THE PRICE COMPETITIVENESS OF TOURISM DESTINATIONS: A SOUTH AFRICAN CASE STUDY

Competitiveness amongst people, nations and products has always existed. Having an advantage over your competitor is something which seems to be part of humankind since our first breath. Measuring tourism competitiveness in general is a complex task due to the fact that it is a multidimensional concept, made up of various elements and components, each of different value to the tourist. Worldwide, the tourism industry has been identified as an important vehicle for economic growth and therefore it has become relevant to study the factors driving tourism competitiveness. Tourism has been identified as the biggest opportunity for economic growth in many countries and its value stands out as an important role player also in world economies. One of the many challenges a destination is faced with is being price competitive and to be regarded as a tourist destination that offers value for money. Prices that tourists pay for products and services used at the destination play an important role in their decision-making process. In economic challenging conditions, the tourist has become more price sensitive and value for money driven than before when choosing a destination. Various competitiveness monitors and models have been developed, aimed at measuring prices, yet proper implementation has been difficult due to their complexity and lack of availability of data. In this research an International Travel Price Index (ITPI) is developed to objectively monitor and measure tourism price fluctuations and deviations. This index enables statistical evaluation, comparison and will monitor the cost of the major products that international tourists spent money on whilst visiting South Africa.