Sensitivity analysis of travel and tourism competitiveness Index to changes in component weighting

Abstract

The competitiveness of the tourism industry in contemporary business conditions is a key factor for the success and survival on the market. In this regard, it is very important that not only companies, but also national tourism economies, monitor the level of competitiveness they have reached in order to get directive on how to further improve their business. One of the important indicators of the competitiveness of tourism at the level of national economies is the Travel and Tourism Competitiveness Index (TTCI) created by the World Economic Forum (WEF). However, there are different opinions in the literature about the methodology of this Index, especially when it comes to attributing significance to each variable that is an integral part of it. The subject of research in this paper is the methodology of the Tourism and Travel Competitiveness Index. The aim is to analyze the sensitivity of this Index to changes in the relative importance of the involved variables. The result of the research is to weight the variables within the Index and to obtain new values of subindices that determine the new, different ranking of countries on the world list according to tourism competitiveness.