The price competitiveness of small island states as tourist destinations

Abstract

This paper attempts to assess one of the greatest challenges encountered by small island states to find appropriate economic activities which generate income for their citizens. In spite of their small size, such states often succeed in competing internationally in tourism, principally due to their tropical location and their “islandness” which is often a tourist attraction in itself. However, price competitiveness is very important for the tourist industry of small island states, which have to compete intensely between themselves, and with larger countries, such as Spain, France, Mexico, and others, which have very similar sun and sea attractions to those offered by small island states.