How competitive is Hong Kong against its competitors? An econometric study

Abstract

Highlights• The AIDS model is used to examine Hong Kong's competitiveness as a tourist destination in comparison with its competitors.• The empirical findings show that a destination's competitiveness should be examined from a market-specific perspective.• Hong Kong is more competitive than Macau in terms of its ability to attract Australian and mainland Chinese tourists.• Singapore and South Korea are more competitive than Hong Kong as suggested by the price elasticities. AbstractThis study utilizes almost ideal demand system (AIDS) models to examine Hong Kong's competitiveness as an international tourist destination in comparison with its competitors. The empirical findings of the study shed new light on the destination competitiveness literature and demonstrate that a destination's competitiveness should be examined from a market-specific perspective. The results also suggest that Hong Kong is more competitive than Macau, particularly in terms of its ability to attract Australian and mainland Chinese tourists, while price elasticity calculations suggest Singapore and South Korea are more competitive than Hong Kong.

New developments in tourism and hotel demand modeling and forecasting

“…Athanasopoulos et al, 2014). Furthermore, Li et al (2013) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 Gholipour et al, 2014;Yang et al, 2014a). Panel data analysis incorporates information from both time series and cross-sectional dimensions and is therefore especially efficient when the time series are short but cross-sectional data are available.…”

Analysis of the Competitiveness of Indonesia Tourism Price Compared to the Competitors (Demand Elasticity Approach)

“…Two literatures applying AIDS model to analyze tourism competitiveness are Mangion et al (2005) and Li et al (2013). Mangion et al (2005) concluded that the level of price sensitivity of British tourists demand varies for each destination in the Mediterranean region; so it is important for each destination to monitor relative price competitiveness between these destinations to attract more tourists' spending.…”

“…A Research done by Li et al (2013) bridged the gap. Li et al (2013) analyzed the price competitiveness of Hong Kong as an international tourist destination compared to competitor countries (Macau, Singapore and South Korea), from the viewpoints of tourists from Australia, China, Japan, Taiwan, the UK and the US.…”

What Really Matters is the Economic Performance: Positioning Tourist Destinations by Means of Perceptual Maps

“…We aim to contribute to tourism research literature by analysing how the dynamic interactions between the main tourist and economic indicators ultimately affected the positioning of destinations since the turn of the century. Li et al (2013) noted the importance of the economic dimension in determining destinations competitiveness. Song et al (2012) pointed out that one of the limitations of most tourism studies is the omission of economic indicators and the lack of attention paid to economic return.…”

“…Several authors have pointed out the importance of working with growth rates instead of levels (Li et al, 2013), since most tourism variables are non-stationary due to its steady growth (Chu et al, 2014).…”