What is National Competitiveness

Numerous studies suggest that an increase in a destination's brand equity can lead to greater competitiveness of the destination by influencing consumer behavior through the greater possibility of destination selection, increased destination loyalty, and a willingness to pay more to visit the destination. However, some studies seem to lend support to the reverse causal argument: that certain destination competitiveness attributes can be the antecedents of a destination's brand equity. This chapter posits that destination competitiveness can be classified into two components: (1) “functional attributes” being the antecedent of destination brand equity and (2) “abstract attributes” that is actually influenced by destination brand equity. A Delphi-survey was conducted to assist in the classification of competitiveness attributes into the components of either functional or abstract attributes. Subsequent tests confirm the mediating effect of destination brand equity in the relationship between the functional and abstract attributes.