IJSRP, Volume 6, Issue 4, April 2016 Edition [ISSN 2250-3153]
Ramazan Göral
Abstract:
If countries want to develop and boost their tourism industry, it should be paid attention to comparative price competition especially among rival destinations. Because there is a broad consensus that touristic demand is responsive to prices. In this regard, this study aims to analyze by comparing the price competition of 10 countries where we can consider as rival destinations in the international tourism market to Turkey. Data on goods and service price of countries where World Bank had prepared within the scope of International Comparison Program (ICP) programme (2011) were used in price analysis. Based on these data, total weighted costs of goods and services in the tourism product basket were calculated for 10 different destinations. In the study, purchasing power parity and exchange rates were determined based upon Turkey. Results of analysis suggest that Jordan and Tunisia among 10 destinations have the strongest price competitiveness, however indicating that France and Italy have the weakest price competitiveness.