An Extended Gravity Model: Applying Destination Competitiveness

Due to the substantial growth of tourism, various studies have employed different forms of gravity models. However, previous models had limitations in terms of generalizing their results. This is primarily due to their focus on specific regions or variables for special events or components of tourism. Thus, the primary objective of this study was to present an extended gravity model that can more generally explain tourism flows. This study adopted components of destination competitiveness as complementary variables and a panel data framework to include the cross-sectional and time effects in the model. The result showed that the proposed model had greater explanatory power than traditional gravity models. Additionally, along with gravity variables, destination competitiveness components, such as natural and cultural resources, general and tourism infrastructure, price competitiveness, and openness, had significant effects on tourism flows. Further discussion and implications are provided in the main body of this paper