Economic Conditions, Tourism Destination Competitiveness and Tourism Performance: Unravelling the Dynamics in Middle-Income Countries

• Published in: TOURISM & MANAGEMENT STUDIES
• Main Authors: Hossain, Md. Kaium; Hanafiah, Mohd Hafiz; Hamid, Abu Bakar Abdul
• Format: Article
• Language: English
• Published: ESCOLA SUPERIOR GESTAO HOTELARIA & TURISMO, UNIV ALGARVE 2025
• Subjects: Social Sciences - Other Topics
• Online Access: https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001435627000001

This study examines the role of economic conditions in moderating the relationship between tourism destination competitiveness (TDC), tourism performance (TP), and quality of life (QoL) in middle-income countries (MICs). Using a quantitative approach with data from 67 MICs-including upper-middle-income countries (UMICs) and lower- middle-income countries (LMICs)-the research employs Partial Least Squares-Structural Equation Modelling (PLS-SEM) and Multi-Group Analysis (MGA). Findings reveal that in UMICs, economic conditions significantly moderate the effects of destination management and environmental quality on tourism performance. However, no significant moderation is found for core resources, supporting resources, or tourism prices. In LMICs, economic conditions significantly influencethe relationship between tourism performance and quality of life, suggesting that effective tourism management can enhance residents' well-being. The study underscores the importance of tailoring tourism policies to economic conditions, highlighting the need for UMICs to fully address economic leakage to realise tourism benefits. This research contributes to understanding how economic conditions shape tourism dynamics and provides insights fortourism policymaking in MICs.