How competitive is Hong Kong against its competitors? An econometric study

This study utilizes almost ideal demand system (AIDS) models to examine Hong Kong's competitiveness as an international tourist destination in comparison with its competitors. The empirical findings of the study shed new light on the destination competitiveness literature and demonstrate that a destination's competitiveness should be examined from a market-specific perspective. The results also suggest that Hong Kong is more competitive than Macau, particularly in terms of its ability to attract Australian and mainland Chinese tourists, while price elasticity calculations suggest Singapore and South Korea are more competitive than Hong Kong.

► The AIDS model is used to examine Hong Kong's competitiveness as a tourist destination in comparison with its competitors.
► The empirical findings show that a destination's competitiveness should be examined from a market-specific perspective.
► Hong Kong is more competitive than Macau in terms of its ability to attract Australian and mainland Chinese tourists.
► Singapore and South Korea are more competitive than Hong Kong as suggested by the price elasticities.