Do Hotel Chains Improve Destination's Competitiveness?

Abstract

The paper investigates the impact of hotel chains’ presence in a destination on their competitiveness through cross-section regression analysis of 116 countries. Results reveal that a destination’s competitiveness is positively and significantly influenced by the number of affiliated hotels and rooms in affiliated hotels in the destination. The market share of hotel chains in a destination’s hotel industry does not influence its competitiveness. Results further indicate that the general business environment (country’s level of corruption and globalisation) has a positive and stronger impact on a destination’s competitiveness than the presence of hotel chains. Destination management implications, limitations and directions of future research are also elaborated.

Keywords: hotel chain, destination competitiveness, macroenvironment, Travel and Tourism Competitiveness Index, Corruption Perception Index