International tourism is expected to be a major vehicle of
economic development in industrializing countries in the 21st
century, especially for Asia. To generate long-term growth,
countries with tourism-based economies must develop strategies for
employing their comparative advantages to achieve competitive
advantages. However, competitiveness in the tourist industry is
multi-dimensional and complex. This study evaluates the
competitiveness of the Taiwanese tourism sector by a
multi-dimensional framework. The theoretical model proposes that
the competitiveness of tourist destinations should be composed of
Ricardian comparative advantages (like the conditions of natural
endowments and the degree of technological change); Porterian
competitive advantages; tourism management, i.e., providing high
quality education and job training, public goods, support services
and reduced transaction costs to enhance comparative and
competitive advantages; and environmental conditions.
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