This document outlines a PhD dissertation that analyzes the competitiveness and sustainability of tourism through an integrated framework. The dissertation develops a regional tourism demand function using panel data to estimate the impacts of sustainability factors on competitiveness. It also applies the Tourism Area Life Cycle model to analyze regional competitiveness and examines the relationship between regional innovation systems and tourism competitiveness. The analysis contributes to understanding the implications of competitiveness for sustainable regional development.

1. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
JOÃO
ROMÃO
Supervisors:
Paulo
M.
M.
Rodrigues
João
Pinto
Guerreiro
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

2. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
1.
Objec1ves,
Achievements
and
Contribu1ons
2.
Conceptual
Framework
Regional
Tourism
System
Innova=on
and
Differen=a=on
Compe==veness
and
Sustainability
Tourism
Area
Life
Cycle
3.
Panel
Data
Model
Methodology
(data,
variables
and
model)
Results
4.
Discussion
Conclusions
and
Proposals
Limits
and
Developments
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

3. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
1.
Objec1ves,
Achievements
and
Contribu1ons
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

4. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
The
main
purpose
of
this
work
is
to
propose
an
integrated
approach
to
compe11veness
and
sustainability
in
tourism,
es1ma1ng
the
impacts
of
factors
related
to
sustainability
on
the
regional
tourism
compe11veness
through
innova1ve
ac1vi1es
based
on
natural
and
cultural
resources
that
differen1ate
the
des1na1ons.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

5. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Development
of
a
regional
tourism
demand
func1on,
based
on
a
panel-­‐data
model,
integra1ng
ques1ons
related
to
sustainability
as
new
determinants
of
compe11veness.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

6. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Applica1on
of
the
Tourism
Area
Life
Cycle
model
in
order
to
analyse
regional
tourism
compe11veness
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

7. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Analysis
of
the
implica1ons
of
tourism
compe11veness
on
sustainable
regional
development.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

8. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Analysis
of
the
the
rela1ons
between
regional
innova1on
systems
and
tourism
compe11veness.
Romão,
J.,
Guerreiro,
J.
and
Rodrigues,
P.
(2012)
Innova=ve
Integra=on
in
Tourism,
Discussion
Papers
-­‐
Spa0al
and
Organiza0onal
Dynamics,
CIEO,
University
of
Algarve
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

9. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
4
ar%cles
as
a
result
of
this
disserta%on:
Romão,
J.,
Guerreiro,
J.
and
Rodrigues,
P.
(2013)
Compe11veness
and
Sustainability
in
Tourism
Des1na1ons,
in
Ma=as,
Nijkamp
and
Sarmento
(eds)
Quan0ta0ve
Methods
in
Tourism
Economics,
Springer-­‐Verlag
Berlin
Heidelberg
Romão,
J.,
Guerreiro,
J.
and
Rodrigues,
P.
(2012)
Tourism
Area
Life-­‐Cycle
and
Regional
Tourism
AUrac1veness,
Current
Issues
on
Tourism
Romão,
J.,
Guerreiro,
J.
and
Rodrigues,
P.
(2012)
Regional
Tourism
Development:
Compe11veness
and
Sustainability,
in
Jafari,
Fayos-­‐Solá
and
Silva
(eds)
Knowledge
Management
in
Tourism:
Policy
and
Governance
Applica0ons
-­‐
Bridging
Theory
and
Prac0ce
Vol.
IV,
55-­‐75,
UNWTO,
Emerald
Romão,
J.,
Guerreiro,
J.
and
Rodrigues,
P.
(2012)
Innova1ve
Integra1on
in
Tourism,
Discussion
Papers
-­‐
Spa0al
and
Organiza0onal
Dynamics,
CIEO,
University
of
Algarve
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

10. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
6
communica%ons
as
a
result
of
this
disserta%on:
Local
Resources,
Differen1a1on
and
Innova1on
in
Tourism
Workshop,
Centre
for
Advanced
Tourism
Studies,
Hokkaido
University,
Sapporo,
Japan
(2012)
Tourism
Area
Life-­‐Cycle
and
Regional
Tourism
AUrac1veness
Interna=onal
Conference
on
Tourism
&
Management
Studies,
Faro,
Portugal
(2011)
Territory,
Innova1on
and
Differen1a1on
in
Tourism
Hospitality
and
Tourism
Marke=ng
and
Management,
Washington
State
University
and
Bogazici
University,
Istanbul,
Turkey
(2011)
Regional
Tourism
Development:
Innova1on,
Compe11veness
and
Sustainability
Tourism
and
Science:
Bridging
theory
and
prac=ce,
UNWTO
and
University
of
Algarve,
Vilamoura,
Portugal
(2011)
Compe11veness
and
Sustainability
in
Tourism
Des1na1ons
Advances
in
Tourism
Economics,
APIDT,
Lisbon,
Portugal
(14-­‐04-­‐2011)
Sustainable
Tourism
and
Territorial
Differen1a1on
Cluster
2,
NECTAR,
Rome,
Italy
(22-­‐10-­‐2010)
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

11. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
4
other
ar%cles
on
Tourism
issues:
Romão,
J.,
Neuts,
B.,
Nijkamp,
P.,
Leeuwen,
E.S.
van
(2013)
Tourist
Loyalty
and
e-­‐
Services:
A
Comparison
of
Behavioural
Impacts
in
Leipzig
and
Amsterdam
[submi`ed]
Romão,
J.,
Neuts,
B.,
Nijkamp,
P.,
Leeuwen,
E.S.
van
(2013)
Urban
Tourist
Complexes
as
Mul1-­‐Product
Companies:
Market
Segmenta1on
and
Product
Differen1a1on
in
Amsterdam,
Tourism
Management
[re-­‐submi`ed
aber
peer-­‐review]
Neuts,
B.,
Romão,
J.,
Nijkamp,
P.,
Leeuwen,
E.S.
van
(2013)
Modelling
the
Complex
Components
of
Tourist
Loyalty,
in
Ma=as,
Nijkamp
and
Sarmento
(eds)
Advances
in
Tourism
Economics,
Springer-­‐Verlag
[approved]
Neuts,
B.,
Romão,
J.,
Nijkamp,
P.,
Leeuwen,
E.S.
van
(2013)
Digital
des1na1ons
in
the
tourist
sector:
a
path
model
for
the
impact
of
e-­‐services
on
tourist
expenditures
in
Amsterdam,
LeMers
in
Spa0al
and
Resource
Sciences
[approved]
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

12. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Ar%cle
on
Sustainability:
Romão,
J.,
Nijkamp,
P.,
Leeuwen,
E.S.
van,
Kour=t,
K.,
Ozasa,
T.
and
Komatsu,
M.
(2013)
Designing
a
Sustainable
University
Campus:
A
Mul1-­‐Criteria
Assessment
of
Value-­‐
based
Metrics
through
Living
Lab
Images
[submi`ed]
Communica%on
presented
at:
Interna1onal
Symposium
on
Crea1on
of
Sustainable
Campuses
(2012)
Hokkaido
University,
Sapporo,
Japan
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

13. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
2.
Conceptual
Framework
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

14. Territorial
Differen1a1on,
Compe11veness
and
Sustainability
of
Tourism
João
Romão
–
João
Guerreiro
–
Paulo
Rodrigues
UNWTO
(2000)
defines
tourists
as
“people
who
travel
to
and
stay
in
places
outside
their
usual
environment
for
more
than
twenty-­‐four
(24)
hours
and
not
more
than
one
consecu1ve
year
for
leisure,
business
and
other
purposes
not
related
to
the
exercise
of
an
ac1vity
remunerated
from
within
the
place
visited”
(in
Vanhove,
2005)
This
defini1on
clearly
exposes
the
dynamic
character
of
tourism
(travelling
to
a
des1na1on
that
is
different
from
the
residence
place
of
the
tourist)
and
a
sta1c
dimension
(related
to
the
experiences,
services
and
products
used
by
tourists
while
staying
in
a
specific
des1na1on).
At
the
same
1me,
it
simultaneously
exposes
the
global
(related
to
global
markets
and
interna1onal
travels)
and
the
local
character
of
tourism
(related
to
the
specific
condi1ons
of
each
par1cular
des1na1on).
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

15. Territorial
Differen1a1on,
Compe11veness
and
Sustainability
of
Tourism
João
Romão
–
João
Guerreiro
–
Paulo
Rodrigues
Des1na1on
and
Experience:
even
if
tourism
services
are
provided
by
a
large
number
of
companies,
tourists
perceive
des1na1ons
as
an
integrated
experience:
the
tourism
experience
is
a
result
of
mul1ple
products,
services
and
ac1vi1es
but
each
tourist
creates
his
own
image
of
a
des1na1on
aber
the
visit.
The
quality
of
the
tourism
experience
depends
on
the
sa1sfac1on
with
a
large
set
of
products
and
services
provided
in
each
des1na1on
and
can
vary
with
the
characteris1cs,
expecta1ons
and
mo1va1ons
of
each
tourist.
Tourism
des1na1ons
are
heterogeneous
mul1-­‐product,
mul1-­‐client
business
organiza1ons
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

16. Territorial
Differen1a1on,
Compe11veness
and
Sustainability
of
Tourism
João
Romão
–
João
Guerreiro
–
Paulo
Rodrigues
Innova1on
in
tourism
results
from
all
the
interac1ons
between
companies,
among
firms
and
costumers
(taking
benefits
from
the
increasing
interac1vity),
technological
developments
resul1ng
from
the
coopera1on
between
tourism
companies
and
R&D
ins1tu1ons
or
even
from
from
outside
the
tourism
sector
(like
the
developments
of
informa1on
and
communica1on
technologies)
As
tourism
supply
is
becoming
increasingly
complex
and
using
technologically
sophis1cated
means
of
communica1on,
tourism
is
an
increasingly
knowledge
based
ac1vity
globally
distributed,
where
innova1ons
have
a
global
diffusion.
Computer
Reserva1on
Systems
Global
Distribu1on
Systems
Geographical
Informa1on
Systems
Infography
and
design
Interac1ve
sobware
Massifica1on
of
the
internet
Massifica1on
of
mobile
phones
Web
2.0
Personalized
the
processes
of
communica1on
Costumer
Rela1on
Management
Media1za1on
of
tourism
and
tourist
informa1on
produced
by
tourists
Personal
blogs
Photography
and
video
websites
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

17. Territorial
Differen1a1on,
Compe11veness
and
Sustainability
of
Tourism
João
Romão
–
João
Guerreiro
–
Paulo
Rodrigues
The
processes
of
innova1on
based
on
local
specific
resources
cannot
be
imitated
and
they
definitely
can
contribute
to
the
differen1a1on
of
a
tourism
des1na1on.
Local
interac1on
between
producers
and
consumers
in
a
territory
enhances
the
importance
of
local
and
regional
innova1on
networks
for
tourism:
co-­‐terminality
of
produc1on
and
consump1on,
temporality
(produc1on
and
consump1on
occur
at
the
same
1me)
and
spa1ality
(consump1on
must
occur
in
the
place
where
services
are
produced)
imply
that
costumers
act
as
“co-­‐creators”
in
the
innova1on
process.
Tacit
knowledge
is
par1cularly
important
for
innova1on:
-­‐
necessary
to
codify
explicit
knowledge
-­‐
difficul1es
to
be
imitated
-­‐
larger
impacts
on
compe11veness.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

18. Territorial
Differen1a1on,
Compe11veness
and
Sustainability
of
Tourism
João
Romão
–
João
Guerreiro
–
Paulo
Rodrigues
The
differen1a1on
of
tourism
des1na1ons
ensuring
its
aUrac1veness
in
the
long-­‐run
depends
on
the
development
of
innova1ve
products
and
services
related
to
the
natural
and
cultural
characteris1cs
of
the
territory.
Monopolis1c
compe11on
with
other
des1na1ons,
based
on
differen1a1on
instead
of
a
cost-­‐leadership
compe11on,
leads
to
higher
posi1ve
impacts
on
the
local
economies
and
smaller
nega1ve
impacts
on
natural
and
cultural
resources.
Usage
of
local
natural
and
cultural
resources
for
tourism
ac1vi1es
must
consider
their
preserva1on
in
the
long
run
(pressure
on
degrada1on
and
limits
to
their
usage)
and
their
value
for
local
communi1es
(right
to
take
benefit
of
local
resources).
High
level
of
involvement
of
local
stakeholders
is
required,
in
order
to
avoid
a
path
“from
euphoria
to
antagonism”
(Doxey,
1976)
or
“from
euphoria
to
xenophobia”
(Wall
and
Mathieson,
2006)
in
the
way
that
local
communi1es
perceive
the
presence
of
tourists.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

19. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Innova1on
in
Tourism
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

20. Territorial
Differen1a1on,
Compe11veness
and
Sustainability
of
Tourism
João
Romão
–
João
Guerreiro
–
Paulo
Rodrigues
In
the
long
run,
compe11veness
of
tourism
des1na1ons
is
linked
to
their
sustainability.
In
order
to
sustain
the
characteris1cs
that
guarantee
aUrac1veness,
local
natural
and
cultural
aspects
must
be
included
in
the
tourism
supply,
crea1ng
a
differen1ate
product.
Des1na1ons
are
the
core
element
of
the
compe11on
and
experience
is
the
fundamental
product
in
tourism.
There
is
a
clear
meaning
for
the
firm
compe==veness
but
the
same
does
not
happen
when
regional
compe==veness
is
discussed
(Hall,
2007).
Compe==veness
should
not
be
applied
to
na=onal
economies
(Krugman,
1994).
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

21. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
The
usage
of
natural
and
cultural
resources
to
create
innova1ve
products
and
services
implies
an
adequate
management
that
ensures
their
sustainability:
Management
Sustainability
Natural
and
Cultural
Compe==veness
Resources
Innova=on
Differen=a=on
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

22. Territorial
Differen1a1on,
Compe11veness
and
Sustainability
of
Tourism
João
Romão
–
João
Guerreiro
–
Paulo
Rodrigues
“what
makes
a
tourism
des1na1on
truly
compe11ve
is
its
ability
to
increase
tourism
expenditure,
to
increasingly
aUract
visitors
while
providing
them
with
sa1sfying
experiences,
and
to
do
so
in
a
profitable
way,
while
enhancing
the
well-­‐being
of
des1na1on
residents
and
preserving
the
natural
capital
of
the
des1na1ons
for
future
genera1ons”.
Ritchie
and
Crouch,
2003
This
defini1on
makes
explicit
reference
to
the
ideas
of:
growth
(increasing
revenues
and
visitors),
sa1sfac1on
of
consumers
(sa1sfying
experiences),
posi1ve
consequences
on
the
local
communi1es
(well-­‐being
of
residents),
preserva1on
of
local
resources
(preserving
natural
capital)
and
1me
(future
genera1ons)
“Compe11veness
is
illusory
without
sustainability.
Indeed,
in
our
view
the
phrase,
sustainable
compe11veness,
is
tautological”.
Ritchie
and
Crouch,
2000
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

23. Territorial
Differen1a1on,
Compe11veness
and
Sustainability
of
Tourism
João
Romão
–
João
Guerreiro
–
Paulo
Rodrigues
Common
output
indicators
for
compe11veness
in
tourism
are:
the
number
of
arrivals
to
des1na1ons,
the
number
of
tourists
who
repeat
the
visit,
the
number
of
nights
in
local
accommoda1on
services,
market
shares,
produc1vity
or
the
revenues
generated
by
tourism
ac1vi1es.
From
the
input
side,
regarding
the
factors
influencing
competi1veness,
there
is
a
wide
range
of
possibili1es
considered
in
the
literature:
Kozak
(1999)
Dwyer
and
Kim
(2003)
Ritchie
and
Crouch
(2003)
Vanhove
(2005)
Mazanek
(2007)
Navickas
and
Malakauskaite
(2009)
Tsai
(2009)
”A
des=na=on
is
not
compe==ve
in
abstract
terms
but
against
relevant
compe=ng
des=na=ons;
in
order
to
evaluate
compe==veness,
it
is
necessary
to
understand
which
are
the
compe==ve
des=na=ons”
(Enright
and
Newton,
2005)
Management
and
tourism
development
policies
cannot
be
defined
in
abstract
and
in
generalized
ways,
but
must
be
adequate
to
the
specific
condi=ons
of
each
des=na=on:
universal
policy
and
managerial
recommenda=ons
can
lead
to
relevant
and
unwanted
nega=ve
consequences
(Enright
and
Newton,
2005)
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

24. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
The
TALC
model
(Butler,
1980)
defines
a
standard
for
the
evolu=on
of
tourism
des=na=ons
with
five
stages
(involvement,
explora=on,
development,
consolida=on
and
stagna=on)
Considering
the
limited
period
under
analysis
(six
years),
a
simplified
version
of
the
model
has
been
chosen,
with
3
stages.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

25. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
The
posi1on
of
each
region
was
iden1fied
in
two
steps:
The
growth
rate
of
nights
spent
by
tourists
in
each
region
in
the
period
2003
–
2008
allows
the
iden1fica1on
of
regions
with
high
rates
of
growth
(>2,5%
per
year).
As
it
is
assumed
that
the
development
stage
of
a
tourism
area
is
characterized
by
high
rates
of
growth
in
tourism
demand,
all
these
regions
are
posi1oned
in
the
“Development”
stage;
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

26. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
For
the
regions
with
low
(or
nega1ve)
rates
of
growth,
the
level
of
specializa1on
was
calculated
using
a
Loca1on
Quo1ent
related
to
the
employment
in
hotels
and
restaurants
(dividing
the
weight
of
employment
in
hotels
and
restaurants
in
each
region
by
the
weight
of
employment
in
hotels
and
restaurants
in
all
the
regions).
As
it
assumed
that
the
evolu1on
along
the
different
stages
is
characterized
by
an
increasing
importance
of
economic
ac1vi1es
related
to
tourism,
regions
with
higher
specializa1on
in
tourism
ac1vi1es
were
posi1oned
in
the
“Stagna1on”
stage
(meaning
that
tourism
is
economically
important
but
growth
rates
are
low)
and
regions
less
specialized
in
tourism
were
classified
in
the
“Explora1on”
stage
(meaning
that
tourism
is
economically
less
important
but
growth
rates
are
high).
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

27. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
In
this
study,
the
specific
situa1on
of
each
region
has
been
considered
including
aspects
related
to
Geography
and
History
(posi1on
in
the
Tourism
Area
Life
Cycle)
Geography:
Inland,
West
Coast
(Atlan1c)
and
South
Coast
(Mediterranean)
TALC:
Explora1on,
Development
and
Stagna1on
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

28. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
According
to
the
TALC
model,
un1l
a
certain
moment,
the
growth
of
tourism
in
a
region
is
characterized
by
a
growing
involvement
of
local
communi1es
and
impacts
on
local
economies.
Aber
that
point,
overexploita1on
of
tourism
resources
creates
pressure
on
the
local
environment
or
the
resident’s
life
quality,
reducing
the
aUrac1veness
of
the
place.
This
general
tendency
is
not
equally
observed
in
all
the
des1na1ons:
each
stage
can
have
a
different
dura1on
in
different
des1na1ons,
which
results,
not
only
from
the
evolu1on
of
the
des1na1on
itself
but
it
is
also
related
to
the
compe11on
with
rival
and
similar
places
or
to
the
evolu1on
of
demand
and
issuing
markets.
The
model
does
not
have
an
universal
applica1on
and
the
iden1fica1on
and
measurability
of
these
stages
is
not
always
clear,
or
even
possible,
due
to
the
absence
of
informa1on.
The
regional
unit
considered
in
this
study
(NUTS
2)
is
not
a
tourism
des1na1on:
many
of
these
regions
include
different
tourism
products,
not
necessarily
in
the
same
stage
of
development.
Although
this
model
defines
a
unique
standard
of
evolu1on,
at
least
in
the
first
stages,
it
also
emphasizes
the
dynamic
and
evolving
character
of
tourism
des1na1ons.
The
model
helps
to
iden1fy
general
tendencies,
to
an1cipate
problems
and
opportuni1es
and
to
create
adap1ve
strategies
to
respond
to
the
evolu1on
of
tourism
ac1vity.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

29. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
“it
is
clear
that
a
simple
model
like
the
TALC
cannot
predict
in
detail
the
future
of
a
specific
des1na1on
engaged
in
the
global
compe11on
that
is
tourism
today.
(...)
This
is
a
func1on
of
the
increasing
number
of
opportuni1es
and
op1ons
available
to
holiday
makers
in
the
21st
century.
A
unidirec1onal
linear
model
is
rela1vely
unlikely
to
give
an
accurate
predic1on
of
the
future
of
a
complex
product
subject
to
rapid
change
and
great
compe11on”
Butler
(2009)
The
iden1fica1on
and
measurability
of
these
stages
is
not
always
clear,
or
even
possible,
due
to
the
absence
of
sta1s1cal
informa1on,
namely
on
the
first
stages
of
evolu1on
of
a
tourism
des1na1on.
Even
with
the
existence
of
limits
to
the
predic1ve
possibili1es
of
the
model
and
to
the
precise
iden1fica1on
of
each
stage
in
the
evolu1on
of
a
des1na1on,
the
TALC
model
is
clearly
a
useful
tool
to
understand
the
evolving
character
of
tourism
areas,
their
change,
development,
muta1ons
of
the
compe11ve
advantage
determinants,
economic
impacts
and
environmental
or
cultural
consequences,
not
only
on
the
tangible
local
assets
but
also
on
intangible
aspects
of
local
daily
life.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

30. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Since
the
dura1on
of
the
life
cycle
of
the
tourism
des1na1ons
considered
in
this
study
is
rela1vely
long
(organized
and
ins1tu1onalized
tourism
started
to
develop
in
the
second
half
of
the
XX
century
in
most
of
these
regions
but
other
forms
of
leisure
and
tourism
existed
already
before
that),
this
implies
that
the
dura1on
of
each
stage
considered
in
this
study
is
also
long,
which
means
that
regions
classified
in
the
same
stage
can
s1ll
show
important
differences
among
them.
Andalucía
(Spain)
is
a
region
with
a
long
tradi1on
in
tourism
ac1vi1es,
while
Azores
(Portugal)
or
Extremadura
(Spain)
have
a
much
more
recent
tradi1on.
However
all
of
them
are
classified
in
the
development
stage
as
a
result
of
the
high
growth
rates
of
tourism
demand
registered
in
these
years.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

31. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
3.
Panel
Data
Model
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

32. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
This
work
analyses
how
the
regions
(NUTS
2)
of
south-­‐west
Europe
are
incorpora1ng
their
natural
and
cultural
resources
in
order
to
reinforce
their
aUrac1veness,
using
a
panel-­‐data
model
to
es1mate
a
regional
demand
func1on
(for
2003
–
2008)
that
incorporates
new
and
tradi1onal
factors
of
tourism
compe11veness.
67
regions
were
analysed
(17
in
Spain,
22
in
France,
21
in
Italy;
7
in
Portugal).
NUTS
2
regions
are
the
unit
of
analysis
considering
the
availability
of
comparable
data
and
the
existence
of
ins=tu=ons
related
to
economic
development,
cultural
and
natural
resources
management
and
tourist
promo=on.
Nevertheless,
these
regions
can
include
different
tourism
des1na1ons
and
products.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

33. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
The
posi1ons
of
these
coun1es
in
the
Travel
and
Tourism
Compe11veness
Index
are
clearly
above
their
posi1ons
in
the
Global
Compe11veness
Index
(World
Economic
Forum,
2008)
Tourism
Global
Compe11veness
Compe11veness
Spain
5
29
France
10
16
Portugal
15
43
Italy
28
49
In
2008,
these
countries
registered
48,5%
of
the
nights
spent
in
European
hotels
and
similar
establishments.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

34. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
The
dependent
variable
in
this
model
is
the
number
of
nights
spent
by
tourists
in
hotels
and
similar
establishments
in
each
region,
which
we
assumed
to
be
a
proxy
to
regional
tourism
compe11veness.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

35. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
10
regions
represent
50%
of
the
overall
number
of
nights
in
hotels
and
similar
establishments.
Nights in Hotels Annual Growth Nights in Hotels % Acum. %
Açores (PT) 6,6 Canarias (SP) 7,8 7,8
Com. de Madrid (SP) 6,6 Ile de France (FR) 6,2 14,0
Lisboa (PT) 6,4 Calatuña (SP) 5,8 19,7
Lazio (IT) 5,7 Illes Balears (SP) 5,5 25,3
Aragón (SP) 5,4 Veneto (IT) 5,5 30,8
Castilla-Mancha (SP) 5,3 Andalucia (SP) 5 35,8
Piemonte (IT) 5,3 Toscana (IT) 3,8 39,6
Extremadura (SP) 5,1 Emilia-Romagna (IT) 3,5 43,1
Castilla León (SP) 4,9 Com. Valenciana (SP) 3,5 46,6
País Vasco (SP) 4,7 Prov-Alp-C. d’Azur (FR 3,2 49,8
Centro (PT) 4,4
La Rioja (SP) 4,3
It
is
possible
to
iden1fy
the
importance
Navarra (SP) 4,1 of
the
capital
ci1es,
sugges1ng
the
growing
relevance
of
urban
and
cultural
tourism.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

36. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
New
factors
of
compe11veness:
It
is
assumed
that
local
natural
and
cultural
assets
are
the
basis
for
the
differen1a1on
of
tourism
des1na1ons
according
to
the
characteris1cs
of
the
territory
but
it
is
also
important
to
no1ce
that
availability
of
these
assets
does
not
necessarily
mean
that
they
are
exploited
as
tourism
resources:
it
means
that
such
poten1al
exists
at
the
regional
level
and
that
their
exploita1on
The
model
also
considers
some
implies
an
effort
for
the
development
of
innova1ve
Tradi1onal
factors
of
compe11veness
products
and
services.
(aspects
related
to
economic
condi1ons
and
infrastructures)
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

37. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
The
new
factors
that
determine
the
compe11veness
of
tourism
des1na1ons
include
local
specific
resources
related
to
nature
and
culture.
These
resources
are
considered
as
a
poten1al
(not
necessarily
as
tourism
products).
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

38. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Regional
efforts
on
innova1on
are
considered
in
the
model
under
the
assump1on
that
those
local
specific
poten1ali1es
require
innova1ve
efforts
at
regional
level
in
order
to
contribute
to
differen1ate
des1na1ons.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

39. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Some
tradi1onal
factors
of
compe11veness
were
also
considered:
economic
condi1ons
(investment
in
hotels
and
restaurants;
evolu1on
of
GDP
in
na1onal
markets
and
at
UE15,
as
the
main
interna1onal
market)
performance
of
rival
des1na1ons
in
south-­‐east
European
countries
(number
of
nights
in
hotels
from
Turkey,
Greece,
Croa1a
and
Cyprus)
infrastructures
(accommoda1on
and
existence
of
interna1onal
airports)
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

40. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Geography
and
History:
The
geographical
situa1on
of
each
region
and
its
posi1on
in
the
Tourism
Area
Life
Cycle
were
taken
into
considera1on
using
dummy
variables:
Inland,
West
–
Coast
and
South
–
Coast
Explora1on,
Development
and
Stagna1on
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

41. Territorial
Differen1a1on,
Compe11veness
and
Sustainability
of
Tourism
João
Romão
–
João
Guerreiro
–
Paulo
Rodrigues
Panel
data
models
include
cross-­‐sec1onal
data
that
reflect
the
differences
among
regions
and
1me-­‐series
data
that
reflect
the
evolu1on
along
1me.
Aber
fiung
some
alterna1ve
regressions
and
transforma1ons
on
the
variables,
the
best
results
were
obtained
with
a
Pooling
Effects
Model
and
applying
logarithms
to
the
variables
“nights”,
“beds”,
“GDP”,
“GDP
EU15”,
“Invest”
and
“Rivals”.
In
a
Polling
Effects
Model,
there
are
no
unique
aUributes
of
individuals
or
universal
effects
along
1me.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

42. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
The
final
model
was
expressed
as:
Lognights
it
=
ß0
+
ß1
logbeds
it
+
ß2
air
it
+
ß3
log
GDP
it
+
ß4
loginvest
it-­‐1+
ß5
ST
it
+
ß6
Heritage
it
+
ß7
Natura
it
+
ß8
GEO1
it
+
ß9
GEO2
it
+
ß10
TALC
1
it
+
ß11
TALC
2
it
Estimate St. Error t-value Pr(>|t|) Sign.
Intercept 13,82722 1,19577 11,5635 <2,2e-16 0
Es1mators:
logbeds 0,70682 0,02825 25,0186 <2,2e-16 0
air 0,13708 0,04335 3,1619 0,00169 0,001
loginvest 0,23912 0,02206 10,8385 <2,2e-16 0
logGDPn -0,93440 0,12630 -7,3984 8,531e-13 0
ST 1,12374 0,22830 5,0099 8,272e-7 0
Heritage 0,02378 0,00939 2,7467 0,00630 0,001
Natura 0,68802 0,19776 3,4791 0,00056 0
Some
variables
were
not
sta1s1cally
relevant:
Geo1 -0,06182 0,03823 -1,6173 0,10661 0,1
“GDPUE15”;
Geo2 -0,29830 0,04416 -6,7558 5,184e-11 0
“Rivals”;
TALC1 -0,27510 0,04359 -6,3116 7,516e-10 0
“Educa1on”.
TALC2 -0,22706 0,04389 -5,1735 3,681e-7 0
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

43. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Descrip1ve
sta1s1cs
In
order
to
iden1fy
possible
problems
of
mul1collinearity
among
the
independent
variables,
a
VIF
(Variance
Infla1on
Factor)
test
has
been
calculated.
It
is
accepted
that
problems
of
mul1collinearity
can
be
relevant
when
VIF
is
above
10.
In
this
model,
the
VIF
test
presents
values
below
5
for
all
the
independent
variables.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

44. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
As
the
model
includes
some
dummy
variables,
it
is
possible
to
organize
its
results
according
to
the
groups
that
result
from
those
variables,
which
have
different
independent
terms,
reflec1ng
different
overall
impacts
of
the
independent
variables
on
the
regional
tourism
demand
in
each
group.
Generally,
these
impacts
are
higher
in
the
South
Coast
regions
and
lower
in
the
West
Coast.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

45. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
4.
Discussion
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

46. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
The
posi1ve
impact
of
new
factors
of
compe11veness
detected
by
this
model
is
the
most
important
result
of
its
applica1on.
It
was
possible
to
observe
that
natural
resources,
heritage
assets
and
regional
efforts
on
innova1on
are
posi1vely
related
with
regional
tourism
compe11veness.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

47. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
The
results
also
show
an
expected
posi1ve
correla1on
between
the
existence
of
infrastructures
(beds
and
airports),
investment
in
hotels
and
restaurants
and
the
regional
tourism
compe11veness.
The
nega1ve
correla1on
found
between
the
nights
spent
in
a
region
and
its
na1onal
GDP
suggests
that
countries
where
tourism
is
more
important
are
economically
less
developed,
implying
that
this
variable
was
not
relevant
to
iden1fy
the
influence
of
the
evolu1on
of
na1onal
economic
condi1ons
on
the
domes1c
tourism
demand.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

48. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Tourism
development
policies
require
coordina1on
among
different
management
ins1tu1ons,
namely
those
related
to
economic
development,
promo1on
of
innova1on,
tourism
des1na1on
management,
environmental
protec1on
or
cultural
promo1on.
In
order
to
ensure
that
these
processes
effec1vely
benefit
local
popula1ons,
local
stakeholders
should
necessarily
be
involved.
According
to
these
principles,
ins1tu1onal
coordina1on
is
a
major
challenge
for
tourism
development
based
on
local
and
natural
assets,
considering
the
need
to
involve
a
large
set
of
private
companies
and
public
en11es,
frequently
with
different
perspec1ves
and
objec1ves,
in
the
processes
of
tourism
development
planning.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

49. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
For
des1na1ons
in
the
earlier
stages
of
their
life
cycle
(explora1on),
it
is
important
to
create
adequate
infrastructures,
develop
new
services,
guarantee
a
good
level
of
qualifica1ons
of
the
workers
(namely
with
knowledge
of
different
languages),
iden1fy
poten1al
markets
and
implement
adequate
promo1onal
strategies.
Sustainable
development
and
long-­‐term
advantages
will
be
easier
to
reach
if
carrying
capacity
of
local
resources
is
considered
since
the
beginning
(with
an
adequate
process
of
land-­‐use
planning),
the
involvement
of
local
stakeholders
is
ensured
and
ins1tu1onal
coordina1on
is
promoted.
For
the
regions
in
the
“development”
stage,
it
is
important
to
control
the
excessive
pressure
on
the
territory
resul1ng
from
poten1al
excessive
demand
(at
least
in
some
periods
of
the
year),
develop
alterna1ve
products
and
services
in
order
to
avoid
seasonality
and
try
to
improve
the
quality
of
the
experience
offered
by
the
des1na1on,
through
an
improvement
of
the
products
and
services
locally
provided.
Increasing
value
added
in
local
supply
becomes
more
important
than
increasing
the
number
of
visitors.
For
the
regions
in
the
late
stages
of
the
life-­‐cycle
(like
stagna1on),
new
products
or
new
markets
are
essen1al
for
tourism
development
but,
considering
the
extreme
global
compe11on
among
tourism
des1na1ons,
it
is
also
important
that
those
local
resources
have
not
been
destroyed
by
an
excessive
usage
in
the
previous
stages.
In
this
stage,
the
priori1es
should
focus
on
the
reposi1oning
of
tourism
supply,
crea1ng
and
promo1ng
new
products
and
services,
based
in
new
approaches
to
local
specific
resources.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

50. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Limits
and
developments:
Regional
Unit:
NUTS
2
regions
as
the
unit
of
analysis
can
hide
some
possible
intra-­‐regional
differences
related
to
different
tourism
products
developed
inside
the
same
region,
eventually
with
different
posi=ons
in
their
life
cycles.
Further
developments
of
this
work
can
include
a
shib
in
the
scale
of
analysis,
for
example
using
data
for
NUTS
3
regions,
if
there
is
enough
informa=on
on
the
relevant
topics.
Period
and
Territory:
This
study
took
into
considera=on
a
period
of
six
years,
ending
in
2008.
Aber
that,
an
important
interna=onal
economic
crisis
with
deep
implica=ons
on
the
revenues
and
the
behavior
of
consumers
at
the
global
level
occurred,
with
relevant
nega=ve
impacts
on
tourism.
Enlarging
the
number
of
regions
and
the
period
under
analysis,
including
the
most
recent
years,
could
contribute
to
iden=fy
different
impacts
of
economic
crisis
on
tourism
des=na=ons
and
to
compare
the
evolu=on
of
the
a`rac=veness
in
tourism
regions
with
different
characteris=cs.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

51. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Markets:
Including
some
explanatory
variables
related
to
the
rela=ve
importance
of
each
market
for
each
des=na=on
(and
their
specific
evolu=on
in
the
context
of
this
economic
crisis
and
recovery)
can
also
increase
the
predic=ve
capability
of
the
model.
In
the
same
sense,
it
may
be
important
to
include
in
the
model
informa=on
related
to
produc=on
costs
(although
there
is
a
very
relevant
part
of
tourism
expenses
which
is
not
controlled
at
the
regional
level).
Ins1tu1ons:
The
considera=on
of
aspects
related
to
des=na=on
management
and
promo=on,
ins=tu=onal
organiza=on
or
involvement
of
local
communi=es
in
the
process
of
tourism
development
is
extremely
important,
despite
the
difficulty
to
obtain
relevant
comparable
data.
Life
Cycle:
Indicators
related
to
the
resident’s
percep=ons
about
tourism
could
also
be
included
in
order
to
iden=fy
the
posi=on
of
each
region
in
the
Tourism
Area
Life
Cycle
model.
More
detailed
informa=on
about
the
first
and
last
stages
of
the
model
could
be
useful,
implying
the
considera=on
of
longer
periods.
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

52. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Sustainability:
Cultural
and
natural
assets
were
taken
into
considera=on
as
locally
available
resources
but
it
would
surely
be
more
interes=ng
to
evaluate
them
as
tourism
products.
Ques=ons
related
to
carrying
capacity
and
the
possible
excessive
usage
of
natural
resources
or
commodifica=on
of
cultural
community
values
should
be
also
important
elements
to
consider,
despite
their
difficult
quan=fica=on
and
comparison
at
interna=onal
level.
Regional
and
Societal
Development:
“Social
sustainability”,
or
the
spreading
of
benefits
to
local
communi=es,
could
be
considered
including
indicators
like
the
regional
employment
in
tourism
ac=vi=es,
stability
of
jobs
or
wages.
Innova1on:
The
regional
processes
of
innova=on
can
also
be
analyses
in
more
detail,
in
order
to
try
to
iden=fy
the
regional
dynamics
of
innova=on
specifically
in
the
tourism
sector,
namely
when
it
is
related
to
the
usage
of
communica=on
and
informa=on
technologies
or
the
capacity
to
produce
new
technological
solu=ons
for
tourism
(considering
the
number
of
registered
patents
or
other
indicators)
and
their
impacts
on
regional
tourism
compe==veness.
Methodologies:
Other
sta=s=cal
tools
and
methodologies
could
be
applied
to
this
king
of
study,
such
as
Simultaneous
Equa=on
Models
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012

53. Tourism
and
Territorial
Differen1a1on:
An
Analysis
of
the
Compe11veness
and
Sustainability
of
Tourism
Thank
you
for
your
aUen1on
PhD
Program
in
Tourism
–
Faculty
of
Economics
–
University
of
Algarve
-­‐2012