Competitiveness analysis of tourism in the European Union and in the Slovakia

Abstract

In the last three decades, tourism has become one of the most dynamic sectors in many countries, providing significant benefits to their economies. Consequently, countries are interested in developing this sector with the aim of increasing tourists and visitors inflow in to their countries and the corresponding financial contribution to the national budget and other economic benefits this would attract. The main objective of this study is to analyse the competitiveness position of tourism in European Union (EU) countries for the period of 2015 and 2017 based on the Travel & Tourism Competitiveness Index (TTCI). The study also identifies the factors that impacts countries’ competitive positions with a focus on Slovakia. Using cluster analysis for three selected macroeconomic indicators - tourism revenues, tourism expenditures and gross domestic product per capita in tourism – the study also includes an analysis of the competitiveness of the EU countries based on own assessment. Results shown that the TTCI is not influenced by revenues, expenditures or gross domestic product in tourism. So, Slovakia should focus on improving such factors as efficiency of legal framework in settling disputes; the effect of taxation on incentives on work hiring and firing practices; government prioritization of travel and tourism industry and effectiveness of marketing and branding to attract tourists.