Open AccessEffects of Price Competitiveness on Tourism Performance under Different Economic Conditions
Author(s) -
Ilija Stojanović,
Adis Puška,
Nasiha Osmanović,
Aleksandar Maksimović
Publication year - 2021
Publication title -
tourism
Language(s) - English
Resource type - Journals
eISSN - 1849-1545
pISSN - 1332-7461
DOI - 10.37741/t.69.4.5
Subject(s) - tourism , moderation , business , mediation , empirical research , industrial organization , economics , marketing , political science , psychology , social psychology , philosophy , epistemology , law
Manyscholars perceive price competitiveness as a highly relevant element of tourismcompetitiveness in improving tourism performance. We focused our researchinterest specifically to understand whether price competitiveness is animportant policy instrument in attracting international tourists and theirspending. Our empirical study focused on how price competitiveness behaves as apredictor of tourism performance in different economic conditions and whetherprice competitiveness is a significant cause of tourism competitiveness in improvingtourism performance. For that purpose, we conducted empirical analysis withintwo stages: moderation analysis to understand how price competitiveness influencestourism performance from the point of view of inbound international tourism andhow this relationship behaves in different economic conditions; and mediationanalysis to understand whether price competitiveness is relevant cause fortourist competitiveness in improving tourism performance. This study hasrevealed different views about price competitiveness and its influence on thetourism industry. The findings indicate that price competitiveness has ratherlimited effects on the outcomes of the tourism industry and is not a cause ofoverall tourism competitiveness in improving tourism performance.