𝑃𝐼 𝑐𝑜𝑢𝑛𝑡𝑟𝑦 𝑋
𝐶𝑃𝐼 𝑐𝑜𝑢𝑛𝑡𝑟𝑦 𝑌
]
MODEL COMPETITIVE FORCES OF M. PORTER
4

16. MODEL COMPETITIVE FORCES OF M. PORTER
4 The WES approach

17. The Bordas demand model
MODEL COMPETITIVE FORCES OF M. PORTER
5

18. • EC= economic/monetary cost (transportation,
costs at the spot)
• PhC= physical cost (tiredness and stress)
• PsC = psychological cost (commercial and
physical risk)
• PuC = purchasing costs or cost to get access
to information and to the trade)
• MS= magnetism of the sales system (capacity
of the sales system to create interest in the
destination and capability to attract
customers)
• CS= conductivity of the system or the capacity
to close a sale (which percentage of
customers who were in contact with the sales
system, decided to buy the destination)
• PSSE= post-sale service efficiency (creating
loyalty and recommendation).
MODEL COMPETITIVE FORCES OF M. PORTER
6

19. MODEL COMPETITIVE FORCES OF M. PORTER
7 The conceptual model of destination
competitiveness of Ritchie and Crouch

20. MODEL COMPETITIVE FORCES OF M. PORTER
8
MODEL COMPETITIVE FORCE OF M.PORTER
The price-competitiveness approach of Dwyer, Forsyth and Rao
Price competitive index =
𝑒𝑥𝑐ℎ𝑎𝑛𝑔𝑒 𝑟𝑎𝑡𝑒
𝑃𝑃𝑃
X
100
1
For further explanation see The Economic of Tourism Destinations page 125

22. The threat of entrants
New entrants may stimulate
more price competition, or
more attention may be paid
to product differentiation as
they attempt to win market
shares.
1

23. 2 The power of suppliers
 It is dominated by a few companies (there is
a degree of monopoly or oligopoly) and is more
concentrated than the industry it sells to (e.g.
air charter companies relative to tour
operators)
 The industry is not an important customer of
the supplying group
 The group’s product is differentiated, or it
has built up switching costs

24. 2 The power of suppliers
 The group’s product is an important input to
the buyer’s business (e.g. flight costs for a
tour operator)
 The group poses a credible threat of
forward integration (e.g. an air carrier
starts a tour-operator’s business)
 There are high costs of switching suppliers.

25. The power of buyers
■ If a buyer group purchases large volumes relative to seller
sales (the UK tour operator business in Benidorm and other
resorts in Spain relative to the local hotel sector is a typical
example)
■ If the products a buyer group purchases from a sector are
standard or undifferentiated (e.g. hotel rooms)
3

26. The threat of substitutes
The threat of substitutes can take very different forms.
4

27. Competitive Rivalry
■ There is slow sector growth
■ There are high storage costs or perishability
■ There are high fixed costs
■ There is lack of differentiation
5

28. Competitive Rivalry
■ There is a high strategic stake (to be successful in one
market)
■ There are numerous or equally balanced competitors
■ There is over-capacity or big changes in capacity
■ There are high exit barriers.
5

30. Marketing startegy

31. DESTINATION MANAGEMENT
4. Information/research Competition and the tourism
destination
3. Quality of service experiences (the destination should
provide a high-quality visitor experience)
2. Marketing (traditional marketing tasks)
1. Organization (administrative and managerial tasks)
5. Human resource development

32. DESTINATION MANAGEMENT
8. Resource stewardship (taking care of the
tourism resource base)
7. Visitor management (e.g. visitor information centre,
ability to deal with crowds)
6. Finance and venture capital
9. Crisis management.

33. Synthesis of the main variables