15
International Competitiveness in Hot Springs Tourism: An Application of the Analytical Hierarchy Process Approach This is the Published version of the following publication Lee, Cheng-Fei and King, Brian (2010) International Competitiveness in Hot Springs Tourism: An Application of the Analytical Hierarchy Process Approach. Tourism Analysis, 15 (5). pp. 531-544. ISSN 1083-5423 The publisher’s official version can be found at http://www.ingentaconnect.com/content/cog/ta/2010/00000015/00000005/art00002? token=004d1475bd7639412f415d7670255f7b517b465f4151432530482972715a614f6d4 e227a4c102 Note that access to this version may require subscription. Downloaded from VU Research Repository https://vuir.vu.edu.au/7006/

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Page 1: International Competitiveness in Hot Springs Tourism: An

International Competitiveness in Hot Springs Tourism An Application of the Analytical Hierarchy Process Approach

This is the Published version of the following publication

Lee Cheng-Fei and King Brian (2010) International Competitiveness in Hot Springs Tourism An Application of the Analytical Hierarchy Process Approach Tourism Analysis 15 (5) pp 531-544 ISSN 1083-5423

The publisherrsquos official version can be found at httpwwwingentaconnectcomcontentcogta20100000001500000005art00002token=004d1475bd7639412f415d7670255f7b517b465f4151432530482972715a614f6d4e227a4c102Note that access to this version may require subscription

Downloaded from VU Research Repository httpsvuirvueduau7006

Tourism Analysis Vol 15 pp 531ndash544 1083-542310 $6000 + 00Printed in the USA All rights reserved DOI 103727108354210X12889831783233Copyright 2010 Cognizant Comm Corp wwwcognizantcommunicationcom

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM

AN APPLICATION OF THE ANALYTICAL HIERARCHY PROCESS APPROACH

CHENG-FEI LEE and BRIAN KINGdagger

Department of Marketing Management Shih Chien University Neimen ShiangKaohsiung Campus Taiwan ROC

daggerCentre for Tourism and Services Research Victoria University Melbourne Australia

This study provides an evaluation of the potential of Taiwanrsquos hot springs tourism sector by pro-posing a model of competitiveness that has broad applicability to hot springs destinations Usingthe analytic hierarchy process method to generate weightings for the various elements which con-tribute to destination competitiveness the study prioritizes aspects of hot springs tourism whichwould benefit from further development A panel of experts commented on the relative competi-tiveness of hot springs tourism in Taiwan and Japan and concluded that hot springs proprietorsneed to reinforce their conservation efforts and engage in the sustainable use of hot springs andsurrounding environments They noted that governments should formulate and implement strategicdestination planning and development to avoid a repetition of previous mistakes The increasingTaiwanese preoccupation with good health and longevity and Taiwanrsquos rich endowment of high-grade natural hot springs produces a favorable environment development of the hot springs tourismsector It also offers business opportunities to extend the appeal of hot springs tourism into healthprotection and medical treatment The article concludes that Taiwanrsquos hot springs tourism sectorhas a promising future but that concerted effort will be needed to match the product offerings ofits competitors

Key words Hot springs tourism Comparative analysis Destination competitivenessAnalytical hierarchy process

Background to finance plan and develop destination develop-ment around such hot springs and to promote visi-tation Although well established in Western soci-A growing body of scientific evidence indicates

that the minerals that may be extracted from cer- eties spa and hot springs tourism is a relativelyrecent phenomenon in Asia (Henderson 2004)tain springs have properties capable of curing or

easing various ailments The economic value Within Asia Japan has successfully positioned it-self by leveraging its distinctive bathing cultureattached to such attributes has led many countries

Address correspondence to Cheng-Fei Lee Assistant Professor Department of Marketing Management Shih Chien University No200 University Rd Neimen Shiang Kaohsiung Campus Taiwan 845 ROC Tel 886-076678888 ext 6126 Fax 886-076678888ext 4251 E-mail fei1999hotmailcom

531

532 LEE AND KING

and the richness and diversity of the healing pow- increasing percentage of the Taiwanese populationhave visited hot springs and the quality of the hoters offered by natural hot springs Visiting hot

springs is one of the most popular motivations for springs tourism experience for domestic touristshas improved However Taiwan is not yet com-travel within Japan (Kobayashi 2000) Japan is

Taiwanrsquos major inbound leisure market and Japa- petitive internationally The amenity of many pub-lic and commercial facilities located in hot springsnese bathing habits and preferences have helped

to shape the hot springs and spa tourism market areas has been degraded through a lack of repairand maintenance In addition many hot springsTaiwan has recently emerged as a regional desti-

nation promoting its abundant hot springs re- proprietors have not incorporated the surroundingenvironment within the hot springs experience insources both domestically and internationally

Taiwanrsquos location on the fault line between the the most aesthetic sense In recognition of thislimitation a framework is needed to measure andEuro-Asian and Philippine continental plates has

led to an abundant distribution of high-quality nat- analyze the potential of the sector domesticallyand internationally A model of destination com-ural hot springs which offers a strong foundation

for its development as a desirable hot springs tour- petitiveness could assist industry and governmentstakeholders to identify destination strengths andism destination Development dates back to 1894

when the Peitou hot springs were exploited to cre- weaknesses to highlight opportunities and to com-bat potential threats to development and visitationate a small-scale local spa During the Japanese

occupation (1895ndash1945) the colonial authorities (Dwyer Mellor Livaic Edwards amp Kim 2004)Driven by a variety of socioeconomic and life-promoted and enhanced the natural hot springs

amenity The four major hot springs Beitou style changes consumer demand for health andwellness oriented leisure activities is likely toYangmingshan Guanziling and Sichongxi were

discovered and the first hot springs resort Ten- show substantial growth If Taiwan is to be mar-keted internationally as a hot springs tourism des-guan was opened in Beitou in 1896 The Japanese

influenced Taiwanese attitudes by bringing their tination in this environment it will need to en-hance its competitiveness The present studyrich culture of springs soaking Following Tai-

wanrsquos retrocession in 1945 hot springs gradually proposes a model of destination competitivenessbased on a supply-side perspective of the potentiallost their public appeal prompting the authorities

to neglect the resource and its regulation In the of Taiwanrsquos hot springs tourism sector The ap-proach that has been adopted represents a first andabsence of regulation and of any formal grouping

of hot springs proprietors overexploitation of the necessary step to understanding the improvementsthat will be needed to strengthen and expand thenatural environment and natural resources became

widespread Indicative of the loosely regulated en- sectorrsquos international reach and competitivenessA supply-side perspective is viewed as being capa-vironment the Water Resources Agency reportsble of providing an accurate measure of hotthat only 20 of Taiwanrsquos hot springs establish-springs tourism competitiveness because respon-ments were in possession of the required water anddents who are knowledgeable about the completeland permits (ldquoHot Springs Proprietorsrdquo 2005)spectrum of destination competitive resources areThe Taiwan government has proceeded to stim-regularly engaged in contact with consumersulate hot springs tourism and has engaged in ex-(Faulkner Fredline amp Oppermann 1999 Gear-tensive marketing in the period since 1991 Theing Swat amp Var 1974 Hudson Ritchie amp Ti-ldquoHot Springs Development Management Pro-mur 2004) They are well placed to articulate anygramrdquo was introduced in 1999 and the ldquoSpa Lawrdquoperceptions that are prevalent in the market and tofollowed in 2003 This law formalized the conser-provide advice on sustainable development strate-vation and sustainability of natural hot springs re-giessources The Hot Springs Tourism Association

was established during the same year to supportLiterature Reviewcoordinate and provide technical guidance to lo-

cal businesses and individuals involved in hot The concept of competitiveness has been widelyapplied to tourism destinations (Buhalis 2000springs tourism As a result of these initiatives an

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 533

Crouch amp Ritchie 1999 drsquoHauteserre 2000 national level However they are not yet capableof determining destination competitiveness in theDwyer amp Kim 2003 Enright amp Newton 2004

Hassan 2000 Heath 2003 Ritchie amp Crouch context of a particular component of tourism suchas the hot springs tourism sector Tourism destina-2000 2003) Competitiveness has formed a basis

for the selection of principles to guide the devel- tions share a common basic anatomy but are het-erogeneous (Howie 2003) This is also the caseopment of a model Destination competitiveness

models are worthwhile because destinations are a for destinations with hot springs attributes andthere is a need to develop a sector-specific destina-focal point for motivating visitors delivering tour-

ism products and services implementing tourism tion competitiveness model to extend the litera-ture The premise of the proposed model is thatplanning and management strategies and contrib-

uting to memorable tourism experiences Previous to balance sustainability and competitiveness thesupply component of a hot springs destinationwork by Dwyer and Kim (2003) Enright and

Newton (2004) and Ritchie and Crouch (2000) must be aligned to changes in the external envi-ronment through the formulation and implementa-has identified the key determinants of destination

competitiveness These determinants may be clas- tion of tourism destination strategiessified into three major categories resources andattractors destination strategies and destination Research Designenvironments Destination resources and attractors

The Analytic Hierarchy Process (AHP)refer to the critical destination attributes which at-tract visitors and provide a foundation for sustain- The present study proposes an evaluation

framework to assess the potential and competitive-able tourism (Crouch amp Ritchie 1999) They in-clude local facilities and services sociocultural ness of Taiwanrsquos hot springs tourism sector Desti-

nations are complex systems and there are manyand environmental resources and public goods(Buhalis 2000) Because many tourism resources influences on the quality of the hot springs visitor

experience and whether destination competitive-and attractors are irreplaceable strategy formula-tion and implementation is needed to ensure sus- ness is achieved The influence of each element

will differ Collectively the various elements in-tainable resource use (Buhalis 2000) Destinationstrategies may be thought of as processes or ac- fluence expectations to different degrees (Deng

King amp Bauer 2002) The AHP provides a meanstions which aim to match internal tourism re-sources and destination attractions with external of prioritizing the various elements in the hierar-

chy thus helping governments and industry prac-environments (Crouch amp Ritchie 1999) Develop-ing destination strategies is complex partly be- titioners to focus on the most important issues

(Cheng amp Li 2002) Since its development bycause the destination product is complex It in-volves the organization of management and Saaty in the 1970s (Saaty 1980) AHP has been

widely used in industry settings though rarely inmarketing activities at the enterprise level and thepractice of destination policies planning and de- tourism (Crouch amp Ritchie 2005) The method in-

corporates both qualitative and quantitative re-velopment (Dwyer amp Kim 2003 Ritchie ampCrouch 2000) Finally destination competitive- search within a single empirical inquiry (Cheng amp

Li 2001 Cheng Li amp Ho 2002) It is a problem-ness is shaped by external environmental forcesover which the authorities exercise minimal con- solving framework and a systematic procedure

that represents the various elements of a problemtrol (Kotler Haider amp Rein 1993) Destinationsthat are vigilant to environmental changes are in hierarchical form (Saaty amp Kearns 1985) It

provides a rationale by dividing a problem into itslikely to be more proactive and are better posi-tioned to predict opportunities and threats or at constituent parts and calling for simple pairwise

comparison judgments to develop priorities atleast to judge their probability (Ritchie amp Crouch2003) each level in the hierarchy

The AHP approach involves three basic stepsThe existing models of destination competitive-ness provide a framework for determining the (1) decomposition or the construction of the hier-

archy (2) comparative judgments or defining andcompetitiveness of a destination at national or sub-

534 LEE AND KING

executing data collection to obtain pairwise com- hot springs tourism sector relative to its competi-tors The steps are summarized as followsparative data on elements of the hierarchical struc-

ture and (3) synthesis of priorities or constructionof an overall priority rating (Harker amp Vargas Establishing a Hierarchy Evaluation Structure1987) During the first step the various problems

The first step of the AHP involves the develop-are decomposed into their component parts andment of a hierarchical structure to deconstruct athen rearranged into a hierarchy Once the hierar-complicated problem into several integrated di-chy has been constructed the elements at the samemensions (components or elements) In the presentlevel are compared in pairs with respect to a parentstudy a three-round Delphi study was conductedelement in the level immediately above The val-to validate the literature-based determinants ofues of the pairwise comparisons in the AHP aredestination competitiveness and to accommodatedetermined on the basis of the Saaty (1980) scalenecessary adjustments The Delphi study gener-The available values for the pairwise comparisonsated a list of 38 determinants of destination com-are members of the discrete set 9 8 7 6 5 4petitiveness based on the consensus criteria that3 2 1 12 13 14 15 16 17 18 19 (seeare outlined below the mean score is above theTable 1) The inconsistency ratio (IR) is used toaverage of 416 and 80 of responses fall withincheck the consistency and reliability of the judg-two rating points on a 5-point Likert-type scalements Inconsistencies may arise when respon-(Lee amp King 2009) The Delphi study confirmeddents make careless errors or exaggerated judg-the validity of the proposed model prompting thements An inconsistency ratio of 01 is considereddevelopment of a four-level hierarchical structureto be the acceptable upper limit If an inconsis-with 49 nodes This is outlined in Figure 1 Eachtency ratio exceeds 01 participants are asked tolevel of the hierarchy is limited to seven elementsreevaluate their judgments in a pairwise matrix un-which keeps the evaluation workload to a manage-til an IR of less than 01 is achieved (Saaty 1980)able level (Saaty 1980)In the present study the AHP approach was used

The overall goal occupies the top level of theto determine the relative weights of the preidenti-hierarchy to develop a framework for evaluatingfied determinants of destination competitiveness

and to evaluate the competitiveness of Taiwanrsquos the potential of the hot springs tourism sector with

Table 1Pairwise Comparisons

Intensity of RelativeImportance Definition Explanation

1 Equal importance Two activities contribute equally to objective

3 Moderate importance of one over Experience and judgment slightly favor one over anotheranother

5 Essential or strong importance Experience and judgment strongly favor one over another

7 Demonstrated importance An activity is strongly favored and its dominance is demon-strated in practice

9 Extreme importance The importance of one over another affirmed on the highestpossible order

2468 Intermediate values between the Used to represent compromise between the priorities listedtwo adjacent judgments above

Reciprocals of the above Reciprocal for inverse comparison If activity i has one of the above nonzero numbers assignednonzero numbers to it when compared with activity j has the reciprocal value

when compared with i

Source Adopted from Saaty (1980)

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 535

Figure 1 The hierarchy of elements determining competitiveness

536 LEE AND KING

weights corresponding to the full range of determi- within a government-related tourism organizationAcademic participants had a minimum of 5 yearsnants of destination competitiveness Beneath the

overall goal the second level represents the three of university tourism teaching experience evi-dence of publications relevant to Taiwanrsquos hotmajor dimensions which determine the potential

and competitiveness of the hot springs tourism springs tourism sector and an interest in healthand wellness tourism researchsector including tourism destination resources

and attractors tourism destination strategies The snowball sampling approach was usedbased on referrals from initial participants to gen-and tourism destination environments At the third

level of the hierarchy the three dimensions have erate additional respondents Although subject toa degree of bias this method is an appropriatebeen subdivided The dimension tourism destina-

tion resources and attractors consist of natural method for gathering information from individualswho exhibit particular characteristics or knowl-and man-made tourism resources and attractions

that complement the hot springs soaking experi- edge but are difficult to locate and contact (Ca-vana Delahaye amp Sekaran 2001) A mail surveyence It is subsequently decomposed into four fac-

tors attractions transport accommodation and was administrated between December 2008 andJanuary 2009 preceded by a telephone conversa-safety and security Tourism destination strategies

refer to the commitment by government and in- tion to establish rapport and to secure participa-tiondustry capability of the authorities and capability

of hot springs proprietors The dimension tourism A survey was administrated with 24 govern-ment officers hot springs proprietors and scholarsdestination environments consists of macro- and

microlevel growth drivers and is subdivided into for the purpose of collecting pairwise comparisondata The response rate was about 80 (19) Astwo components sociocultural change and market

demands Finally the various determinants or at- noted by Cheng et al (2002) small samples areacceptable from the AHP methodology perspec-tributes associated with each factor in the third

level are linked to the fourth level As outlined in tive The AHP is a subjective method that doesnot require a large number of participating expertsFigure 1 the fourth level consists of 38 determi-

nants The opinions of a small group of key informantsare generally sufficient to generate reliable anduseful results albeit only providing rough esti-Prioritization Proceduremates The response rate was deemed to be suffi-

The next step of the research involved the prio-cient Table 2 summarizes participant demo-

ritization of the various elements at each levelgraphic characteristics

Sample Design and Administration A reviewQuestionnaire Development The survey con-

of the relevant research (Faulkner et al 1999sisted of three sections The first required partici-

Gearing et al 1974 Hudson et al 2004) indicatespants to assess the relative importance of three

that tourism competitiveness is usually assesseddimensions eight factors and 38 determinants

from a supply-side perspective (eg governmentsof destination competitiveness Participants were

at all levels hotel and tourism associations travelasked to choose between various pairs of state-

agencies and tour operators) In the current studyments To elicit the importance of tourism destina-

three panels were established to ensure the incor-tion resources and attractors versus tourism des-

poration of applied as well as theoretical inputstination strategies the following statements were

Prospective participants were selected on the basispresented to each participant

of predetermined criteria The tourism industryWhen evaluating the potential and competitive-

grouping consisted of participants in the hotness of the hot springs tourism sector tourism des-

springs tourism sector with a minimum of 5 yearstination resources and attractors are

of professional experience and membership of arelevant tourism association Public sector partici- bull equally as important as

bull moderately more importantmoderately less im-pants should have a minimum of 5 years of profes-sional experience in a decision-making capacity portant than

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 537

Table 2 a particular destination on any determinant of des-Profile of Participating Experts tination competitiveness outside a comparative

framework (Dwyer Livaic amp Mellor 2003) Des-Characteristics N

tinations are not competitive or uncompetitive inField of work the abstract but versus competitors and it is im-

Goverment official 7 037 portant to determine the competitive set (Kozak ampHot springs proprietor 5 026

Rimmington 1999) Previous studies have pre-Academic 7 037Experience (years) sented a variety of mechanisms to compare desti-

At least 5 3 016 nation competitiveness (Dwyer et al 2003 En-6ndash10 2 011

right amp Newton 2004 Hudson et al 2004 Kozak11ndash15 5 02616ndash20 4 021 amp Rimmington 1999) For the purposes of the21ndash25 4 021 present study identification of a single competitor25 and above 1 005

within the Asia-Pacific region was considered toAge (in years)31ndash35 2 011 be sufficient for comparative purpose It also36ndash40 2 011 helped to reduce the duration of the survey The41ndash45 8 042

final section examined respondent demographics46ndash50 1 00551 and above 6 032

EducationData Analysis and SynthesisHigh school 0 0

Collegeuniversity 6 032Following inputs from the panel of expertsGraduate 13 068

normalized weighting priorities were establishedfor the hierarchy of elements within the AHPmodel using the Expert Choice software package

bull considerably more importantconsiderably less Participant comparisons were entered into Expertimportant than Choice allowing the researchers to check the con-

bull emphatically more importantemphatically less sistency of individual responses and abstractimportant than weightings for each element Expert Choice pro-

bull extremely more importantextremely less im- vided normalized local and global weightings forportant than all elements at each level of the hierarchy Incon-

sistency ratios were generated for each matrixTourism Destination Strategies Responses onThe results indicated that all inconsistency ratiosthe left indicate a prioritization of the first dimen-are 002 or lower (see Table 3) thus satisfying thesion over the second while responses on the rightthreshold of 10 inconsistency proposed by Saatyassert the importance of the second dimension(1980) It also confirmed the consistency and reli-over the first In the Saaty (1980) scale shown inability of the expert judgmentsTable 1 the five statements correspond respec-

tively to importance weightings of 1 3 5 7 and 9Results and FindingsIn section two participants rated Taiwanrsquos hot

springs tourism sector with competitors across Results Obtained From the AHP Analysiseach of 38 determinants under the three major

An examination of the weightings rated in Ta-headings on a 5-point Likert-type scale The op-ble 4 reveals that tourism destination strategiestions provided ranged from 1 (well below average(0431) is the major contributor to the potentialmuch worse) to 5 (well above averagemuch bet-and competitiveness of the hot springs sector fol-ter) The major competitor for Taiwanrsquos hotlowed by tourism destination resources and at-springs tourism sector was self-selected by partici-tractors (0321) Tourism destination environ-pants from a range of Asian destinations offeringments (0248) was the least important dimensionequivalent tourism products The reason for nomi-The top three ranking factors are capability ofnating a competing destination was to provide antourism enterprises (0253) capability of the au-Asia-Pacific comparative benchmark It would

have been meaningless to ask participants to rate thorities (0178) and market demand (0165) The

538 LEE AND KING

Table 3 the appeal of the core resources and attractorsConsistency Test for the Determinants strengthen the quality and effectiveness of the var-of Destination Competitiveness ious supporting factors and minimize any con-

straints imposed by the qualifying determinantsInconsistency Consistency(Crouch amp Ritchie 1999) Successful implementa-Level Ratio Testtion of destination strategies helps create a unique

Objective 000 accepted system of tourism products to address the needs ofDimensionsdifferent categories of visitor and ensures sustain-Tourism destination

resources and attractors 001 accepted able growth combining private profit and generalTourism destination economic development with the preservation ofstrategies 000 accepted

the host communityrsquos identity and quality of lifeTourism destinationenvironments 000 accepted (Manente amp Cerato cited in Manente amp Mingh-

Factors etti 2006) Second destination competitivenessAttractions 001 acceptedcan be enhanced through public and private sectorTransport 002 accepted

Accommodation 000 accepted participation and involvement While the principalSafety and security 001 accepted task of hot springs enterprises is to build and reno-Capability of the

vate their existing sewage and wastewater infra-authorities 001 acceptedCapability of hot springs structure the responsibility of government should

proprietors 000 accepted be to establish hot springs demonstration sites thatSociocultural change 000 acceptedexemplify best practice improve environmentalMarket demand 000 acceptedsustainability and minimize environmental dam-age However hot springs are now acknowledgedas a significant tourism attraction in Taiwan In-corporation of sustainability principles into bothtop five ranked attributes are more demanding

travelers (0096) expansion of the leisure and do- enterprise-level operation and government-leveldestination planning policy and development ismestic tourism market (0069) emergence of

health-conscious consumers (0046) public inter- viewed as an essential tool to strengthen and ex-pand its international reach and competitivenessest in health-leisure activities (0037) effective de-

sign and construction of new and existing hot Finally the introduction of the 2-day weekendentitlement for Taiwanese residents in 2001 in-springs areas (0036) and building sewage system

infrastructure and wastewater treatment facilities creased the availability of leisure time and pro-moted changes in lifestyle expenditures The(0036) The five lowest ranking attributes are

availability of sufficient accommodation (0006) Taiwanese are becoming more sophisticated de-manding and aware of the need to maintain goodconducting regular surveys on tourist behaviorhealth through tourism and recreation These fa-and satisfaction (0009) destination safety (0012)vorable conditions and incentives expand the pro-personal safety and hygienemdashbasic rules and re-spective application of natural hot springs into thesponsibility (0014) high quality and internationalfields of health promotion and medical treatmentstandard accommodation (0015) authentic ac-Internationally hot springs tourism has generallycommodation experiences (0015) and emergencybeen regarded as health oriented (Matsushitamedical care and the availability of ambulance1994) The ongoing prosperity of the sector is tiedservices (0015)closely to the increasing consciousness of personalThe key findings of the AHP analysis may behealth issues Competitiveness relies on increasingsummarized as follows First tourism destinationdomestic demand and its future appears prom-strategies underpin the competitiveness of the hotisingsprings tourism sector This is consistent with

Dwyer et alrsquos argument (2004) that destinationDescriptive Resultsstrategies are crucial for the success of the tourism

industry Tourism destination strategies should be According to the survey respondents Japanwas the most competitive Asian destination for hotviewed as processes and actions which enhance

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 539T

able

4E

lem

ent

Wei

ghts

toD

eter

min

eD

estin

atio

nC

ompe

titiv

enes

s

Loc

al

Glo

bal

Loc

alG

loba

lL

ocal

Glo

bal

Dim

ensi

onF

acto

rW

eigh

tsW

eigh

tsW

eigh

tsR

anki

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eter

min

ants

ofD

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ompe

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enes

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eigh

tsW

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tsR

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ng

Tou

rism

dest

inat

ion

reso

urce

samp

attr

acto

rs0

321

Attr

actio

ns0

320

010

34

Hig

h-gr

ade

natu

ral

hot

spri

ngs

017

60

018

27Pl

entif

ulna

tura

lho

tsp

ring

s0

170

001

729

Abu

ndan

tna

tura

lsc

ener

y0

242

002

517

Souv

enir

shop

ping

019

40

020

23Y

ear-

roun

dre

crea

tiona

lac

tiviti

es0

219

002

222

Tra

nspo

rt0

223

007

17

Con

veni

ent

acce

ssto

hot

spri

ngs

036

50

026

14So

und

loca

ltr

ansp

orta

tion

netw

ork

031

80

023

20A

mpl

epa

rkin

g0

317

002

320

Acc

omm

odat

ion

017

20

055

8A

vaila

bilit

yof

suff

icie

ntac

com

mod

atio

n0

102

000

638

Hig

hqu

ality

and

inte

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anda

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com

mod

atio

n0

273

001

532

Aut

hent

icac

com

mod

atio

nex

peri

ence

s0

275

001

532

Com

fort

able

acco

mm

odat

ion

ina

natu

ral

setti

ng0

350

001

925

Safe

tyamp

secu

rity

028

60

092

5D

estin

atio

nsa

fety

013

10

012

36A

safe

bath

ing

envi

ronm

ent

029

20

027

12H

ygie

nest

anda

rds

for

hot

spri

ngs

spa

equi

pmen

t0

265

002

418

Pers

onal

safe

tyan

dhy

gien

emdashba

sic

rule

san

dre

spon

sibi

lity

015

10

014

35E

mer

genc

ym

edic

alca

rean

dth

eav

aila

bilit

yof

ambu

lanc

ese

rvic

es0

161

001

532

Tou

rism

dest

inat

ion

envi

ronm

ents

024

8So

cioc

ultu

ral

chan

ge0

333

008

26

Publ

icin

tere

stin

heal

th-l

eisu

reac

tiviti

es0

443

003

74

Em

erge

nce

ofhe

alth

-con

scio

usco

nsum

ers

055

70

046

3

Mar

ket

dem

and

066

70

165

3E

xpan

sion

ofth

ele

isur

ean

ddo

mes

ticto

uris

mm

arke

t0

416

006

92

Mor

ede

man

ding

trav

eler

s0

584

009

61

Tou

rism

dest

inat

ion

stra

tegi

es0

431

Cap

abili

tyof

the

auth

oriti

es0

413

017

82

Prov

idin

gle

ader

ship

for

coor

dina

tion

with

inth

ese

ctor

011

30

020

23E

ncou

ragi

ngin

nova

tion

ofho

tsp

ring

ssp

apr

oduc

tsamp

serv

ices

009

10

016

31U

nder

taki

ngdo

mes

tican

din

tern

atio

nal

mar

ketin

gca

mpa

igns

010

10

018

27C

ondu

ctin

gre

gula

rsu

rvey

son

tour

ist

beha

vior

ampsa

tisfa

ctio

n0

052

000

937

Ass

istin

gho

tsp

ring

spr

oper

ties

inlic

ensi

ngm

atte

rs0

182

003

28

Cre

atin

gan

dm

aint

aini

nga

hot

spri

ngs

data

base

009

70

017

29Im

plem

entin

gho

tsp

ring

sw

ater

qual

ityin

spec

tions

016

20

029

11E

ffec

tive

desi

gnan

dco

nstr

uctio

nof

new

and

exis

ting

hot

spri

ngs

area

s0

202

003

65

Cap

abili

tyof

hot

spri

ngs

prop

riet

ors

058

70

253

1Pr

omot

ing

the

heal

than

dm

edic

albe

nefi

tsof

hot

spri

ngs

007

30

019

25Pr

ovid

ing

adi

vers

era

nge

ofle

isur

ean

dhe

alth

-ori

ente

dfa

cilit

ies

009

30

024

18M

aint

aini

nghi

gh-q

ualit

yho

tsp

ring

ssp

a-re

late

d0

122

003

19

faci

litie

san

deq

uipm

ent

Ens

urin

gpr

ofes

sion

alan

dte

chni

cal

com

pete

nce

and

effe

ctiv

est

aff

011

80

030

10D

evel

opin

ga

thir

dpa

rty

cert

ific

ate

and

accr

edita

tion

sche

mes

010

40

026

14C

ontr

ollin

gth

eus

eof

hot

spri

ngs

wat

er0

137

003

57

Bui

ldin

gse

wag

esy

stem

infr

astr

uctu

rean

dw

aste

wat

ertr

eatm

ent

faci

litie

s0

142

003

65

Ens

urin

gth

epr

oper

cons

truc

tion

ofpi

pean

dpu

mpi

ngsy

stem

s0

107

002

712

Ava

lue-

for-

mon

eyto

uris

mde

stin

atio

nex

peri

ence

010

30

026

14

540 LEE AND KING

springs and spa tourism and the principal competi- that Taiwan has one of the highest concentrationsand greatest variety of hot springs in the worldtor for Taiwan Japan has abundant natural hot

springs and hot springs are intrinsic to Japanese this is not surprising The three lowest ranked de-terminants were assuring the proper constructionculture The centuries-old tradition of hot springs

and onsen bathing has made Japan a leading spa of pipe and pumping system (mean = 177) build-ing sewage system infrastructure and wastewatertourism destination During Taiwanrsquos occupation

by the Japanese prior to 1945 many hot springs treatment facilities (mean = 190) and controllingthe use of hot springs water (mean = 201) Thesefacilities were built in Japanese style and adopted

the Japanese hot springs bathing traditions and relate to the capability of hot springs proprietorsto protect conserve and manage the environmentmanners This legacy is still evident in some of

Taiwanrsquos oldest and finest hot springs regions In and natural resources in compliance with the prin-ciples of sustainability It is suggested that an en-this historical context and given growing interna-

tional competition a comparison of the relative vironmental management self-regulation mecha-nism would be a useful addition to the dailyperformances of the hot springs tourism sector in

Taiwan and Japan is timely practices of hot springs proprietors Many proprie-The competitiveness rating for Taiwanrsquos hot tors have an exclusive focus on the maximization

springs tourism sector (final score = 284) was of short-term profitability The effects of their ac-lower than for Japan (final score = 416) and was tions on local communities and the environmentbelow neutrality (lt3 on a scale of 1ndash5) The more and their responsibility to customers are ignoredsalient findings in Table 5 are highlighted It is Currently there is no direct regulation of hotnoted that Taiwan has performed less effectively springs spa operations though there is a strongthan Japan on the three measures of destination case for a more active regulation of such activitiescompetitiveness The lowest rating applied in the Significant differences are evident between thecase of tourism destination strategies (weighted weight means for Taiwan and Japan These in-mean = 245) All of the determinants originating clude controlling the use of hot springs waterfrom the dimension tourism destination strategies building sewage system infrastructure and waste-rated lower than the neutral score of 3 These find- water treatment facilities ensuring the properings are not surprising in view of the absence of construction of pipe and pumping system and au-regulations to oversee enterprise-level operations thentic accommodation experiences Taiwanrsquosand of legislation to protect the use of water greatest weaknesses are the capacity of its hotwithin the hot springs areas These human re- springs proprietors to minimize environmentalsource and strategic capacity related problems damage and comply with environmental sustain-need urgent resolution if Taiwanrsquos hot springs ability standards Japanrsquos Hot Springs Law (1948)tourism sector is to develop and prosper In con- prescribes a definition for hot springs to be recog-trast Japan is rated above 4 on each of the three nized as an onsen Compliant onsen operators whomajor dimensions The most favorably rated di- contribute to regional economic development aremension was tourism destination environments eligible for subsidies (Matsushita 1994) To match(weighted mean = 454) Japan has a long history Japanrsquos accomplishments Taiwan will need a col-of communal bathing and visiting hot springs is a laborative government and industry mechanism tomajor highlight of travel within Japan Increasing pursue longer term sustainabilitypublic awareness of the value of leisure and recre-ation for health and wellbeing has created favor- Conclusions and Managerial Implicationsable conditions for the further development of hot

Hot springs tourism is an emerging sector insprings and spa tourism in Japan (MatsushitaTaiwan and in this context it is particularly im-1994)portant to develop a guiding framework based ofThe only item where Taiwan recorded a higherdestination competitiveness from a supply-sidescore than Japan and received the highest weightedperspective The relative importance of destinationmean among the 38 determinants (weighted mean =

413) was high-grade natural hot springs Given competitiveness has been evaluated using three

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 541

Table 5Comparative Destination Weights for Taiwan and Japan

Taiwan Japan

Weighted WeightedWeight Mean Mean Mean Mean

Tourism destination resources and attractors 294 301 407 417Attractions 324 330 414 423

High grade natural hot springs 0018 406 413 400 407Plentiful natural hot springs 0017 378 384 400 407Abundant natural scenery 0025 383 389 428 439Souvenir shopping 0020 228 233 422 430Year-round recreational activities 0022 228 233 422 431

Transport 289 296 383 393Convenient access to hot springs 0026 317 325 389 399Sound local transportation network 0023 289 296 394 403Ample parking 0023 261 267 367 375

Accommodation 263 266 421 427Availability of sufficient accommodation 0006 283 285 389 391High quality and international standard accommodation 0015 283 287 444 451Authentic accommodation experiencesa 0015 233 237 433 440Comfortable accommodation in a natural setting 0019 250 255 417 425

Safety and security 298 303 411 419Destination safety 0012 400 405 417 422A safe bathing environment 0027 311 319 428 440Hygiene standards for hot springs spa equipment 0024 250 256 428 438Personal safety and hygienemdashbasic rules and responsibility 0014 250 254 417 423Emergency medical care and the availability of ambulance services 0015 278 282 367 373

Tourism destination strategies 240 245 397 408Capability of the authorities 250 256 390 399

Providing leadership for coordination within the sector 0020 244 249 394 402Encouraging innovation of hot springs spa products amp services 0016 256 260 394 400Undertaking domestic and international marketing campaigns 0018 294 299 411 418Conducting regular surveys on tourist behavior amp satisfaction 0009 217 219 311 314Assisting hot springs properties in licensing matters 0032 217 224 372 384Creating and maintaining a hot springs database 0017 239 243 433 440Implementing hot springs water quality inspections 0029 278 286 394 405Effective design and construction of new and existing hot springs areas 0036 256 265 411 426

Capability of hot springs proprietors 230 236 404 416Promoting the health and medical benefits of hot springs 0019 261 266 433 441Providing a diverse range of leisure and health-oriented facilities 0024 244 250 428 438Maintaining high-quality hot springs spa-related facilities and equipment 0031 272 280 400 412Ensuring professional and technical competence and effective staff 0030 250 258 411 423Developing a third party certificate and accreditation schemes 0026 244 250 400 410Controlling the use of hot springs watera 0035 194 201 417 432Building sewage system infrastructure amp wastewater treatment facilitiesa 0036 183 190 383 397Ensuring the proper construction of pipe and pumping systemsa 0027 172 177 383 393Ensuring a value-for-money in tourism destination experience 0026 250 257 383 393

Tourism destination environments 352 367 422 454Sociocultural change 353 367 436 442

Public interest in health-leisure activities 0037 344 357 428 444Emergence of health-conscious consumers 0046 361 378 444 464

Market demand 350 379 408 448Expansion of the leisure and domestic tourism market 0069 356 381 400 428More demanding travelers 0096 344 377 417 454

Final score 276 284 406 416

aThe weighted mean difference between two destinations exceeded

542 LEE AND KING

headings namely tourism destination resources tourism provides an extension of the current liter-ature on the relative competitiveness of tourismand attractors tourism destination strategies and

tourism destination environments The present destinations (Dwyer et al 2003 Enright amp New-ton 2004 Kozak amp Rimmington 1999) Implica-study supplements the current literature on tourism

destination competitiveness by integrating the tions are drawn for government and industry witha view to increasing visitations Taiwan currentlythree categories of destination competitiveness

which have been prominent in previous models rates low in the context of competitiveness butaddressing this deficiency rates high in terms of(Dwyer amp Kim 2003 Enright amp Newton 2004

Ritchie amp Crouch 2000 2003) It is acknowl- importanceedged that each subsector has unique features andattributes and its own set of competitive factors A Focus on Preventative and Curative CareThe sector-specific model of destination competi-

In the context of an expanding pool of consum-tiveness that has been proposed in this research is

ers who have the time money and motivation tocapable of capturing the nature and characteristics

pursue and maintain a healthy life the diversityof the hot springs tourism sector and is well suited

and smoothness of mineral springs has been a sig-for purposes of comparison It has been demon-

nificant advantage for tourism provision in Tai-strated that the AHP method is an appropriate

wan The use of natural hot springs for the treat-method for generating insights that could form a

ment of disease constitutes another potentialbasis for enhancing the competitiveness of Tai-

market segment There is a business opportunitywanrsquos hot springs tourism sector Taiwan is a col-

for resort proprietors to market the medicinal andlectivist culture with an emphasis on the pursuit of

therapeutic benefits of hot springs bathing toharmony with others (Hofstede 1980) On this ba-

health-conscious consumers who are seeking tosis the AHP method may accommodate the di-

enhance their well-being through travel Toverse opinions of individual participants and avoid

achieve this proprietors should refresh their pre-the dominance of any individual or small group

ventative and health-oriented services and fa-Participants in the current survey had an equal

cilities Diversification of product offerings andvoice The AHP also accommodated the geograph-

tourist activities is also needed The Taiwan gov-ically dispersal of participants (Armacost Hos-

ernment could assist by establishing a research en-seini amp Edwards 1999) Previous AHP applica-

tity dedicated to hot springs sector and supportingtions have been confined to destinations at a

the development of a national database Hotgeneric level (Crouch 2008 Crouch amp Ritchie

springs treatments are as diverse as the waters2005) The present study shows the merit of

themselves A database could inform the publicapplying the AHP approach for analyzing destina-

about the location of relevant hot springs andtion competitiveness in the context of hot springs

about their health and tourism attributes In someas an important subsector of tourism It contributes

European countries skin disease sufferers who areto knowledge by extending the application of AHP

in receipt of health insurance-funded prescriptionto destination competitiveness as it applies to sub-

are entitled to receive spa treatments If Taiwanrsquossectors of tourism

national health insurance system were to subsidizeTo test the applicability of a sector-specific

spa treatments it would enhance the appreciationdestination competitiveness model Japan was

of the therapeutic and curative effects of hotchosen as a benchmark for comparison purposes

springs and extend their use into the medical fieldThe comparative analysis has shown that Taiwanis less competitive than Japan in all fields with the

Sustainability Principlesexception of high-grade natural hot springs Thefindings reveal potential areas for improvement if Tourism development associated with the growth

in visitation to hot springs has impacted on theTaiwanrsquos authorities and enterprises are to boostcompetitiveness and narrow the gap with Japan natural environment If Taiwan is to achieve an

appropriate balance between protecting resourcesThe application of a comparative study in the con-text of a subsector of tourism namely hot springs and stimulating tourism development stakehold-

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 543

ers at both the national and the enterprise level tors in future research to compare the demand andsupply-side perspectives Finally the study bringswill need to engage actively with environmental

management issues and engage in partnerships together the various concepts of destination com-petitiveness and identifies sector-specific strate-The national authorities are responsible for formu-

lating and implementing tourism policy and for gies environmental factors and unique destina-tion attributes as major constructs These insightsdeveloping strategies consistent with the sustain-

able use of lands hot springs and other natural could be further extended by examining the inter-play between internal and external factors as theyresources An effective and principled system of

deterrence is needed involving fines for the illegal influence the formulation and implementation ofdestination strategies in the pursuit of competitive-use of lands and hot springs Destination manage-

ment organizations should work with independent nessthird parties to promote and endorse the imple-mentation of sustainable water resource manage- Referencesment and environmental protection practices Hot

Armacost R L Hosseini J amp Edwards J (1999) Usingsprings proprietors should incorporate sustainabil- the analytical hierarchy process as a two-phase inte-ity principles within the design and construction grated decision approach for large nominal groupsof spring water distribution sewage treatment Group Decision and Negotiation 8(6) 535ndash555

Buhalis D (2000) Marketing the competitive destinationwastewater collection and piping and pumpingof the future Tourism Management 21(1) 97ndash116systems Sustainable tourism development is pred-

Cavana R Y Delahaye B L amp Sekaran U (2001) Ap-icated upon responsible behaviors by stakeholders plied business research Qualitative and quantitativewithin the hot springs tourism sector to ensure the methods Milton Qld John Wiley

Cheng E W L amp Li H (2001) Analytic hierarchy pro-long-term prosperity and quality of life for futurecess An approach to determine measures for businessgenerationsperformance Measuring Business Excellence 5(3)30ndash36

Limitations and Opportunities Cheng E W L Li H amp Ho D C K (2002) Analyticfor Future Research hierarchy process (AHP) A defective tool when used

improperly Measuring Business Excellence 6(4)This investigation has prompted a number of 33ndash37

Crouch G I amp Ritchie J R B (1999) Tourism competi-questions and various areas of potential study aretiveness and societal prosperity Journal of Businessevident The proposed destination competitivenessResearch 44(3) 137ndash152model should have international applicability es-

Crouch G I amp Ritchie J R B (2005) Application ofpecially in emerging Asian destinations similar to the analytic hierarchy process to tourism choice andTaiwan Additional validation of the proposed decision making A review and illustration applied to

destination competitiveness Tourism Analysis 10(1)framework should be undertaken Second the pro-17ndash25posed hot springs competitiveness model is ge-

Crouch G I (2008) Modelling destination competitive-neric Given time and cost constraints all key in-ness A survey and analysis of the impact of competi-

formants in the present study were Taiwanese tiveness attributes Gold Coast Qld Sustainable Tour-Respondents may tend to exaggerate the competi- ism CRC

Deng J King B amp Bauer T (2002) Evaluating naturaltiveness of their own country relative to othersattractions for tourism Annals of Tourism Research(Dwyer et al 2003) The limited knowledge and29(2) 422ndash438practical experience of informants about Japan as

drsquoHauteserre A M (2000) Lessons in managed destina-a competitor may have compromised the compari- tion competitiveness The case of Foxwoods Casino Re-son Future studies should extend the range of in- sort Tourism Management 21(1) 23ndash32

Dwyer L amp Kim C (2003) Destination competitivenessternational and local perspectives Thirdly theDeterminants and indicators Current Issues in Tourismpresent study has explored the managerial per-6(5) 369ndash414spective towards competitiveness factors associ-

Dwyer L Livaic Z amp Mellor R (2003) Competitive-ated with Taiwan as a hot springs tourism destina- ness of Australia as a tourist destination Journal oftion Given the importance of consumer perceptions Hospitality and Tourism Management 10(1) 60ndash78

Dwyer L Mellor R Livaic Z Edwards D amp Kim Cit would be useful to incorporate hot springs visi-

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

lands (2005) New Taiwan Weekly Retrieved from Saaty T L (1980) The analytical hierarchy processPlanning priority setting resource allocation Newhttpwwwnewtaiwancomtwbulletinviewjspbulletin

id=22639 York McGraw-HillSaaty T L amp Kearns K P (1985) Analytical planningHowie F (2003) Managing the tourist destination Lon-

don Continuum The organization of systems New York Pergamon PressHudson S Ritchie J B R amp Timur S (2004) Measur-

Page 2: International Competitiveness in Hot Springs Tourism: An

Tourism Analysis Vol 15 pp 531ndash544 1083-542310 $6000 + 00Printed in the USA All rights reserved DOI 103727108354210X12889831783233Copyright 2010 Cognizant Comm Corp wwwcognizantcommunicationcom

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM

AN APPLICATION OF THE ANALYTICAL HIERARCHY PROCESS APPROACH

CHENG-FEI LEE and BRIAN KINGdagger

Department of Marketing Management Shih Chien University Neimen ShiangKaohsiung Campus Taiwan ROC

daggerCentre for Tourism and Services Research Victoria University Melbourne Australia

This study provides an evaluation of the potential of Taiwanrsquos hot springs tourism sector by pro-posing a model of competitiveness that has broad applicability to hot springs destinations Usingthe analytic hierarchy process method to generate weightings for the various elements which con-tribute to destination competitiveness the study prioritizes aspects of hot springs tourism whichwould benefit from further development A panel of experts commented on the relative competi-tiveness of hot springs tourism in Taiwan and Japan and concluded that hot springs proprietorsneed to reinforce their conservation efforts and engage in the sustainable use of hot springs andsurrounding environments They noted that governments should formulate and implement strategicdestination planning and development to avoid a repetition of previous mistakes The increasingTaiwanese preoccupation with good health and longevity and Taiwanrsquos rich endowment of high-grade natural hot springs produces a favorable environment development of the hot springs tourismsector It also offers business opportunities to extend the appeal of hot springs tourism into healthprotection and medical treatment The article concludes that Taiwanrsquos hot springs tourism sectorhas a promising future but that concerted effort will be needed to match the product offerings ofits competitors

Key words Hot springs tourism Comparative analysis Destination competitivenessAnalytical hierarchy process

Background to finance plan and develop destination develop-ment around such hot springs and to promote visi-tation Although well established in Western soci-A growing body of scientific evidence indicates

that the minerals that may be extracted from cer- eties spa and hot springs tourism is a relativelyrecent phenomenon in Asia (Henderson 2004)tain springs have properties capable of curing or

easing various ailments The economic value Within Asia Japan has successfully positioned it-self by leveraging its distinctive bathing cultureattached to such attributes has led many countries

Address correspondence to Cheng-Fei Lee Assistant Professor Department of Marketing Management Shih Chien University No200 University Rd Neimen Shiang Kaohsiung Campus Taiwan 845 ROC Tel 886-076678888 ext 6126 Fax 886-076678888ext 4251 E-mail fei1999hotmailcom

531

532 LEE AND KING

and the richness and diversity of the healing pow- increasing percentage of the Taiwanese populationhave visited hot springs and the quality of the hoters offered by natural hot springs Visiting hot

springs is one of the most popular motivations for springs tourism experience for domestic touristshas improved However Taiwan is not yet com-travel within Japan (Kobayashi 2000) Japan is

Taiwanrsquos major inbound leisure market and Japa- petitive internationally The amenity of many pub-lic and commercial facilities located in hot springsnese bathing habits and preferences have helped

to shape the hot springs and spa tourism market areas has been degraded through a lack of repairand maintenance In addition many hot springsTaiwan has recently emerged as a regional desti-

nation promoting its abundant hot springs re- proprietors have not incorporated the surroundingenvironment within the hot springs experience insources both domestically and internationally

Taiwanrsquos location on the fault line between the the most aesthetic sense In recognition of thislimitation a framework is needed to measure andEuro-Asian and Philippine continental plates has

led to an abundant distribution of high-quality nat- analyze the potential of the sector domesticallyand internationally A model of destination com-ural hot springs which offers a strong foundation

for its development as a desirable hot springs tour- petitiveness could assist industry and governmentstakeholders to identify destination strengths andism destination Development dates back to 1894

when the Peitou hot springs were exploited to cre- weaknesses to highlight opportunities and to com-bat potential threats to development and visitationate a small-scale local spa During the Japanese

occupation (1895ndash1945) the colonial authorities (Dwyer Mellor Livaic Edwards amp Kim 2004)Driven by a variety of socioeconomic and life-promoted and enhanced the natural hot springs

amenity The four major hot springs Beitou style changes consumer demand for health andwellness oriented leisure activities is likely toYangmingshan Guanziling and Sichongxi were

discovered and the first hot springs resort Ten- show substantial growth If Taiwan is to be mar-keted internationally as a hot springs tourism des-guan was opened in Beitou in 1896 The Japanese

influenced Taiwanese attitudes by bringing their tination in this environment it will need to en-hance its competitiveness The present studyrich culture of springs soaking Following Tai-

wanrsquos retrocession in 1945 hot springs gradually proposes a model of destination competitivenessbased on a supply-side perspective of the potentiallost their public appeal prompting the authorities

to neglect the resource and its regulation In the of Taiwanrsquos hot springs tourism sector The ap-proach that has been adopted represents a first andabsence of regulation and of any formal grouping

of hot springs proprietors overexploitation of the necessary step to understanding the improvementsthat will be needed to strengthen and expand thenatural environment and natural resources became

widespread Indicative of the loosely regulated en- sectorrsquos international reach and competitivenessA supply-side perspective is viewed as being capa-vironment the Water Resources Agency reportsble of providing an accurate measure of hotthat only 20 of Taiwanrsquos hot springs establish-springs tourism competitiveness because respon-ments were in possession of the required water anddents who are knowledgeable about the completeland permits (ldquoHot Springs Proprietorsrdquo 2005)spectrum of destination competitive resources areThe Taiwan government has proceeded to stim-regularly engaged in contact with consumersulate hot springs tourism and has engaged in ex-(Faulkner Fredline amp Oppermann 1999 Gear-tensive marketing in the period since 1991 Theing Swat amp Var 1974 Hudson Ritchie amp Ti-ldquoHot Springs Development Management Pro-mur 2004) They are well placed to articulate anygramrdquo was introduced in 1999 and the ldquoSpa Lawrdquoperceptions that are prevalent in the market and tofollowed in 2003 This law formalized the conser-provide advice on sustainable development strate-vation and sustainability of natural hot springs re-giessources The Hot Springs Tourism Association

was established during the same year to supportLiterature Reviewcoordinate and provide technical guidance to lo-

cal businesses and individuals involved in hot The concept of competitiveness has been widelyapplied to tourism destinations (Buhalis 2000springs tourism As a result of these initiatives an

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 533

Crouch amp Ritchie 1999 drsquoHauteserre 2000 national level However they are not yet capableof determining destination competitiveness in theDwyer amp Kim 2003 Enright amp Newton 2004

Hassan 2000 Heath 2003 Ritchie amp Crouch context of a particular component of tourism suchas the hot springs tourism sector Tourism destina-2000 2003) Competitiveness has formed a basis

for the selection of principles to guide the devel- tions share a common basic anatomy but are het-erogeneous (Howie 2003) This is also the caseopment of a model Destination competitiveness

models are worthwhile because destinations are a for destinations with hot springs attributes andthere is a need to develop a sector-specific destina-focal point for motivating visitors delivering tour-

ism products and services implementing tourism tion competitiveness model to extend the litera-ture The premise of the proposed model is thatplanning and management strategies and contrib-

uting to memorable tourism experiences Previous to balance sustainability and competitiveness thesupply component of a hot springs destinationwork by Dwyer and Kim (2003) Enright and

Newton (2004) and Ritchie and Crouch (2000) must be aligned to changes in the external envi-ronment through the formulation and implementa-has identified the key determinants of destination

competitiveness These determinants may be clas- tion of tourism destination strategiessified into three major categories resources andattractors destination strategies and destination Research Designenvironments Destination resources and attractors

The Analytic Hierarchy Process (AHP)refer to the critical destination attributes which at-tract visitors and provide a foundation for sustain- The present study proposes an evaluation

framework to assess the potential and competitive-able tourism (Crouch amp Ritchie 1999) They in-clude local facilities and services sociocultural ness of Taiwanrsquos hot springs tourism sector Desti-

nations are complex systems and there are manyand environmental resources and public goods(Buhalis 2000) Because many tourism resources influences on the quality of the hot springs visitor

experience and whether destination competitive-and attractors are irreplaceable strategy formula-tion and implementation is needed to ensure sus- ness is achieved The influence of each element

will differ Collectively the various elements in-tainable resource use (Buhalis 2000) Destinationstrategies may be thought of as processes or ac- fluence expectations to different degrees (Deng

King amp Bauer 2002) The AHP provides a meanstions which aim to match internal tourism re-sources and destination attractions with external of prioritizing the various elements in the hierar-

chy thus helping governments and industry prac-environments (Crouch amp Ritchie 1999) Develop-ing destination strategies is complex partly be- titioners to focus on the most important issues

(Cheng amp Li 2002) Since its development bycause the destination product is complex It in-volves the organization of management and Saaty in the 1970s (Saaty 1980) AHP has been

widely used in industry settings though rarely inmarketing activities at the enterprise level and thepractice of destination policies planning and de- tourism (Crouch amp Ritchie 2005) The method in-

corporates both qualitative and quantitative re-velopment (Dwyer amp Kim 2003 Ritchie ampCrouch 2000) Finally destination competitive- search within a single empirical inquiry (Cheng amp

Li 2001 Cheng Li amp Ho 2002) It is a problem-ness is shaped by external environmental forcesover which the authorities exercise minimal con- solving framework and a systematic procedure

that represents the various elements of a problemtrol (Kotler Haider amp Rein 1993) Destinationsthat are vigilant to environmental changes are in hierarchical form (Saaty amp Kearns 1985) It

provides a rationale by dividing a problem into itslikely to be more proactive and are better posi-tioned to predict opportunities and threats or at constituent parts and calling for simple pairwise

comparison judgments to develop priorities atleast to judge their probability (Ritchie amp Crouch2003) each level in the hierarchy

The AHP approach involves three basic stepsThe existing models of destination competitive-ness provide a framework for determining the (1) decomposition or the construction of the hier-

archy (2) comparative judgments or defining andcompetitiveness of a destination at national or sub-

534 LEE AND KING

executing data collection to obtain pairwise com- hot springs tourism sector relative to its competi-tors The steps are summarized as followsparative data on elements of the hierarchical struc-

ture and (3) synthesis of priorities or constructionof an overall priority rating (Harker amp Vargas Establishing a Hierarchy Evaluation Structure1987) During the first step the various problems

The first step of the AHP involves the develop-are decomposed into their component parts andment of a hierarchical structure to deconstruct athen rearranged into a hierarchy Once the hierar-complicated problem into several integrated di-chy has been constructed the elements at the samemensions (components or elements) In the presentlevel are compared in pairs with respect to a parentstudy a three-round Delphi study was conductedelement in the level immediately above The val-to validate the literature-based determinants ofues of the pairwise comparisons in the AHP aredestination competitiveness and to accommodatedetermined on the basis of the Saaty (1980) scalenecessary adjustments The Delphi study gener-The available values for the pairwise comparisonsated a list of 38 determinants of destination com-are members of the discrete set 9 8 7 6 5 4petitiveness based on the consensus criteria that3 2 1 12 13 14 15 16 17 18 19 (seeare outlined below the mean score is above theTable 1) The inconsistency ratio (IR) is used toaverage of 416 and 80 of responses fall withincheck the consistency and reliability of the judg-two rating points on a 5-point Likert-type scalements Inconsistencies may arise when respon-(Lee amp King 2009) The Delphi study confirmeddents make careless errors or exaggerated judg-the validity of the proposed model prompting thements An inconsistency ratio of 01 is considereddevelopment of a four-level hierarchical structureto be the acceptable upper limit If an inconsis-with 49 nodes This is outlined in Figure 1 Eachtency ratio exceeds 01 participants are asked tolevel of the hierarchy is limited to seven elementsreevaluate their judgments in a pairwise matrix un-which keeps the evaluation workload to a manage-til an IR of less than 01 is achieved (Saaty 1980)able level (Saaty 1980)In the present study the AHP approach was used

The overall goal occupies the top level of theto determine the relative weights of the preidenti-hierarchy to develop a framework for evaluatingfied determinants of destination competitiveness

and to evaluate the competitiveness of Taiwanrsquos the potential of the hot springs tourism sector with

Table 1Pairwise Comparisons

Intensity of RelativeImportance Definition Explanation

1 Equal importance Two activities contribute equally to objective

3 Moderate importance of one over Experience and judgment slightly favor one over anotheranother

5 Essential or strong importance Experience and judgment strongly favor one over another

7 Demonstrated importance An activity is strongly favored and its dominance is demon-strated in practice

9 Extreme importance The importance of one over another affirmed on the highestpossible order

2468 Intermediate values between the Used to represent compromise between the priorities listedtwo adjacent judgments above

Reciprocals of the above Reciprocal for inverse comparison If activity i has one of the above nonzero numbers assignednonzero numbers to it when compared with activity j has the reciprocal value

when compared with i

Source Adopted from Saaty (1980)

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 535

Figure 1 The hierarchy of elements determining competitiveness

536 LEE AND KING

weights corresponding to the full range of determi- within a government-related tourism organizationAcademic participants had a minimum of 5 yearsnants of destination competitiveness Beneath the

overall goal the second level represents the three of university tourism teaching experience evi-dence of publications relevant to Taiwanrsquos hotmajor dimensions which determine the potential

and competitiveness of the hot springs tourism springs tourism sector and an interest in healthand wellness tourism researchsector including tourism destination resources

and attractors tourism destination strategies The snowball sampling approach was usedbased on referrals from initial participants to gen-and tourism destination environments At the third

level of the hierarchy the three dimensions have erate additional respondents Although subject toa degree of bias this method is an appropriatebeen subdivided The dimension tourism destina-

tion resources and attractors consist of natural method for gathering information from individualswho exhibit particular characteristics or knowl-and man-made tourism resources and attractions

that complement the hot springs soaking experi- edge but are difficult to locate and contact (Ca-vana Delahaye amp Sekaran 2001) A mail surveyence It is subsequently decomposed into four fac-

tors attractions transport accommodation and was administrated between December 2008 andJanuary 2009 preceded by a telephone conversa-safety and security Tourism destination strategies

refer to the commitment by government and in- tion to establish rapport and to secure participa-tiondustry capability of the authorities and capability

of hot springs proprietors The dimension tourism A survey was administrated with 24 govern-ment officers hot springs proprietors and scholarsdestination environments consists of macro- and

microlevel growth drivers and is subdivided into for the purpose of collecting pairwise comparisondata The response rate was about 80 (19) Astwo components sociocultural change and market

demands Finally the various determinants or at- noted by Cheng et al (2002) small samples areacceptable from the AHP methodology perspec-tributes associated with each factor in the third

level are linked to the fourth level As outlined in tive The AHP is a subjective method that doesnot require a large number of participating expertsFigure 1 the fourth level consists of 38 determi-

nants The opinions of a small group of key informantsare generally sufficient to generate reliable anduseful results albeit only providing rough esti-Prioritization Proceduremates The response rate was deemed to be suffi-

The next step of the research involved the prio-cient Table 2 summarizes participant demo-

ritization of the various elements at each levelgraphic characteristics

Sample Design and Administration A reviewQuestionnaire Development The survey con-

of the relevant research (Faulkner et al 1999sisted of three sections The first required partici-

Gearing et al 1974 Hudson et al 2004) indicatespants to assess the relative importance of three

that tourism competitiveness is usually assesseddimensions eight factors and 38 determinants

from a supply-side perspective (eg governmentsof destination competitiveness Participants were

at all levels hotel and tourism associations travelasked to choose between various pairs of state-

agencies and tour operators) In the current studyments To elicit the importance of tourism destina-

three panels were established to ensure the incor-tion resources and attractors versus tourism des-

poration of applied as well as theoretical inputstination strategies the following statements were

Prospective participants were selected on the basispresented to each participant

of predetermined criteria The tourism industryWhen evaluating the potential and competitive-

grouping consisted of participants in the hotness of the hot springs tourism sector tourism des-

springs tourism sector with a minimum of 5 yearstination resources and attractors are

of professional experience and membership of arelevant tourism association Public sector partici- bull equally as important as

bull moderately more importantmoderately less im-pants should have a minimum of 5 years of profes-sional experience in a decision-making capacity portant than

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 537

Table 2 a particular destination on any determinant of des-Profile of Participating Experts tination competitiveness outside a comparative

framework (Dwyer Livaic amp Mellor 2003) Des-Characteristics N

tinations are not competitive or uncompetitive inField of work the abstract but versus competitors and it is im-

Goverment official 7 037 portant to determine the competitive set (Kozak ampHot springs proprietor 5 026

Rimmington 1999) Previous studies have pre-Academic 7 037Experience (years) sented a variety of mechanisms to compare desti-

At least 5 3 016 nation competitiveness (Dwyer et al 2003 En-6ndash10 2 011

right amp Newton 2004 Hudson et al 2004 Kozak11ndash15 5 02616ndash20 4 021 amp Rimmington 1999) For the purposes of the21ndash25 4 021 present study identification of a single competitor25 and above 1 005

within the Asia-Pacific region was considered toAge (in years)31ndash35 2 011 be sufficient for comparative purpose It also36ndash40 2 011 helped to reduce the duration of the survey The41ndash45 8 042

final section examined respondent demographics46ndash50 1 00551 and above 6 032

EducationData Analysis and SynthesisHigh school 0 0

Collegeuniversity 6 032Following inputs from the panel of expertsGraduate 13 068

normalized weighting priorities were establishedfor the hierarchy of elements within the AHPmodel using the Expert Choice software package

bull considerably more importantconsiderably less Participant comparisons were entered into Expertimportant than Choice allowing the researchers to check the con-

bull emphatically more importantemphatically less sistency of individual responses and abstractimportant than weightings for each element Expert Choice pro-

bull extremely more importantextremely less im- vided normalized local and global weightings forportant than all elements at each level of the hierarchy Incon-

sistency ratios were generated for each matrixTourism Destination Strategies Responses onThe results indicated that all inconsistency ratiosthe left indicate a prioritization of the first dimen-are 002 or lower (see Table 3) thus satisfying thesion over the second while responses on the rightthreshold of 10 inconsistency proposed by Saatyassert the importance of the second dimension(1980) It also confirmed the consistency and reli-over the first In the Saaty (1980) scale shown inability of the expert judgmentsTable 1 the five statements correspond respec-

tively to importance weightings of 1 3 5 7 and 9Results and FindingsIn section two participants rated Taiwanrsquos hot

springs tourism sector with competitors across Results Obtained From the AHP Analysiseach of 38 determinants under the three major

An examination of the weightings rated in Ta-headings on a 5-point Likert-type scale The op-ble 4 reveals that tourism destination strategiestions provided ranged from 1 (well below average(0431) is the major contributor to the potentialmuch worse) to 5 (well above averagemuch bet-and competitiveness of the hot springs sector fol-ter) The major competitor for Taiwanrsquos hotlowed by tourism destination resources and at-springs tourism sector was self-selected by partici-tractors (0321) Tourism destination environ-pants from a range of Asian destinations offeringments (0248) was the least important dimensionequivalent tourism products The reason for nomi-The top three ranking factors are capability ofnating a competing destination was to provide antourism enterprises (0253) capability of the au-Asia-Pacific comparative benchmark It would

have been meaningless to ask participants to rate thorities (0178) and market demand (0165) The

538 LEE AND KING

Table 3 the appeal of the core resources and attractorsConsistency Test for the Determinants strengthen the quality and effectiveness of the var-of Destination Competitiveness ious supporting factors and minimize any con-

straints imposed by the qualifying determinantsInconsistency Consistency(Crouch amp Ritchie 1999) Successful implementa-Level Ratio Testtion of destination strategies helps create a unique

Objective 000 accepted system of tourism products to address the needs ofDimensionsdifferent categories of visitor and ensures sustain-Tourism destination

resources and attractors 001 accepted able growth combining private profit and generalTourism destination economic development with the preservation ofstrategies 000 accepted

the host communityrsquos identity and quality of lifeTourism destinationenvironments 000 accepted (Manente amp Cerato cited in Manente amp Mingh-

Factors etti 2006) Second destination competitivenessAttractions 001 acceptedcan be enhanced through public and private sectorTransport 002 accepted

Accommodation 000 accepted participation and involvement While the principalSafety and security 001 accepted task of hot springs enterprises is to build and reno-Capability of the

vate their existing sewage and wastewater infra-authorities 001 acceptedCapability of hot springs structure the responsibility of government should

proprietors 000 accepted be to establish hot springs demonstration sites thatSociocultural change 000 acceptedexemplify best practice improve environmentalMarket demand 000 acceptedsustainability and minimize environmental dam-age However hot springs are now acknowledgedas a significant tourism attraction in Taiwan In-corporation of sustainability principles into bothtop five ranked attributes are more demanding

travelers (0096) expansion of the leisure and do- enterprise-level operation and government-leveldestination planning policy and development ismestic tourism market (0069) emergence of

health-conscious consumers (0046) public inter- viewed as an essential tool to strengthen and ex-pand its international reach and competitivenessest in health-leisure activities (0037) effective de-

sign and construction of new and existing hot Finally the introduction of the 2-day weekendentitlement for Taiwanese residents in 2001 in-springs areas (0036) and building sewage system

infrastructure and wastewater treatment facilities creased the availability of leisure time and pro-moted changes in lifestyle expenditures The(0036) The five lowest ranking attributes are

availability of sufficient accommodation (0006) Taiwanese are becoming more sophisticated de-manding and aware of the need to maintain goodconducting regular surveys on tourist behaviorhealth through tourism and recreation These fa-and satisfaction (0009) destination safety (0012)vorable conditions and incentives expand the pro-personal safety and hygienemdashbasic rules and re-spective application of natural hot springs into thesponsibility (0014) high quality and internationalfields of health promotion and medical treatmentstandard accommodation (0015) authentic ac-Internationally hot springs tourism has generallycommodation experiences (0015) and emergencybeen regarded as health oriented (Matsushitamedical care and the availability of ambulance1994) The ongoing prosperity of the sector is tiedservices (0015)closely to the increasing consciousness of personalThe key findings of the AHP analysis may behealth issues Competitiveness relies on increasingsummarized as follows First tourism destinationdomestic demand and its future appears prom-strategies underpin the competitiveness of the hotisingsprings tourism sector This is consistent with

Dwyer et alrsquos argument (2004) that destinationDescriptive Resultsstrategies are crucial for the success of the tourism

industry Tourism destination strategies should be According to the survey respondents Japanwas the most competitive Asian destination for hotviewed as processes and actions which enhance

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 539T

able

4E

lem

ent

Wei

ghts

toD

eter

min

eD

estin

atio

nC

ompe

titiv

enes

s

Loc

al

Glo

bal

Loc

alG

loba

lL

ocal

Glo

bal

Dim

ensi

onF

acto

rW

eigh

tsW

eigh

tsW

eigh

tsR

anki

ngD

eter

min

ants

ofD

estin

atio

nC

ompe

titiv

enes

sW

eigh

tsW

eigh

tsR

anki

ng

Tou

rism

dest

inat

ion

reso

urce

samp

attr

acto

rs0

321

Attr

actio

ns0

320

010

34

Hig

h-gr

ade

natu

ral

hot

spri

ngs

017

60

018

27Pl

entif

ulna

tura

lho

tsp

ring

s0

170

001

729

Abu

ndan

tna

tura

lsc

ener

y0

242

002

517

Souv

enir

shop

ping

019

40

020

23Y

ear-

roun

dre

crea

tiona

lac

tiviti

es0

219

002

222

Tra

nspo

rt0

223

007

17

Con

veni

ent

acce

ssto

hot

spri

ngs

036

50

026

14So

und

loca

ltr

ansp

orta

tion

netw

ork

031

80

023

20A

mpl

epa

rkin

g0

317

002

320

Acc

omm

odat

ion

017

20

055

8A

vaila

bilit

yof

suff

icie

ntac

com

mod

atio

n0

102

000

638

Hig

hqu

ality

and

inte

rnat

iona

lst

anda

rdac

com

mod

atio

n0

273

001

532

Aut

hent

icac

com

mod

atio

nex

peri

ence

s0

275

001

532

Com

fort

able

acco

mm

odat

ion

ina

natu

ral

setti

ng0

350

001

925

Safe

tyamp

secu

rity

028

60

092

5D

estin

atio

nsa

fety

013

10

012

36A

safe

bath

ing

envi

ronm

ent

029

20

027

12H

ygie

nest

anda

rds

for

hot

spri

ngs

spa

equi

pmen

t0

265

002

418

Pers

onal

safe

tyan

dhy

gien

emdashba

sic

rule

san

dre

spon

sibi

lity

015

10

014

35E

mer

genc

ym

edic

alca

rean

dth

eav

aila

bilit

yof

ambu

lanc

ese

rvic

es0

161

001

532

Tou

rism

dest

inat

ion

envi

ronm

ents

024

8So

cioc

ultu

ral

chan

ge0

333

008

26

Publ

icin

tere

stin

heal

th-l

eisu

reac

tiviti

es0

443

003

74

Em

erge

nce

ofhe

alth

-con

scio

usco

nsum

ers

055

70

046

3

Mar

ket

dem

and

066

70

165

3E

xpan

sion

ofth

ele

isur

ean

ddo

mes

ticto

uris

mm

arke

t0

416

006

92

Mor

ede

man

ding

trav

eler

s0

584

009

61

Tou

rism

dest

inat

ion

stra

tegi

es0

431

Cap

abili

tyof

the

auth

oriti

es0

413

017

82

Prov

idin

gle

ader

ship

for

coor

dina

tion

with

inth

ese

ctor

011

30

020

23E

ncou

ragi

ngin

nova

tion

ofho

tsp

ring

ssp

apr

oduc

tsamp

serv

ices

009

10

016

31U

nder

taki

ngdo

mes

tican

din

tern

atio

nal

mar

ketin

gca

mpa

igns

010

10

018

27C

ondu

ctin

gre

gula

rsu

rvey

son

tour

ist

beha

vior

ampsa

tisfa

ctio

n0

052

000

937

Ass

istin

gho

tsp

ring

spr

oper

ties

inlic

ensi

ngm

atte

rs0

182

003

28

Cre

atin

gan

dm

aint

aini

nga

hot

spri

ngs

data

base

009

70

017

29Im

plem

entin

gho

tsp

ring

sw

ater

qual

ityin

spec

tions

016

20

029

11E

ffec

tive

desi

gnan

dco

nstr

uctio

nof

new

and

exis

ting

hot

spri

ngs

area

s0

202

003

65

Cap

abili

tyof

hot

spri

ngs

prop

riet

ors

058

70

253

1Pr

omot

ing

the

heal

than

dm

edic

albe

nefi

tsof

hot

spri

ngs

007

30

019

25Pr

ovid

ing

adi

vers

era

nge

ofle

isur

ean

dhe

alth

-ori

ente

dfa

cilit

ies

009

30

024

18M

aint

aini

nghi

gh-q

ualit

yho

tsp

ring

ssp

a-re

late

d0

122

003

19

faci

litie

san

deq

uipm

ent

Ens

urin

gpr

ofes

sion

alan

dte

chni

cal

com

pete

nce

and

effe

ctiv

est

aff

011

80

030

10D

evel

opin

ga

thir

dpa

rty

cert

ific

ate

and

accr

edita

tion

sche

mes

010

40

026

14C

ontr

ollin

gth

eus

eof

hot

spri

ngs

wat

er0

137

003

57

Bui

ldin

gse

wag

esy

stem

infr

astr

uctu

rean

dw

aste

wat

ertr

eatm

ent

faci

litie

s0

142

003

65

Ens

urin

gth

epr

oper

cons

truc

tion

ofpi

pean

dpu

mpi

ngsy

stem

s0

107

002

712

Ava

lue-

for-

mon

eyto

uris

mde

stin

atio

nex

peri

ence

010

30

026

14

540 LEE AND KING

springs and spa tourism and the principal competi- that Taiwan has one of the highest concentrationsand greatest variety of hot springs in the worldtor for Taiwan Japan has abundant natural hot

springs and hot springs are intrinsic to Japanese this is not surprising The three lowest ranked de-terminants were assuring the proper constructionculture The centuries-old tradition of hot springs

and onsen bathing has made Japan a leading spa of pipe and pumping system (mean = 177) build-ing sewage system infrastructure and wastewatertourism destination During Taiwanrsquos occupation

by the Japanese prior to 1945 many hot springs treatment facilities (mean = 190) and controllingthe use of hot springs water (mean = 201) Thesefacilities were built in Japanese style and adopted

the Japanese hot springs bathing traditions and relate to the capability of hot springs proprietorsto protect conserve and manage the environmentmanners This legacy is still evident in some of

Taiwanrsquos oldest and finest hot springs regions In and natural resources in compliance with the prin-ciples of sustainability It is suggested that an en-this historical context and given growing interna-

tional competition a comparison of the relative vironmental management self-regulation mecha-nism would be a useful addition to the dailyperformances of the hot springs tourism sector in

Taiwan and Japan is timely practices of hot springs proprietors Many proprie-The competitiveness rating for Taiwanrsquos hot tors have an exclusive focus on the maximization

springs tourism sector (final score = 284) was of short-term profitability The effects of their ac-lower than for Japan (final score = 416) and was tions on local communities and the environmentbelow neutrality (lt3 on a scale of 1ndash5) The more and their responsibility to customers are ignoredsalient findings in Table 5 are highlighted It is Currently there is no direct regulation of hotnoted that Taiwan has performed less effectively springs spa operations though there is a strongthan Japan on the three measures of destination case for a more active regulation of such activitiescompetitiveness The lowest rating applied in the Significant differences are evident between thecase of tourism destination strategies (weighted weight means for Taiwan and Japan These in-mean = 245) All of the determinants originating clude controlling the use of hot springs waterfrom the dimension tourism destination strategies building sewage system infrastructure and waste-rated lower than the neutral score of 3 These find- water treatment facilities ensuring the properings are not surprising in view of the absence of construction of pipe and pumping system and au-regulations to oversee enterprise-level operations thentic accommodation experiences Taiwanrsquosand of legislation to protect the use of water greatest weaknesses are the capacity of its hotwithin the hot springs areas These human re- springs proprietors to minimize environmentalsource and strategic capacity related problems damage and comply with environmental sustain-need urgent resolution if Taiwanrsquos hot springs ability standards Japanrsquos Hot Springs Law (1948)tourism sector is to develop and prosper In con- prescribes a definition for hot springs to be recog-trast Japan is rated above 4 on each of the three nized as an onsen Compliant onsen operators whomajor dimensions The most favorably rated di- contribute to regional economic development aremension was tourism destination environments eligible for subsidies (Matsushita 1994) To match(weighted mean = 454) Japan has a long history Japanrsquos accomplishments Taiwan will need a col-of communal bathing and visiting hot springs is a laborative government and industry mechanism tomajor highlight of travel within Japan Increasing pursue longer term sustainabilitypublic awareness of the value of leisure and recre-ation for health and wellbeing has created favor- Conclusions and Managerial Implicationsable conditions for the further development of hot

Hot springs tourism is an emerging sector insprings and spa tourism in Japan (MatsushitaTaiwan and in this context it is particularly im-1994)portant to develop a guiding framework based ofThe only item where Taiwan recorded a higherdestination competitiveness from a supply-sidescore than Japan and received the highest weightedperspective The relative importance of destinationmean among the 38 determinants (weighted mean =

413) was high-grade natural hot springs Given competitiveness has been evaluated using three

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 541

Table 5Comparative Destination Weights for Taiwan and Japan

Taiwan Japan

Weighted WeightedWeight Mean Mean Mean Mean

Tourism destination resources and attractors 294 301 407 417Attractions 324 330 414 423

High grade natural hot springs 0018 406 413 400 407Plentiful natural hot springs 0017 378 384 400 407Abundant natural scenery 0025 383 389 428 439Souvenir shopping 0020 228 233 422 430Year-round recreational activities 0022 228 233 422 431

Transport 289 296 383 393Convenient access to hot springs 0026 317 325 389 399Sound local transportation network 0023 289 296 394 403Ample parking 0023 261 267 367 375

Accommodation 263 266 421 427Availability of sufficient accommodation 0006 283 285 389 391High quality and international standard accommodation 0015 283 287 444 451Authentic accommodation experiencesa 0015 233 237 433 440Comfortable accommodation in a natural setting 0019 250 255 417 425

Safety and security 298 303 411 419Destination safety 0012 400 405 417 422A safe bathing environment 0027 311 319 428 440Hygiene standards for hot springs spa equipment 0024 250 256 428 438Personal safety and hygienemdashbasic rules and responsibility 0014 250 254 417 423Emergency medical care and the availability of ambulance services 0015 278 282 367 373

Tourism destination strategies 240 245 397 408Capability of the authorities 250 256 390 399

Providing leadership for coordination within the sector 0020 244 249 394 402Encouraging innovation of hot springs spa products amp services 0016 256 260 394 400Undertaking domestic and international marketing campaigns 0018 294 299 411 418Conducting regular surveys on tourist behavior amp satisfaction 0009 217 219 311 314Assisting hot springs properties in licensing matters 0032 217 224 372 384Creating and maintaining a hot springs database 0017 239 243 433 440Implementing hot springs water quality inspections 0029 278 286 394 405Effective design and construction of new and existing hot springs areas 0036 256 265 411 426

Capability of hot springs proprietors 230 236 404 416Promoting the health and medical benefits of hot springs 0019 261 266 433 441Providing a diverse range of leisure and health-oriented facilities 0024 244 250 428 438Maintaining high-quality hot springs spa-related facilities and equipment 0031 272 280 400 412Ensuring professional and technical competence and effective staff 0030 250 258 411 423Developing a third party certificate and accreditation schemes 0026 244 250 400 410Controlling the use of hot springs watera 0035 194 201 417 432Building sewage system infrastructure amp wastewater treatment facilitiesa 0036 183 190 383 397Ensuring the proper construction of pipe and pumping systemsa 0027 172 177 383 393Ensuring a value-for-money in tourism destination experience 0026 250 257 383 393

Tourism destination environments 352 367 422 454Sociocultural change 353 367 436 442

Public interest in health-leisure activities 0037 344 357 428 444Emergence of health-conscious consumers 0046 361 378 444 464

Market demand 350 379 408 448Expansion of the leisure and domestic tourism market 0069 356 381 400 428More demanding travelers 0096 344 377 417 454

Final score 276 284 406 416

aThe weighted mean difference between two destinations exceeded

542 LEE AND KING

headings namely tourism destination resources tourism provides an extension of the current liter-ature on the relative competitiveness of tourismand attractors tourism destination strategies and

tourism destination environments The present destinations (Dwyer et al 2003 Enright amp New-ton 2004 Kozak amp Rimmington 1999) Implica-study supplements the current literature on tourism

destination competitiveness by integrating the tions are drawn for government and industry witha view to increasing visitations Taiwan currentlythree categories of destination competitiveness

which have been prominent in previous models rates low in the context of competitiveness butaddressing this deficiency rates high in terms of(Dwyer amp Kim 2003 Enright amp Newton 2004

Ritchie amp Crouch 2000 2003) It is acknowl- importanceedged that each subsector has unique features andattributes and its own set of competitive factors A Focus on Preventative and Curative CareThe sector-specific model of destination competi-

In the context of an expanding pool of consum-tiveness that has been proposed in this research is

ers who have the time money and motivation tocapable of capturing the nature and characteristics

pursue and maintain a healthy life the diversityof the hot springs tourism sector and is well suited

and smoothness of mineral springs has been a sig-for purposes of comparison It has been demon-

nificant advantage for tourism provision in Tai-strated that the AHP method is an appropriate

wan The use of natural hot springs for the treat-method for generating insights that could form a

ment of disease constitutes another potentialbasis for enhancing the competitiveness of Tai-

market segment There is a business opportunitywanrsquos hot springs tourism sector Taiwan is a col-

for resort proprietors to market the medicinal andlectivist culture with an emphasis on the pursuit of

therapeutic benefits of hot springs bathing toharmony with others (Hofstede 1980) On this ba-

health-conscious consumers who are seeking tosis the AHP method may accommodate the di-

enhance their well-being through travel Toverse opinions of individual participants and avoid

achieve this proprietors should refresh their pre-the dominance of any individual or small group

ventative and health-oriented services and fa-Participants in the current survey had an equal

cilities Diversification of product offerings andvoice The AHP also accommodated the geograph-

tourist activities is also needed The Taiwan gov-ically dispersal of participants (Armacost Hos-

ernment could assist by establishing a research en-seini amp Edwards 1999) Previous AHP applica-

tity dedicated to hot springs sector and supportingtions have been confined to destinations at a

the development of a national database Hotgeneric level (Crouch 2008 Crouch amp Ritchie

springs treatments are as diverse as the waters2005) The present study shows the merit of

themselves A database could inform the publicapplying the AHP approach for analyzing destina-

about the location of relevant hot springs andtion competitiveness in the context of hot springs

about their health and tourism attributes In someas an important subsector of tourism It contributes

European countries skin disease sufferers who areto knowledge by extending the application of AHP

in receipt of health insurance-funded prescriptionto destination competitiveness as it applies to sub-

are entitled to receive spa treatments If Taiwanrsquossectors of tourism

national health insurance system were to subsidizeTo test the applicability of a sector-specific

spa treatments it would enhance the appreciationdestination competitiveness model Japan was

of the therapeutic and curative effects of hotchosen as a benchmark for comparison purposes

springs and extend their use into the medical fieldThe comparative analysis has shown that Taiwanis less competitive than Japan in all fields with the

Sustainability Principlesexception of high-grade natural hot springs Thefindings reveal potential areas for improvement if Tourism development associated with the growth

in visitation to hot springs has impacted on theTaiwanrsquos authorities and enterprises are to boostcompetitiveness and narrow the gap with Japan natural environment If Taiwan is to achieve an

appropriate balance between protecting resourcesThe application of a comparative study in the con-text of a subsector of tourism namely hot springs and stimulating tourism development stakehold-

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 543

ers at both the national and the enterprise level tors in future research to compare the demand andsupply-side perspectives Finally the study bringswill need to engage actively with environmental

management issues and engage in partnerships together the various concepts of destination com-petitiveness and identifies sector-specific strate-The national authorities are responsible for formu-

lating and implementing tourism policy and for gies environmental factors and unique destina-tion attributes as major constructs These insightsdeveloping strategies consistent with the sustain-

able use of lands hot springs and other natural could be further extended by examining the inter-play between internal and external factors as theyresources An effective and principled system of

deterrence is needed involving fines for the illegal influence the formulation and implementation ofdestination strategies in the pursuit of competitive-use of lands and hot springs Destination manage-

ment organizations should work with independent nessthird parties to promote and endorse the imple-mentation of sustainable water resource manage- Referencesment and environmental protection practices Hot

Armacost R L Hosseini J amp Edwards J (1999) Usingsprings proprietors should incorporate sustainabil- the analytical hierarchy process as a two-phase inte-ity principles within the design and construction grated decision approach for large nominal groupsof spring water distribution sewage treatment Group Decision and Negotiation 8(6) 535ndash555

Buhalis D (2000) Marketing the competitive destinationwastewater collection and piping and pumpingof the future Tourism Management 21(1) 97ndash116systems Sustainable tourism development is pred-

Cavana R Y Delahaye B L amp Sekaran U (2001) Ap-icated upon responsible behaviors by stakeholders plied business research Qualitative and quantitativewithin the hot springs tourism sector to ensure the methods Milton Qld John Wiley

Cheng E W L amp Li H (2001) Analytic hierarchy pro-long-term prosperity and quality of life for futurecess An approach to determine measures for businessgenerationsperformance Measuring Business Excellence 5(3)30ndash36

Limitations and Opportunities Cheng E W L Li H amp Ho D C K (2002) Analyticfor Future Research hierarchy process (AHP) A defective tool when used

improperly Measuring Business Excellence 6(4)This investigation has prompted a number of 33ndash37

Crouch G I amp Ritchie J R B (1999) Tourism competi-questions and various areas of potential study aretiveness and societal prosperity Journal of Businessevident The proposed destination competitivenessResearch 44(3) 137ndash152model should have international applicability es-

Crouch G I amp Ritchie J R B (2005) Application ofpecially in emerging Asian destinations similar to the analytic hierarchy process to tourism choice andTaiwan Additional validation of the proposed decision making A review and illustration applied to

destination competitiveness Tourism Analysis 10(1)framework should be undertaken Second the pro-17ndash25posed hot springs competitiveness model is ge-

Crouch G I (2008) Modelling destination competitive-neric Given time and cost constraints all key in-ness A survey and analysis of the impact of competi-

formants in the present study were Taiwanese tiveness attributes Gold Coast Qld Sustainable Tour-Respondents may tend to exaggerate the competi- ism CRC

Deng J King B amp Bauer T (2002) Evaluating naturaltiveness of their own country relative to othersattractions for tourism Annals of Tourism Research(Dwyer et al 2003) The limited knowledge and29(2) 422ndash438practical experience of informants about Japan as

drsquoHauteserre A M (2000) Lessons in managed destina-a competitor may have compromised the compari- tion competitiveness The case of Foxwoods Casino Re-son Future studies should extend the range of in- sort Tourism Management 21(1) 23ndash32

Dwyer L amp Kim C (2003) Destination competitivenessternational and local perspectives Thirdly theDeterminants and indicators Current Issues in Tourismpresent study has explored the managerial per-6(5) 369ndash414spective towards competitiveness factors associ-

Dwyer L Livaic Z amp Mellor R (2003) Competitive-ated with Taiwan as a hot springs tourism destina- ness of Australia as a tourist destination Journal oftion Given the importance of consumer perceptions Hospitality and Tourism Management 10(1) 60ndash78

Dwyer L Mellor R Livaic Z Edwards D amp Kim Cit would be useful to incorporate hot springs visi-

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

lands (2005) New Taiwan Weekly Retrieved from Saaty T L (1980) The analytical hierarchy processPlanning priority setting resource allocation Newhttpwwwnewtaiwancomtwbulletinviewjspbulletin

id=22639 York McGraw-HillSaaty T L amp Kearns K P (1985) Analytical planningHowie F (2003) Managing the tourist destination Lon-

don Continuum The organization of systems New York Pergamon PressHudson S Ritchie J B R amp Timur S (2004) Measur-

Page 3: International Competitiveness in Hot Springs Tourism: An

532 LEE AND KING

and the richness and diversity of the healing pow- increasing percentage of the Taiwanese populationhave visited hot springs and the quality of the hoters offered by natural hot springs Visiting hot

springs is one of the most popular motivations for springs tourism experience for domestic touristshas improved However Taiwan is not yet com-travel within Japan (Kobayashi 2000) Japan is

Taiwanrsquos major inbound leisure market and Japa- petitive internationally The amenity of many pub-lic and commercial facilities located in hot springsnese bathing habits and preferences have helped

to shape the hot springs and spa tourism market areas has been degraded through a lack of repairand maintenance In addition many hot springsTaiwan has recently emerged as a regional desti-

nation promoting its abundant hot springs re- proprietors have not incorporated the surroundingenvironment within the hot springs experience insources both domestically and internationally

Taiwanrsquos location on the fault line between the the most aesthetic sense In recognition of thislimitation a framework is needed to measure andEuro-Asian and Philippine continental plates has

led to an abundant distribution of high-quality nat- analyze the potential of the sector domesticallyand internationally A model of destination com-ural hot springs which offers a strong foundation

for its development as a desirable hot springs tour- petitiveness could assist industry and governmentstakeholders to identify destination strengths andism destination Development dates back to 1894

when the Peitou hot springs were exploited to cre- weaknesses to highlight opportunities and to com-bat potential threats to development and visitationate a small-scale local spa During the Japanese

occupation (1895ndash1945) the colonial authorities (Dwyer Mellor Livaic Edwards amp Kim 2004)Driven by a variety of socioeconomic and life-promoted and enhanced the natural hot springs

amenity The four major hot springs Beitou style changes consumer demand for health andwellness oriented leisure activities is likely toYangmingshan Guanziling and Sichongxi were

discovered and the first hot springs resort Ten- show substantial growth If Taiwan is to be mar-keted internationally as a hot springs tourism des-guan was opened in Beitou in 1896 The Japanese

influenced Taiwanese attitudes by bringing their tination in this environment it will need to en-hance its competitiveness The present studyrich culture of springs soaking Following Tai-

wanrsquos retrocession in 1945 hot springs gradually proposes a model of destination competitivenessbased on a supply-side perspective of the potentiallost their public appeal prompting the authorities

to neglect the resource and its regulation In the of Taiwanrsquos hot springs tourism sector The ap-proach that has been adopted represents a first andabsence of regulation and of any formal grouping

of hot springs proprietors overexploitation of the necessary step to understanding the improvementsthat will be needed to strengthen and expand thenatural environment and natural resources became

widespread Indicative of the loosely regulated en- sectorrsquos international reach and competitivenessA supply-side perspective is viewed as being capa-vironment the Water Resources Agency reportsble of providing an accurate measure of hotthat only 20 of Taiwanrsquos hot springs establish-springs tourism competitiveness because respon-ments were in possession of the required water anddents who are knowledgeable about the completeland permits (ldquoHot Springs Proprietorsrdquo 2005)spectrum of destination competitive resources areThe Taiwan government has proceeded to stim-regularly engaged in contact with consumersulate hot springs tourism and has engaged in ex-(Faulkner Fredline amp Oppermann 1999 Gear-tensive marketing in the period since 1991 Theing Swat amp Var 1974 Hudson Ritchie amp Ti-ldquoHot Springs Development Management Pro-mur 2004) They are well placed to articulate anygramrdquo was introduced in 1999 and the ldquoSpa Lawrdquoperceptions that are prevalent in the market and tofollowed in 2003 This law formalized the conser-provide advice on sustainable development strate-vation and sustainability of natural hot springs re-giessources The Hot Springs Tourism Association

was established during the same year to supportLiterature Reviewcoordinate and provide technical guidance to lo-

cal businesses and individuals involved in hot The concept of competitiveness has been widelyapplied to tourism destinations (Buhalis 2000springs tourism As a result of these initiatives an

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 533

Crouch amp Ritchie 1999 drsquoHauteserre 2000 national level However they are not yet capableof determining destination competitiveness in theDwyer amp Kim 2003 Enright amp Newton 2004

Hassan 2000 Heath 2003 Ritchie amp Crouch context of a particular component of tourism suchas the hot springs tourism sector Tourism destina-2000 2003) Competitiveness has formed a basis

for the selection of principles to guide the devel- tions share a common basic anatomy but are het-erogeneous (Howie 2003) This is also the caseopment of a model Destination competitiveness

models are worthwhile because destinations are a for destinations with hot springs attributes andthere is a need to develop a sector-specific destina-focal point for motivating visitors delivering tour-

ism products and services implementing tourism tion competitiveness model to extend the litera-ture The premise of the proposed model is thatplanning and management strategies and contrib-

uting to memorable tourism experiences Previous to balance sustainability and competitiveness thesupply component of a hot springs destinationwork by Dwyer and Kim (2003) Enright and

Newton (2004) and Ritchie and Crouch (2000) must be aligned to changes in the external envi-ronment through the formulation and implementa-has identified the key determinants of destination

competitiveness These determinants may be clas- tion of tourism destination strategiessified into three major categories resources andattractors destination strategies and destination Research Designenvironments Destination resources and attractors

The Analytic Hierarchy Process (AHP)refer to the critical destination attributes which at-tract visitors and provide a foundation for sustain- The present study proposes an evaluation

framework to assess the potential and competitive-able tourism (Crouch amp Ritchie 1999) They in-clude local facilities and services sociocultural ness of Taiwanrsquos hot springs tourism sector Desti-

nations are complex systems and there are manyand environmental resources and public goods(Buhalis 2000) Because many tourism resources influences on the quality of the hot springs visitor

experience and whether destination competitive-and attractors are irreplaceable strategy formula-tion and implementation is needed to ensure sus- ness is achieved The influence of each element

will differ Collectively the various elements in-tainable resource use (Buhalis 2000) Destinationstrategies may be thought of as processes or ac- fluence expectations to different degrees (Deng

King amp Bauer 2002) The AHP provides a meanstions which aim to match internal tourism re-sources and destination attractions with external of prioritizing the various elements in the hierar-

chy thus helping governments and industry prac-environments (Crouch amp Ritchie 1999) Develop-ing destination strategies is complex partly be- titioners to focus on the most important issues

(Cheng amp Li 2002) Since its development bycause the destination product is complex It in-volves the organization of management and Saaty in the 1970s (Saaty 1980) AHP has been

widely used in industry settings though rarely inmarketing activities at the enterprise level and thepractice of destination policies planning and de- tourism (Crouch amp Ritchie 2005) The method in-

corporates both qualitative and quantitative re-velopment (Dwyer amp Kim 2003 Ritchie ampCrouch 2000) Finally destination competitive- search within a single empirical inquiry (Cheng amp

Li 2001 Cheng Li amp Ho 2002) It is a problem-ness is shaped by external environmental forcesover which the authorities exercise minimal con- solving framework and a systematic procedure

that represents the various elements of a problemtrol (Kotler Haider amp Rein 1993) Destinationsthat are vigilant to environmental changes are in hierarchical form (Saaty amp Kearns 1985) It

provides a rationale by dividing a problem into itslikely to be more proactive and are better posi-tioned to predict opportunities and threats or at constituent parts and calling for simple pairwise

comparison judgments to develop priorities atleast to judge their probability (Ritchie amp Crouch2003) each level in the hierarchy

The AHP approach involves three basic stepsThe existing models of destination competitive-ness provide a framework for determining the (1) decomposition or the construction of the hier-

archy (2) comparative judgments or defining andcompetitiveness of a destination at national or sub-

534 LEE AND KING

executing data collection to obtain pairwise com- hot springs tourism sector relative to its competi-tors The steps are summarized as followsparative data on elements of the hierarchical struc-

ture and (3) synthesis of priorities or constructionof an overall priority rating (Harker amp Vargas Establishing a Hierarchy Evaluation Structure1987) During the first step the various problems

The first step of the AHP involves the develop-are decomposed into their component parts andment of a hierarchical structure to deconstruct athen rearranged into a hierarchy Once the hierar-complicated problem into several integrated di-chy has been constructed the elements at the samemensions (components or elements) In the presentlevel are compared in pairs with respect to a parentstudy a three-round Delphi study was conductedelement in the level immediately above The val-to validate the literature-based determinants ofues of the pairwise comparisons in the AHP aredestination competitiveness and to accommodatedetermined on the basis of the Saaty (1980) scalenecessary adjustments The Delphi study gener-The available values for the pairwise comparisonsated a list of 38 determinants of destination com-are members of the discrete set 9 8 7 6 5 4petitiveness based on the consensus criteria that3 2 1 12 13 14 15 16 17 18 19 (seeare outlined below the mean score is above theTable 1) The inconsistency ratio (IR) is used toaverage of 416 and 80 of responses fall withincheck the consistency and reliability of the judg-two rating points on a 5-point Likert-type scalements Inconsistencies may arise when respon-(Lee amp King 2009) The Delphi study confirmeddents make careless errors or exaggerated judg-the validity of the proposed model prompting thements An inconsistency ratio of 01 is considereddevelopment of a four-level hierarchical structureto be the acceptable upper limit If an inconsis-with 49 nodes This is outlined in Figure 1 Eachtency ratio exceeds 01 participants are asked tolevel of the hierarchy is limited to seven elementsreevaluate their judgments in a pairwise matrix un-which keeps the evaluation workload to a manage-til an IR of less than 01 is achieved (Saaty 1980)able level (Saaty 1980)In the present study the AHP approach was used

The overall goal occupies the top level of theto determine the relative weights of the preidenti-hierarchy to develop a framework for evaluatingfied determinants of destination competitiveness

and to evaluate the competitiveness of Taiwanrsquos the potential of the hot springs tourism sector with

Table 1Pairwise Comparisons

Intensity of RelativeImportance Definition Explanation

1 Equal importance Two activities contribute equally to objective

3 Moderate importance of one over Experience and judgment slightly favor one over anotheranother

5 Essential or strong importance Experience and judgment strongly favor one over another

7 Demonstrated importance An activity is strongly favored and its dominance is demon-strated in practice

9 Extreme importance The importance of one over another affirmed on the highestpossible order

2468 Intermediate values between the Used to represent compromise between the priorities listedtwo adjacent judgments above

Reciprocals of the above Reciprocal for inverse comparison If activity i has one of the above nonzero numbers assignednonzero numbers to it when compared with activity j has the reciprocal value

when compared with i

Source Adopted from Saaty (1980)

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 535

Figure 1 The hierarchy of elements determining competitiveness

536 LEE AND KING

weights corresponding to the full range of determi- within a government-related tourism organizationAcademic participants had a minimum of 5 yearsnants of destination competitiveness Beneath the

overall goal the second level represents the three of university tourism teaching experience evi-dence of publications relevant to Taiwanrsquos hotmajor dimensions which determine the potential

and competitiveness of the hot springs tourism springs tourism sector and an interest in healthand wellness tourism researchsector including tourism destination resources

and attractors tourism destination strategies The snowball sampling approach was usedbased on referrals from initial participants to gen-and tourism destination environments At the third

level of the hierarchy the three dimensions have erate additional respondents Although subject toa degree of bias this method is an appropriatebeen subdivided The dimension tourism destina-

tion resources and attractors consist of natural method for gathering information from individualswho exhibit particular characteristics or knowl-and man-made tourism resources and attractions

that complement the hot springs soaking experi- edge but are difficult to locate and contact (Ca-vana Delahaye amp Sekaran 2001) A mail surveyence It is subsequently decomposed into four fac-

tors attractions transport accommodation and was administrated between December 2008 andJanuary 2009 preceded by a telephone conversa-safety and security Tourism destination strategies

refer to the commitment by government and in- tion to establish rapport and to secure participa-tiondustry capability of the authorities and capability

of hot springs proprietors The dimension tourism A survey was administrated with 24 govern-ment officers hot springs proprietors and scholarsdestination environments consists of macro- and

microlevel growth drivers and is subdivided into for the purpose of collecting pairwise comparisondata The response rate was about 80 (19) Astwo components sociocultural change and market

demands Finally the various determinants or at- noted by Cheng et al (2002) small samples areacceptable from the AHP methodology perspec-tributes associated with each factor in the third

level are linked to the fourth level As outlined in tive The AHP is a subjective method that doesnot require a large number of participating expertsFigure 1 the fourth level consists of 38 determi-

nants The opinions of a small group of key informantsare generally sufficient to generate reliable anduseful results albeit only providing rough esti-Prioritization Proceduremates The response rate was deemed to be suffi-

The next step of the research involved the prio-cient Table 2 summarizes participant demo-

ritization of the various elements at each levelgraphic characteristics

Sample Design and Administration A reviewQuestionnaire Development The survey con-

of the relevant research (Faulkner et al 1999sisted of three sections The first required partici-

Gearing et al 1974 Hudson et al 2004) indicatespants to assess the relative importance of three

that tourism competitiveness is usually assesseddimensions eight factors and 38 determinants

from a supply-side perspective (eg governmentsof destination competitiveness Participants were

at all levels hotel and tourism associations travelasked to choose between various pairs of state-

agencies and tour operators) In the current studyments To elicit the importance of tourism destina-

three panels were established to ensure the incor-tion resources and attractors versus tourism des-

poration of applied as well as theoretical inputstination strategies the following statements were

Prospective participants were selected on the basispresented to each participant

of predetermined criteria The tourism industryWhen evaluating the potential and competitive-

grouping consisted of participants in the hotness of the hot springs tourism sector tourism des-

springs tourism sector with a minimum of 5 yearstination resources and attractors are

of professional experience and membership of arelevant tourism association Public sector partici- bull equally as important as

bull moderately more importantmoderately less im-pants should have a minimum of 5 years of profes-sional experience in a decision-making capacity portant than

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 537

Table 2 a particular destination on any determinant of des-Profile of Participating Experts tination competitiveness outside a comparative

framework (Dwyer Livaic amp Mellor 2003) Des-Characteristics N

tinations are not competitive or uncompetitive inField of work the abstract but versus competitors and it is im-

Goverment official 7 037 portant to determine the competitive set (Kozak ampHot springs proprietor 5 026

Rimmington 1999) Previous studies have pre-Academic 7 037Experience (years) sented a variety of mechanisms to compare desti-

At least 5 3 016 nation competitiveness (Dwyer et al 2003 En-6ndash10 2 011

right amp Newton 2004 Hudson et al 2004 Kozak11ndash15 5 02616ndash20 4 021 amp Rimmington 1999) For the purposes of the21ndash25 4 021 present study identification of a single competitor25 and above 1 005

within the Asia-Pacific region was considered toAge (in years)31ndash35 2 011 be sufficient for comparative purpose It also36ndash40 2 011 helped to reduce the duration of the survey The41ndash45 8 042

final section examined respondent demographics46ndash50 1 00551 and above 6 032

EducationData Analysis and SynthesisHigh school 0 0

Collegeuniversity 6 032Following inputs from the panel of expertsGraduate 13 068

normalized weighting priorities were establishedfor the hierarchy of elements within the AHPmodel using the Expert Choice software package

bull considerably more importantconsiderably less Participant comparisons were entered into Expertimportant than Choice allowing the researchers to check the con-

bull emphatically more importantemphatically less sistency of individual responses and abstractimportant than weightings for each element Expert Choice pro-

bull extremely more importantextremely less im- vided normalized local and global weightings forportant than all elements at each level of the hierarchy Incon-

sistency ratios were generated for each matrixTourism Destination Strategies Responses onThe results indicated that all inconsistency ratiosthe left indicate a prioritization of the first dimen-are 002 or lower (see Table 3) thus satisfying thesion over the second while responses on the rightthreshold of 10 inconsistency proposed by Saatyassert the importance of the second dimension(1980) It also confirmed the consistency and reli-over the first In the Saaty (1980) scale shown inability of the expert judgmentsTable 1 the five statements correspond respec-

tively to importance weightings of 1 3 5 7 and 9Results and FindingsIn section two participants rated Taiwanrsquos hot

springs tourism sector with competitors across Results Obtained From the AHP Analysiseach of 38 determinants under the three major

An examination of the weightings rated in Ta-headings on a 5-point Likert-type scale The op-ble 4 reveals that tourism destination strategiestions provided ranged from 1 (well below average(0431) is the major contributor to the potentialmuch worse) to 5 (well above averagemuch bet-and competitiveness of the hot springs sector fol-ter) The major competitor for Taiwanrsquos hotlowed by tourism destination resources and at-springs tourism sector was self-selected by partici-tractors (0321) Tourism destination environ-pants from a range of Asian destinations offeringments (0248) was the least important dimensionequivalent tourism products The reason for nomi-The top three ranking factors are capability ofnating a competing destination was to provide antourism enterprises (0253) capability of the au-Asia-Pacific comparative benchmark It would

have been meaningless to ask participants to rate thorities (0178) and market demand (0165) The

538 LEE AND KING

Table 3 the appeal of the core resources and attractorsConsistency Test for the Determinants strengthen the quality and effectiveness of the var-of Destination Competitiveness ious supporting factors and minimize any con-

straints imposed by the qualifying determinantsInconsistency Consistency(Crouch amp Ritchie 1999) Successful implementa-Level Ratio Testtion of destination strategies helps create a unique

Objective 000 accepted system of tourism products to address the needs ofDimensionsdifferent categories of visitor and ensures sustain-Tourism destination

resources and attractors 001 accepted able growth combining private profit and generalTourism destination economic development with the preservation ofstrategies 000 accepted

the host communityrsquos identity and quality of lifeTourism destinationenvironments 000 accepted (Manente amp Cerato cited in Manente amp Mingh-

Factors etti 2006) Second destination competitivenessAttractions 001 acceptedcan be enhanced through public and private sectorTransport 002 accepted

Accommodation 000 accepted participation and involvement While the principalSafety and security 001 accepted task of hot springs enterprises is to build and reno-Capability of the

vate their existing sewage and wastewater infra-authorities 001 acceptedCapability of hot springs structure the responsibility of government should

proprietors 000 accepted be to establish hot springs demonstration sites thatSociocultural change 000 acceptedexemplify best practice improve environmentalMarket demand 000 acceptedsustainability and minimize environmental dam-age However hot springs are now acknowledgedas a significant tourism attraction in Taiwan In-corporation of sustainability principles into bothtop five ranked attributes are more demanding

travelers (0096) expansion of the leisure and do- enterprise-level operation and government-leveldestination planning policy and development ismestic tourism market (0069) emergence of

health-conscious consumers (0046) public inter- viewed as an essential tool to strengthen and ex-pand its international reach and competitivenessest in health-leisure activities (0037) effective de-

sign and construction of new and existing hot Finally the introduction of the 2-day weekendentitlement for Taiwanese residents in 2001 in-springs areas (0036) and building sewage system

infrastructure and wastewater treatment facilities creased the availability of leisure time and pro-moted changes in lifestyle expenditures The(0036) The five lowest ranking attributes are

availability of sufficient accommodation (0006) Taiwanese are becoming more sophisticated de-manding and aware of the need to maintain goodconducting regular surveys on tourist behaviorhealth through tourism and recreation These fa-and satisfaction (0009) destination safety (0012)vorable conditions and incentives expand the pro-personal safety and hygienemdashbasic rules and re-spective application of natural hot springs into thesponsibility (0014) high quality and internationalfields of health promotion and medical treatmentstandard accommodation (0015) authentic ac-Internationally hot springs tourism has generallycommodation experiences (0015) and emergencybeen regarded as health oriented (Matsushitamedical care and the availability of ambulance1994) The ongoing prosperity of the sector is tiedservices (0015)closely to the increasing consciousness of personalThe key findings of the AHP analysis may behealth issues Competitiveness relies on increasingsummarized as follows First tourism destinationdomestic demand and its future appears prom-strategies underpin the competitiveness of the hotisingsprings tourism sector This is consistent with

Dwyer et alrsquos argument (2004) that destinationDescriptive Resultsstrategies are crucial for the success of the tourism

industry Tourism destination strategies should be According to the survey respondents Japanwas the most competitive Asian destination for hotviewed as processes and actions which enhance

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 539T

able

4E

lem

ent

Wei

ghts

toD

eter

min

eD

estin

atio

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ompe

titiv

enes

s

Loc

al

Glo

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Loc

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Glo

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Dim

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acto

rW

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tsW

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Tou

rism

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ion

reso

urce

samp

attr

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rs0

321

Attr

actio

ns0

320

010

34

Hig

h-gr

ade

natu

ral

hot

spri

ngs

017

60

018

27Pl

entif

ulna

tura

lho

tsp

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s0

170

001

729

Abu

ndan

tna

tura

lsc

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242

002

517

Souv

enir

shop

ping

019

40

020

23Y

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dre

crea

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219

002

222

Tra

nspo

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223

007

17

Con

veni

ent

acce

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spri

ngs

036

50

026

14So

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loca

ltr

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netw

ork

031

80

023

20A

mpl

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g0

317

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320

Acc

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ion

017

20

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8A

vaila

bilit

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102

000

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Hig

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532

Aut

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s0

275

001

532

Com

fort

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mm

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ina

natu

ral

setti

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350

001

925

Safe

tyamp

secu

rity

028

60

092

5D

estin

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nsa

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013

10

012

36A

safe

bath

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envi

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029

20

027

12H

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spa

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265

002

418

Pers

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Tou

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024

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333

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26

Publ

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443

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74

Em

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055

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046

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Mar

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Mor

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Tou

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Cap

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Prov

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Ass

istin

gho

tsp

ring

spr

oper

ties

inlic

ensi

ngm

atte

rs0

182

003

28

Cre

atin

gan

dm

aint

aini

nga

hot

spri

ngs

data

base

009

70

017

29Im

plem

entin

gho

tsp

ring

sw

ater

qual

ityin

spec

tions

016

20

029

11E

ffec

tive

desi

gnan

dco

nstr

uctio

nof

new

and

exis

ting

hot

spri

ngs

area

s0

202

003

65

Cap

abili

tyof

hot

spri

ngs

prop

riet

ors

058

70

253

1Pr

omot

ing

the

heal

than

dm

edic

albe

nefi

tsof

hot

spri

ngs

007

30

019

25Pr

ovid

ing

adi

vers

era

nge

ofle

isur

ean

dhe

alth

-ori

ente

dfa

cilit

ies

009

30

024

18M

aint

aini

nghi

gh-q

ualit

yho

tsp

ring

ssp

a-re

late

d0

122

003

19

faci

litie

san

deq

uipm

ent

Ens

urin

gpr

ofes

sion

alan

dte

chni

cal

com

pete

nce

and

effe

ctiv

est

aff

011

80

030

10D

evel

opin

ga

thir

dpa

rty

cert

ific

ate

and

accr

edita

tion

sche

mes

010

40

026

14C

ontr

ollin

gth

eus

eof

hot

spri

ngs

wat

er0

137

003

57

Bui

ldin

gse

wag

esy

stem

infr

astr

uctu

rean

dw

aste

wat

ertr

eatm

ent

faci

litie

s0

142

003

65

Ens

urin

gth

epr

oper

cons

truc

tion

ofpi

pean

dpu

mpi

ngsy

stem

s0

107

002

712

Ava

lue-

for-

mon

eyto

uris

mde

stin

atio

nex

peri

ence

010

30

026

14

540 LEE AND KING

springs and spa tourism and the principal competi- that Taiwan has one of the highest concentrationsand greatest variety of hot springs in the worldtor for Taiwan Japan has abundant natural hot

springs and hot springs are intrinsic to Japanese this is not surprising The three lowest ranked de-terminants were assuring the proper constructionculture The centuries-old tradition of hot springs

and onsen bathing has made Japan a leading spa of pipe and pumping system (mean = 177) build-ing sewage system infrastructure and wastewatertourism destination During Taiwanrsquos occupation

by the Japanese prior to 1945 many hot springs treatment facilities (mean = 190) and controllingthe use of hot springs water (mean = 201) Thesefacilities were built in Japanese style and adopted

the Japanese hot springs bathing traditions and relate to the capability of hot springs proprietorsto protect conserve and manage the environmentmanners This legacy is still evident in some of

Taiwanrsquos oldest and finest hot springs regions In and natural resources in compliance with the prin-ciples of sustainability It is suggested that an en-this historical context and given growing interna-

tional competition a comparison of the relative vironmental management self-regulation mecha-nism would be a useful addition to the dailyperformances of the hot springs tourism sector in

Taiwan and Japan is timely practices of hot springs proprietors Many proprie-The competitiveness rating for Taiwanrsquos hot tors have an exclusive focus on the maximization

springs tourism sector (final score = 284) was of short-term profitability The effects of their ac-lower than for Japan (final score = 416) and was tions on local communities and the environmentbelow neutrality (lt3 on a scale of 1ndash5) The more and their responsibility to customers are ignoredsalient findings in Table 5 are highlighted It is Currently there is no direct regulation of hotnoted that Taiwan has performed less effectively springs spa operations though there is a strongthan Japan on the three measures of destination case for a more active regulation of such activitiescompetitiveness The lowest rating applied in the Significant differences are evident between thecase of tourism destination strategies (weighted weight means for Taiwan and Japan These in-mean = 245) All of the determinants originating clude controlling the use of hot springs waterfrom the dimension tourism destination strategies building sewage system infrastructure and waste-rated lower than the neutral score of 3 These find- water treatment facilities ensuring the properings are not surprising in view of the absence of construction of pipe and pumping system and au-regulations to oversee enterprise-level operations thentic accommodation experiences Taiwanrsquosand of legislation to protect the use of water greatest weaknesses are the capacity of its hotwithin the hot springs areas These human re- springs proprietors to minimize environmentalsource and strategic capacity related problems damage and comply with environmental sustain-need urgent resolution if Taiwanrsquos hot springs ability standards Japanrsquos Hot Springs Law (1948)tourism sector is to develop and prosper In con- prescribes a definition for hot springs to be recog-trast Japan is rated above 4 on each of the three nized as an onsen Compliant onsen operators whomajor dimensions The most favorably rated di- contribute to regional economic development aremension was tourism destination environments eligible for subsidies (Matsushita 1994) To match(weighted mean = 454) Japan has a long history Japanrsquos accomplishments Taiwan will need a col-of communal bathing and visiting hot springs is a laborative government and industry mechanism tomajor highlight of travel within Japan Increasing pursue longer term sustainabilitypublic awareness of the value of leisure and recre-ation for health and wellbeing has created favor- Conclusions and Managerial Implicationsable conditions for the further development of hot

Hot springs tourism is an emerging sector insprings and spa tourism in Japan (MatsushitaTaiwan and in this context it is particularly im-1994)portant to develop a guiding framework based ofThe only item where Taiwan recorded a higherdestination competitiveness from a supply-sidescore than Japan and received the highest weightedperspective The relative importance of destinationmean among the 38 determinants (weighted mean =

413) was high-grade natural hot springs Given competitiveness has been evaluated using three

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 541

Table 5Comparative Destination Weights for Taiwan and Japan

Taiwan Japan

Weighted WeightedWeight Mean Mean Mean Mean

Tourism destination resources and attractors 294 301 407 417Attractions 324 330 414 423

High grade natural hot springs 0018 406 413 400 407Plentiful natural hot springs 0017 378 384 400 407Abundant natural scenery 0025 383 389 428 439Souvenir shopping 0020 228 233 422 430Year-round recreational activities 0022 228 233 422 431

Transport 289 296 383 393Convenient access to hot springs 0026 317 325 389 399Sound local transportation network 0023 289 296 394 403Ample parking 0023 261 267 367 375

Accommodation 263 266 421 427Availability of sufficient accommodation 0006 283 285 389 391High quality and international standard accommodation 0015 283 287 444 451Authentic accommodation experiencesa 0015 233 237 433 440Comfortable accommodation in a natural setting 0019 250 255 417 425

Safety and security 298 303 411 419Destination safety 0012 400 405 417 422A safe bathing environment 0027 311 319 428 440Hygiene standards for hot springs spa equipment 0024 250 256 428 438Personal safety and hygienemdashbasic rules and responsibility 0014 250 254 417 423Emergency medical care and the availability of ambulance services 0015 278 282 367 373

Tourism destination strategies 240 245 397 408Capability of the authorities 250 256 390 399

Providing leadership for coordination within the sector 0020 244 249 394 402Encouraging innovation of hot springs spa products amp services 0016 256 260 394 400Undertaking domestic and international marketing campaigns 0018 294 299 411 418Conducting regular surveys on tourist behavior amp satisfaction 0009 217 219 311 314Assisting hot springs properties in licensing matters 0032 217 224 372 384Creating and maintaining a hot springs database 0017 239 243 433 440Implementing hot springs water quality inspections 0029 278 286 394 405Effective design and construction of new and existing hot springs areas 0036 256 265 411 426

Capability of hot springs proprietors 230 236 404 416Promoting the health and medical benefits of hot springs 0019 261 266 433 441Providing a diverse range of leisure and health-oriented facilities 0024 244 250 428 438Maintaining high-quality hot springs spa-related facilities and equipment 0031 272 280 400 412Ensuring professional and technical competence and effective staff 0030 250 258 411 423Developing a third party certificate and accreditation schemes 0026 244 250 400 410Controlling the use of hot springs watera 0035 194 201 417 432Building sewage system infrastructure amp wastewater treatment facilitiesa 0036 183 190 383 397Ensuring the proper construction of pipe and pumping systemsa 0027 172 177 383 393Ensuring a value-for-money in tourism destination experience 0026 250 257 383 393

Tourism destination environments 352 367 422 454Sociocultural change 353 367 436 442

Public interest in health-leisure activities 0037 344 357 428 444Emergence of health-conscious consumers 0046 361 378 444 464

Market demand 350 379 408 448Expansion of the leisure and domestic tourism market 0069 356 381 400 428More demanding travelers 0096 344 377 417 454

Final score 276 284 406 416

aThe weighted mean difference between two destinations exceeded

542 LEE AND KING

headings namely tourism destination resources tourism provides an extension of the current liter-ature on the relative competitiveness of tourismand attractors tourism destination strategies and

tourism destination environments The present destinations (Dwyer et al 2003 Enright amp New-ton 2004 Kozak amp Rimmington 1999) Implica-study supplements the current literature on tourism

destination competitiveness by integrating the tions are drawn for government and industry witha view to increasing visitations Taiwan currentlythree categories of destination competitiveness

which have been prominent in previous models rates low in the context of competitiveness butaddressing this deficiency rates high in terms of(Dwyer amp Kim 2003 Enright amp Newton 2004

Ritchie amp Crouch 2000 2003) It is acknowl- importanceedged that each subsector has unique features andattributes and its own set of competitive factors A Focus on Preventative and Curative CareThe sector-specific model of destination competi-

In the context of an expanding pool of consum-tiveness that has been proposed in this research is

ers who have the time money and motivation tocapable of capturing the nature and characteristics

pursue and maintain a healthy life the diversityof the hot springs tourism sector and is well suited

and smoothness of mineral springs has been a sig-for purposes of comparison It has been demon-

nificant advantage for tourism provision in Tai-strated that the AHP method is an appropriate

wan The use of natural hot springs for the treat-method for generating insights that could form a

ment of disease constitutes another potentialbasis for enhancing the competitiveness of Tai-

market segment There is a business opportunitywanrsquos hot springs tourism sector Taiwan is a col-

for resort proprietors to market the medicinal andlectivist culture with an emphasis on the pursuit of

therapeutic benefits of hot springs bathing toharmony with others (Hofstede 1980) On this ba-

health-conscious consumers who are seeking tosis the AHP method may accommodate the di-

enhance their well-being through travel Toverse opinions of individual participants and avoid

achieve this proprietors should refresh their pre-the dominance of any individual or small group

ventative and health-oriented services and fa-Participants in the current survey had an equal

cilities Diversification of product offerings andvoice The AHP also accommodated the geograph-

tourist activities is also needed The Taiwan gov-ically dispersal of participants (Armacost Hos-

ernment could assist by establishing a research en-seini amp Edwards 1999) Previous AHP applica-

tity dedicated to hot springs sector and supportingtions have been confined to destinations at a

the development of a national database Hotgeneric level (Crouch 2008 Crouch amp Ritchie

springs treatments are as diverse as the waters2005) The present study shows the merit of

themselves A database could inform the publicapplying the AHP approach for analyzing destina-

about the location of relevant hot springs andtion competitiveness in the context of hot springs

about their health and tourism attributes In someas an important subsector of tourism It contributes

European countries skin disease sufferers who areto knowledge by extending the application of AHP

in receipt of health insurance-funded prescriptionto destination competitiveness as it applies to sub-

are entitled to receive spa treatments If Taiwanrsquossectors of tourism

national health insurance system were to subsidizeTo test the applicability of a sector-specific

spa treatments it would enhance the appreciationdestination competitiveness model Japan was

of the therapeutic and curative effects of hotchosen as a benchmark for comparison purposes

springs and extend their use into the medical fieldThe comparative analysis has shown that Taiwanis less competitive than Japan in all fields with the

Sustainability Principlesexception of high-grade natural hot springs Thefindings reveal potential areas for improvement if Tourism development associated with the growth

in visitation to hot springs has impacted on theTaiwanrsquos authorities and enterprises are to boostcompetitiveness and narrow the gap with Japan natural environment If Taiwan is to achieve an

appropriate balance between protecting resourcesThe application of a comparative study in the con-text of a subsector of tourism namely hot springs and stimulating tourism development stakehold-

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 543

ers at both the national and the enterprise level tors in future research to compare the demand andsupply-side perspectives Finally the study bringswill need to engage actively with environmental

management issues and engage in partnerships together the various concepts of destination com-petitiveness and identifies sector-specific strate-The national authorities are responsible for formu-

lating and implementing tourism policy and for gies environmental factors and unique destina-tion attributes as major constructs These insightsdeveloping strategies consistent with the sustain-

able use of lands hot springs and other natural could be further extended by examining the inter-play between internal and external factors as theyresources An effective and principled system of

deterrence is needed involving fines for the illegal influence the formulation and implementation ofdestination strategies in the pursuit of competitive-use of lands and hot springs Destination manage-

ment organizations should work with independent nessthird parties to promote and endorse the imple-mentation of sustainable water resource manage- Referencesment and environmental protection practices Hot

Armacost R L Hosseini J amp Edwards J (1999) Usingsprings proprietors should incorporate sustainabil- the analytical hierarchy process as a two-phase inte-ity principles within the design and construction grated decision approach for large nominal groupsof spring water distribution sewage treatment Group Decision and Negotiation 8(6) 535ndash555

Buhalis D (2000) Marketing the competitive destinationwastewater collection and piping and pumpingof the future Tourism Management 21(1) 97ndash116systems Sustainable tourism development is pred-

Cavana R Y Delahaye B L amp Sekaran U (2001) Ap-icated upon responsible behaviors by stakeholders plied business research Qualitative and quantitativewithin the hot springs tourism sector to ensure the methods Milton Qld John Wiley

Cheng E W L amp Li H (2001) Analytic hierarchy pro-long-term prosperity and quality of life for futurecess An approach to determine measures for businessgenerationsperformance Measuring Business Excellence 5(3)30ndash36

Limitations and Opportunities Cheng E W L Li H amp Ho D C K (2002) Analyticfor Future Research hierarchy process (AHP) A defective tool when used

improperly Measuring Business Excellence 6(4)This investigation has prompted a number of 33ndash37

Crouch G I amp Ritchie J R B (1999) Tourism competi-questions and various areas of potential study aretiveness and societal prosperity Journal of Businessevident The proposed destination competitivenessResearch 44(3) 137ndash152model should have international applicability es-

Crouch G I amp Ritchie J R B (2005) Application ofpecially in emerging Asian destinations similar to the analytic hierarchy process to tourism choice andTaiwan Additional validation of the proposed decision making A review and illustration applied to

destination competitiveness Tourism Analysis 10(1)framework should be undertaken Second the pro-17ndash25posed hot springs competitiveness model is ge-

Crouch G I (2008) Modelling destination competitive-neric Given time and cost constraints all key in-ness A survey and analysis of the impact of competi-

formants in the present study were Taiwanese tiveness attributes Gold Coast Qld Sustainable Tour-Respondents may tend to exaggerate the competi- ism CRC

Deng J King B amp Bauer T (2002) Evaluating naturaltiveness of their own country relative to othersattractions for tourism Annals of Tourism Research(Dwyer et al 2003) The limited knowledge and29(2) 422ndash438practical experience of informants about Japan as

drsquoHauteserre A M (2000) Lessons in managed destina-a competitor may have compromised the compari- tion competitiveness The case of Foxwoods Casino Re-son Future studies should extend the range of in- sort Tourism Management 21(1) 23ndash32

Dwyer L amp Kim C (2003) Destination competitivenessternational and local perspectives Thirdly theDeterminants and indicators Current Issues in Tourismpresent study has explored the managerial per-6(5) 369ndash414spective towards competitiveness factors associ-

Dwyer L Livaic Z amp Mellor R (2003) Competitive-ated with Taiwan as a hot springs tourism destina- ness of Australia as a tourist destination Journal oftion Given the importance of consumer perceptions Hospitality and Tourism Management 10(1) 60ndash78

Dwyer L Mellor R Livaic Z Edwards D amp Kim Cit would be useful to incorporate hot springs visi-

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

lands (2005) New Taiwan Weekly Retrieved from Saaty T L (1980) The analytical hierarchy processPlanning priority setting resource allocation Newhttpwwwnewtaiwancomtwbulletinviewjspbulletin

id=22639 York McGraw-HillSaaty T L amp Kearns K P (1985) Analytical planningHowie F (2003) Managing the tourist destination Lon-

don Continuum The organization of systems New York Pergamon PressHudson S Ritchie J B R amp Timur S (2004) Measur-

Page 4: International Competitiveness in Hot Springs Tourism: An

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 533

Crouch amp Ritchie 1999 drsquoHauteserre 2000 national level However they are not yet capableof determining destination competitiveness in theDwyer amp Kim 2003 Enright amp Newton 2004

Hassan 2000 Heath 2003 Ritchie amp Crouch context of a particular component of tourism suchas the hot springs tourism sector Tourism destina-2000 2003) Competitiveness has formed a basis

for the selection of principles to guide the devel- tions share a common basic anatomy but are het-erogeneous (Howie 2003) This is also the caseopment of a model Destination competitiveness

models are worthwhile because destinations are a for destinations with hot springs attributes andthere is a need to develop a sector-specific destina-focal point for motivating visitors delivering tour-

ism products and services implementing tourism tion competitiveness model to extend the litera-ture The premise of the proposed model is thatplanning and management strategies and contrib-

uting to memorable tourism experiences Previous to balance sustainability and competitiveness thesupply component of a hot springs destinationwork by Dwyer and Kim (2003) Enright and

Newton (2004) and Ritchie and Crouch (2000) must be aligned to changes in the external envi-ronment through the formulation and implementa-has identified the key determinants of destination

competitiveness These determinants may be clas- tion of tourism destination strategiessified into three major categories resources andattractors destination strategies and destination Research Designenvironments Destination resources and attractors

The Analytic Hierarchy Process (AHP)refer to the critical destination attributes which at-tract visitors and provide a foundation for sustain- The present study proposes an evaluation

framework to assess the potential and competitive-able tourism (Crouch amp Ritchie 1999) They in-clude local facilities and services sociocultural ness of Taiwanrsquos hot springs tourism sector Desti-

nations are complex systems and there are manyand environmental resources and public goods(Buhalis 2000) Because many tourism resources influences on the quality of the hot springs visitor

experience and whether destination competitive-and attractors are irreplaceable strategy formula-tion and implementation is needed to ensure sus- ness is achieved The influence of each element

will differ Collectively the various elements in-tainable resource use (Buhalis 2000) Destinationstrategies may be thought of as processes or ac- fluence expectations to different degrees (Deng

King amp Bauer 2002) The AHP provides a meanstions which aim to match internal tourism re-sources and destination attractions with external of prioritizing the various elements in the hierar-

chy thus helping governments and industry prac-environments (Crouch amp Ritchie 1999) Develop-ing destination strategies is complex partly be- titioners to focus on the most important issues

(Cheng amp Li 2002) Since its development bycause the destination product is complex It in-volves the organization of management and Saaty in the 1970s (Saaty 1980) AHP has been

widely used in industry settings though rarely inmarketing activities at the enterprise level and thepractice of destination policies planning and de- tourism (Crouch amp Ritchie 2005) The method in-

corporates both qualitative and quantitative re-velopment (Dwyer amp Kim 2003 Ritchie ampCrouch 2000) Finally destination competitive- search within a single empirical inquiry (Cheng amp

Li 2001 Cheng Li amp Ho 2002) It is a problem-ness is shaped by external environmental forcesover which the authorities exercise minimal con- solving framework and a systematic procedure

that represents the various elements of a problemtrol (Kotler Haider amp Rein 1993) Destinationsthat are vigilant to environmental changes are in hierarchical form (Saaty amp Kearns 1985) It

provides a rationale by dividing a problem into itslikely to be more proactive and are better posi-tioned to predict opportunities and threats or at constituent parts and calling for simple pairwise

comparison judgments to develop priorities atleast to judge their probability (Ritchie amp Crouch2003) each level in the hierarchy

The AHP approach involves three basic stepsThe existing models of destination competitive-ness provide a framework for determining the (1) decomposition or the construction of the hier-

archy (2) comparative judgments or defining andcompetitiveness of a destination at national or sub-

534 LEE AND KING

executing data collection to obtain pairwise com- hot springs tourism sector relative to its competi-tors The steps are summarized as followsparative data on elements of the hierarchical struc-

ture and (3) synthesis of priorities or constructionof an overall priority rating (Harker amp Vargas Establishing a Hierarchy Evaluation Structure1987) During the first step the various problems

The first step of the AHP involves the develop-are decomposed into their component parts andment of a hierarchical structure to deconstruct athen rearranged into a hierarchy Once the hierar-complicated problem into several integrated di-chy has been constructed the elements at the samemensions (components or elements) In the presentlevel are compared in pairs with respect to a parentstudy a three-round Delphi study was conductedelement in the level immediately above The val-to validate the literature-based determinants ofues of the pairwise comparisons in the AHP aredestination competitiveness and to accommodatedetermined on the basis of the Saaty (1980) scalenecessary adjustments The Delphi study gener-The available values for the pairwise comparisonsated a list of 38 determinants of destination com-are members of the discrete set 9 8 7 6 5 4petitiveness based on the consensus criteria that3 2 1 12 13 14 15 16 17 18 19 (seeare outlined below the mean score is above theTable 1) The inconsistency ratio (IR) is used toaverage of 416 and 80 of responses fall withincheck the consistency and reliability of the judg-two rating points on a 5-point Likert-type scalements Inconsistencies may arise when respon-(Lee amp King 2009) The Delphi study confirmeddents make careless errors or exaggerated judg-the validity of the proposed model prompting thements An inconsistency ratio of 01 is considereddevelopment of a four-level hierarchical structureto be the acceptable upper limit If an inconsis-with 49 nodes This is outlined in Figure 1 Eachtency ratio exceeds 01 participants are asked tolevel of the hierarchy is limited to seven elementsreevaluate their judgments in a pairwise matrix un-which keeps the evaluation workload to a manage-til an IR of less than 01 is achieved (Saaty 1980)able level (Saaty 1980)In the present study the AHP approach was used

The overall goal occupies the top level of theto determine the relative weights of the preidenti-hierarchy to develop a framework for evaluatingfied determinants of destination competitiveness

and to evaluate the competitiveness of Taiwanrsquos the potential of the hot springs tourism sector with

Table 1Pairwise Comparisons

Intensity of RelativeImportance Definition Explanation

1 Equal importance Two activities contribute equally to objective

3 Moderate importance of one over Experience and judgment slightly favor one over anotheranother

5 Essential or strong importance Experience and judgment strongly favor one over another

7 Demonstrated importance An activity is strongly favored and its dominance is demon-strated in practice

9 Extreme importance The importance of one over another affirmed on the highestpossible order

2468 Intermediate values between the Used to represent compromise between the priorities listedtwo adjacent judgments above

Reciprocals of the above Reciprocal for inverse comparison If activity i has one of the above nonzero numbers assignednonzero numbers to it when compared with activity j has the reciprocal value

when compared with i

Source Adopted from Saaty (1980)

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 535

Figure 1 The hierarchy of elements determining competitiveness

536 LEE AND KING

weights corresponding to the full range of determi- within a government-related tourism organizationAcademic participants had a minimum of 5 yearsnants of destination competitiveness Beneath the

overall goal the second level represents the three of university tourism teaching experience evi-dence of publications relevant to Taiwanrsquos hotmajor dimensions which determine the potential

and competitiveness of the hot springs tourism springs tourism sector and an interest in healthand wellness tourism researchsector including tourism destination resources

and attractors tourism destination strategies The snowball sampling approach was usedbased on referrals from initial participants to gen-and tourism destination environments At the third

level of the hierarchy the three dimensions have erate additional respondents Although subject toa degree of bias this method is an appropriatebeen subdivided The dimension tourism destina-

tion resources and attractors consist of natural method for gathering information from individualswho exhibit particular characteristics or knowl-and man-made tourism resources and attractions

that complement the hot springs soaking experi- edge but are difficult to locate and contact (Ca-vana Delahaye amp Sekaran 2001) A mail surveyence It is subsequently decomposed into four fac-

tors attractions transport accommodation and was administrated between December 2008 andJanuary 2009 preceded by a telephone conversa-safety and security Tourism destination strategies

refer to the commitment by government and in- tion to establish rapport and to secure participa-tiondustry capability of the authorities and capability

of hot springs proprietors The dimension tourism A survey was administrated with 24 govern-ment officers hot springs proprietors and scholarsdestination environments consists of macro- and

microlevel growth drivers and is subdivided into for the purpose of collecting pairwise comparisondata The response rate was about 80 (19) Astwo components sociocultural change and market

demands Finally the various determinants or at- noted by Cheng et al (2002) small samples areacceptable from the AHP methodology perspec-tributes associated with each factor in the third

level are linked to the fourth level As outlined in tive The AHP is a subjective method that doesnot require a large number of participating expertsFigure 1 the fourth level consists of 38 determi-

nants The opinions of a small group of key informantsare generally sufficient to generate reliable anduseful results albeit only providing rough esti-Prioritization Proceduremates The response rate was deemed to be suffi-

The next step of the research involved the prio-cient Table 2 summarizes participant demo-

ritization of the various elements at each levelgraphic characteristics

Sample Design and Administration A reviewQuestionnaire Development The survey con-

of the relevant research (Faulkner et al 1999sisted of three sections The first required partici-

Gearing et al 1974 Hudson et al 2004) indicatespants to assess the relative importance of three

that tourism competitiveness is usually assesseddimensions eight factors and 38 determinants

from a supply-side perspective (eg governmentsof destination competitiveness Participants were

at all levels hotel and tourism associations travelasked to choose between various pairs of state-

agencies and tour operators) In the current studyments To elicit the importance of tourism destina-

three panels were established to ensure the incor-tion resources and attractors versus tourism des-

poration of applied as well as theoretical inputstination strategies the following statements were

Prospective participants were selected on the basispresented to each participant

of predetermined criteria The tourism industryWhen evaluating the potential and competitive-

grouping consisted of participants in the hotness of the hot springs tourism sector tourism des-

springs tourism sector with a minimum of 5 yearstination resources and attractors are

of professional experience and membership of arelevant tourism association Public sector partici- bull equally as important as

bull moderately more importantmoderately less im-pants should have a minimum of 5 years of profes-sional experience in a decision-making capacity portant than

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 537

Table 2 a particular destination on any determinant of des-Profile of Participating Experts tination competitiveness outside a comparative

framework (Dwyer Livaic amp Mellor 2003) Des-Characteristics N

tinations are not competitive or uncompetitive inField of work the abstract but versus competitors and it is im-

Goverment official 7 037 portant to determine the competitive set (Kozak ampHot springs proprietor 5 026

Rimmington 1999) Previous studies have pre-Academic 7 037Experience (years) sented a variety of mechanisms to compare desti-

At least 5 3 016 nation competitiveness (Dwyer et al 2003 En-6ndash10 2 011

right amp Newton 2004 Hudson et al 2004 Kozak11ndash15 5 02616ndash20 4 021 amp Rimmington 1999) For the purposes of the21ndash25 4 021 present study identification of a single competitor25 and above 1 005

within the Asia-Pacific region was considered toAge (in years)31ndash35 2 011 be sufficient for comparative purpose It also36ndash40 2 011 helped to reduce the duration of the survey The41ndash45 8 042

final section examined respondent demographics46ndash50 1 00551 and above 6 032

EducationData Analysis and SynthesisHigh school 0 0

Collegeuniversity 6 032Following inputs from the panel of expertsGraduate 13 068

normalized weighting priorities were establishedfor the hierarchy of elements within the AHPmodel using the Expert Choice software package

bull considerably more importantconsiderably less Participant comparisons were entered into Expertimportant than Choice allowing the researchers to check the con-

bull emphatically more importantemphatically less sistency of individual responses and abstractimportant than weightings for each element Expert Choice pro-

bull extremely more importantextremely less im- vided normalized local and global weightings forportant than all elements at each level of the hierarchy Incon-

sistency ratios were generated for each matrixTourism Destination Strategies Responses onThe results indicated that all inconsistency ratiosthe left indicate a prioritization of the first dimen-are 002 or lower (see Table 3) thus satisfying thesion over the second while responses on the rightthreshold of 10 inconsistency proposed by Saatyassert the importance of the second dimension(1980) It also confirmed the consistency and reli-over the first In the Saaty (1980) scale shown inability of the expert judgmentsTable 1 the five statements correspond respec-

tively to importance weightings of 1 3 5 7 and 9Results and FindingsIn section two participants rated Taiwanrsquos hot

springs tourism sector with competitors across Results Obtained From the AHP Analysiseach of 38 determinants under the three major

An examination of the weightings rated in Ta-headings on a 5-point Likert-type scale The op-ble 4 reveals that tourism destination strategiestions provided ranged from 1 (well below average(0431) is the major contributor to the potentialmuch worse) to 5 (well above averagemuch bet-and competitiveness of the hot springs sector fol-ter) The major competitor for Taiwanrsquos hotlowed by tourism destination resources and at-springs tourism sector was self-selected by partici-tractors (0321) Tourism destination environ-pants from a range of Asian destinations offeringments (0248) was the least important dimensionequivalent tourism products The reason for nomi-The top three ranking factors are capability ofnating a competing destination was to provide antourism enterprises (0253) capability of the au-Asia-Pacific comparative benchmark It would

have been meaningless to ask participants to rate thorities (0178) and market demand (0165) The

538 LEE AND KING

Table 3 the appeal of the core resources and attractorsConsistency Test for the Determinants strengthen the quality and effectiveness of the var-of Destination Competitiveness ious supporting factors and minimize any con-

straints imposed by the qualifying determinantsInconsistency Consistency(Crouch amp Ritchie 1999) Successful implementa-Level Ratio Testtion of destination strategies helps create a unique

Objective 000 accepted system of tourism products to address the needs ofDimensionsdifferent categories of visitor and ensures sustain-Tourism destination

resources and attractors 001 accepted able growth combining private profit and generalTourism destination economic development with the preservation ofstrategies 000 accepted

the host communityrsquos identity and quality of lifeTourism destinationenvironments 000 accepted (Manente amp Cerato cited in Manente amp Mingh-

Factors etti 2006) Second destination competitivenessAttractions 001 acceptedcan be enhanced through public and private sectorTransport 002 accepted

Accommodation 000 accepted participation and involvement While the principalSafety and security 001 accepted task of hot springs enterprises is to build and reno-Capability of the

vate their existing sewage and wastewater infra-authorities 001 acceptedCapability of hot springs structure the responsibility of government should

proprietors 000 accepted be to establish hot springs demonstration sites thatSociocultural change 000 acceptedexemplify best practice improve environmentalMarket demand 000 acceptedsustainability and minimize environmental dam-age However hot springs are now acknowledgedas a significant tourism attraction in Taiwan In-corporation of sustainability principles into bothtop five ranked attributes are more demanding

travelers (0096) expansion of the leisure and do- enterprise-level operation and government-leveldestination planning policy and development ismestic tourism market (0069) emergence of

health-conscious consumers (0046) public inter- viewed as an essential tool to strengthen and ex-pand its international reach and competitivenessest in health-leisure activities (0037) effective de-

sign and construction of new and existing hot Finally the introduction of the 2-day weekendentitlement for Taiwanese residents in 2001 in-springs areas (0036) and building sewage system

infrastructure and wastewater treatment facilities creased the availability of leisure time and pro-moted changes in lifestyle expenditures The(0036) The five lowest ranking attributes are

availability of sufficient accommodation (0006) Taiwanese are becoming more sophisticated de-manding and aware of the need to maintain goodconducting regular surveys on tourist behaviorhealth through tourism and recreation These fa-and satisfaction (0009) destination safety (0012)vorable conditions and incentives expand the pro-personal safety and hygienemdashbasic rules and re-spective application of natural hot springs into thesponsibility (0014) high quality and internationalfields of health promotion and medical treatmentstandard accommodation (0015) authentic ac-Internationally hot springs tourism has generallycommodation experiences (0015) and emergencybeen regarded as health oriented (Matsushitamedical care and the availability of ambulance1994) The ongoing prosperity of the sector is tiedservices (0015)closely to the increasing consciousness of personalThe key findings of the AHP analysis may behealth issues Competitiveness relies on increasingsummarized as follows First tourism destinationdomestic demand and its future appears prom-strategies underpin the competitiveness of the hotisingsprings tourism sector This is consistent with

Dwyer et alrsquos argument (2004) that destinationDescriptive Resultsstrategies are crucial for the success of the tourism

industry Tourism destination strategies should be According to the survey respondents Japanwas the most competitive Asian destination for hotviewed as processes and actions which enhance

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 539T

able

4E

lem

ent

Wei

ghts

toD

eter

min

eD

estin

atio

nC

ompe

titiv

enes

s

Loc

al

Glo

bal

Loc

alG

loba

lL

ocal

Glo

bal

Dim

ensi

onF

acto

rW

eigh

tsW

eigh

tsW

eigh

tsR

anki

ngD

eter

min

ants

ofD

estin

atio

nC

ompe

titiv

enes

sW

eigh

tsW

eigh

tsR

anki

ng

Tou

rism

dest

inat

ion

reso

urce

samp

attr

acto

rs0

321

Attr

actio

ns0

320

010

34

Hig

h-gr

ade

natu

ral

hot

spri

ngs

017

60

018

27Pl

entif

ulna

tura

lho

tsp

ring

s0

170

001

729

Abu

ndan

tna

tura

lsc

ener

y0

242

002

517

Souv

enir

shop

ping

019

40

020

23Y

ear-

roun

dre

crea

tiona

lac

tiviti

es0

219

002

222

Tra

nspo

rt0

223

007

17

Con

veni

ent

acce

ssto

hot

spri

ngs

036

50

026

14So

und

loca

ltr

ansp

orta

tion

netw

ork

031

80

023

20A

mpl

epa

rkin

g0

317

002

320

Acc

omm

odat

ion

017

20

055

8A

vaila

bilit

yof

suff

icie

ntac

com

mod

atio

n0

102

000

638

Hig

hqu

ality

and

inte

rnat

iona

lst

anda

rdac

com

mod

atio

n0

273

001

532

Aut

hent

icac

com

mod

atio

nex

peri

ence

s0

275

001

532

Com

fort

able

acco

mm

odat

ion

ina

natu

ral

setti

ng0

350

001

925

Safe

tyamp

secu

rity

028

60

092

5D

estin

atio

nsa

fety

013

10

012

36A

safe

bath

ing

envi

ronm

ent

029

20

027

12H

ygie

nest

anda

rds

for

hot

spri

ngs

spa

equi

pmen

t0

265

002

418

Pers

onal

safe

tyan

dhy

gien

emdashba

sic

rule

san

dre

spon

sibi

lity

015

10

014

35E

mer

genc

ym

edic

alca

rean

dth

eav

aila

bilit

yof

ambu

lanc

ese

rvic

es0

161

001

532

Tou

rism

dest

inat

ion

envi

ronm

ents

024

8So

cioc

ultu

ral

chan

ge0

333

008

26

Publ

icin

tere

stin

heal

th-l

eisu

reac

tiviti

es0

443

003

74

Em

erge

nce

ofhe

alth

-con

scio

usco

nsum

ers

055

70

046

3

Mar

ket

dem

and

066

70

165

3E

xpan

sion

ofth

ele

isur

ean

ddo

mes

ticto

uris

mm

arke

t0

416

006

92

Mor

ede

man

ding

trav

eler

s0

584

009

61

Tou

rism

dest

inat

ion

stra

tegi

es0

431

Cap

abili

tyof

the

auth

oriti

es0

413

017

82

Prov

idin

gle

ader

ship

for

coor

dina

tion

with

inth

ese

ctor

011

30

020

23E

ncou

ragi

ngin

nova

tion

ofho

tsp

ring

ssp

apr

oduc

tsamp

serv

ices

009

10

016

31U

nder

taki

ngdo

mes

tican

din

tern

atio

nal

mar

ketin

gca

mpa

igns

010

10

018

27C

ondu

ctin

gre

gula

rsu

rvey

son

tour

ist

beha

vior

ampsa

tisfa

ctio

n0

052

000

937

Ass

istin

gho

tsp

ring

spr

oper

ties

inlic

ensi

ngm

atte

rs0

182

003

28

Cre

atin

gan

dm

aint

aini

nga

hot

spri

ngs

data

base

009

70

017

29Im

plem

entin

gho

tsp

ring

sw

ater

qual

ityin

spec

tions

016

20

029

11E

ffec

tive

desi

gnan

dco

nstr

uctio

nof

new

and

exis

ting

hot

spri

ngs

area

s0

202

003

65

Cap

abili

tyof

hot

spri

ngs

prop

riet

ors

058

70

253

1Pr

omot

ing

the

heal

than

dm

edic

albe

nefi

tsof

hot

spri

ngs

007

30

019

25Pr

ovid

ing

adi

vers

era

nge

ofle

isur

ean

dhe

alth

-ori

ente

dfa

cilit

ies

009

30

024

18M

aint

aini

nghi

gh-q

ualit

yho

tsp

ring

ssp

a-re

late

d0

122

003

19

faci

litie

san

deq

uipm

ent

Ens

urin

gpr

ofes

sion

alan

dte

chni

cal

com

pete

nce

and

effe

ctiv

est

aff

011

80

030

10D

evel

opin

ga

thir

dpa

rty

cert

ific

ate

and

accr

edita

tion

sche

mes

010

40

026

14C

ontr

ollin

gth

eus

eof

hot

spri

ngs

wat

er0

137

003

57

Bui

ldin

gse

wag

esy

stem

infr

astr

uctu

rean

dw

aste

wat

ertr

eatm

ent

faci

litie

s0

142

003

65

Ens

urin

gth

epr

oper

cons

truc

tion

ofpi

pean

dpu

mpi

ngsy

stem

s0

107

002

712

Ava

lue-

for-

mon

eyto

uris

mde

stin

atio

nex

peri

ence

010

30

026

14

540 LEE AND KING

springs and spa tourism and the principal competi- that Taiwan has one of the highest concentrationsand greatest variety of hot springs in the worldtor for Taiwan Japan has abundant natural hot

springs and hot springs are intrinsic to Japanese this is not surprising The three lowest ranked de-terminants were assuring the proper constructionculture The centuries-old tradition of hot springs

and onsen bathing has made Japan a leading spa of pipe and pumping system (mean = 177) build-ing sewage system infrastructure and wastewatertourism destination During Taiwanrsquos occupation

by the Japanese prior to 1945 many hot springs treatment facilities (mean = 190) and controllingthe use of hot springs water (mean = 201) Thesefacilities were built in Japanese style and adopted

the Japanese hot springs bathing traditions and relate to the capability of hot springs proprietorsto protect conserve and manage the environmentmanners This legacy is still evident in some of

Taiwanrsquos oldest and finest hot springs regions In and natural resources in compliance with the prin-ciples of sustainability It is suggested that an en-this historical context and given growing interna-

tional competition a comparison of the relative vironmental management self-regulation mecha-nism would be a useful addition to the dailyperformances of the hot springs tourism sector in

Taiwan and Japan is timely practices of hot springs proprietors Many proprie-The competitiveness rating for Taiwanrsquos hot tors have an exclusive focus on the maximization

springs tourism sector (final score = 284) was of short-term profitability The effects of their ac-lower than for Japan (final score = 416) and was tions on local communities and the environmentbelow neutrality (lt3 on a scale of 1ndash5) The more and their responsibility to customers are ignoredsalient findings in Table 5 are highlighted It is Currently there is no direct regulation of hotnoted that Taiwan has performed less effectively springs spa operations though there is a strongthan Japan on the three measures of destination case for a more active regulation of such activitiescompetitiveness The lowest rating applied in the Significant differences are evident between thecase of tourism destination strategies (weighted weight means for Taiwan and Japan These in-mean = 245) All of the determinants originating clude controlling the use of hot springs waterfrom the dimension tourism destination strategies building sewage system infrastructure and waste-rated lower than the neutral score of 3 These find- water treatment facilities ensuring the properings are not surprising in view of the absence of construction of pipe and pumping system and au-regulations to oversee enterprise-level operations thentic accommodation experiences Taiwanrsquosand of legislation to protect the use of water greatest weaknesses are the capacity of its hotwithin the hot springs areas These human re- springs proprietors to minimize environmentalsource and strategic capacity related problems damage and comply with environmental sustain-need urgent resolution if Taiwanrsquos hot springs ability standards Japanrsquos Hot Springs Law (1948)tourism sector is to develop and prosper In con- prescribes a definition for hot springs to be recog-trast Japan is rated above 4 on each of the three nized as an onsen Compliant onsen operators whomajor dimensions The most favorably rated di- contribute to regional economic development aremension was tourism destination environments eligible for subsidies (Matsushita 1994) To match(weighted mean = 454) Japan has a long history Japanrsquos accomplishments Taiwan will need a col-of communal bathing and visiting hot springs is a laborative government and industry mechanism tomajor highlight of travel within Japan Increasing pursue longer term sustainabilitypublic awareness of the value of leisure and recre-ation for health and wellbeing has created favor- Conclusions and Managerial Implicationsable conditions for the further development of hot

Hot springs tourism is an emerging sector insprings and spa tourism in Japan (MatsushitaTaiwan and in this context it is particularly im-1994)portant to develop a guiding framework based ofThe only item where Taiwan recorded a higherdestination competitiveness from a supply-sidescore than Japan and received the highest weightedperspective The relative importance of destinationmean among the 38 determinants (weighted mean =

413) was high-grade natural hot springs Given competitiveness has been evaluated using three

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 541

Table 5Comparative Destination Weights for Taiwan and Japan

Taiwan Japan

Weighted WeightedWeight Mean Mean Mean Mean

Tourism destination resources and attractors 294 301 407 417Attractions 324 330 414 423

High grade natural hot springs 0018 406 413 400 407Plentiful natural hot springs 0017 378 384 400 407Abundant natural scenery 0025 383 389 428 439Souvenir shopping 0020 228 233 422 430Year-round recreational activities 0022 228 233 422 431

Transport 289 296 383 393Convenient access to hot springs 0026 317 325 389 399Sound local transportation network 0023 289 296 394 403Ample parking 0023 261 267 367 375

Accommodation 263 266 421 427Availability of sufficient accommodation 0006 283 285 389 391High quality and international standard accommodation 0015 283 287 444 451Authentic accommodation experiencesa 0015 233 237 433 440Comfortable accommodation in a natural setting 0019 250 255 417 425

Safety and security 298 303 411 419Destination safety 0012 400 405 417 422A safe bathing environment 0027 311 319 428 440Hygiene standards for hot springs spa equipment 0024 250 256 428 438Personal safety and hygienemdashbasic rules and responsibility 0014 250 254 417 423Emergency medical care and the availability of ambulance services 0015 278 282 367 373

Tourism destination strategies 240 245 397 408Capability of the authorities 250 256 390 399

Providing leadership for coordination within the sector 0020 244 249 394 402Encouraging innovation of hot springs spa products amp services 0016 256 260 394 400Undertaking domestic and international marketing campaigns 0018 294 299 411 418Conducting regular surveys on tourist behavior amp satisfaction 0009 217 219 311 314Assisting hot springs properties in licensing matters 0032 217 224 372 384Creating and maintaining a hot springs database 0017 239 243 433 440Implementing hot springs water quality inspections 0029 278 286 394 405Effective design and construction of new and existing hot springs areas 0036 256 265 411 426

Capability of hot springs proprietors 230 236 404 416Promoting the health and medical benefits of hot springs 0019 261 266 433 441Providing a diverse range of leisure and health-oriented facilities 0024 244 250 428 438Maintaining high-quality hot springs spa-related facilities and equipment 0031 272 280 400 412Ensuring professional and technical competence and effective staff 0030 250 258 411 423Developing a third party certificate and accreditation schemes 0026 244 250 400 410Controlling the use of hot springs watera 0035 194 201 417 432Building sewage system infrastructure amp wastewater treatment facilitiesa 0036 183 190 383 397Ensuring the proper construction of pipe and pumping systemsa 0027 172 177 383 393Ensuring a value-for-money in tourism destination experience 0026 250 257 383 393

Tourism destination environments 352 367 422 454Sociocultural change 353 367 436 442

Public interest in health-leisure activities 0037 344 357 428 444Emergence of health-conscious consumers 0046 361 378 444 464

Market demand 350 379 408 448Expansion of the leisure and domestic tourism market 0069 356 381 400 428More demanding travelers 0096 344 377 417 454

Final score 276 284 406 416

aThe weighted mean difference between two destinations exceeded

542 LEE AND KING

headings namely tourism destination resources tourism provides an extension of the current liter-ature on the relative competitiveness of tourismand attractors tourism destination strategies and

tourism destination environments The present destinations (Dwyer et al 2003 Enright amp New-ton 2004 Kozak amp Rimmington 1999) Implica-study supplements the current literature on tourism

destination competitiveness by integrating the tions are drawn for government and industry witha view to increasing visitations Taiwan currentlythree categories of destination competitiveness

which have been prominent in previous models rates low in the context of competitiveness butaddressing this deficiency rates high in terms of(Dwyer amp Kim 2003 Enright amp Newton 2004

Ritchie amp Crouch 2000 2003) It is acknowl- importanceedged that each subsector has unique features andattributes and its own set of competitive factors A Focus on Preventative and Curative CareThe sector-specific model of destination competi-

In the context of an expanding pool of consum-tiveness that has been proposed in this research is

ers who have the time money and motivation tocapable of capturing the nature and characteristics

pursue and maintain a healthy life the diversityof the hot springs tourism sector and is well suited

and smoothness of mineral springs has been a sig-for purposes of comparison It has been demon-

nificant advantage for tourism provision in Tai-strated that the AHP method is an appropriate

wan The use of natural hot springs for the treat-method for generating insights that could form a

ment of disease constitutes another potentialbasis for enhancing the competitiveness of Tai-

market segment There is a business opportunitywanrsquos hot springs tourism sector Taiwan is a col-

for resort proprietors to market the medicinal andlectivist culture with an emphasis on the pursuit of

therapeutic benefits of hot springs bathing toharmony with others (Hofstede 1980) On this ba-

health-conscious consumers who are seeking tosis the AHP method may accommodate the di-

enhance their well-being through travel Toverse opinions of individual participants and avoid

achieve this proprietors should refresh their pre-the dominance of any individual or small group

ventative and health-oriented services and fa-Participants in the current survey had an equal

cilities Diversification of product offerings andvoice The AHP also accommodated the geograph-

tourist activities is also needed The Taiwan gov-ically dispersal of participants (Armacost Hos-

ernment could assist by establishing a research en-seini amp Edwards 1999) Previous AHP applica-

tity dedicated to hot springs sector and supportingtions have been confined to destinations at a

the development of a national database Hotgeneric level (Crouch 2008 Crouch amp Ritchie

springs treatments are as diverse as the waters2005) The present study shows the merit of

themselves A database could inform the publicapplying the AHP approach for analyzing destina-

about the location of relevant hot springs andtion competitiveness in the context of hot springs

about their health and tourism attributes In someas an important subsector of tourism It contributes

European countries skin disease sufferers who areto knowledge by extending the application of AHP

in receipt of health insurance-funded prescriptionto destination competitiveness as it applies to sub-

are entitled to receive spa treatments If Taiwanrsquossectors of tourism

national health insurance system were to subsidizeTo test the applicability of a sector-specific

spa treatments it would enhance the appreciationdestination competitiveness model Japan was

of the therapeutic and curative effects of hotchosen as a benchmark for comparison purposes

springs and extend their use into the medical fieldThe comparative analysis has shown that Taiwanis less competitive than Japan in all fields with the

Sustainability Principlesexception of high-grade natural hot springs Thefindings reveal potential areas for improvement if Tourism development associated with the growth

in visitation to hot springs has impacted on theTaiwanrsquos authorities and enterprises are to boostcompetitiveness and narrow the gap with Japan natural environment If Taiwan is to achieve an

appropriate balance between protecting resourcesThe application of a comparative study in the con-text of a subsector of tourism namely hot springs and stimulating tourism development stakehold-

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 543

ers at both the national and the enterprise level tors in future research to compare the demand andsupply-side perspectives Finally the study bringswill need to engage actively with environmental

management issues and engage in partnerships together the various concepts of destination com-petitiveness and identifies sector-specific strate-The national authorities are responsible for formu-

lating and implementing tourism policy and for gies environmental factors and unique destina-tion attributes as major constructs These insightsdeveloping strategies consistent with the sustain-

able use of lands hot springs and other natural could be further extended by examining the inter-play between internal and external factors as theyresources An effective and principled system of

deterrence is needed involving fines for the illegal influence the formulation and implementation ofdestination strategies in the pursuit of competitive-use of lands and hot springs Destination manage-

ment organizations should work with independent nessthird parties to promote and endorse the imple-mentation of sustainable water resource manage- Referencesment and environmental protection practices Hot

Armacost R L Hosseini J amp Edwards J (1999) Usingsprings proprietors should incorporate sustainabil- the analytical hierarchy process as a two-phase inte-ity principles within the design and construction grated decision approach for large nominal groupsof spring water distribution sewage treatment Group Decision and Negotiation 8(6) 535ndash555

Buhalis D (2000) Marketing the competitive destinationwastewater collection and piping and pumpingof the future Tourism Management 21(1) 97ndash116systems Sustainable tourism development is pred-

Cavana R Y Delahaye B L amp Sekaran U (2001) Ap-icated upon responsible behaviors by stakeholders plied business research Qualitative and quantitativewithin the hot springs tourism sector to ensure the methods Milton Qld John Wiley

Cheng E W L amp Li H (2001) Analytic hierarchy pro-long-term prosperity and quality of life for futurecess An approach to determine measures for businessgenerationsperformance Measuring Business Excellence 5(3)30ndash36

Limitations and Opportunities Cheng E W L Li H amp Ho D C K (2002) Analyticfor Future Research hierarchy process (AHP) A defective tool when used

improperly Measuring Business Excellence 6(4)This investigation has prompted a number of 33ndash37

Crouch G I amp Ritchie J R B (1999) Tourism competi-questions and various areas of potential study aretiveness and societal prosperity Journal of Businessevident The proposed destination competitivenessResearch 44(3) 137ndash152model should have international applicability es-

Crouch G I amp Ritchie J R B (2005) Application ofpecially in emerging Asian destinations similar to the analytic hierarchy process to tourism choice andTaiwan Additional validation of the proposed decision making A review and illustration applied to

destination competitiveness Tourism Analysis 10(1)framework should be undertaken Second the pro-17ndash25posed hot springs competitiveness model is ge-

Crouch G I (2008) Modelling destination competitive-neric Given time and cost constraints all key in-ness A survey and analysis of the impact of competi-

formants in the present study were Taiwanese tiveness attributes Gold Coast Qld Sustainable Tour-Respondents may tend to exaggerate the competi- ism CRC

Deng J King B amp Bauer T (2002) Evaluating naturaltiveness of their own country relative to othersattractions for tourism Annals of Tourism Research(Dwyer et al 2003) The limited knowledge and29(2) 422ndash438practical experience of informants about Japan as

drsquoHauteserre A M (2000) Lessons in managed destina-a competitor may have compromised the compari- tion competitiveness The case of Foxwoods Casino Re-son Future studies should extend the range of in- sort Tourism Management 21(1) 23ndash32

Dwyer L amp Kim C (2003) Destination competitivenessternational and local perspectives Thirdly theDeterminants and indicators Current Issues in Tourismpresent study has explored the managerial per-6(5) 369ndash414spective towards competitiveness factors associ-

Dwyer L Livaic Z amp Mellor R (2003) Competitive-ated with Taiwan as a hot springs tourism destina- ness of Australia as a tourist destination Journal oftion Given the importance of consumer perceptions Hospitality and Tourism Management 10(1) 60ndash78

Dwyer L Mellor R Livaic Z Edwards D amp Kim Cit would be useful to incorporate hot springs visi-

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

lands (2005) New Taiwan Weekly Retrieved from Saaty T L (1980) The analytical hierarchy processPlanning priority setting resource allocation Newhttpwwwnewtaiwancomtwbulletinviewjspbulletin

id=22639 York McGraw-HillSaaty T L amp Kearns K P (1985) Analytical planningHowie F (2003) Managing the tourist destination Lon-

don Continuum The organization of systems New York Pergamon PressHudson S Ritchie J B R amp Timur S (2004) Measur-

Page 5: International Competitiveness in Hot Springs Tourism: An

534 LEE AND KING

executing data collection to obtain pairwise com- hot springs tourism sector relative to its competi-tors The steps are summarized as followsparative data on elements of the hierarchical struc-

ture and (3) synthesis of priorities or constructionof an overall priority rating (Harker amp Vargas Establishing a Hierarchy Evaluation Structure1987) During the first step the various problems

The first step of the AHP involves the develop-are decomposed into their component parts andment of a hierarchical structure to deconstruct athen rearranged into a hierarchy Once the hierar-complicated problem into several integrated di-chy has been constructed the elements at the samemensions (components or elements) In the presentlevel are compared in pairs with respect to a parentstudy a three-round Delphi study was conductedelement in the level immediately above The val-to validate the literature-based determinants ofues of the pairwise comparisons in the AHP aredestination competitiveness and to accommodatedetermined on the basis of the Saaty (1980) scalenecessary adjustments The Delphi study gener-The available values for the pairwise comparisonsated a list of 38 determinants of destination com-are members of the discrete set 9 8 7 6 5 4petitiveness based on the consensus criteria that3 2 1 12 13 14 15 16 17 18 19 (seeare outlined below the mean score is above theTable 1) The inconsistency ratio (IR) is used toaverage of 416 and 80 of responses fall withincheck the consistency and reliability of the judg-two rating points on a 5-point Likert-type scalements Inconsistencies may arise when respon-(Lee amp King 2009) The Delphi study confirmeddents make careless errors or exaggerated judg-the validity of the proposed model prompting thements An inconsistency ratio of 01 is considereddevelopment of a four-level hierarchical structureto be the acceptable upper limit If an inconsis-with 49 nodes This is outlined in Figure 1 Eachtency ratio exceeds 01 participants are asked tolevel of the hierarchy is limited to seven elementsreevaluate their judgments in a pairwise matrix un-which keeps the evaluation workload to a manage-til an IR of less than 01 is achieved (Saaty 1980)able level (Saaty 1980)In the present study the AHP approach was used

The overall goal occupies the top level of theto determine the relative weights of the preidenti-hierarchy to develop a framework for evaluatingfied determinants of destination competitiveness

and to evaluate the competitiveness of Taiwanrsquos the potential of the hot springs tourism sector with

Table 1Pairwise Comparisons

Intensity of RelativeImportance Definition Explanation

1 Equal importance Two activities contribute equally to objective

3 Moderate importance of one over Experience and judgment slightly favor one over anotheranother

5 Essential or strong importance Experience and judgment strongly favor one over another

7 Demonstrated importance An activity is strongly favored and its dominance is demon-strated in practice

9 Extreme importance The importance of one over another affirmed on the highestpossible order

2468 Intermediate values between the Used to represent compromise between the priorities listedtwo adjacent judgments above

Reciprocals of the above Reciprocal for inverse comparison If activity i has one of the above nonzero numbers assignednonzero numbers to it when compared with activity j has the reciprocal value

when compared with i

Source Adopted from Saaty (1980)

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 535

Figure 1 The hierarchy of elements determining competitiveness

536 LEE AND KING

weights corresponding to the full range of determi- within a government-related tourism organizationAcademic participants had a minimum of 5 yearsnants of destination competitiveness Beneath the

overall goal the second level represents the three of university tourism teaching experience evi-dence of publications relevant to Taiwanrsquos hotmajor dimensions which determine the potential

and competitiveness of the hot springs tourism springs tourism sector and an interest in healthand wellness tourism researchsector including tourism destination resources

and attractors tourism destination strategies The snowball sampling approach was usedbased on referrals from initial participants to gen-and tourism destination environments At the third

level of the hierarchy the three dimensions have erate additional respondents Although subject toa degree of bias this method is an appropriatebeen subdivided The dimension tourism destina-

tion resources and attractors consist of natural method for gathering information from individualswho exhibit particular characteristics or knowl-and man-made tourism resources and attractions

that complement the hot springs soaking experi- edge but are difficult to locate and contact (Ca-vana Delahaye amp Sekaran 2001) A mail surveyence It is subsequently decomposed into four fac-

tors attractions transport accommodation and was administrated between December 2008 andJanuary 2009 preceded by a telephone conversa-safety and security Tourism destination strategies

refer to the commitment by government and in- tion to establish rapport and to secure participa-tiondustry capability of the authorities and capability

of hot springs proprietors The dimension tourism A survey was administrated with 24 govern-ment officers hot springs proprietors and scholarsdestination environments consists of macro- and

microlevel growth drivers and is subdivided into for the purpose of collecting pairwise comparisondata The response rate was about 80 (19) Astwo components sociocultural change and market

demands Finally the various determinants or at- noted by Cheng et al (2002) small samples areacceptable from the AHP methodology perspec-tributes associated with each factor in the third

level are linked to the fourth level As outlined in tive The AHP is a subjective method that doesnot require a large number of participating expertsFigure 1 the fourth level consists of 38 determi-

nants The opinions of a small group of key informantsare generally sufficient to generate reliable anduseful results albeit only providing rough esti-Prioritization Proceduremates The response rate was deemed to be suffi-

The next step of the research involved the prio-cient Table 2 summarizes participant demo-

ritization of the various elements at each levelgraphic characteristics

Sample Design and Administration A reviewQuestionnaire Development The survey con-

of the relevant research (Faulkner et al 1999sisted of three sections The first required partici-

Gearing et al 1974 Hudson et al 2004) indicatespants to assess the relative importance of three

that tourism competitiveness is usually assesseddimensions eight factors and 38 determinants

from a supply-side perspective (eg governmentsof destination competitiveness Participants were

at all levels hotel and tourism associations travelasked to choose between various pairs of state-

agencies and tour operators) In the current studyments To elicit the importance of tourism destina-

three panels were established to ensure the incor-tion resources and attractors versus tourism des-

poration of applied as well as theoretical inputstination strategies the following statements were

Prospective participants were selected on the basispresented to each participant

of predetermined criteria The tourism industryWhen evaluating the potential and competitive-

grouping consisted of participants in the hotness of the hot springs tourism sector tourism des-

springs tourism sector with a minimum of 5 yearstination resources and attractors are

of professional experience and membership of arelevant tourism association Public sector partici- bull equally as important as

bull moderately more importantmoderately less im-pants should have a minimum of 5 years of profes-sional experience in a decision-making capacity portant than

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 537

Table 2 a particular destination on any determinant of des-Profile of Participating Experts tination competitiveness outside a comparative

framework (Dwyer Livaic amp Mellor 2003) Des-Characteristics N

tinations are not competitive or uncompetitive inField of work the abstract but versus competitors and it is im-

Goverment official 7 037 portant to determine the competitive set (Kozak ampHot springs proprietor 5 026

Rimmington 1999) Previous studies have pre-Academic 7 037Experience (years) sented a variety of mechanisms to compare desti-

At least 5 3 016 nation competitiveness (Dwyer et al 2003 En-6ndash10 2 011

right amp Newton 2004 Hudson et al 2004 Kozak11ndash15 5 02616ndash20 4 021 amp Rimmington 1999) For the purposes of the21ndash25 4 021 present study identification of a single competitor25 and above 1 005

within the Asia-Pacific region was considered toAge (in years)31ndash35 2 011 be sufficient for comparative purpose It also36ndash40 2 011 helped to reduce the duration of the survey The41ndash45 8 042

final section examined respondent demographics46ndash50 1 00551 and above 6 032

EducationData Analysis and SynthesisHigh school 0 0

Collegeuniversity 6 032Following inputs from the panel of expertsGraduate 13 068

normalized weighting priorities were establishedfor the hierarchy of elements within the AHPmodel using the Expert Choice software package

bull considerably more importantconsiderably less Participant comparisons were entered into Expertimportant than Choice allowing the researchers to check the con-

bull emphatically more importantemphatically less sistency of individual responses and abstractimportant than weightings for each element Expert Choice pro-

bull extremely more importantextremely less im- vided normalized local and global weightings forportant than all elements at each level of the hierarchy Incon-

sistency ratios were generated for each matrixTourism Destination Strategies Responses onThe results indicated that all inconsistency ratiosthe left indicate a prioritization of the first dimen-are 002 or lower (see Table 3) thus satisfying thesion over the second while responses on the rightthreshold of 10 inconsistency proposed by Saatyassert the importance of the second dimension(1980) It also confirmed the consistency and reli-over the first In the Saaty (1980) scale shown inability of the expert judgmentsTable 1 the five statements correspond respec-

tively to importance weightings of 1 3 5 7 and 9Results and FindingsIn section two participants rated Taiwanrsquos hot

springs tourism sector with competitors across Results Obtained From the AHP Analysiseach of 38 determinants under the three major

An examination of the weightings rated in Ta-headings on a 5-point Likert-type scale The op-ble 4 reveals that tourism destination strategiestions provided ranged from 1 (well below average(0431) is the major contributor to the potentialmuch worse) to 5 (well above averagemuch bet-and competitiveness of the hot springs sector fol-ter) The major competitor for Taiwanrsquos hotlowed by tourism destination resources and at-springs tourism sector was self-selected by partici-tractors (0321) Tourism destination environ-pants from a range of Asian destinations offeringments (0248) was the least important dimensionequivalent tourism products The reason for nomi-The top three ranking factors are capability ofnating a competing destination was to provide antourism enterprises (0253) capability of the au-Asia-Pacific comparative benchmark It would

have been meaningless to ask participants to rate thorities (0178) and market demand (0165) The

538 LEE AND KING

Table 3 the appeal of the core resources and attractorsConsistency Test for the Determinants strengthen the quality and effectiveness of the var-of Destination Competitiveness ious supporting factors and minimize any con-

straints imposed by the qualifying determinantsInconsistency Consistency(Crouch amp Ritchie 1999) Successful implementa-Level Ratio Testtion of destination strategies helps create a unique

Objective 000 accepted system of tourism products to address the needs ofDimensionsdifferent categories of visitor and ensures sustain-Tourism destination

resources and attractors 001 accepted able growth combining private profit and generalTourism destination economic development with the preservation ofstrategies 000 accepted

the host communityrsquos identity and quality of lifeTourism destinationenvironments 000 accepted (Manente amp Cerato cited in Manente amp Mingh-

Factors etti 2006) Second destination competitivenessAttractions 001 acceptedcan be enhanced through public and private sectorTransport 002 accepted

Accommodation 000 accepted participation and involvement While the principalSafety and security 001 accepted task of hot springs enterprises is to build and reno-Capability of the

vate their existing sewage and wastewater infra-authorities 001 acceptedCapability of hot springs structure the responsibility of government should

proprietors 000 accepted be to establish hot springs demonstration sites thatSociocultural change 000 acceptedexemplify best practice improve environmentalMarket demand 000 acceptedsustainability and minimize environmental dam-age However hot springs are now acknowledgedas a significant tourism attraction in Taiwan In-corporation of sustainability principles into bothtop five ranked attributes are more demanding

travelers (0096) expansion of the leisure and do- enterprise-level operation and government-leveldestination planning policy and development ismestic tourism market (0069) emergence of

health-conscious consumers (0046) public inter- viewed as an essential tool to strengthen and ex-pand its international reach and competitivenessest in health-leisure activities (0037) effective de-

sign and construction of new and existing hot Finally the introduction of the 2-day weekendentitlement for Taiwanese residents in 2001 in-springs areas (0036) and building sewage system

infrastructure and wastewater treatment facilities creased the availability of leisure time and pro-moted changes in lifestyle expenditures The(0036) The five lowest ranking attributes are

availability of sufficient accommodation (0006) Taiwanese are becoming more sophisticated de-manding and aware of the need to maintain goodconducting regular surveys on tourist behaviorhealth through tourism and recreation These fa-and satisfaction (0009) destination safety (0012)vorable conditions and incentives expand the pro-personal safety and hygienemdashbasic rules and re-spective application of natural hot springs into thesponsibility (0014) high quality and internationalfields of health promotion and medical treatmentstandard accommodation (0015) authentic ac-Internationally hot springs tourism has generallycommodation experiences (0015) and emergencybeen regarded as health oriented (Matsushitamedical care and the availability of ambulance1994) The ongoing prosperity of the sector is tiedservices (0015)closely to the increasing consciousness of personalThe key findings of the AHP analysis may behealth issues Competitiveness relies on increasingsummarized as follows First tourism destinationdomestic demand and its future appears prom-strategies underpin the competitiveness of the hotisingsprings tourism sector This is consistent with

Dwyer et alrsquos argument (2004) that destinationDescriptive Resultsstrategies are crucial for the success of the tourism

industry Tourism destination strategies should be According to the survey respondents Japanwas the most competitive Asian destination for hotviewed as processes and actions which enhance

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 539T

able

4E

lem

ent

Wei

ghts

toD

eter

min

eD

estin

atio

nC

ompe

titiv

enes

s

Loc

al

Glo

bal

Loc

alG

loba

lL

ocal

Glo

bal

Dim

ensi

onF

acto

rW

eigh

tsW

eigh

tsW

eigh

tsR

anki

ngD

eter

min

ants

ofD

estin

atio

nC

ompe

titiv

enes

sW

eigh

tsW

eigh

tsR

anki

ng

Tou

rism

dest

inat

ion

reso

urce

samp

attr

acto

rs0

321

Attr

actio

ns0

320

010

34

Hig

h-gr

ade

natu

ral

hot

spri

ngs

017

60

018

27Pl

entif

ulna

tura

lho

tsp

ring

s0

170

001

729

Abu

ndan

tna

tura

lsc

ener

y0

242

002

517

Souv

enir

shop

ping

019

40

020

23Y

ear-

roun

dre

crea

tiona

lac

tiviti

es0

219

002

222

Tra

nspo

rt0

223

007

17

Con

veni

ent

acce

ssto

hot

spri

ngs

036

50

026

14So

und

loca

ltr

ansp

orta

tion

netw

ork

031

80

023

20A

mpl

epa

rkin

g0

317

002

320

Acc

omm

odat

ion

017

20

055

8A

vaila

bilit

yof

suff

icie

ntac

com

mod

atio

n0

102

000

638

Hig

hqu

ality

and

inte

rnat

iona

lst

anda

rdac

com

mod

atio

n0

273

001

532

Aut

hent

icac

com

mod

atio

nex

peri

ence

s0

275

001

532

Com

fort

able

acco

mm

odat

ion

ina

natu

ral

setti

ng0

350

001

925

Safe

tyamp

secu

rity

028

60

092

5D

estin

atio

nsa

fety

013

10

012

36A

safe

bath

ing

envi

ronm

ent

029

20

027

12H

ygie

nest

anda

rds

for

hot

spri

ngs

spa

equi

pmen

t0

265

002

418

Pers

onal

safe

tyan

dhy

gien

emdashba

sic

rule

san

dre

spon

sibi

lity

015

10

014

35E

mer

genc

ym

edic

alca

rean

dth

eav

aila

bilit

yof

ambu

lanc

ese

rvic

es0

161

001

532

Tou

rism

dest

inat

ion

envi

ronm

ents

024

8So

cioc

ultu

ral

chan

ge0

333

008

26

Publ

icin

tere

stin

heal

th-l

eisu

reac

tiviti

es0

443

003

74

Em

erge

nce

ofhe

alth

-con

scio

usco

nsum

ers

055

70

046

3

Mar

ket

dem

and

066

70

165

3E

xpan

sion

ofth

ele

isur

ean

ddo

mes

ticto

uris

mm

arke

t0

416

006

92

Mor

ede

man

ding

trav

eler

s0

584

009

61

Tou

rism

dest

inat

ion

stra

tegi

es0

431

Cap

abili

tyof

the

auth

oriti

es0

413

017

82

Prov

idin

gle

ader

ship

for

coor

dina

tion

with

inth

ese

ctor

011

30

020

23E

ncou

ragi

ngin

nova

tion

ofho

tsp

ring

ssp

apr

oduc

tsamp

serv

ices

009

10

016

31U

nder

taki

ngdo

mes

tican

din

tern

atio

nal

mar

ketin

gca

mpa

igns

010

10

018

27C

ondu

ctin

gre

gula

rsu

rvey

son

tour

ist

beha

vior

ampsa

tisfa

ctio

n0

052

000

937

Ass

istin

gho

tsp

ring

spr

oper

ties

inlic

ensi

ngm

atte

rs0

182

003

28

Cre

atin

gan

dm

aint

aini

nga

hot

spri

ngs

data

base

009

70

017

29Im

plem

entin

gho

tsp

ring

sw

ater

qual

ityin

spec

tions

016

20

029

11E

ffec

tive

desi

gnan

dco

nstr

uctio

nof

new

and

exis

ting

hot

spri

ngs

area

s0

202

003

65

Cap

abili

tyof

hot

spri

ngs

prop

riet

ors

058

70

253

1Pr

omot

ing

the

heal

than

dm

edic

albe

nefi

tsof

hot

spri

ngs

007

30

019

25Pr

ovid

ing

adi

vers

era

nge

ofle

isur

ean

dhe

alth

-ori

ente

dfa

cilit

ies

009

30

024

18M

aint

aini

nghi

gh-q

ualit

yho

tsp

ring

ssp

a-re

late

d0

122

003

19

faci

litie

san

deq

uipm

ent

Ens

urin

gpr

ofes

sion

alan

dte

chni

cal

com

pete

nce

and

effe

ctiv

est

aff

011

80

030

10D

evel

opin

ga

thir

dpa

rty

cert

ific

ate

and

accr

edita

tion

sche

mes

010

40

026

14C

ontr

ollin

gth

eus

eof

hot

spri

ngs

wat

er0

137

003

57

Bui

ldin

gse

wag

esy

stem

infr

astr

uctu

rean

dw

aste

wat

ertr

eatm

ent

faci

litie

s0

142

003

65

Ens

urin

gth

epr

oper

cons

truc

tion

ofpi

pean

dpu

mpi

ngsy

stem

s0

107

002

712

Ava

lue-

for-

mon

eyto

uris

mde

stin

atio

nex

peri

ence

010

30

026

14

540 LEE AND KING

springs and spa tourism and the principal competi- that Taiwan has one of the highest concentrationsand greatest variety of hot springs in the worldtor for Taiwan Japan has abundant natural hot

springs and hot springs are intrinsic to Japanese this is not surprising The three lowest ranked de-terminants were assuring the proper constructionculture The centuries-old tradition of hot springs

and onsen bathing has made Japan a leading spa of pipe and pumping system (mean = 177) build-ing sewage system infrastructure and wastewatertourism destination During Taiwanrsquos occupation

by the Japanese prior to 1945 many hot springs treatment facilities (mean = 190) and controllingthe use of hot springs water (mean = 201) Thesefacilities were built in Japanese style and adopted

the Japanese hot springs bathing traditions and relate to the capability of hot springs proprietorsto protect conserve and manage the environmentmanners This legacy is still evident in some of

Taiwanrsquos oldest and finest hot springs regions In and natural resources in compliance with the prin-ciples of sustainability It is suggested that an en-this historical context and given growing interna-

tional competition a comparison of the relative vironmental management self-regulation mecha-nism would be a useful addition to the dailyperformances of the hot springs tourism sector in

Taiwan and Japan is timely practices of hot springs proprietors Many proprie-The competitiveness rating for Taiwanrsquos hot tors have an exclusive focus on the maximization

springs tourism sector (final score = 284) was of short-term profitability The effects of their ac-lower than for Japan (final score = 416) and was tions on local communities and the environmentbelow neutrality (lt3 on a scale of 1ndash5) The more and their responsibility to customers are ignoredsalient findings in Table 5 are highlighted It is Currently there is no direct regulation of hotnoted that Taiwan has performed less effectively springs spa operations though there is a strongthan Japan on the three measures of destination case for a more active regulation of such activitiescompetitiveness The lowest rating applied in the Significant differences are evident between thecase of tourism destination strategies (weighted weight means for Taiwan and Japan These in-mean = 245) All of the determinants originating clude controlling the use of hot springs waterfrom the dimension tourism destination strategies building sewage system infrastructure and waste-rated lower than the neutral score of 3 These find- water treatment facilities ensuring the properings are not surprising in view of the absence of construction of pipe and pumping system and au-regulations to oversee enterprise-level operations thentic accommodation experiences Taiwanrsquosand of legislation to protect the use of water greatest weaknesses are the capacity of its hotwithin the hot springs areas These human re- springs proprietors to minimize environmentalsource and strategic capacity related problems damage and comply with environmental sustain-need urgent resolution if Taiwanrsquos hot springs ability standards Japanrsquos Hot Springs Law (1948)tourism sector is to develop and prosper In con- prescribes a definition for hot springs to be recog-trast Japan is rated above 4 on each of the three nized as an onsen Compliant onsen operators whomajor dimensions The most favorably rated di- contribute to regional economic development aremension was tourism destination environments eligible for subsidies (Matsushita 1994) To match(weighted mean = 454) Japan has a long history Japanrsquos accomplishments Taiwan will need a col-of communal bathing and visiting hot springs is a laborative government and industry mechanism tomajor highlight of travel within Japan Increasing pursue longer term sustainabilitypublic awareness of the value of leisure and recre-ation for health and wellbeing has created favor- Conclusions and Managerial Implicationsable conditions for the further development of hot

Hot springs tourism is an emerging sector insprings and spa tourism in Japan (MatsushitaTaiwan and in this context it is particularly im-1994)portant to develop a guiding framework based ofThe only item where Taiwan recorded a higherdestination competitiveness from a supply-sidescore than Japan and received the highest weightedperspective The relative importance of destinationmean among the 38 determinants (weighted mean =

413) was high-grade natural hot springs Given competitiveness has been evaluated using three

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 541

Table 5Comparative Destination Weights for Taiwan and Japan

Taiwan Japan

Weighted WeightedWeight Mean Mean Mean Mean

Tourism destination resources and attractors 294 301 407 417Attractions 324 330 414 423

High grade natural hot springs 0018 406 413 400 407Plentiful natural hot springs 0017 378 384 400 407Abundant natural scenery 0025 383 389 428 439Souvenir shopping 0020 228 233 422 430Year-round recreational activities 0022 228 233 422 431

Transport 289 296 383 393Convenient access to hot springs 0026 317 325 389 399Sound local transportation network 0023 289 296 394 403Ample parking 0023 261 267 367 375

Accommodation 263 266 421 427Availability of sufficient accommodation 0006 283 285 389 391High quality and international standard accommodation 0015 283 287 444 451Authentic accommodation experiencesa 0015 233 237 433 440Comfortable accommodation in a natural setting 0019 250 255 417 425

Safety and security 298 303 411 419Destination safety 0012 400 405 417 422A safe bathing environment 0027 311 319 428 440Hygiene standards for hot springs spa equipment 0024 250 256 428 438Personal safety and hygienemdashbasic rules and responsibility 0014 250 254 417 423Emergency medical care and the availability of ambulance services 0015 278 282 367 373

Tourism destination strategies 240 245 397 408Capability of the authorities 250 256 390 399

Providing leadership for coordination within the sector 0020 244 249 394 402Encouraging innovation of hot springs spa products amp services 0016 256 260 394 400Undertaking domestic and international marketing campaigns 0018 294 299 411 418Conducting regular surveys on tourist behavior amp satisfaction 0009 217 219 311 314Assisting hot springs properties in licensing matters 0032 217 224 372 384Creating and maintaining a hot springs database 0017 239 243 433 440Implementing hot springs water quality inspections 0029 278 286 394 405Effective design and construction of new and existing hot springs areas 0036 256 265 411 426

Capability of hot springs proprietors 230 236 404 416Promoting the health and medical benefits of hot springs 0019 261 266 433 441Providing a diverse range of leisure and health-oriented facilities 0024 244 250 428 438Maintaining high-quality hot springs spa-related facilities and equipment 0031 272 280 400 412Ensuring professional and technical competence and effective staff 0030 250 258 411 423Developing a third party certificate and accreditation schemes 0026 244 250 400 410Controlling the use of hot springs watera 0035 194 201 417 432Building sewage system infrastructure amp wastewater treatment facilitiesa 0036 183 190 383 397Ensuring the proper construction of pipe and pumping systemsa 0027 172 177 383 393Ensuring a value-for-money in tourism destination experience 0026 250 257 383 393

Tourism destination environments 352 367 422 454Sociocultural change 353 367 436 442

Public interest in health-leisure activities 0037 344 357 428 444Emergence of health-conscious consumers 0046 361 378 444 464

Market demand 350 379 408 448Expansion of the leisure and domestic tourism market 0069 356 381 400 428More demanding travelers 0096 344 377 417 454

Final score 276 284 406 416

aThe weighted mean difference between two destinations exceeded

542 LEE AND KING

headings namely tourism destination resources tourism provides an extension of the current liter-ature on the relative competitiveness of tourismand attractors tourism destination strategies and

tourism destination environments The present destinations (Dwyer et al 2003 Enright amp New-ton 2004 Kozak amp Rimmington 1999) Implica-study supplements the current literature on tourism

destination competitiveness by integrating the tions are drawn for government and industry witha view to increasing visitations Taiwan currentlythree categories of destination competitiveness

which have been prominent in previous models rates low in the context of competitiveness butaddressing this deficiency rates high in terms of(Dwyer amp Kim 2003 Enright amp Newton 2004

Ritchie amp Crouch 2000 2003) It is acknowl- importanceedged that each subsector has unique features andattributes and its own set of competitive factors A Focus on Preventative and Curative CareThe sector-specific model of destination competi-

In the context of an expanding pool of consum-tiveness that has been proposed in this research is

ers who have the time money and motivation tocapable of capturing the nature and characteristics

pursue and maintain a healthy life the diversityof the hot springs tourism sector and is well suited

and smoothness of mineral springs has been a sig-for purposes of comparison It has been demon-

nificant advantage for tourism provision in Tai-strated that the AHP method is an appropriate

wan The use of natural hot springs for the treat-method for generating insights that could form a

ment of disease constitutes another potentialbasis for enhancing the competitiveness of Tai-

market segment There is a business opportunitywanrsquos hot springs tourism sector Taiwan is a col-

for resort proprietors to market the medicinal andlectivist culture with an emphasis on the pursuit of

therapeutic benefits of hot springs bathing toharmony with others (Hofstede 1980) On this ba-

health-conscious consumers who are seeking tosis the AHP method may accommodate the di-

enhance their well-being through travel Toverse opinions of individual participants and avoid

achieve this proprietors should refresh their pre-the dominance of any individual or small group

ventative and health-oriented services and fa-Participants in the current survey had an equal

cilities Diversification of product offerings andvoice The AHP also accommodated the geograph-

tourist activities is also needed The Taiwan gov-ically dispersal of participants (Armacost Hos-

ernment could assist by establishing a research en-seini amp Edwards 1999) Previous AHP applica-

tity dedicated to hot springs sector and supportingtions have been confined to destinations at a

the development of a national database Hotgeneric level (Crouch 2008 Crouch amp Ritchie

springs treatments are as diverse as the waters2005) The present study shows the merit of

themselves A database could inform the publicapplying the AHP approach for analyzing destina-

about the location of relevant hot springs andtion competitiveness in the context of hot springs

about their health and tourism attributes In someas an important subsector of tourism It contributes

European countries skin disease sufferers who areto knowledge by extending the application of AHP

in receipt of health insurance-funded prescriptionto destination competitiveness as it applies to sub-

are entitled to receive spa treatments If Taiwanrsquossectors of tourism

national health insurance system were to subsidizeTo test the applicability of a sector-specific

spa treatments it would enhance the appreciationdestination competitiveness model Japan was

of the therapeutic and curative effects of hotchosen as a benchmark for comparison purposes

springs and extend their use into the medical fieldThe comparative analysis has shown that Taiwanis less competitive than Japan in all fields with the

Sustainability Principlesexception of high-grade natural hot springs Thefindings reveal potential areas for improvement if Tourism development associated with the growth

in visitation to hot springs has impacted on theTaiwanrsquos authorities and enterprises are to boostcompetitiveness and narrow the gap with Japan natural environment If Taiwan is to achieve an

appropriate balance between protecting resourcesThe application of a comparative study in the con-text of a subsector of tourism namely hot springs and stimulating tourism development stakehold-

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 543

ers at both the national and the enterprise level tors in future research to compare the demand andsupply-side perspectives Finally the study bringswill need to engage actively with environmental

management issues and engage in partnerships together the various concepts of destination com-petitiveness and identifies sector-specific strate-The national authorities are responsible for formu-

lating and implementing tourism policy and for gies environmental factors and unique destina-tion attributes as major constructs These insightsdeveloping strategies consistent with the sustain-

able use of lands hot springs and other natural could be further extended by examining the inter-play between internal and external factors as theyresources An effective and principled system of

deterrence is needed involving fines for the illegal influence the formulation and implementation ofdestination strategies in the pursuit of competitive-use of lands and hot springs Destination manage-

ment organizations should work with independent nessthird parties to promote and endorse the imple-mentation of sustainable water resource manage- Referencesment and environmental protection practices Hot

Armacost R L Hosseini J amp Edwards J (1999) Usingsprings proprietors should incorporate sustainabil- the analytical hierarchy process as a two-phase inte-ity principles within the design and construction grated decision approach for large nominal groupsof spring water distribution sewage treatment Group Decision and Negotiation 8(6) 535ndash555

Buhalis D (2000) Marketing the competitive destinationwastewater collection and piping and pumpingof the future Tourism Management 21(1) 97ndash116systems Sustainable tourism development is pred-

Cavana R Y Delahaye B L amp Sekaran U (2001) Ap-icated upon responsible behaviors by stakeholders plied business research Qualitative and quantitativewithin the hot springs tourism sector to ensure the methods Milton Qld John Wiley

Cheng E W L amp Li H (2001) Analytic hierarchy pro-long-term prosperity and quality of life for futurecess An approach to determine measures for businessgenerationsperformance Measuring Business Excellence 5(3)30ndash36

Limitations and Opportunities Cheng E W L Li H amp Ho D C K (2002) Analyticfor Future Research hierarchy process (AHP) A defective tool when used

improperly Measuring Business Excellence 6(4)This investigation has prompted a number of 33ndash37

Crouch G I amp Ritchie J R B (1999) Tourism competi-questions and various areas of potential study aretiveness and societal prosperity Journal of Businessevident The proposed destination competitivenessResearch 44(3) 137ndash152model should have international applicability es-

Crouch G I amp Ritchie J R B (2005) Application ofpecially in emerging Asian destinations similar to the analytic hierarchy process to tourism choice andTaiwan Additional validation of the proposed decision making A review and illustration applied to

destination competitiveness Tourism Analysis 10(1)framework should be undertaken Second the pro-17ndash25posed hot springs competitiveness model is ge-

Crouch G I (2008) Modelling destination competitive-neric Given time and cost constraints all key in-ness A survey and analysis of the impact of competi-

formants in the present study were Taiwanese tiveness attributes Gold Coast Qld Sustainable Tour-Respondents may tend to exaggerate the competi- ism CRC

Deng J King B amp Bauer T (2002) Evaluating naturaltiveness of their own country relative to othersattractions for tourism Annals of Tourism Research(Dwyer et al 2003) The limited knowledge and29(2) 422ndash438practical experience of informants about Japan as

drsquoHauteserre A M (2000) Lessons in managed destina-a competitor may have compromised the compari- tion competitiveness The case of Foxwoods Casino Re-son Future studies should extend the range of in- sort Tourism Management 21(1) 23ndash32

Dwyer L amp Kim C (2003) Destination competitivenessternational and local perspectives Thirdly theDeterminants and indicators Current Issues in Tourismpresent study has explored the managerial per-6(5) 369ndash414spective towards competitiveness factors associ-

Dwyer L Livaic Z amp Mellor R (2003) Competitive-ated with Taiwan as a hot springs tourism destina- ness of Australia as a tourist destination Journal oftion Given the importance of consumer perceptions Hospitality and Tourism Management 10(1) 60ndash78

Dwyer L Mellor R Livaic Z Edwards D amp Kim Cit would be useful to incorporate hot springs visi-

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

lands (2005) New Taiwan Weekly Retrieved from Saaty T L (1980) The analytical hierarchy processPlanning priority setting resource allocation Newhttpwwwnewtaiwancomtwbulletinviewjspbulletin

id=22639 York McGraw-HillSaaty T L amp Kearns K P (1985) Analytical planningHowie F (2003) Managing the tourist destination Lon-

don Continuum The organization of systems New York Pergamon PressHudson S Ritchie J B R amp Timur S (2004) Measur-

Page 6: International Competitiveness in Hot Springs Tourism: An

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 535

Figure 1 The hierarchy of elements determining competitiveness

536 LEE AND KING

weights corresponding to the full range of determi- within a government-related tourism organizationAcademic participants had a minimum of 5 yearsnants of destination competitiveness Beneath the

overall goal the second level represents the three of university tourism teaching experience evi-dence of publications relevant to Taiwanrsquos hotmajor dimensions which determine the potential

and competitiveness of the hot springs tourism springs tourism sector and an interest in healthand wellness tourism researchsector including tourism destination resources

and attractors tourism destination strategies The snowball sampling approach was usedbased on referrals from initial participants to gen-and tourism destination environments At the third

level of the hierarchy the three dimensions have erate additional respondents Although subject toa degree of bias this method is an appropriatebeen subdivided The dimension tourism destina-

tion resources and attractors consist of natural method for gathering information from individualswho exhibit particular characteristics or knowl-and man-made tourism resources and attractions

that complement the hot springs soaking experi- edge but are difficult to locate and contact (Ca-vana Delahaye amp Sekaran 2001) A mail surveyence It is subsequently decomposed into four fac-

tors attractions transport accommodation and was administrated between December 2008 andJanuary 2009 preceded by a telephone conversa-safety and security Tourism destination strategies

refer to the commitment by government and in- tion to establish rapport and to secure participa-tiondustry capability of the authorities and capability

of hot springs proprietors The dimension tourism A survey was administrated with 24 govern-ment officers hot springs proprietors and scholarsdestination environments consists of macro- and

microlevel growth drivers and is subdivided into for the purpose of collecting pairwise comparisondata The response rate was about 80 (19) Astwo components sociocultural change and market

demands Finally the various determinants or at- noted by Cheng et al (2002) small samples areacceptable from the AHP methodology perspec-tributes associated with each factor in the third

level are linked to the fourth level As outlined in tive The AHP is a subjective method that doesnot require a large number of participating expertsFigure 1 the fourth level consists of 38 determi-

nants The opinions of a small group of key informantsare generally sufficient to generate reliable anduseful results albeit only providing rough esti-Prioritization Proceduremates The response rate was deemed to be suffi-

The next step of the research involved the prio-cient Table 2 summarizes participant demo-

ritization of the various elements at each levelgraphic characteristics

Sample Design and Administration A reviewQuestionnaire Development The survey con-

of the relevant research (Faulkner et al 1999sisted of three sections The first required partici-

Gearing et al 1974 Hudson et al 2004) indicatespants to assess the relative importance of three

that tourism competitiveness is usually assesseddimensions eight factors and 38 determinants

from a supply-side perspective (eg governmentsof destination competitiveness Participants were

at all levels hotel and tourism associations travelasked to choose between various pairs of state-

agencies and tour operators) In the current studyments To elicit the importance of tourism destina-

three panels were established to ensure the incor-tion resources and attractors versus tourism des-

poration of applied as well as theoretical inputstination strategies the following statements were

Prospective participants were selected on the basispresented to each participant

of predetermined criteria The tourism industryWhen evaluating the potential and competitive-

grouping consisted of participants in the hotness of the hot springs tourism sector tourism des-

springs tourism sector with a minimum of 5 yearstination resources and attractors are

of professional experience and membership of arelevant tourism association Public sector partici- bull equally as important as

bull moderately more importantmoderately less im-pants should have a minimum of 5 years of profes-sional experience in a decision-making capacity portant than

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 537

Table 2 a particular destination on any determinant of des-Profile of Participating Experts tination competitiveness outside a comparative

framework (Dwyer Livaic amp Mellor 2003) Des-Characteristics N

tinations are not competitive or uncompetitive inField of work the abstract but versus competitors and it is im-

Goverment official 7 037 portant to determine the competitive set (Kozak ampHot springs proprietor 5 026

Rimmington 1999) Previous studies have pre-Academic 7 037Experience (years) sented a variety of mechanisms to compare desti-

At least 5 3 016 nation competitiveness (Dwyer et al 2003 En-6ndash10 2 011

right amp Newton 2004 Hudson et al 2004 Kozak11ndash15 5 02616ndash20 4 021 amp Rimmington 1999) For the purposes of the21ndash25 4 021 present study identification of a single competitor25 and above 1 005

within the Asia-Pacific region was considered toAge (in years)31ndash35 2 011 be sufficient for comparative purpose It also36ndash40 2 011 helped to reduce the duration of the survey The41ndash45 8 042

final section examined respondent demographics46ndash50 1 00551 and above 6 032

EducationData Analysis and SynthesisHigh school 0 0

Collegeuniversity 6 032Following inputs from the panel of expertsGraduate 13 068

normalized weighting priorities were establishedfor the hierarchy of elements within the AHPmodel using the Expert Choice software package

bull considerably more importantconsiderably less Participant comparisons were entered into Expertimportant than Choice allowing the researchers to check the con-

bull emphatically more importantemphatically less sistency of individual responses and abstractimportant than weightings for each element Expert Choice pro-

bull extremely more importantextremely less im- vided normalized local and global weightings forportant than all elements at each level of the hierarchy Incon-

sistency ratios were generated for each matrixTourism Destination Strategies Responses onThe results indicated that all inconsistency ratiosthe left indicate a prioritization of the first dimen-are 002 or lower (see Table 3) thus satisfying thesion over the second while responses on the rightthreshold of 10 inconsistency proposed by Saatyassert the importance of the second dimension(1980) It also confirmed the consistency and reli-over the first In the Saaty (1980) scale shown inability of the expert judgmentsTable 1 the five statements correspond respec-

tively to importance weightings of 1 3 5 7 and 9Results and FindingsIn section two participants rated Taiwanrsquos hot

springs tourism sector with competitors across Results Obtained From the AHP Analysiseach of 38 determinants under the three major

An examination of the weightings rated in Ta-headings on a 5-point Likert-type scale The op-ble 4 reveals that tourism destination strategiestions provided ranged from 1 (well below average(0431) is the major contributor to the potentialmuch worse) to 5 (well above averagemuch bet-and competitiveness of the hot springs sector fol-ter) The major competitor for Taiwanrsquos hotlowed by tourism destination resources and at-springs tourism sector was self-selected by partici-tractors (0321) Tourism destination environ-pants from a range of Asian destinations offeringments (0248) was the least important dimensionequivalent tourism products The reason for nomi-The top three ranking factors are capability ofnating a competing destination was to provide antourism enterprises (0253) capability of the au-Asia-Pacific comparative benchmark It would

have been meaningless to ask participants to rate thorities (0178) and market demand (0165) The

538 LEE AND KING

Table 3 the appeal of the core resources and attractorsConsistency Test for the Determinants strengthen the quality and effectiveness of the var-of Destination Competitiveness ious supporting factors and minimize any con-

straints imposed by the qualifying determinantsInconsistency Consistency(Crouch amp Ritchie 1999) Successful implementa-Level Ratio Testtion of destination strategies helps create a unique

Objective 000 accepted system of tourism products to address the needs ofDimensionsdifferent categories of visitor and ensures sustain-Tourism destination

resources and attractors 001 accepted able growth combining private profit and generalTourism destination economic development with the preservation ofstrategies 000 accepted

the host communityrsquos identity and quality of lifeTourism destinationenvironments 000 accepted (Manente amp Cerato cited in Manente amp Mingh-

Factors etti 2006) Second destination competitivenessAttractions 001 acceptedcan be enhanced through public and private sectorTransport 002 accepted

Accommodation 000 accepted participation and involvement While the principalSafety and security 001 accepted task of hot springs enterprises is to build and reno-Capability of the

vate their existing sewage and wastewater infra-authorities 001 acceptedCapability of hot springs structure the responsibility of government should

proprietors 000 accepted be to establish hot springs demonstration sites thatSociocultural change 000 acceptedexemplify best practice improve environmentalMarket demand 000 acceptedsustainability and minimize environmental dam-age However hot springs are now acknowledgedas a significant tourism attraction in Taiwan In-corporation of sustainability principles into bothtop five ranked attributes are more demanding

travelers (0096) expansion of the leisure and do- enterprise-level operation and government-leveldestination planning policy and development ismestic tourism market (0069) emergence of

health-conscious consumers (0046) public inter- viewed as an essential tool to strengthen and ex-pand its international reach and competitivenessest in health-leisure activities (0037) effective de-

sign and construction of new and existing hot Finally the introduction of the 2-day weekendentitlement for Taiwanese residents in 2001 in-springs areas (0036) and building sewage system

infrastructure and wastewater treatment facilities creased the availability of leisure time and pro-moted changes in lifestyle expenditures The(0036) The five lowest ranking attributes are

availability of sufficient accommodation (0006) Taiwanese are becoming more sophisticated de-manding and aware of the need to maintain goodconducting regular surveys on tourist behaviorhealth through tourism and recreation These fa-and satisfaction (0009) destination safety (0012)vorable conditions and incentives expand the pro-personal safety and hygienemdashbasic rules and re-spective application of natural hot springs into thesponsibility (0014) high quality and internationalfields of health promotion and medical treatmentstandard accommodation (0015) authentic ac-Internationally hot springs tourism has generallycommodation experiences (0015) and emergencybeen regarded as health oriented (Matsushitamedical care and the availability of ambulance1994) The ongoing prosperity of the sector is tiedservices (0015)closely to the increasing consciousness of personalThe key findings of the AHP analysis may behealth issues Competitiveness relies on increasingsummarized as follows First tourism destinationdomestic demand and its future appears prom-strategies underpin the competitiveness of the hotisingsprings tourism sector This is consistent with

Dwyer et alrsquos argument (2004) that destinationDescriptive Resultsstrategies are crucial for the success of the tourism

industry Tourism destination strategies should be According to the survey respondents Japanwas the most competitive Asian destination for hotviewed as processes and actions which enhance

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 539T

able

4E

lem

ent

Wei

ghts

toD

eter

min

eD

estin

atio

nC

ompe

titiv

enes

s

Loc

al

Glo

bal

Loc

alG

loba

lL

ocal

Glo

bal

Dim

ensi

onF

acto

rW

eigh

tsW

eigh

tsW

eigh

tsR

anki

ngD

eter

min

ants

ofD

estin

atio

nC

ompe

titiv

enes

sW

eigh

tsW

eigh

tsR

anki

ng

Tou

rism

dest

inat

ion

reso

urce

samp

attr

acto

rs0

321

Attr

actio

ns0

320

010

34

Hig

h-gr

ade

natu

ral

hot

spri

ngs

017

60

018

27Pl

entif

ulna

tura

lho

tsp

ring

s0

170

001

729

Abu

ndan

tna

tura

lsc

ener

y0

242

002

517

Souv

enir

shop

ping

019

40

020

23Y

ear-

roun

dre

crea

tiona

lac

tiviti

es0

219

002

222

Tra

nspo

rt0

223

007

17

Con

veni

ent

acce

ssto

hot

spri

ngs

036

50

026

14So

und

loca

ltr

ansp

orta

tion

netw

ork

031

80

023

20A

mpl

epa

rkin

g0

317

002

320

Acc

omm

odat

ion

017

20

055

8A

vaila

bilit

yof

suff

icie

ntac

com

mod

atio

n0

102

000

638

Hig

hqu

ality

and

inte

rnat

iona

lst

anda

rdac

com

mod

atio

n0

273

001

532

Aut

hent

icac

com

mod

atio

nex

peri

ence

s0

275

001

532

Com

fort

able

acco

mm

odat

ion

ina

natu

ral

setti

ng0

350

001

925

Safe

tyamp

secu

rity

028

60

092

5D

estin

atio

nsa

fety

013

10

012

36A

safe

bath

ing

envi

ronm

ent

029

20

027

12H

ygie

nest

anda

rds

for

hot

spri

ngs

spa

equi

pmen

t0

265

002

418

Pers

onal

safe

tyan

dhy

gien

emdashba

sic

rule

san

dre

spon

sibi

lity

015

10

014

35E

mer

genc

ym

edic

alca

rean

dth

eav

aila

bilit

yof

ambu

lanc

ese

rvic

es0

161

001

532

Tou

rism

dest

inat

ion

envi

ronm

ents

024

8So

cioc

ultu

ral

chan

ge0

333

008

26

Publ

icin

tere

stin

heal

th-l

eisu

reac

tiviti

es0

443

003

74

Em

erge

nce

ofhe

alth

-con

scio

usco

nsum

ers

055

70

046

3

Mar

ket

dem

and

066

70

165

3E

xpan

sion

ofth

ele

isur

ean

ddo

mes

ticto

uris

mm

arke

t0

416

006

92

Mor

ede

man

ding

trav

eler

s0

584

009

61

Tou

rism

dest

inat

ion

stra

tegi

es0

431

Cap

abili

tyof

the

auth

oriti

es0

413

017

82

Prov

idin

gle

ader

ship

for

coor

dina

tion

with

inth

ese

ctor

011

30

020

23E

ncou

ragi

ngin

nova

tion

ofho

tsp

ring

ssp

apr

oduc

tsamp

serv

ices

009

10

016

31U

nder

taki

ngdo

mes

tican

din

tern

atio

nal

mar

ketin

gca

mpa

igns

010

10

018

27C

ondu

ctin

gre

gula

rsu

rvey

son

tour

ist

beha

vior

ampsa

tisfa

ctio

n0

052

000

937

Ass

istin

gho

tsp

ring

spr

oper

ties

inlic

ensi

ngm

atte

rs0

182

003

28

Cre

atin

gan

dm

aint

aini

nga

hot

spri

ngs

data

base

009

70

017

29Im

plem

entin

gho

tsp

ring

sw

ater

qual

ityin

spec

tions

016

20

029

11E

ffec

tive

desi

gnan

dco

nstr

uctio

nof

new

and

exis

ting

hot

spri

ngs

area

s0

202

003

65

Cap

abili

tyof

hot

spri

ngs

prop

riet

ors

058

70

253

1Pr

omot

ing

the

heal

than

dm

edic

albe

nefi

tsof

hot

spri

ngs

007

30

019

25Pr

ovid

ing

adi

vers

era

nge

ofle

isur

ean

dhe

alth

-ori

ente

dfa

cilit

ies

009

30

024

18M

aint

aini

nghi

gh-q

ualit

yho

tsp

ring

ssp

a-re

late

d0

122

003

19

faci

litie

san

deq

uipm

ent

Ens

urin

gpr

ofes

sion

alan

dte

chni

cal

com

pete

nce

and

effe

ctiv

est

aff

011

80

030

10D

evel

opin

ga

thir

dpa

rty

cert

ific

ate

and

accr

edita

tion

sche

mes

010

40

026

14C

ontr

ollin

gth

eus

eof

hot

spri

ngs

wat

er0

137

003

57

Bui

ldin

gse

wag

esy

stem

infr

astr

uctu

rean

dw

aste

wat

ertr

eatm

ent

faci

litie

s0

142

003

65

Ens

urin

gth

epr

oper

cons

truc

tion

ofpi

pean

dpu

mpi

ngsy

stem

s0

107

002

712

Ava

lue-

for-

mon

eyto

uris

mde

stin

atio

nex

peri

ence

010

30

026

14

540 LEE AND KING

springs and spa tourism and the principal competi- that Taiwan has one of the highest concentrationsand greatest variety of hot springs in the worldtor for Taiwan Japan has abundant natural hot

springs and hot springs are intrinsic to Japanese this is not surprising The three lowest ranked de-terminants were assuring the proper constructionculture The centuries-old tradition of hot springs

and onsen bathing has made Japan a leading spa of pipe and pumping system (mean = 177) build-ing sewage system infrastructure and wastewatertourism destination During Taiwanrsquos occupation

by the Japanese prior to 1945 many hot springs treatment facilities (mean = 190) and controllingthe use of hot springs water (mean = 201) Thesefacilities were built in Japanese style and adopted

the Japanese hot springs bathing traditions and relate to the capability of hot springs proprietorsto protect conserve and manage the environmentmanners This legacy is still evident in some of

Taiwanrsquos oldest and finest hot springs regions In and natural resources in compliance with the prin-ciples of sustainability It is suggested that an en-this historical context and given growing interna-

tional competition a comparison of the relative vironmental management self-regulation mecha-nism would be a useful addition to the dailyperformances of the hot springs tourism sector in

Taiwan and Japan is timely practices of hot springs proprietors Many proprie-The competitiveness rating for Taiwanrsquos hot tors have an exclusive focus on the maximization

springs tourism sector (final score = 284) was of short-term profitability The effects of their ac-lower than for Japan (final score = 416) and was tions on local communities and the environmentbelow neutrality (lt3 on a scale of 1ndash5) The more and their responsibility to customers are ignoredsalient findings in Table 5 are highlighted It is Currently there is no direct regulation of hotnoted that Taiwan has performed less effectively springs spa operations though there is a strongthan Japan on the three measures of destination case for a more active regulation of such activitiescompetitiveness The lowest rating applied in the Significant differences are evident between thecase of tourism destination strategies (weighted weight means for Taiwan and Japan These in-mean = 245) All of the determinants originating clude controlling the use of hot springs waterfrom the dimension tourism destination strategies building sewage system infrastructure and waste-rated lower than the neutral score of 3 These find- water treatment facilities ensuring the properings are not surprising in view of the absence of construction of pipe and pumping system and au-regulations to oversee enterprise-level operations thentic accommodation experiences Taiwanrsquosand of legislation to protect the use of water greatest weaknesses are the capacity of its hotwithin the hot springs areas These human re- springs proprietors to minimize environmentalsource and strategic capacity related problems damage and comply with environmental sustain-need urgent resolution if Taiwanrsquos hot springs ability standards Japanrsquos Hot Springs Law (1948)tourism sector is to develop and prosper In con- prescribes a definition for hot springs to be recog-trast Japan is rated above 4 on each of the three nized as an onsen Compliant onsen operators whomajor dimensions The most favorably rated di- contribute to regional economic development aremension was tourism destination environments eligible for subsidies (Matsushita 1994) To match(weighted mean = 454) Japan has a long history Japanrsquos accomplishments Taiwan will need a col-of communal bathing and visiting hot springs is a laborative government and industry mechanism tomajor highlight of travel within Japan Increasing pursue longer term sustainabilitypublic awareness of the value of leisure and recre-ation for health and wellbeing has created favor- Conclusions and Managerial Implicationsable conditions for the further development of hot

Hot springs tourism is an emerging sector insprings and spa tourism in Japan (MatsushitaTaiwan and in this context it is particularly im-1994)portant to develop a guiding framework based ofThe only item where Taiwan recorded a higherdestination competitiveness from a supply-sidescore than Japan and received the highest weightedperspective The relative importance of destinationmean among the 38 determinants (weighted mean =

413) was high-grade natural hot springs Given competitiveness has been evaluated using three

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 541

Table 5Comparative Destination Weights for Taiwan and Japan

Taiwan Japan

Weighted WeightedWeight Mean Mean Mean Mean

Tourism destination resources and attractors 294 301 407 417Attractions 324 330 414 423

High grade natural hot springs 0018 406 413 400 407Plentiful natural hot springs 0017 378 384 400 407Abundant natural scenery 0025 383 389 428 439Souvenir shopping 0020 228 233 422 430Year-round recreational activities 0022 228 233 422 431

Transport 289 296 383 393Convenient access to hot springs 0026 317 325 389 399Sound local transportation network 0023 289 296 394 403Ample parking 0023 261 267 367 375

Accommodation 263 266 421 427Availability of sufficient accommodation 0006 283 285 389 391High quality and international standard accommodation 0015 283 287 444 451Authentic accommodation experiencesa 0015 233 237 433 440Comfortable accommodation in a natural setting 0019 250 255 417 425

Safety and security 298 303 411 419Destination safety 0012 400 405 417 422A safe bathing environment 0027 311 319 428 440Hygiene standards for hot springs spa equipment 0024 250 256 428 438Personal safety and hygienemdashbasic rules and responsibility 0014 250 254 417 423Emergency medical care and the availability of ambulance services 0015 278 282 367 373

Tourism destination strategies 240 245 397 408Capability of the authorities 250 256 390 399

Providing leadership for coordination within the sector 0020 244 249 394 402Encouraging innovation of hot springs spa products amp services 0016 256 260 394 400Undertaking domestic and international marketing campaigns 0018 294 299 411 418Conducting regular surveys on tourist behavior amp satisfaction 0009 217 219 311 314Assisting hot springs properties in licensing matters 0032 217 224 372 384Creating and maintaining a hot springs database 0017 239 243 433 440Implementing hot springs water quality inspections 0029 278 286 394 405Effective design and construction of new and existing hot springs areas 0036 256 265 411 426

Capability of hot springs proprietors 230 236 404 416Promoting the health and medical benefits of hot springs 0019 261 266 433 441Providing a diverse range of leisure and health-oriented facilities 0024 244 250 428 438Maintaining high-quality hot springs spa-related facilities and equipment 0031 272 280 400 412Ensuring professional and technical competence and effective staff 0030 250 258 411 423Developing a third party certificate and accreditation schemes 0026 244 250 400 410Controlling the use of hot springs watera 0035 194 201 417 432Building sewage system infrastructure amp wastewater treatment facilitiesa 0036 183 190 383 397Ensuring the proper construction of pipe and pumping systemsa 0027 172 177 383 393Ensuring a value-for-money in tourism destination experience 0026 250 257 383 393

Tourism destination environments 352 367 422 454Sociocultural change 353 367 436 442

Public interest in health-leisure activities 0037 344 357 428 444Emergence of health-conscious consumers 0046 361 378 444 464

Market demand 350 379 408 448Expansion of the leisure and domestic tourism market 0069 356 381 400 428More demanding travelers 0096 344 377 417 454

Final score 276 284 406 416

aThe weighted mean difference between two destinations exceeded

542 LEE AND KING

headings namely tourism destination resources tourism provides an extension of the current liter-ature on the relative competitiveness of tourismand attractors tourism destination strategies and

tourism destination environments The present destinations (Dwyer et al 2003 Enright amp New-ton 2004 Kozak amp Rimmington 1999) Implica-study supplements the current literature on tourism

destination competitiveness by integrating the tions are drawn for government and industry witha view to increasing visitations Taiwan currentlythree categories of destination competitiveness

which have been prominent in previous models rates low in the context of competitiveness butaddressing this deficiency rates high in terms of(Dwyer amp Kim 2003 Enright amp Newton 2004

Ritchie amp Crouch 2000 2003) It is acknowl- importanceedged that each subsector has unique features andattributes and its own set of competitive factors A Focus on Preventative and Curative CareThe sector-specific model of destination competi-

In the context of an expanding pool of consum-tiveness that has been proposed in this research is

ers who have the time money and motivation tocapable of capturing the nature and characteristics

pursue and maintain a healthy life the diversityof the hot springs tourism sector and is well suited

and smoothness of mineral springs has been a sig-for purposes of comparison It has been demon-

nificant advantage for tourism provision in Tai-strated that the AHP method is an appropriate

wan The use of natural hot springs for the treat-method for generating insights that could form a

ment of disease constitutes another potentialbasis for enhancing the competitiveness of Tai-

market segment There is a business opportunitywanrsquos hot springs tourism sector Taiwan is a col-

for resort proprietors to market the medicinal andlectivist culture with an emphasis on the pursuit of

therapeutic benefits of hot springs bathing toharmony with others (Hofstede 1980) On this ba-

health-conscious consumers who are seeking tosis the AHP method may accommodate the di-

enhance their well-being through travel Toverse opinions of individual participants and avoid

achieve this proprietors should refresh their pre-the dominance of any individual or small group

ventative and health-oriented services and fa-Participants in the current survey had an equal

cilities Diversification of product offerings andvoice The AHP also accommodated the geograph-

tourist activities is also needed The Taiwan gov-ically dispersal of participants (Armacost Hos-

ernment could assist by establishing a research en-seini amp Edwards 1999) Previous AHP applica-

tity dedicated to hot springs sector and supportingtions have been confined to destinations at a

the development of a national database Hotgeneric level (Crouch 2008 Crouch amp Ritchie

springs treatments are as diverse as the waters2005) The present study shows the merit of

themselves A database could inform the publicapplying the AHP approach for analyzing destina-

about the location of relevant hot springs andtion competitiveness in the context of hot springs

about their health and tourism attributes In someas an important subsector of tourism It contributes

European countries skin disease sufferers who areto knowledge by extending the application of AHP

in receipt of health insurance-funded prescriptionto destination competitiveness as it applies to sub-

are entitled to receive spa treatments If Taiwanrsquossectors of tourism

national health insurance system were to subsidizeTo test the applicability of a sector-specific

spa treatments it would enhance the appreciationdestination competitiveness model Japan was

of the therapeutic and curative effects of hotchosen as a benchmark for comparison purposes

springs and extend their use into the medical fieldThe comparative analysis has shown that Taiwanis less competitive than Japan in all fields with the

Sustainability Principlesexception of high-grade natural hot springs Thefindings reveal potential areas for improvement if Tourism development associated with the growth

in visitation to hot springs has impacted on theTaiwanrsquos authorities and enterprises are to boostcompetitiveness and narrow the gap with Japan natural environment If Taiwan is to achieve an

appropriate balance between protecting resourcesThe application of a comparative study in the con-text of a subsector of tourism namely hot springs and stimulating tourism development stakehold-

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 543

ers at both the national and the enterprise level tors in future research to compare the demand andsupply-side perspectives Finally the study bringswill need to engage actively with environmental

management issues and engage in partnerships together the various concepts of destination com-petitiveness and identifies sector-specific strate-The national authorities are responsible for formu-

lating and implementing tourism policy and for gies environmental factors and unique destina-tion attributes as major constructs These insightsdeveloping strategies consistent with the sustain-

able use of lands hot springs and other natural could be further extended by examining the inter-play between internal and external factors as theyresources An effective and principled system of

deterrence is needed involving fines for the illegal influence the formulation and implementation ofdestination strategies in the pursuit of competitive-use of lands and hot springs Destination manage-

ment organizations should work with independent nessthird parties to promote and endorse the imple-mentation of sustainable water resource manage- Referencesment and environmental protection practices Hot

Armacost R L Hosseini J amp Edwards J (1999) Usingsprings proprietors should incorporate sustainabil- the analytical hierarchy process as a two-phase inte-ity principles within the design and construction grated decision approach for large nominal groupsof spring water distribution sewage treatment Group Decision and Negotiation 8(6) 535ndash555

Buhalis D (2000) Marketing the competitive destinationwastewater collection and piping and pumpingof the future Tourism Management 21(1) 97ndash116systems Sustainable tourism development is pred-

Cavana R Y Delahaye B L amp Sekaran U (2001) Ap-icated upon responsible behaviors by stakeholders plied business research Qualitative and quantitativewithin the hot springs tourism sector to ensure the methods Milton Qld John Wiley

Cheng E W L amp Li H (2001) Analytic hierarchy pro-long-term prosperity and quality of life for futurecess An approach to determine measures for businessgenerationsperformance Measuring Business Excellence 5(3)30ndash36

Limitations and Opportunities Cheng E W L Li H amp Ho D C K (2002) Analyticfor Future Research hierarchy process (AHP) A defective tool when used

improperly Measuring Business Excellence 6(4)This investigation has prompted a number of 33ndash37

Crouch G I amp Ritchie J R B (1999) Tourism competi-questions and various areas of potential study aretiveness and societal prosperity Journal of Businessevident The proposed destination competitivenessResearch 44(3) 137ndash152model should have international applicability es-

Crouch G I amp Ritchie J R B (2005) Application ofpecially in emerging Asian destinations similar to the analytic hierarchy process to tourism choice andTaiwan Additional validation of the proposed decision making A review and illustration applied to

destination competitiveness Tourism Analysis 10(1)framework should be undertaken Second the pro-17ndash25posed hot springs competitiveness model is ge-

Crouch G I (2008) Modelling destination competitive-neric Given time and cost constraints all key in-ness A survey and analysis of the impact of competi-

formants in the present study were Taiwanese tiveness attributes Gold Coast Qld Sustainable Tour-Respondents may tend to exaggerate the competi- ism CRC

Deng J King B amp Bauer T (2002) Evaluating naturaltiveness of their own country relative to othersattractions for tourism Annals of Tourism Research(Dwyer et al 2003) The limited knowledge and29(2) 422ndash438practical experience of informants about Japan as

drsquoHauteserre A M (2000) Lessons in managed destina-a competitor may have compromised the compari- tion competitiveness The case of Foxwoods Casino Re-son Future studies should extend the range of in- sort Tourism Management 21(1) 23ndash32

Dwyer L amp Kim C (2003) Destination competitivenessternational and local perspectives Thirdly theDeterminants and indicators Current Issues in Tourismpresent study has explored the managerial per-6(5) 369ndash414spective towards competitiveness factors associ-

Dwyer L Livaic Z amp Mellor R (2003) Competitive-ated with Taiwan as a hot springs tourism destina- ness of Australia as a tourist destination Journal oftion Given the importance of consumer perceptions Hospitality and Tourism Management 10(1) 60ndash78

Dwyer L Mellor R Livaic Z Edwards D amp Kim Cit would be useful to incorporate hot springs visi-

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

lands (2005) New Taiwan Weekly Retrieved from Saaty T L (1980) The analytical hierarchy processPlanning priority setting resource allocation Newhttpwwwnewtaiwancomtwbulletinviewjspbulletin

id=22639 York McGraw-HillSaaty T L amp Kearns K P (1985) Analytical planningHowie F (2003) Managing the tourist destination Lon-

don Continuum The organization of systems New York Pergamon PressHudson S Ritchie J B R amp Timur S (2004) Measur-

Page 7: International Competitiveness in Hot Springs Tourism: An

536 LEE AND KING

weights corresponding to the full range of determi- within a government-related tourism organizationAcademic participants had a minimum of 5 yearsnants of destination competitiveness Beneath the

overall goal the second level represents the three of university tourism teaching experience evi-dence of publications relevant to Taiwanrsquos hotmajor dimensions which determine the potential

and competitiveness of the hot springs tourism springs tourism sector and an interest in healthand wellness tourism researchsector including tourism destination resources

and attractors tourism destination strategies The snowball sampling approach was usedbased on referrals from initial participants to gen-and tourism destination environments At the third

level of the hierarchy the three dimensions have erate additional respondents Although subject toa degree of bias this method is an appropriatebeen subdivided The dimension tourism destina-

tion resources and attractors consist of natural method for gathering information from individualswho exhibit particular characteristics or knowl-and man-made tourism resources and attractions

that complement the hot springs soaking experi- edge but are difficult to locate and contact (Ca-vana Delahaye amp Sekaran 2001) A mail surveyence It is subsequently decomposed into four fac-

tors attractions transport accommodation and was administrated between December 2008 andJanuary 2009 preceded by a telephone conversa-safety and security Tourism destination strategies

refer to the commitment by government and in- tion to establish rapport and to secure participa-tiondustry capability of the authorities and capability

of hot springs proprietors The dimension tourism A survey was administrated with 24 govern-ment officers hot springs proprietors and scholarsdestination environments consists of macro- and

microlevel growth drivers and is subdivided into for the purpose of collecting pairwise comparisondata The response rate was about 80 (19) Astwo components sociocultural change and market

demands Finally the various determinants or at- noted by Cheng et al (2002) small samples areacceptable from the AHP methodology perspec-tributes associated with each factor in the third

level are linked to the fourth level As outlined in tive The AHP is a subjective method that doesnot require a large number of participating expertsFigure 1 the fourth level consists of 38 determi-

nants The opinions of a small group of key informantsare generally sufficient to generate reliable anduseful results albeit only providing rough esti-Prioritization Proceduremates The response rate was deemed to be suffi-

The next step of the research involved the prio-cient Table 2 summarizes participant demo-

ritization of the various elements at each levelgraphic characteristics

Sample Design and Administration A reviewQuestionnaire Development The survey con-

of the relevant research (Faulkner et al 1999sisted of three sections The first required partici-

Gearing et al 1974 Hudson et al 2004) indicatespants to assess the relative importance of three

that tourism competitiveness is usually assesseddimensions eight factors and 38 determinants

from a supply-side perspective (eg governmentsof destination competitiveness Participants were

at all levels hotel and tourism associations travelasked to choose between various pairs of state-

agencies and tour operators) In the current studyments To elicit the importance of tourism destina-

three panels were established to ensure the incor-tion resources and attractors versus tourism des-

poration of applied as well as theoretical inputstination strategies the following statements were

Prospective participants were selected on the basispresented to each participant

of predetermined criteria The tourism industryWhen evaluating the potential and competitive-

grouping consisted of participants in the hotness of the hot springs tourism sector tourism des-

springs tourism sector with a minimum of 5 yearstination resources and attractors are

of professional experience and membership of arelevant tourism association Public sector partici- bull equally as important as

bull moderately more importantmoderately less im-pants should have a minimum of 5 years of profes-sional experience in a decision-making capacity portant than

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 537

Table 2 a particular destination on any determinant of des-Profile of Participating Experts tination competitiveness outside a comparative

framework (Dwyer Livaic amp Mellor 2003) Des-Characteristics N

tinations are not competitive or uncompetitive inField of work the abstract but versus competitors and it is im-

Goverment official 7 037 portant to determine the competitive set (Kozak ampHot springs proprietor 5 026

Rimmington 1999) Previous studies have pre-Academic 7 037Experience (years) sented a variety of mechanisms to compare desti-

At least 5 3 016 nation competitiveness (Dwyer et al 2003 En-6ndash10 2 011

right amp Newton 2004 Hudson et al 2004 Kozak11ndash15 5 02616ndash20 4 021 amp Rimmington 1999) For the purposes of the21ndash25 4 021 present study identification of a single competitor25 and above 1 005

within the Asia-Pacific region was considered toAge (in years)31ndash35 2 011 be sufficient for comparative purpose It also36ndash40 2 011 helped to reduce the duration of the survey The41ndash45 8 042

final section examined respondent demographics46ndash50 1 00551 and above 6 032

EducationData Analysis and SynthesisHigh school 0 0

Collegeuniversity 6 032Following inputs from the panel of expertsGraduate 13 068

normalized weighting priorities were establishedfor the hierarchy of elements within the AHPmodel using the Expert Choice software package

bull considerably more importantconsiderably less Participant comparisons were entered into Expertimportant than Choice allowing the researchers to check the con-

bull emphatically more importantemphatically less sistency of individual responses and abstractimportant than weightings for each element Expert Choice pro-

bull extremely more importantextremely less im- vided normalized local and global weightings forportant than all elements at each level of the hierarchy Incon-

sistency ratios were generated for each matrixTourism Destination Strategies Responses onThe results indicated that all inconsistency ratiosthe left indicate a prioritization of the first dimen-are 002 or lower (see Table 3) thus satisfying thesion over the second while responses on the rightthreshold of 10 inconsistency proposed by Saatyassert the importance of the second dimension(1980) It also confirmed the consistency and reli-over the first In the Saaty (1980) scale shown inability of the expert judgmentsTable 1 the five statements correspond respec-

tively to importance weightings of 1 3 5 7 and 9Results and FindingsIn section two participants rated Taiwanrsquos hot

springs tourism sector with competitors across Results Obtained From the AHP Analysiseach of 38 determinants under the three major

An examination of the weightings rated in Ta-headings on a 5-point Likert-type scale The op-ble 4 reveals that tourism destination strategiestions provided ranged from 1 (well below average(0431) is the major contributor to the potentialmuch worse) to 5 (well above averagemuch bet-and competitiveness of the hot springs sector fol-ter) The major competitor for Taiwanrsquos hotlowed by tourism destination resources and at-springs tourism sector was self-selected by partici-tractors (0321) Tourism destination environ-pants from a range of Asian destinations offeringments (0248) was the least important dimensionequivalent tourism products The reason for nomi-The top three ranking factors are capability ofnating a competing destination was to provide antourism enterprises (0253) capability of the au-Asia-Pacific comparative benchmark It would

have been meaningless to ask participants to rate thorities (0178) and market demand (0165) The

538 LEE AND KING

Table 3 the appeal of the core resources and attractorsConsistency Test for the Determinants strengthen the quality and effectiveness of the var-of Destination Competitiveness ious supporting factors and minimize any con-

straints imposed by the qualifying determinantsInconsistency Consistency(Crouch amp Ritchie 1999) Successful implementa-Level Ratio Testtion of destination strategies helps create a unique

Objective 000 accepted system of tourism products to address the needs ofDimensionsdifferent categories of visitor and ensures sustain-Tourism destination

resources and attractors 001 accepted able growth combining private profit and generalTourism destination economic development with the preservation ofstrategies 000 accepted

the host communityrsquos identity and quality of lifeTourism destinationenvironments 000 accepted (Manente amp Cerato cited in Manente amp Mingh-

Factors etti 2006) Second destination competitivenessAttractions 001 acceptedcan be enhanced through public and private sectorTransport 002 accepted

Accommodation 000 accepted participation and involvement While the principalSafety and security 001 accepted task of hot springs enterprises is to build and reno-Capability of the

vate their existing sewage and wastewater infra-authorities 001 acceptedCapability of hot springs structure the responsibility of government should

proprietors 000 accepted be to establish hot springs demonstration sites thatSociocultural change 000 acceptedexemplify best practice improve environmentalMarket demand 000 acceptedsustainability and minimize environmental dam-age However hot springs are now acknowledgedas a significant tourism attraction in Taiwan In-corporation of sustainability principles into bothtop five ranked attributes are more demanding

travelers (0096) expansion of the leisure and do- enterprise-level operation and government-leveldestination planning policy and development ismestic tourism market (0069) emergence of

health-conscious consumers (0046) public inter- viewed as an essential tool to strengthen and ex-pand its international reach and competitivenessest in health-leisure activities (0037) effective de-

sign and construction of new and existing hot Finally the introduction of the 2-day weekendentitlement for Taiwanese residents in 2001 in-springs areas (0036) and building sewage system

infrastructure and wastewater treatment facilities creased the availability of leisure time and pro-moted changes in lifestyle expenditures The(0036) The five lowest ranking attributes are

availability of sufficient accommodation (0006) Taiwanese are becoming more sophisticated de-manding and aware of the need to maintain goodconducting regular surveys on tourist behaviorhealth through tourism and recreation These fa-and satisfaction (0009) destination safety (0012)vorable conditions and incentives expand the pro-personal safety and hygienemdashbasic rules and re-spective application of natural hot springs into thesponsibility (0014) high quality and internationalfields of health promotion and medical treatmentstandard accommodation (0015) authentic ac-Internationally hot springs tourism has generallycommodation experiences (0015) and emergencybeen regarded as health oriented (Matsushitamedical care and the availability of ambulance1994) The ongoing prosperity of the sector is tiedservices (0015)closely to the increasing consciousness of personalThe key findings of the AHP analysis may behealth issues Competitiveness relies on increasingsummarized as follows First tourism destinationdomestic demand and its future appears prom-strategies underpin the competitiveness of the hotisingsprings tourism sector This is consistent with

Dwyer et alrsquos argument (2004) that destinationDescriptive Resultsstrategies are crucial for the success of the tourism

industry Tourism destination strategies should be According to the survey respondents Japanwas the most competitive Asian destination for hotviewed as processes and actions which enhance

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 539T

able

4E

lem

ent

Wei

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enes

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Loc

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Loc

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Dim

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Hig

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ral

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60

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27Pl

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Souv

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Tra

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Acc

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Hig

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Com

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350

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925

Safe

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rity

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5D

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36A

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envi

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029

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12H

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265

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418

Pers

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161

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Tou

rism

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ronm

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024

8So

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ultu

ral

chan

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333

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26

Publ

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443

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74

Em

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Mar

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Cap

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thir

dpa

rty

cert

ific

ate

and

accr

edita

tion

sche

mes

010

40

026

14C

ontr

ollin

gth

eus

eof

hot

spri

ngs

wat

er0

137

003

57

Bui

ldin

gse

wag

esy

stem

infr

astr

uctu

rean

dw

aste

wat

ertr

eatm

ent

faci

litie

s0

142

003

65

Ens

urin

gth

epr

oper

cons

truc

tion

ofpi

pean

dpu

mpi

ngsy

stem

s0

107

002

712

Ava

lue-

for-

mon

eyto

uris

mde

stin

atio

nex

peri

ence

010

30

026

14

540 LEE AND KING

springs and spa tourism and the principal competi- that Taiwan has one of the highest concentrationsand greatest variety of hot springs in the worldtor for Taiwan Japan has abundant natural hot

springs and hot springs are intrinsic to Japanese this is not surprising The three lowest ranked de-terminants were assuring the proper constructionculture The centuries-old tradition of hot springs

and onsen bathing has made Japan a leading spa of pipe and pumping system (mean = 177) build-ing sewage system infrastructure and wastewatertourism destination During Taiwanrsquos occupation

by the Japanese prior to 1945 many hot springs treatment facilities (mean = 190) and controllingthe use of hot springs water (mean = 201) Thesefacilities were built in Japanese style and adopted

the Japanese hot springs bathing traditions and relate to the capability of hot springs proprietorsto protect conserve and manage the environmentmanners This legacy is still evident in some of

Taiwanrsquos oldest and finest hot springs regions In and natural resources in compliance with the prin-ciples of sustainability It is suggested that an en-this historical context and given growing interna-

tional competition a comparison of the relative vironmental management self-regulation mecha-nism would be a useful addition to the dailyperformances of the hot springs tourism sector in

Taiwan and Japan is timely practices of hot springs proprietors Many proprie-The competitiveness rating for Taiwanrsquos hot tors have an exclusive focus on the maximization

springs tourism sector (final score = 284) was of short-term profitability The effects of their ac-lower than for Japan (final score = 416) and was tions on local communities and the environmentbelow neutrality (lt3 on a scale of 1ndash5) The more and their responsibility to customers are ignoredsalient findings in Table 5 are highlighted It is Currently there is no direct regulation of hotnoted that Taiwan has performed less effectively springs spa operations though there is a strongthan Japan on the three measures of destination case for a more active regulation of such activitiescompetitiveness The lowest rating applied in the Significant differences are evident between thecase of tourism destination strategies (weighted weight means for Taiwan and Japan These in-mean = 245) All of the determinants originating clude controlling the use of hot springs waterfrom the dimension tourism destination strategies building sewage system infrastructure and waste-rated lower than the neutral score of 3 These find- water treatment facilities ensuring the properings are not surprising in view of the absence of construction of pipe and pumping system and au-regulations to oversee enterprise-level operations thentic accommodation experiences Taiwanrsquosand of legislation to protect the use of water greatest weaknesses are the capacity of its hotwithin the hot springs areas These human re- springs proprietors to minimize environmentalsource and strategic capacity related problems damage and comply with environmental sustain-need urgent resolution if Taiwanrsquos hot springs ability standards Japanrsquos Hot Springs Law (1948)tourism sector is to develop and prosper In con- prescribes a definition for hot springs to be recog-trast Japan is rated above 4 on each of the three nized as an onsen Compliant onsen operators whomajor dimensions The most favorably rated di- contribute to regional economic development aremension was tourism destination environments eligible for subsidies (Matsushita 1994) To match(weighted mean = 454) Japan has a long history Japanrsquos accomplishments Taiwan will need a col-of communal bathing and visiting hot springs is a laborative government and industry mechanism tomajor highlight of travel within Japan Increasing pursue longer term sustainabilitypublic awareness of the value of leisure and recre-ation for health and wellbeing has created favor- Conclusions and Managerial Implicationsable conditions for the further development of hot

Hot springs tourism is an emerging sector insprings and spa tourism in Japan (MatsushitaTaiwan and in this context it is particularly im-1994)portant to develop a guiding framework based ofThe only item where Taiwan recorded a higherdestination competitiveness from a supply-sidescore than Japan and received the highest weightedperspective The relative importance of destinationmean among the 38 determinants (weighted mean =

413) was high-grade natural hot springs Given competitiveness has been evaluated using three

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 541

Table 5Comparative Destination Weights for Taiwan and Japan

Taiwan Japan

Weighted WeightedWeight Mean Mean Mean Mean

Tourism destination resources and attractors 294 301 407 417Attractions 324 330 414 423

High grade natural hot springs 0018 406 413 400 407Plentiful natural hot springs 0017 378 384 400 407Abundant natural scenery 0025 383 389 428 439Souvenir shopping 0020 228 233 422 430Year-round recreational activities 0022 228 233 422 431

Transport 289 296 383 393Convenient access to hot springs 0026 317 325 389 399Sound local transportation network 0023 289 296 394 403Ample parking 0023 261 267 367 375

Accommodation 263 266 421 427Availability of sufficient accommodation 0006 283 285 389 391High quality and international standard accommodation 0015 283 287 444 451Authentic accommodation experiencesa 0015 233 237 433 440Comfortable accommodation in a natural setting 0019 250 255 417 425

Safety and security 298 303 411 419Destination safety 0012 400 405 417 422A safe bathing environment 0027 311 319 428 440Hygiene standards for hot springs spa equipment 0024 250 256 428 438Personal safety and hygienemdashbasic rules and responsibility 0014 250 254 417 423Emergency medical care and the availability of ambulance services 0015 278 282 367 373

Tourism destination strategies 240 245 397 408Capability of the authorities 250 256 390 399

Providing leadership for coordination within the sector 0020 244 249 394 402Encouraging innovation of hot springs spa products amp services 0016 256 260 394 400Undertaking domestic and international marketing campaigns 0018 294 299 411 418Conducting regular surveys on tourist behavior amp satisfaction 0009 217 219 311 314Assisting hot springs properties in licensing matters 0032 217 224 372 384Creating and maintaining a hot springs database 0017 239 243 433 440Implementing hot springs water quality inspections 0029 278 286 394 405Effective design and construction of new and existing hot springs areas 0036 256 265 411 426

Capability of hot springs proprietors 230 236 404 416Promoting the health and medical benefits of hot springs 0019 261 266 433 441Providing a diverse range of leisure and health-oriented facilities 0024 244 250 428 438Maintaining high-quality hot springs spa-related facilities and equipment 0031 272 280 400 412Ensuring professional and technical competence and effective staff 0030 250 258 411 423Developing a third party certificate and accreditation schemes 0026 244 250 400 410Controlling the use of hot springs watera 0035 194 201 417 432Building sewage system infrastructure amp wastewater treatment facilitiesa 0036 183 190 383 397Ensuring the proper construction of pipe and pumping systemsa 0027 172 177 383 393Ensuring a value-for-money in tourism destination experience 0026 250 257 383 393

Tourism destination environments 352 367 422 454Sociocultural change 353 367 436 442

Public interest in health-leisure activities 0037 344 357 428 444Emergence of health-conscious consumers 0046 361 378 444 464

Market demand 350 379 408 448Expansion of the leisure and domestic tourism market 0069 356 381 400 428More demanding travelers 0096 344 377 417 454

Final score 276 284 406 416

aThe weighted mean difference between two destinations exceeded

542 LEE AND KING

headings namely tourism destination resources tourism provides an extension of the current liter-ature on the relative competitiveness of tourismand attractors tourism destination strategies and

tourism destination environments The present destinations (Dwyer et al 2003 Enright amp New-ton 2004 Kozak amp Rimmington 1999) Implica-study supplements the current literature on tourism

destination competitiveness by integrating the tions are drawn for government and industry witha view to increasing visitations Taiwan currentlythree categories of destination competitiveness

which have been prominent in previous models rates low in the context of competitiveness butaddressing this deficiency rates high in terms of(Dwyer amp Kim 2003 Enright amp Newton 2004

Ritchie amp Crouch 2000 2003) It is acknowl- importanceedged that each subsector has unique features andattributes and its own set of competitive factors A Focus on Preventative and Curative CareThe sector-specific model of destination competi-

In the context of an expanding pool of consum-tiveness that has been proposed in this research is

ers who have the time money and motivation tocapable of capturing the nature and characteristics

pursue and maintain a healthy life the diversityof the hot springs tourism sector and is well suited

and smoothness of mineral springs has been a sig-for purposes of comparison It has been demon-

nificant advantage for tourism provision in Tai-strated that the AHP method is an appropriate

wan The use of natural hot springs for the treat-method for generating insights that could form a

ment of disease constitutes another potentialbasis for enhancing the competitiveness of Tai-

market segment There is a business opportunitywanrsquos hot springs tourism sector Taiwan is a col-

for resort proprietors to market the medicinal andlectivist culture with an emphasis on the pursuit of

therapeutic benefits of hot springs bathing toharmony with others (Hofstede 1980) On this ba-

health-conscious consumers who are seeking tosis the AHP method may accommodate the di-

enhance their well-being through travel Toverse opinions of individual participants and avoid

achieve this proprietors should refresh their pre-the dominance of any individual or small group

ventative and health-oriented services and fa-Participants in the current survey had an equal

cilities Diversification of product offerings andvoice The AHP also accommodated the geograph-

tourist activities is also needed The Taiwan gov-ically dispersal of participants (Armacost Hos-

ernment could assist by establishing a research en-seini amp Edwards 1999) Previous AHP applica-

tity dedicated to hot springs sector and supportingtions have been confined to destinations at a

the development of a national database Hotgeneric level (Crouch 2008 Crouch amp Ritchie

springs treatments are as diverse as the waters2005) The present study shows the merit of

themselves A database could inform the publicapplying the AHP approach for analyzing destina-

about the location of relevant hot springs andtion competitiveness in the context of hot springs

about their health and tourism attributes In someas an important subsector of tourism It contributes

European countries skin disease sufferers who areto knowledge by extending the application of AHP

in receipt of health insurance-funded prescriptionto destination competitiveness as it applies to sub-

are entitled to receive spa treatments If Taiwanrsquossectors of tourism

national health insurance system were to subsidizeTo test the applicability of a sector-specific

spa treatments it would enhance the appreciationdestination competitiveness model Japan was

of the therapeutic and curative effects of hotchosen as a benchmark for comparison purposes

springs and extend their use into the medical fieldThe comparative analysis has shown that Taiwanis less competitive than Japan in all fields with the

Sustainability Principlesexception of high-grade natural hot springs Thefindings reveal potential areas for improvement if Tourism development associated with the growth

in visitation to hot springs has impacted on theTaiwanrsquos authorities and enterprises are to boostcompetitiveness and narrow the gap with Japan natural environment If Taiwan is to achieve an

appropriate balance between protecting resourcesThe application of a comparative study in the con-text of a subsector of tourism namely hot springs and stimulating tourism development stakehold-

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 543

ers at both the national and the enterprise level tors in future research to compare the demand andsupply-side perspectives Finally the study bringswill need to engage actively with environmental

management issues and engage in partnerships together the various concepts of destination com-petitiveness and identifies sector-specific strate-The national authorities are responsible for formu-

lating and implementing tourism policy and for gies environmental factors and unique destina-tion attributes as major constructs These insightsdeveloping strategies consistent with the sustain-

able use of lands hot springs and other natural could be further extended by examining the inter-play between internal and external factors as theyresources An effective and principled system of

deterrence is needed involving fines for the illegal influence the formulation and implementation ofdestination strategies in the pursuit of competitive-use of lands and hot springs Destination manage-

ment organizations should work with independent nessthird parties to promote and endorse the imple-mentation of sustainable water resource manage- Referencesment and environmental protection practices Hot

Armacost R L Hosseini J amp Edwards J (1999) Usingsprings proprietors should incorporate sustainabil- the analytical hierarchy process as a two-phase inte-ity principles within the design and construction grated decision approach for large nominal groupsof spring water distribution sewage treatment Group Decision and Negotiation 8(6) 535ndash555

Buhalis D (2000) Marketing the competitive destinationwastewater collection and piping and pumpingof the future Tourism Management 21(1) 97ndash116systems Sustainable tourism development is pred-

Cavana R Y Delahaye B L amp Sekaran U (2001) Ap-icated upon responsible behaviors by stakeholders plied business research Qualitative and quantitativewithin the hot springs tourism sector to ensure the methods Milton Qld John Wiley

Cheng E W L amp Li H (2001) Analytic hierarchy pro-long-term prosperity and quality of life for futurecess An approach to determine measures for businessgenerationsperformance Measuring Business Excellence 5(3)30ndash36

Limitations and Opportunities Cheng E W L Li H amp Ho D C K (2002) Analyticfor Future Research hierarchy process (AHP) A defective tool when used

improperly Measuring Business Excellence 6(4)This investigation has prompted a number of 33ndash37

Crouch G I amp Ritchie J R B (1999) Tourism competi-questions and various areas of potential study aretiveness and societal prosperity Journal of Businessevident The proposed destination competitivenessResearch 44(3) 137ndash152model should have international applicability es-

Crouch G I amp Ritchie J R B (2005) Application ofpecially in emerging Asian destinations similar to the analytic hierarchy process to tourism choice andTaiwan Additional validation of the proposed decision making A review and illustration applied to

destination competitiveness Tourism Analysis 10(1)framework should be undertaken Second the pro-17ndash25posed hot springs competitiveness model is ge-

Crouch G I (2008) Modelling destination competitive-neric Given time and cost constraints all key in-ness A survey and analysis of the impact of competi-

formants in the present study were Taiwanese tiveness attributes Gold Coast Qld Sustainable Tour-Respondents may tend to exaggerate the competi- ism CRC

Deng J King B amp Bauer T (2002) Evaluating naturaltiveness of their own country relative to othersattractions for tourism Annals of Tourism Research(Dwyer et al 2003) The limited knowledge and29(2) 422ndash438practical experience of informants about Japan as

drsquoHauteserre A M (2000) Lessons in managed destina-a competitor may have compromised the compari- tion competitiveness The case of Foxwoods Casino Re-son Future studies should extend the range of in- sort Tourism Management 21(1) 23ndash32

Dwyer L amp Kim C (2003) Destination competitivenessternational and local perspectives Thirdly theDeterminants and indicators Current Issues in Tourismpresent study has explored the managerial per-6(5) 369ndash414spective towards competitiveness factors associ-

Dwyer L Livaic Z amp Mellor R (2003) Competitive-ated with Taiwan as a hot springs tourism destina- ness of Australia as a tourist destination Journal oftion Given the importance of consumer perceptions Hospitality and Tourism Management 10(1) 60ndash78

Dwyer L Mellor R Livaic Z Edwards D amp Kim Cit would be useful to incorporate hot springs visi-

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

lands (2005) New Taiwan Weekly Retrieved from Saaty T L (1980) The analytical hierarchy processPlanning priority setting resource allocation Newhttpwwwnewtaiwancomtwbulletinviewjspbulletin

id=22639 York McGraw-HillSaaty T L amp Kearns K P (1985) Analytical planningHowie F (2003) Managing the tourist destination Lon-

don Continuum The organization of systems New York Pergamon PressHudson S Ritchie J B R amp Timur S (2004) Measur-

Page 8: International Competitiveness in Hot Springs Tourism: An

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 537

Table 2 a particular destination on any determinant of des-Profile of Participating Experts tination competitiveness outside a comparative

framework (Dwyer Livaic amp Mellor 2003) Des-Characteristics N

tinations are not competitive or uncompetitive inField of work the abstract but versus competitors and it is im-

Goverment official 7 037 portant to determine the competitive set (Kozak ampHot springs proprietor 5 026

Rimmington 1999) Previous studies have pre-Academic 7 037Experience (years) sented a variety of mechanisms to compare desti-

At least 5 3 016 nation competitiveness (Dwyer et al 2003 En-6ndash10 2 011

right amp Newton 2004 Hudson et al 2004 Kozak11ndash15 5 02616ndash20 4 021 amp Rimmington 1999) For the purposes of the21ndash25 4 021 present study identification of a single competitor25 and above 1 005

within the Asia-Pacific region was considered toAge (in years)31ndash35 2 011 be sufficient for comparative purpose It also36ndash40 2 011 helped to reduce the duration of the survey The41ndash45 8 042

final section examined respondent demographics46ndash50 1 00551 and above 6 032

EducationData Analysis and SynthesisHigh school 0 0

Collegeuniversity 6 032Following inputs from the panel of expertsGraduate 13 068

normalized weighting priorities were establishedfor the hierarchy of elements within the AHPmodel using the Expert Choice software package

bull considerably more importantconsiderably less Participant comparisons were entered into Expertimportant than Choice allowing the researchers to check the con-

bull emphatically more importantemphatically less sistency of individual responses and abstractimportant than weightings for each element Expert Choice pro-

bull extremely more importantextremely less im- vided normalized local and global weightings forportant than all elements at each level of the hierarchy Incon-

sistency ratios were generated for each matrixTourism Destination Strategies Responses onThe results indicated that all inconsistency ratiosthe left indicate a prioritization of the first dimen-are 002 or lower (see Table 3) thus satisfying thesion over the second while responses on the rightthreshold of 10 inconsistency proposed by Saatyassert the importance of the second dimension(1980) It also confirmed the consistency and reli-over the first In the Saaty (1980) scale shown inability of the expert judgmentsTable 1 the five statements correspond respec-

tively to importance weightings of 1 3 5 7 and 9Results and FindingsIn section two participants rated Taiwanrsquos hot

springs tourism sector with competitors across Results Obtained From the AHP Analysiseach of 38 determinants under the three major

An examination of the weightings rated in Ta-headings on a 5-point Likert-type scale The op-ble 4 reveals that tourism destination strategiestions provided ranged from 1 (well below average(0431) is the major contributor to the potentialmuch worse) to 5 (well above averagemuch bet-and competitiveness of the hot springs sector fol-ter) The major competitor for Taiwanrsquos hotlowed by tourism destination resources and at-springs tourism sector was self-selected by partici-tractors (0321) Tourism destination environ-pants from a range of Asian destinations offeringments (0248) was the least important dimensionequivalent tourism products The reason for nomi-The top three ranking factors are capability ofnating a competing destination was to provide antourism enterprises (0253) capability of the au-Asia-Pacific comparative benchmark It would

have been meaningless to ask participants to rate thorities (0178) and market demand (0165) The

538 LEE AND KING

Table 3 the appeal of the core resources and attractorsConsistency Test for the Determinants strengthen the quality and effectiveness of the var-of Destination Competitiveness ious supporting factors and minimize any con-

straints imposed by the qualifying determinantsInconsistency Consistency(Crouch amp Ritchie 1999) Successful implementa-Level Ratio Testtion of destination strategies helps create a unique

Objective 000 accepted system of tourism products to address the needs ofDimensionsdifferent categories of visitor and ensures sustain-Tourism destination

resources and attractors 001 accepted able growth combining private profit and generalTourism destination economic development with the preservation ofstrategies 000 accepted

the host communityrsquos identity and quality of lifeTourism destinationenvironments 000 accepted (Manente amp Cerato cited in Manente amp Mingh-

Factors etti 2006) Second destination competitivenessAttractions 001 acceptedcan be enhanced through public and private sectorTransport 002 accepted

Accommodation 000 accepted participation and involvement While the principalSafety and security 001 accepted task of hot springs enterprises is to build and reno-Capability of the

vate their existing sewage and wastewater infra-authorities 001 acceptedCapability of hot springs structure the responsibility of government should

proprietors 000 accepted be to establish hot springs demonstration sites thatSociocultural change 000 acceptedexemplify best practice improve environmentalMarket demand 000 acceptedsustainability and minimize environmental dam-age However hot springs are now acknowledgedas a significant tourism attraction in Taiwan In-corporation of sustainability principles into bothtop five ranked attributes are more demanding

travelers (0096) expansion of the leisure and do- enterprise-level operation and government-leveldestination planning policy and development ismestic tourism market (0069) emergence of

health-conscious consumers (0046) public inter- viewed as an essential tool to strengthen and ex-pand its international reach and competitivenessest in health-leisure activities (0037) effective de-

sign and construction of new and existing hot Finally the introduction of the 2-day weekendentitlement for Taiwanese residents in 2001 in-springs areas (0036) and building sewage system

infrastructure and wastewater treatment facilities creased the availability of leisure time and pro-moted changes in lifestyle expenditures The(0036) The five lowest ranking attributes are

availability of sufficient accommodation (0006) Taiwanese are becoming more sophisticated de-manding and aware of the need to maintain goodconducting regular surveys on tourist behaviorhealth through tourism and recreation These fa-and satisfaction (0009) destination safety (0012)vorable conditions and incentives expand the pro-personal safety and hygienemdashbasic rules and re-spective application of natural hot springs into thesponsibility (0014) high quality and internationalfields of health promotion and medical treatmentstandard accommodation (0015) authentic ac-Internationally hot springs tourism has generallycommodation experiences (0015) and emergencybeen regarded as health oriented (Matsushitamedical care and the availability of ambulance1994) The ongoing prosperity of the sector is tiedservices (0015)closely to the increasing consciousness of personalThe key findings of the AHP analysis may behealth issues Competitiveness relies on increasingsummarized as follows First tourism destinationdomestic demand and its future appears prom-strategies underpin the competitiveness of the hotisingsprings tourism sector This is consistent with

Dwyer et alrsquos argument (2004) that destinationDescriptive Resultsstrategies are crucial for the success of the tourism

industry Tourism destination strategies should be According to the survey respondents Japanwas the most competitive Asian destination for hotviewed as processes and actions which enhance

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 539T

able

4E

lem

ent

Wei

ghts

toD

eter

min

eD

estin

atio

nC

ompe

titiv

enes

s

Loc

al

Glo

bal

Loc

alG

loba

lL

ocal

Glo

bal

Dim

ensi

onF

acto

rW

eigh

tsW

eigh

tsW

eigh

tsR

anki

ngD

eter

min

ants

ofD

estin

atio

nC

ompe

titiv

enes

sW

eigh

tsW

eigh

tsR

anki

ng

Tou

rism

dest

inat

ion

reso

urce

samp

attr

acto

rs0

321

Attr

actio

ns0

320

010

34

Hig

h-gr

ade

natu

ral

hot

spri

ngs

017

60

018

27Pl

entif

ulna

tura

lho

tsp

ring

s0

170

001

729

Abu

ndan

tna

tura

lsc

ener

y0

242

002

517

Souv

enir

shop

ping

019

40

020

23Y

ear-

roun

dre

crea

tiona

lac

tiviti

es0

219

002

222

Tra

nspo

rt0

223

007

17

Con

veni

ent

acce

ssto

hot

spri

ngs

036

50

026

14So

und

loca

ltr

ansp

orta

tion

netw

ork

031

80

023

20A

mpl

epa

rkin

g0

317

002

320

Acc

omm

odat

ion

017

20

055

8A

vaila

bilit

yof

suff

icie

ntac

com

mod

atio

n0

102

000

638

Hig

hqu

ality

and

inte

rnat

iona

lst

anda

rdac

com

mod

atio

n0

273

001

532

Aut

hent

icac

com

mod

atio

nex

peri

ence

s0

275

001

532

Com

fort

able

acco

mm

odat

ion

ina

natu

ral

setti

ng0

350

001

925

Safe

tyamp

secu

rity

028

60

092

5D

estin

atio

nsa

fety

013

10

012

36A

safe

bath

ing

envi

ronm

ent

029

20

027

12H

ygie

nest

anda

rds

for

hot

spri

ngs

spa

equi

pmen

t0

265

002

418

Pers

onal

safe

tyan

dhy

gien

emdashba

sic

rule

san

dre

spon

sibi

lity

015

10

014

35E

mer

genc

ym

edic

alca

rean

dth

eav

aila

bilit

yof

ambu

lanc

ese

rvic

es0

161

001

532

Tou

rism

dest

inat

ion

envi

ronm

ents

024

8So

cioc

ultu

ral

chan

ge0

333

008

26

Publ

icin

tere

stin

heal

th-l

eisu

reac

tiviti

es0

443

003

74

Em

erge

nce

ofhe

alth

-con

scio

usco

nsum

ers

055

70

046

3

Mar

ket

dem

and

066

70

165

3E

xpan

sion

ofth

ele

isur

ean

ddo

mes

ticto

uris

mm

arke

t0

416

006

92

Mor

ede

man

ding

trav

eler

s0

584

009

61

Tou

rism

dest

inat

ion

stra

tegi

es0

431

Cap

abili

tyof

the

auth

oriti

es0

413

017

82

Prov

idin

gle

ader

ship

for

coor

dina

tion

with

inth

ese

ctor

011

30

020

23E

ncou

ragi

ngin

nova

tion

ofho

tsp

ring

ssp

apr

oduc

tsamp

serv

ices

009

10

016

31U

nder

taki

ngdo

mes

tican

din

tern

atio

nal

mar

ketin

gca

mpa

igns

010

10

018

27C

ondu

ctin

gre

gula

rsu

rvey

son

tour

ist

beha

vior

ampsa

tisfa

ctio

n0

052

000

937

Ass

istin

gho

tsp

ring

spr

oper

ties

inlic

ensi

ngm

atte

rs0

182

003

28

Cre

atin

gan

dm

aint

aini

nga

hot

spri

ngs

data

base

009

70

017

29Im

plem

entin

gho

tsp

ring

sw

ater

qual

ityin

spec

tions

016

20

029

11E

ffec

tive

desi

gnan

dco

nstr

uctio

nof

new

and

exis

ting

hot

spri

ngs

area

s0

202

003

65

Cap

abili

tyof

hot

spri

ngs

prop

riet

ors

058

70

253

1Pr

omot

ing

the

heal

than

dm

edic

albe

nefi

tsof

hot

spri

ngs

007

30

019

25Pr

ovid

ing

adi

vers

era

nge

ofle

isur

ean

dhe

alth

-ori

ente

dfa

cilit

ies

009

30

024

18M

aint

aini

nghi

gh-q

ualit

yho

tsp

ring

ssp

a-re

late

d0

122

003

19

faci

litie

san

deq

uipm

ent

Ens

urin

gpr

ofes

sion

alan

dte

chni

cal

com

pete

nce

and

effe

ctiv

est

aff

011

80

030

10D

evel

opin

ga

thir

dpa

rty

cert

ific

ate

and

accr

edita

tion

sche

mes

010

40

026

14C

ontr

ollin

gth

eus

eof

hot

spri

ngs

wat

er0

137

003

57

Bui

ldin

gse

wag

esy

stem

infr

astr

uctu

rean

dw

aste

wat

ertr

eatm

ent

faci

litie

s0

142

003

65

Ens

urin

gth

epr

oper

cons

truc

tion

ofpi

pean

dpu

mpi

ngsy

stem

s0

107

002

712

Ava

lue-

for-

mon

eyto

uris

mde

stin

atio

nex

peri

ence

010

30

026

14

540 LEE AND KING

springs and spa tourism and the principal competi- that Taiwan has one of the highest concentrationsand greatest variety of hot springs in the worldtor for Taiwan Japan has abundant natural hot

springs and hot springs are intrinsic to Japanese this is not surprising The three lowest ranked de-terminants were assuring the proper constructionculture The centuries-old tradition of hot springs

and onsen bathing has made Japan a leading spa of pipe and pumping system (mean = 177) build-ing sewage system infrastructure and wastewatertourism destination During Taiwanrsquos occupation

by the Japanese prior to 1945 many hot springs treatment facilities (mean = 190) and controllingthe use of hot springs water (mean = 201) Thesefacilities were built in Japanese style and adopted

the Japanese hot springs bathing traditions and relate to the capability of hot springs proprietorsto protect conserve and manage the environmentmanners This legacy is still evident in some of

Taiwanrsquos oldest and finest hot springs regions In and natural resources in compliance with the prin-ciples of sustainability It is suggested that an en-this historical context and given growing interna-

tional competition a comparison of the relative vironmental management self-regulation mecha-nism would be a useful addition to the dailyperformances of the hot springs tourism sector in

Taiwan and Japan is timely practices of hot springs proprietors Many proprie-The competitiveness rating for Taiwanrsquos hot tors have an exclusive focus on the maximization

springs tourism sector (final score = 284) was of short-term profitability The effects of their ac-lower than for Japan (final score = 416) and was tions on local communities and the environmentbelow neutrality (lt3 on a scale of 1ndash5) The more and their responsibility to customers are ignoredsalient findings in Table 5 are highlighted It is Currently there is no direct regulation of hotnoted that Taiwan has performed less effectively springs spa operations though there is a strongthan Japan on the three measures of destination case for a more active regulation of such activitiescompetitiveness The lowest rating applied in the Significant differences are evident between thecase of tourism destination strategies (weighted weight means for Taiwan and Japan These in-mean = 245) All of the determinants originating clude controlling the use of hot springs waterfrom the dimension tourism destination strategies building sewage system infrastructure and waste-rated lower than the neutral score of 3 These find- water treatment facilities ensuring the properings are not surprising in view of the absence of construction of pipe and pumping system and au-regulations to oversee enterprise-level operations thentic accommodation experiences Taiwanrsquosand of legislation to protect the use of water greatest weaknesses are the capacity of its hotwithin the hot springs areas These human re- springs proprietors to minimize environmentalsource and strategic capacity related problems damage and comply with environmental sustain-need urgent resolution if Taiwanrsquos hot springs ability standards Japanrsquos Hot Springs Law (1948)tourism sector is to develop and prosper In con- prescribes a definition for hot springs to be recog-trast Japan is rated above 4 on each of the three nized as an onsen Compliant onsen operators whomajor dimensions The most favorably rated di- contribute to regional economic development aremension was tourism destination environments eligible for subsidies (Matsushita 1994) To match(weighted mean = 454) Japan has a long history Japanrsquos accomplishments Taiwan will need a col-of communal bathing and visiting hot springs is a laborative government and industry mechanism tomajor highlight of travel within Japan Increasing pursue longer term sustainabilitypublic awareness of the value of leisure and recre-ation for health and wellbeing has created favor- Conclusions and Managerial Implicationsable conditions for the further development of hot

Hot springs tourism is an emerging sector insprings and spa tourism in Japan (MatsushitaTaiwan and in this context it is particularly im-1994)portant to develop a guiding framework based ofThe only item where Taiwan recorded a higherdestination competitiveness from a supply-sidescore than Japan and received the highest weightedperspective The relative importance of destinationmean among the 38 determinants (weighted mean =

413) was high-grade natural hot springs Given competitiveness has been evaluated using three

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 541

Table 5Comparative Destination Weights for Taiwan and Japan

Taiwan Japan

Weighted WeightedWeight Mean Mean Mean Mean

Tourism destination resources and attractors 294 301 407 417Attractions 324 330 414 423

High grade natural hot springs 0018 406 413 400 407Plentiful natural hot springs 0017 378 384 400 407Abundant natural scenery 0025 383 389 428 439Souvenir shopping 0020 228 233 422 430Year-round recreational activities 0022 228 233 422 431

Transport 289 296 383 393Convenient access to hot springs 0026 317 325 389 399Sound local transportation network 0023 289 296 394 403Ample parking 0023 261 267 367 375

Accommodation 263 266 421 427Availability of sufficient accommodation 0006 283 285 389 391High quality and international standard accommodation 0015 283 287 444 451Authentic accommodation experiencesa 0015 233 237 433 440Comfortable accommodation in a natural setting 0019 250 255 417 425

Safety and security 298 303 411 419Destination safety 0012 400 405 417 422A safe bathing environment 0027 311 319 428 440Hygiene standards for hot springs spa equipment 0024 250 256 428 438Personal safety and hygienemdashbasic rules and responsibility 0014 250 254 417 423Emergency medical care and the availability of ambulance services 0015 278 282 367 373

Tourism destination strategies 240 245 397 408Capability of the authorities 250 256 390 399

Providing leadership for coordination within the sector 0020 244 249 394 402Encouraging innovation of hot springs spa products amp services 0016 256 260 394 400Undertaking domestic and international marketing campaigns 0018 294 299 411 418Conducting regular surveys on tourist behavior amp satisfaction 0009 217 219 311 314Assisting hot springs properties in licensing matters 0032 217 224 372 384Creating and maintaining a hot springs database 0017 239 243 433 440Implementing hot springs water quality inspections 0029 278 286 394 405Effective design and construction of new and existing hot springs areas 0036 256 265 411 426

Capability of hot springs proprietors 230 236 404 416Promoting the health and medical benefits of hot springs 0019 261 266 433 441Providing a diverse range of leisure and health-oriented facilities 0024 244 250 428 438Maintaining high-quality hot springs spa-related facilities and equipment 0031 272 280 400 412Ensuring professional and technical competence and effective staff 0030 250 258 411 423Developing a third party certificate and accreditation schemes 0026 244 250 400 410Controlling the use of hot springs watera 0035 194 201 417 432Building sewage system infrastructure amp wastewater treatment facilitiesa 0036 183 190 383 397Ensuring the proper construction of pipe and pumping systemsa 0027 172 177 383 393Ensuring a value-for-money in tourism destination experience 0026 250 257 383 393

Tourism destination environments 352 367 422 454Sociocultural change 353 367 436 442

Public interest in health-leisure activities 0037 344 357 428 444Emergence of health-conscious consumers 0046 361 378 444 464

Market demand 350 379 408 448Expansion of the leisure and domestic tourism market 0069 356 381 400 428More demanding travelers 0096 344 377 417 454

Final score 276 284 406 416

aThe weighted mean difference between two destinations exceeded

542 LEE AND KING

headings namely tourism destination resources tourism provides an extension of the current liter-ature on the relative competitiveness of tourismand attractors tourism destination strategies and

tourism destination environments The present destinations (Dwyer et al 2003 Enright amp New-ton 2004 Kozak amp Rimmington 1999) Implica-study supplements the current literature on tourism

destination competitiveness by integrating the tions are drawn for government and industry witha view to increasing visitations Taiwan currentlythree categories of destination competitiveness

which have been prominent in previous models rates low in the context of competitiveness butaddressing this deficiency rates high in terms of(Dwyer amp Kim 2003 Enright amp Newton 2004

Ritchie amp Crouch 2000 2003) It is acknowl- importanceedged that each subsector has unique features andattributes and its own set of competitive factors A Focus on Preventative and Curative CareThe sector-specific model of destination competi-

In the context of an expanding pool of consum-tiveness that has been proposed in this research is

ers who have the time money and motivation tocapable of capturing the nature and characteristics

pursue and maintain a healthy life the diversityof the hot springs tourism sector and is well suited

and smoothness of mineral springs has been a sig-for purposes of comparison It has been demon-

nificant advantage for tourism provision in Tai-strated that the AHP method is an appropriate

wan The use of natural hot springs for the treat-method for generating insights that could form a

ment of disease constitutes another potentialbasis for enhancing the competitiveness of Tai-

market segment There is a business opportunitywanrsquos hot springs tourism sector Taiwan is a col-

for resort proprietors to market the medicinal andlectivist culture with an emphasis on the pursuit of

therapeutic benefits of hot springs bathing toharmony with others (Hofstede 1980) On this ba-

health-conscious consumers who are seeking tosis the AHP method may accommodate the di-

enhance their well-being through travel Toverse opinions of individual participants and avoid

achieve this proprietors should refresh their pre-the dominance of any individual or small group

ventative and health-oriented services and fa-Participants in the current survey had an equal

cilities Diversification of product offerings andvoice The AHP also accommodated the geograph-

tourist activities is also needed The Taiwan gov-ically dispersal of participants (Armacost Hos-

ernment could assist by establishing a research en-seini amp Edwards 1999) Previous AHP applica-

tity dedicated to hot springs sector and supportingtions have been confined to destinations at a

the development of a national database Hotgeneric level (Crouch 2008 Crouch amp Ritchie

springs treatments are as diverse as the waters2005) The present study shows the merit of

themselves A database could inform the publicapplying the AHP approach for analyzing destina-

about the location of relevant hot springs andtion competitiveness in the context of hot springs

about their health and tourism attributes In someas an important subsector of tourism It contributes

European countries skin disease sufferers who areto knowledge by extending the application of AHP

in receipt of health insurance-funded prescriptionto destination competitiveness as it applies to sub-

are entitled to receive spa treatments If Taiwanrsquossectors of tourism

national health insurance system were to subsidizeTo test the applicability of a sector-specific

spa treatments it would enhance the appreciationdestination competitiveness model Japan was

of the therapeutic and curative effects of hotchosen as a benchmark for comparison purposes

springs and extend their use into the medical fieldThe comparative analysis has shown that Taiwanis less competitive than Japan in all fields with the

Sustainability Principlesexception of high-grade natural hot springs Thefindings reveal potential areas for improvement if Tourism development associated with the growth

in visitation to hot springs has impacted on theTaiwanrsquos authorities and enterprises are to boostcompetitiveness and narrow the gap with Japan natural environment If Taiwan is to achieve an

appropriate balance between protecting resourcesThe application of a comparative study in the con-text of a subsector of tourism namely hot springs and stimulating tourism development stakehold-

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 543

ers at both the national and the enterprise level tors in future research to compare the demand andsupply-side perspectives Finally the study bringswill need to engage actively with environmental

management issues and engage in partnerships together the various concepts of destination com-petitiveness and identifies sector-specific strate-The national authorities are responsible for formu-

lating and implementing tourism policy and for gies environmental factors and unique destina-tion attributes as major constructs These insightsdeveloping strategies consistent with the sustain-

able use of lands hot springs and other natural could be further extended by examining the inter-play between internal and external factors as theyresources An effective and principled system of

deterrence is needed involving fines for the illegal influence the formulation and implementation ofdestination strategies in the pursuit of competitive-use of lands and hot springs Destination manage-

ment organizations should work with independent nessthird parties to promote and endorse the imple-mentation of sustainable water resource manage- Referencesment and environmental protection practices Hot

Armacost R L Hosseini J amp Edwards J (1999) Usingsprings proprietors should incorporate sustainabil- the analytical hierarchy process as a two-phase inte-ity principles within the design and construction grated decision approach for large nominal groupsof spring water distribution sewage treatment Group Decision and Negotiation 8(6) 535ndash555

Buhalis D (2000) Marketing the competitive destinationwastewater collection and piping and pumpingof the future Tourism Management 21(1) 97ndash116systems Sustainable tourism development is pred-

Cavana R Y Delahaye B L amp Sekaran U (2001) Ap-icated upon responsible behaviors by stakeholders plied business research Qualitative and quantitativewithin the hot springs tourism sector to ensure the methods Milton Qld John Wiley

Cheng E W L amp Li H (2001) Analytic hierarchy pro-long-term prosperity and quality of life for futurecess An approach to determine measures for businessgenerationsperformance Measuring Business Excellence 5(3)30ndash36

Limitations and Opportunities Cheng E W L Li H amp Ho D C K (2002) Analyticfor Future Research hierarchy process (AHP) A defective tool when used

improperly Measuring Business Excellence 6(4)This investigation has prompted a number of 33ndash37

Crouch G I amp Ritchie J R B (1999) Tourism competi-questions and various areas of potential study aretiveness and societal prosperity Journal of Businessevident The proposed destination competitivenessResearch 44(3) 137ndash152model should have international applicability es-

Crouch G I amp Ritchie J R B (2005) Application ofpecially in emerging Asian destinations similar to the analytic hierarchy process to tourism choice andTaiwan Additional validation of the proposed decision making A review and illustration applied to

destination competitiveness Tourism Analysis 10(1)framework should be undertaken Second the pro-17ndash25posed hot springs competitiveness model is ge-

Crouch G I (2008) Modelling destination competitive-neric Given time and cost constraints all key in-ness A survey and analysis of the impact of competi-

formants in the present study were Taiwanese tiveness attributes Gold Coast Qld Sustainable Tour-Respondents may tend to exaggerate the competi- ism CRC

Deng J King B amp Bauer T (2002) Evaluating naturaltiveness of their own country relative to othersattractions for tourism Annals of Tourism Research(Dwyer et al 2003) The limited knowledge and29(2) 422ndash438practical experience of informants about Japan as

drsquoHauteserre A M (2000) Lessons in managed destina-a competitor may have compromised the compari- tion competitiveness The case of Foxwoods Casino Re-son Future studies should extend the range of in- sort Tourism Management 21(1) 23ndash32

Dwyer L amp Kim C (2003) Destination competitivenessternational and local perspectives Thirdly theDeterminants and indicators Current Issues in Tourismpresent study has explored the managerial per-6(5) 369ndash414spective towards competitiveness factors associ-

Dwyer L Livaic Z amp Mellor R (2003) Competitive-ated with Taiwan as a hot springs tourism destina- ness of Australia as a tourist destination Journal oftion Given the importance of consumer perceptions Hospitality and Tourism Management 10(1) 60ndash78

Dwyer L Mellor R Livaic Z Edwards D amp Kim Cit would be useful to incorporate hot springs visi-

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

lands (2005) New Taiwan Weekly Retrieved from Saaty T L (1980) The analytical hierarchy processPlanning priority setting resource allocation Newhttpwwwnewtaiwancomtwbulletinviewjspbulletin

id=22639 York McGraw-HillSaaty T L amp Kearns K P (1985) Analytical planningHowie F (2003) Managing the tourist destination Lon-

don Continuum The organization of systems New York Pergamon PressHudson S Ritchie J B R amp Timur S (2004) Measur-

Page 9: International Competitiveness in Hot Springs Tourism: An

538 LEE AND KING

Table 3 the appeal of the core resources and attractorsConsistency Test for the Determinants strengthen the quality and effectiveness of the var-of Destination Competitiveness ious supporting factors and minimize any con-

straints imposed by the qualifying determinantsInconsistency Consistency(Crouch amp Ritchie 1999) Successful implementa-Level Ratio Testtion of destination strategies helps create a unique

Objective 000 accepted system of tourism products to address the needs ofDimensionsdifferent categories of visitor and ensures sustain-Tourism destination

resources and attractors 001 accepted able growth combining private profit and generalTourism destination economic development with the preservation ofstrategies 000 accepted

the host communityrsquos identity and quality of lifeTourism destinationenvironments 000 accepted (Manente amp Cerato cited in Manente amp Mingh-

Factors etti 2006) Second destination competitivenessAttractions 001 acceptedcan be enhanced through public and private sectorTransport 002 accepted

Accommodation 000 accepted participation and involvement While the principalSafety and security 001 accepted task of hot springs enterprises is to build and reno-Capability of the

vate their existing sewage and wastewater infra-authorities 001 acceptedCapability of hot springs structure the responsibility of government should

proprietors 000 accepted be to establish hot springs demonstration sites thatSociocultural change 000 acceptedexemplify best practice improve environmentalMarket demand 000 acceptedsustainability and minimize environmental dam-age However hot springs are now acknowledgedas a significant tourism attraction in Taiwan In-corporation of sustainability principles into bothtop five ranked attributes are more demanding

travelers (0096) expansion of the leisure and do- enterprise-level operation and government-leveldestination planning policy and development ismestic tourism market (0069) emergence of

health-conscious consumers (0046) public inter- viewed as an essential tool to strengthen and ex-pand its international reach and competitivenessest in health-leisure activities (0037) effective de-

sign and construction of new and existing hot Finally the introduction of the 2-day weekendentitlement for Taiwanese residents in 2001 in-springs areas (0036) and building sewage system

infrastructure and wastewater treatment facilities creased the availability of leisure time and pro-moted changes in lifestyle expenditures The(0036) The five lowest ranking attributes are

availability of sufficient accommodation (0006) Taiwanese are becoming more sophisticated de-manding and aware of the need to maintain goodconducting regular surveys on tourist behaviorhealth through tourism and recreation These fa-and satisfaction (0009) destination safety (0012)vorable conditions and incentives expand the pro-personal safety and hygienemdashbasic rules and re-spective application of natural hot springs into thesponsibility (0014) high quality and internationalfields of health promotion and medical treatmentstandard accommodation (0015) authentic ac-Internationally hot springs tourism has generallycommodation experiences (0015) and emergencybeen regarded as health oriented (Matsushitamedical care and the availability of ambulance1994) The ongoing prosperity of the sector is tiedservices (0015)closely to the increasing consciousness of personalThe key findings of the AHP analysis may behealth issues Competitiveness relies on increasingsummarized as follows First tourism destinationdomestic demand and its future appears prom-strategies underpin the competitiveness of the hotisingsprings tourism sector This is consistent with

Dwyer et alrsquos argument (2004) that destinationDescriptive Resultsstrategies are crucial for the success of the tourism

industry Tourism destination strategies should be According to the survey respondents Japanwas the most competitive Asian destination for hotviewed as processes and actions which enhance

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 539T

able

4E

lem

ent

Wei

ghts

toD

eter

min

eD

estin

atio

nC

ompe

titiv

enes

s

Loc

al

Glo

bal

Loc

alG

loba

lL

ocal

Glo

bal

Dim

ensi

onF

acto

rW

eigh

tsW

eigh

tsW

eigh

tsR

anki

ngD

eter

min

ants

ofD

estin

atio

nC

ompe

titiv

enes

sW

eigh

tsW

eigh

tsR

anki

ng

Tou

rism

dest

inat

ion

reso

urce

samp

attr

acto

rs0

321

Attr

actio

ns0

320

010

34

Hig

h-gr

ade

natu

ral

hot

spri

ngs

017

60

018

27Pl

entif

ulna

tura

lho

tsp

ring

s0

170

001

729

Abu

ndan

tna

tura

lsc

ener

y0

242

002

517

Souv

enir

shop

ping

019

40

020

23Y

ear-

roun

dre

crea

tiona

lac

tiviti

es0

219

002

222

Tra

nspo

rt0

223

007

17

Con

veni

ent

acce

ssto

hot

spri

ngs

036

50

026

14So

und

loca

ltr

ansp

orta

tion

netw

ork

031

80

023

20A

mpl

epa

rkin

g0

317

002

320

Acc

omm

odat

ion

017

20

055

8A

vaila

bilit

yof

suff

icie

ntac

com

mod

atio

n0

102

000

638

Hig

hqu

ality

and

inte

rnat

iona

lst

anda

rdac

com

mod

atio

n0

273

001

532

Aut

hent

icac

com

mod

atio

nex

peri

ence

s0

275

001

532

Com

fort

able

acco

mm

odat

ion

ina

natu

ral

setti

ng0

350

001

925

Safe

tyamp

secu

rity

028

60

092

5D

estin

atio

nsa

fety

013

10

012

36A

safe

bath

ing

envi

ronm

ent

029

20

027

12H

ygie

nest

anda

rds

for

hot

spri

ngs

spa

equi

pmen

t0

265

002

418

Pers

onal

safe

tyan

dhy

gien

emdashba

sic

rule

san

dre

spon

sibi

lity

015

10

014

35E

mer

genc

ym

edic

alca

rean

dth

eav

aila

bilit

yof

ambu

lanc

ese

rvic

es0

161

001

532

Tou

rism

dest

inat

ion

envi

ronm

ents

024

8So

cioc

ultu

ral

chan

ge0

333

008

26

Publ

icin

tere

stin

heal

th-l

eisu

reac

tiviti

es0

443

003

74

Em

erge

nce

ofhe

alth

-con

scio

usco

nsum

ers

055

70

046

3

Mar

ket

dem

and

066

70

165

3E

xpan

sion

ofth

ele

isur

ean

ddo

mes

ticto

uris

mm

arke

t0

416

006

92

Mor

ede

man

ding

trav

eler

s0

584

009

61

Tou

rism

dest

inat

ion

stra

tegi

es0

431

Cap

abili

tyof

the

auth

oriti

es0

413

017

82

Prov

idin

gle

ader

ship

for

coor

dina

tion

with

inth

ese

ctor

011

30

020

23E

ncou

ragi

ngin

nova

tion

ofho

tsp

ring

ssp

apr

oduc

tsamp

serv

ices

009

10

016

31U

nder

taki

ngdo

mes

tican

din

tern

atio

nal

mar

ketin

gca

mpa

igns

010

10

018

27C

ondu

ctin

gre

gula

rsu

rvey

son

tour

ist

beha

vior

ampsa

tisfa

ctio

n0

052

000

937

Ass

istin

gho

tsp

ring

spr

oper

ties

inlic

ensi

ngm

atte

rs0

182

003

28

Cre

atin

gan

dm

aint

aini

nga

hot

spri

ngs

data

base

009

70

017

29Im

plem

entin

gho

tsp

ring

sw

ater

qual

ityin

spec

tions

016

20

029

11E

ffec

tive

desi

gnan

dco

nstr

uctio

nof

new

and

exis

ting

hot

spri

ngs

area

s0

202

003

65

Cap

abili

tyof

hot

spri

ngs

prop

riet

ors

058

70

253

1Pr

omot

ing

the

heal

than

dm

edic

albe

nefi

tsof

hot

spri

ngs

007

30

019

25Pr

ovid

ing

adi

vers

era

nge

ofle

isur

ean

dhe

alth

-ori

ente

dfa

cilit

ies

009

30

024

18M

aint

aini

nghi

gh-q

ualit

yho

tsp

ring

ssp

a-re

late

d0

122

003

19

faci

litie

san

deq

uipm

ent

Ens

urin

gpr

ofes

sion

alan

dte

chni

cal

com

pete

nce

and

effe

ctiv

est

aff

011

80

030

10D

evel

opin

ga

thir

dpa

rty

cert

ific

ate

and

accr

edita

tion

sche

mes

010

40

026

14C

ontr

ollin

gth

eus

eof

hot

spri

ngs

wat

er0

137

003

57

Bui

ldin

gse

wag

esy

stem

infr

astr

uctu

rean

dw

aste

wat

ertr

eatm

ent

faci

litie

s0

142

003

65

Ens

urin

gth

epr

oper

cons

truc

tion

ofpi

pean

dpu

mpi

ngsy

stem

s0

107

002

712

Ava

lue-

for-

mon

eyto

uris

mde

stin

atio

nex

peri

ence

010

30

026

14

540 LEE AND KING

springs and spa tourism and the principal competi- that Taiwan has one of the highest concentrationsand greatest variety of hot springs in the worldtor for Taiwan Japan has abundant natural hot

springs and hot springs are intrinsic to Japanese this is not surprising The three lowest ranked de-terminants were assuring the proper constructionculture The centuries-old tradition of hot springs

and onsen bathing has made Japan a leading spa of pipe and pumping system (mean = 177) build-ing sewage system infrastructure and wastewatertourism destination During Taiwanrsquos occupation

by the Japanese prior to 1945 many hot springs treatment facilities (mean = 190) and controllingthe use of hot springs water (mean = 201) Thesefacilities were built in Japanese style and adopted

the Japanese hot springs bathing traditions and relate to the capability of hot springs proprietorsto protect conserve and manage the environmentmanners This legacy is still evident in some of

Taiwanrsquos oldest and finest hot springs regions In and natural resources in compliance with the prin-ciples of sustainability It is suggested that an en-this historical context and given growing interna-

tional competition a comparison of the relative vironmental management self-regulation mecha-nism would be a useful addition to the dailyperformances of the hot springs tourism sector in

Taiwan and Japan is timely practices of hot springs proprietors Many proprie-The competitiveness rating for Taiwanrsquos hot tors have an exclusive focus on the maximization

springs tourism sector (final score = 284) was of short-term profitability The effects of their ac-lower than for Japan (final score = 416) and was tions on local communities and the environmentbelow neutrality (lt3 on a scale of 1ndash5) The more and their responsibility to customers are ignoredsalient findings in Table 5 are highlighted It is Currently there is no direct regulation of hotnoted that Taiwan has performed less effectively springs spa operations though there is a strongthan Japan on the three measures of destination case for a more active regulation of such activitiescompetitiveness The lowest rating applied in the Significant differences are evident between thecase of tourism destination strategies (weighted weight means for Taiwan and Japan These in-mean = 245) All of the determinants originating clude controlling the use of hot springs waterfrom the dimension tourism destination strategies building sewage system infrastructure and waste-rated lower than the neutral score of 3 These find- water treatment facilities ensuring the properings are not surprising in view of the absence of construction of pipe and pumping system and au-regulations to oversee enterprise-level operations thentic accommodation experiences Taiwanrsquosand of legislation to protect the use of water greatest weaknesses are the capacity of its hotwithin the hot springs areas These human re- springs proprietors to minimize environmentalsource and strategic capacity related problems damage and comply with environmental sustain-need urgent resolution if Taiwanrsquos hot springs ability standards Japanrsquos Hot Springs Law (1948)tourism sector is to develop and prosper In con- prescribes a definition for hot springs to be recog-trast Japan is rated above 4 on each of the three nized as an onsen Compliant onsen operators whomajor dimensions The most favorably rated di- contribute to regional economic development aremension was tourism destination environments eligible for subsidies (Matsushita 1994) To match(weighted mean = 454) Japan has a long history Japanrsquos accomplishments Taiwan will need a col-of communal bathing and visiting hot springs is a laborative government and industry mechanism tomajor highlight of travel within Japan Increasing pursue longer term sustainabilitypublic awareness of the value of leisure and recre-ation for health and wellbeing has created favor- Conclusions and Managerial Implicationsable conditions for the further development of hot

Hot springs tourism is an emerging sector insprings and spa tourism in Japan (MatsushitaTaiwan and in this context it is particularly im-1994)portant to develop a guiding framework based ofThe only item where Taiwan recorded a higherdestination competitiveness from a supply-sidescore than Japan and received the highest weightedperspective The relative importance of destinationmean among the 38 determinants (weighted mean =

413) was high-grade natural hot springs Given competitiveness has been evaluated using three

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 541

Table 5Comparative Destination Weights for Taiwan and Japan

Taiwan Japan

Weighted WeightedWeight Mean Mean Mean Mean

Tourism destination resources and attractors 294 301 407 417Attractions 324 330 414 423

High grade natural hot springs 0018 406 413 400 407Plentiful natural hot springs 0017 378 384 400 407Abundant natural scenery 0025 383 389 428 439Souvenir shopping 0020 228 233 422 430Year-round recreational activities 0022 228 233 422 431

Transport 289 296 383 393Convenient access to hot springs 0026 317 325 389 399Sound local transportation network 0023 289 296 394 403Ample parking 0023 261 267 367 375

Accommodation 263 266 421 427Availability of sufficient accommodation 0006 283 285 389 391High quality and international standard accommodation 0015 283 287 444 451Authentic accommodation experiencesa 0015 233 237 433 440Comfortable accommodation in a natural setting 0019 250 255 417 425

Safety and security 298 303 411 419Destination safety 0012 400 405 417 422A safe bathing environment 0027 311 319 428 440Hygiene standards for hot springs spa equipment 0024 250 256 428 438Personal safety and hygienemdashbasic rules and responsibility 0014 250 254 417 423Emergency medical care and the availability of ambulance services 0015 278 282 367 373

Tourism destination strategies 240 245 397 408Capability of the authorities 250 256 390 399

Providing leadership for coordination within the sector 0020 244 249 394 402Encouraging innovation of hot springs spa products amp services 0016 256 260 394 400Undertaking domestic and international marketing campaigns 0018 294 299 411 418Conducting regular surveys on tourist behavior amp satisfaction 0009 217 219 311 314Assisting hot springs properties in licensing matters 0032 217 224 372 384Creating and maintaining a hot springs database 0017 239 243 433 440Implementing hot springs water quality inspections 0029 278 286 394 405Effective design and construction of new and existing hot springs areas 0036 256 265 411 426

Capability of hot springs proprietors 230 236 404 416Promoting the health and medical benefits of hot springs 0019 261 266 433 441Providing a diverse range of leisure and health-oriented facilities 0024 244 250 428 438Maintaining high-quality hot springs spa-related facilities and equipment 0031 272 280 400 412Ensuring professional and technical competence and effective staff 0030 250 258 411 423Developing a third party certificate and accreditation schemes 0026 244 250 400 410Controlling the use of hot springs watera 0035 194 201 417 432Building sewage system infrastructure amp wastewater treatment facilitiesa 0036 183 190 383 397Ensuring the proper construction of pipe and pumping systemsa 0027 172 177 383 393Ensuring a value-for-money in tourism destination experience 0026 250 257 383 393

Tourism destination environments 352 367 422 454Sociocultural change 353 367 436 442

Public interest in health-leisure activities 0037 344 357 428 444Emergence of health-conscious consumers 0046 361 378 444 464

Market demand 350 379 408 448Expansion of the leisure and domestic tourism market 0069 356 381 400 428More demanding travelers 0096 344 377 417 454

Final score 276 284 406 416

aThe weighted mean difference between two destinations exceeded

542 LEE AND KING

headings namely tourism destination resources tourism provides an extension of the current liter-ature on the relative competitiveness of tourismand attractors tourism destination strategies and

tourism destination environments The present destinations (Dwyer et al 2003 Enright amp New-ton 2004 Kozak amp Rimmington 1999) Implica-study supplements the current literature on tourism

destination competitiveness by integrating the tions are drawn for government and industry witha view to increasing visitations Taiwan currentlythree categories of destination competitiveness

which have been prominent in previous models rates low in the context of competitiveness butaddressing this deficiency rates high in terms of(Dwyer amp Kim 2003 Enright amp Newton 2004

Ritchie amp Crouch 2000 2003) It is acknowl- importanceedged that each subsector has unique features andattributes and its own set of competitive factors A Focus on Preventative and Curative CareThe sector-specific model of destination competi-

In the context of an expanding pool of consum-tiveness that has been proposed in this research is

ers who have the time money and motivation tocapable of capturing the nature and characteristics

pursue and maintain a healthy life the diversityof the hot springs tourism sector and is well suited

and smoothness of mineral springs has been a sig-for purposes of comparison It has been demon-

nificant advantage for tourism provision in Tai-strated that the AHP method is an appropriate

wan The use of natural hot springs for the treat-method for generating insights that could form a

ment of disease constitutes another potentialbasis for enhancing the competitiveness of Tai-

market segment There is a business opportunitywanrsquos hot springs tourism sector Taiwan is a col-

for resort proprietors to market the medicinal andlectivist culture with an emphasis on the pursuit of

therapeutic benefits of hot springs bathing toharmony with others (Hofstede 1980) On this ba-

health-conscious consumers who are seeking tosis the AHP method may accommodate the di-

enhance their well-being through travel Toverse opinions of individual participants and avoid

achieve this proprietors should refresh their pre-the dominance of any individual or small group

ventative and health-oriented services and fa-Participants in the current survey had an equal

cilities Diversification of product offerings andvoice The AHP also accommodated the geograph-

tourist activities is also needed The Taiwan gov-ically dispersal of participants (Armacost Hos-

ernment could assist by establishing a research en-seini amp Edwards 1999) Previous AHP applica-

tity dedicated to hot springs sector and supportingtions have been confined to destinations at a

the development of a national database Hotgeneric level (Crouch 2008 Crouch amp Ritchie

springs treatments are as diverse as the waters2005) The present study shows the merit of

themselves A database could inform the publicapplying the AHP approach for analyzing destina-

about the location of relevant hot springs andtion competitiveness in the context of hot springs

about their health and tourism attributes In someas an important subsector of tourism It contributes

European countries skin disease sufferers who areto knowledge by extending the application of AHP

in receipt of health insurance-funded prescriptionto destination competitiveness as it applies to sub-

are entitled to receive spa treatments If Taiwanrsquossectors of tourism

national health insurance system were to subsidizeTo test the applicability of a sector-specific

spa treatments it would enhance the appreciationdestination competitiveness model Japan was

of the therapeutic and curative effects of hotchosen as a benchmark for comparison purposes

springs and extend their use into the medical fieldThe comparative analysis has shown that Taiwanis less competitive than Japan in all fields with the

Sustainability Principlesexception of high-grade natural hot springs Thefindings reveal potential areas for improvement if Tourism development associated with the growth

in visitation to hot springs has impacted on theTaiwanrsquos authorities and enterprises are to boostcompetitiveness and narrow the gap with Japan natural environment If Taiwan is to achieve an

appropriate balance between protecting resourcesThe application of a comparative study in the con-text of a subsector of tourism namely hot springs and stimulating tourism development stakehold-

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 543

ers at both the national and the enterprise level tors in future research to compare the demand andsupply-side perspectives Finally the study bringswill need to engage actively with environmental

management issues and engage in partnerships together the various concepts of destination com-petitiveness and identifies sector-specific strate-The national authorities are responsible for formu-

lating and implementing tourism policy and for gies environmental factors and unique destina-tion attributes as major constructs These insightsdeveloping strategies consistent with the sustain-

able use of lands hot springs and other natural could be further extended by examining the inter-play between internal and external factors as theyresources An effective and principled system of

deterrence is needed involving fines for the illegal influence the formulation and implementation ofdestination strategies in the pursuit of competitive-use of lands and hot springs Destination manage-

ment organizations should work with independent nessthird parties to promote and endorse the imple-mentation of sustainable water resource manage- Referencesment and environmental protection practices Hot

Armacost R L Hosseini J amp Edwards J (1999) Usingsprings proprietors should incorporate sustainabil- the analytical hierarchy process as a two-phase inte-ity principles within the design and construction grated decision approach for large nominal groupsof spring water distribution sewage treatment Group Decision and Negotiation 8(6) 535ndash555

Buhalis D (2000) Marketing the competitive destinationwastewater collection and piping and pumpingof the future Tourism Management 21(1) 97ndash116systems Sustainable tourism development is pred-

Cavana R Y Delahaye B L amp Sekaran U (2001) Ap-icated upon responsible behaviors by stakeholders plied business research Qualitative and quantitativewithin the hot springs tourism sector to ensure the methods Milton Qld John Wiley

Cheng E W L amp Li H (2001) Analytic hierarchy pro-long-term prosperity and quality of life for futurecess An approach to determine measures for businessgenerationsperformance Measuring Business Excellence 5(3)30ndash36

Limitations and Opportunities Cheng E W L Li H amp Ho D C K (2002) Analyticfor Future Research hierarchy process (AHP) A defective tool when used

improperly Measuring Business Excellence 6(4)This investigation has prompted a number of 33ndash37

Crouch G I amp Ritchie J R B (1999) Tourism competi-questions and various areas of potential study aretiveness and societal prosperity Journal of Businessevident The proposed destination competitivenessResearch 44(3) 137ndash152model should have international applicability es-

Crouch G I amp Ritchie J R B (2005) Application ofpecially in emerging Asian destinations similar to the analytic hierarchy process to tourism choice andTaiwan Additional validation of the proposed decision making A review and illustration applied to

destination competitiveness Tourism Analysis 10(1)framework should be undertaken Second the pro-17ndash25posed hot springs competitiveness model is ge-

Crouch G I (2008) Modelling destination competitive-neric Given time and cost constraints all key in-ness A survey and analysis of the impact of competi-

formants in the present study were Taiwanese tiveness attributes Gold Coast Qld Sustainable Tour-Respondents may tend to exaggerate the competi- ism CRC

Deng J King B amp Bauer T (2002) Evaluating naturaltiveness of their own country relative to othersattractions for tourism Annals of Tourism Research(Dwyer et al 2003) The limited knowledge and29(2) 422ndash438practical experience of informants about Japan as

drsquoHauteserre A M (2000) Lessons in managed destina-a competitor may have compromised the compari- tion competitiveness The case of Foxwoods Casino Re-son Future studies should extend the range of in- sort Tourism Management 21(1) 23ndash32

Dwyer L amp Kim C (2003) Destination competitivenessternational and local perspectives Thirdly theDeterminants and indicators Current Issues in Tourismpresent study has explored the managerial per-6(5) 369ndash414spective towards competitiveness factors associ-

Dwyer L Livaic Z amp Mellor R (2003) Competitive-ated with Taiwan as a hot springs tourism destina- ness of Australia as a tourist destination Journal oftion Given the importance of consumer perceptions Hospitality and Tourism Management 10(1) 60ndash78

Dwyer L Mellor R Livaic Z Edwards D amp Kim Cit would be useful to incorporate hot springs visi-

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

lands (2005) New Taiwan Weekly Retrieved from Saaty T L (1980) The analytical hierarchy processPlanning priority setting resource allocation Newhttpwwwnewtaiwancomtwbulletinviewjspbulletin

id=22639 York McGraw-HillSaaty T L amp Kearns K P (1985) Analytical planningHowie F (2003) Managing the tourist destination Lon-

don Continuum The organization of systems New York Pergamon PressHudson S Ritchie J B R amp Timur S (2004) Measur-

Page 10: International Competitiveness in Hot Springs Tourism: An

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 539T

able

4E

lem

ent

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ghts

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ral

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000

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ence

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ral

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rity

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265

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rism

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ronm

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74

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rism

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ist

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ctio

n0

052

000

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Ass

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ring

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oper

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ngm

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rs0

182

003

28

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ngs

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009

70

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ater

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ityin

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tions

016

20

029

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tive

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ting

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ngs

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s0

202

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65

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tyof

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ngs

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058

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ngs

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ean

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ies

009

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d0

122

003

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litie

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gpr

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cal

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pete

nce

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est

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011

80

030

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evel

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ga

thir

dpa

rty

cert

ific

ate

and

accr

edita

tion

sche

mes

010

40

026

14C

ontr

ollin

gth

eus

eof

hot

spri

ngs

wat

er0

137

003

57

Bui

ldin

gse

wag

esy

stem

infr

astr

uctu

rean

dw

aste

wat

ertr

eatm

ent

faci

litie

s0

142

003

65

Ens

urin

gth

epr

oper

cons

truc

tion

ofpi

pean

dpu

mpi

ngsy

stem

s0

107

002

712

Ava

lue-

for-

mon

eyto

uris

mde

stin

atio

nex

peri

ence

010

30

026

14

540 LEE AND KING

springs and spa tourism and the principal competi- that Taiwan has one of the highest concentrationsand greatest variety of hot springs in the worldtor for Taiwan Japan has abundant natural hot

springs and hot springs are intrinsic to Japanese this is not surprising The three lowest ranked de-terminants were assuring the proper constructionculture The centuries-old tradition of hot springs

and onsen bathing has made Japan a leading spa of pipe and pumping system (mean = 177) build-ing sewage system infrastructure and wastewatertourism destination During Taiwanrsquos occupation

by the Japanese prior to 1945 many hot springs treatment facilities (mean = 190) and controllingthe use of hot springs water (mean = 201) Thesefacilities were built in Japanese style and adopted

the Japanese hot springs bathing traditions and relate to the capability of hot springs proprietorsto protect conserve and manage the environmentmanners This legacy is still evident in some of

Taiwanrsquos oldest and finest hot springs regions In and natural resources in compliance with the prin-ciples of sustainability It is suggested that an en-this historical context and given growing interna-

tional competition a comparison of the relative vironmental management self-regulation mecha-nism would be a useful addition to the dailyperformances of the hot springs tourism sector in

Taiwan and Japan is timely practices of hot springs proprietors Many proprie-The competitiveness rating for Taiwanrsquos hot tors have an exclusive focus on the maximization

springs tourism sector (final score = 284) was of short-term profitability The effects of their ac-lower than for Japan (final score = 416) and was tions on local communities and the environmentbelow neutrality (lt3 on a scale of 1ndash5) The more and their responsibility to customers are ignoredsalient findings in Table 5 are highlighted It is Currently there is no direct regulation of hotnoted that Taiwan has performed less effectively springs spa operations though there is a strongthan Japan on the three measures of destination case for a more active regulation of such activitiescompetitiveness The lowest rating applied in the Significant differences are evident between thecase of tourism destination strategies (weighted weight means for Taiwan and Japan These in-mean = 245) All of the determinants originating clude controlling the use of hot springs waterfrom the dimension tourism destination strategies building sewage system infrastructure and waste-rated lower than the neutral score of 3 These find- water treatment facilities ensuring the properings are not surprising in view of the absence of construction of pipe and pumping system and au-regulations to oversee enterprise-level operations thentic accommodation experiences Taiwanrsquosand of legislation to protect the use of water greatest weaknesses are the capacity of its hotwithin the hot springs areas These human re- springs proprietors to minimize environmentalsource and strategic capacity related problems damage and comply with environmental sustain-need urgent resolution if Taiwanrsquos hot springs ability standards Japanrsquos Hot Springs Law (1948)tourism sector is to develop and prosper In con- prescribes a definition for hot springs to be recog-trast Japan is rated above 4 on each of the three nized as an onsen Compliant onsen operators whomajor dimensions The most favorably rated di- contribute to regional economic development aremension was tourism destination environments eligible for subsidies (Matsushita 1994) To match(weighted mean = 454) Japan has a long history Japanrsquos accomplishments Taiwan will need a col-of communal bathing and visiting hot springs is a laborative government and industry mechanism tomajor highlight of travel within Japan Increasing pursue longer term sustainabilitypublic awareness of the value of leisure and recre-ation for health and wellbeing has created favor- Conclusions and Managerial Implicationsable conditions for the further development of hot

Hot springs tourism is an emerging sector insprings and spa tourism in Japan (MatsushitaTaiwan and in this context it is particularly im-1994)portant to develop a guiding framework based ofThe only item where Taiwan recorded a higherdestination competitiveness from a supply-sidescore than Japan and received the highest weightedperspective The relative importance of destinationmean among the 38 determinants (weighted mean =

413) was high-grade natural hot springs Given competitiveness has been evaluated using three

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 541

Table 5Comparative Destination Weights for Taiwan and Japan

Taiwan Japan

Weighted WeightedWeight Mean Mean Mean Mean

Tourism destination resources and attractors 294 301 407 417Attractions 324 330 414 423

High grade natural hot springs 0018 406 413 400 407Plentiful natural hot springs 0017 378 384 400 407Abundant natural scenery 0025 383 389 428 439Souvenir shopping 0020 228 233 422 430Year-round recreational activities 0022 228 233 422 431

Transport 289 296 383 393Convenient access to hot springs 0026 317 325 389 399Sound local transportation network 0023 289 296 394 403Ample parking 0023 261 267 367 375

Accommodation 263 266 421 427Availability of sufficient accommodation 0006 283 285 389 391High quality and international standard accommodation 0015 283 287 444 451Authentic accommodation experiencesa 0015 233 237 433 440Comfortable accommodation in a natural setting 0019 250 255 417 425

Safety and security 298 303 411 419Destination safety 0012 400 405 417 422A safe bathing environment 0027 311 319 428 440Hygiene standards for hot springs spa equipment 0024 250 256 428 438Personal safety and hygienemdashbasic rules and responsibility 0014 250 254 417 423Emergency medical care and the availability of ambulance services 0015 278 282 367 373

Tourism destination strategies 240 245 397 408Capability of the authorities 250 256 390 399

Providing leadership for coordination within the sector 0020 244 249 394 402Encouraging innovation of hot springs spa products amp services 0016 256 260 394 400Undertaking domestic and international marketing campaigns 0018 294 299 411 418Conducting regular surveys on tourist behavior amp satisfaction 0009 217 219 311 314Assisting hot springs properties in licensing matters 0032 217 224 372 384Creating and maintaining a hot springs database 0017 239 243 433 440Implementing hot springs water quality inspections 0029 278 286 394 405Effective design and construction of new and existing hot springs areas 0036 256 265 411 426

Capability of hot springs proprietors 230 236 404 416Promoting the health and medical benefits of hot springs 0019 261 266 433 441Providing a diverse range of leisure and health-oriented facilities 0024 244 250 428 438Maintaining high-quality hot springs spa-related facilities and equipment 0031 272 280 400 412Ensuring professional and technical competence and effective staff 0030 250 258 411 423Developing a third party certificate and accreditation schemes 0026 244 250 400 410Controlling the use of hot springs watera 0035 194 201 417 432Building sewage system infrastructure amp wastewater treatment facilitiesa 0036 183 190 383 397Ensuring the proper construction of pipe and pumping systemsa 0027 172 177 383 393Ensuring a value-for-money in tourism destination experience 0026 250 257 383 393

Tourism destination environments 352 367 422 454Sociocultural change 353 367 436 442

Public interest in health-leisure activities 0037 344 357 428 444Emergence of health-conscious consumers 0046 361 378 444 464

Market demand 350 379 408 448Expansion of the leisure and domestic tourism market 0069 356 381 400 428More demanding travelers 0096 344 377 417 454

Final score 276 284 406 416

aThe weighted mean difference between two destinations exceeded

542 LEE AND KING

headings namely tourism destination resources tourism provides an extension of the current liter-ature on the relative competitiveness of tourismand attractors tourism destination strategies and

tourism destination environments The present destinations (Dwyer et al 2003 Enright amp New-ton 2004 Kozak amp Rimmington 1999) Implica-study supplements the current literature on tourism

destination competitiveness by integrating the tions are drawn for government and industry witha view to increasing visitations Taiwan currentlythree categories of destination competitiveness

which have been prominent in previous models rates low in the context of competitiveness butaddressing this deficiency rates high in terms of(Dwyer amp Kim 2003 Enright amp Newton 2004

Ritchie amp Crouch 2000 2003) It is acknowl- importanceedged that each subsector has unique features andattributes and its own set of competitive factors A Focus on Preventative and Curative CareThe sector-specific model of destination competi-

In the context of an expanding pool of consum-tiveness that has been proposed in this research is

ers who have the time money and motivation tocapable of capturing the nature and characteristics

pursue and maintain a healthy life the diversityof the hot springs tourism sector and is well suited

and smoothness of mineral springs has been a sig-for purposes of comparison It has been demon-

nificant advantage for tourism provision in Tai-strated that the AHP method is an appropriate

wan The use of natural hot springs for the treat-method for generating insights that could form a

ment of disease constitutes another potentialbasis for enhancing the competitiveness of Tai-

market segment There is a business opportunitywanrsquos hot springs tourism sector Taiwan is a col-

for resort proprietors to market the medicinal andlectivist culture with an emphasis on the pursuit of

therapeutic benefits of hot springs bathing toharmony with others (Hofstede 1980) On this ba-

health-conscious consumers who are seeking tosis the AHP method may accommodate the di-

enhance their well-being through travel Toverse opinions of individual participants and avoid

achieve this proprietors should refresh their pre-the dominance of any individual or small group

ventative and health-oriented services and fa-Participants in the current survey had an equal

cilities Diversification of product offerings andvoice The AHP also accommodated the geograph-

tourist activities is also needed The Taiwan gov-ically dispersal of participants (Armacost Hos-

ernment could assist by establishing a research en-seini amp Edwards 1999) Previous AHP applica-

tity dedicated to hot springs sector and supportingtions have been confined to destinations at a

the development of a national database Hotgeneric level (Crouch 2008 Crouch amp Ritchie

springs treatments are as diverse as the waters2005) The present study shows the merit of

themselves A database could inform the publicapplying the AHP approach for analyzing destina-

about the location of relevant hot springs andtion competitiveness in the context of hot springs

about their health and tourism attributes In someas an important subsector of tourism It contributes

European countries skin disease sufferers who areto knowledge by extending the application of AHP

in receipt of health insurance-funded prescriptionto destination competitiveness as it applies to sub-

are entitled to receive spa treatments If Taiwanrsquossectors of tourism

national health insurance system were to subsidizeTo test the applicability of a sector-specific

spa treatments it would enhance the appreciationdestination competitiveness model Japan was

of the therapeutic and curative effects of hotchosen as a benchmark for comparison purposes

springs and extend their use into the medical fieldThe comparative analysis has shown that Taiwanis less competitive than Japan in all fields with the

Sustainability Principlesexception of high-grade natural hot springs Thefindings reveal potential areas for improvement if Tourism development associated with the growth

in visitation to hot springs has impacted on theTaiwanrsquos authorities and enterprises are to boostcompetitiveness and narrow the gap with Japan natural environment If Taiwan is to achieve an

appropriate balance between protecting resourcesThe application of a comparative study in the con-text of a subsector of tourism namely hot springs and stimulating tourism development stakehold-

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 543

ers at both the national and the enterprise level tors in future research to compare the demand andsupply-side perspectives Finally the study bringswill need to engage actively with environmental

management issues and engage in partnerships together the various concepts of destination com-petitiveness and identifies sector-specific strate-The national authorities are responsible for formu-

lating and implementing tourism policy and for gies environmental factors and unique destina-tion attributes as major constructs These insightsdeveloping strategies consistent with the sustain-

able use of lands hot springs and other natural could be further extended by examining the inter-play between internal and external factors as theyresources An effective and principled system of

deterrence is needed involving fines for the illegal influence the formulation and implementation ofdestination strategies in the pursuit of competitive-use of lands and hot springs Destination manage-

ment organizations should work with independent nessthird parties to promote and endorse the imple-mentation of sustainable water resource manage- Referencesment and environmental protection practices Hot

Armacost R L Hosseini J amp Edwards J (1999) Usingsprings proprietors should incorporate sustainabil- the analytical hierarchy process as a two-phase inte-ity principles within the design and construction grated decision approach for large nominal groupsof spring water distribution sewage treatment Group Decision and Negotiation 8(6) 535ndash555

Buhalis D (2000) Marketing the competitive destinationwastewater collection and piping and pumpingof the future Tourism Management 21(1) 97ndash116systems Sustainable tourism development is pred-

Cavana R Y Delahaye B L amp Sekaran U (2001) Ap-icated upon responsible behaviors by stakeholders plied business research Qualitative and quantitativewithin the hot springs tourism sector to ensure the methods Milton Qld John Wiley

Cheng E W L amp Li H (2001) Analytic hierarchy pro-long-term prosperity and quality of life for futurecess An approach to determine measures for businessgenerationsperformance Measuring Business Excellence 5(3)30ndash36

Limitations and Opportunities Cheng E W L Li H amp Ho D C K (2002) Analyticfor Future Research hierarchy process (AHP) A defective tool when used

improperly Measuring Business Excellence 6(4)This investigation has prompted a number of 33ndash37

Crouch G I amp Ritchie J R B (1999) Tourism competi-questions and various areas of potential study aretiveness and societal prosperity Journal of Businessevident The proposed destination competitivenessResearch 44(3) 137ndash152model should have international applicability es-

Crouch G I amp Ritchie J R B (2005) Application ofpecially in emerging Asian destinations similar to the analytic hierarchy process to tourism choice andTaiwan Additional validation of the proposed decision making A review and illustration applied to

destination competitiveness Tourism Analysis 10(1)framework should be undertaken Second the pro-17ndash25posed hot springs competitiveness model is ge-

Crouch G I (2008) Modelling destination competitive-neric Given time and cost constraints all key in-ness A survey and analysis of the impact of competi-

formants in the present study were Taiwanese tiveness attributes Gold Coast Qld Sustainable Tour-Respondents may tend to exaggerate the competi- ism CRC

Deng J King B amp Bauer T (2002) Evaluating naturaltiveness of their own country relative to othersattractions for tourism Annals of Tourism Research(Dwyer et al 2003) The limited knowledge and29(2) 422ndash438practical experience of informants about Japan as

drsquoHauteserre A M (2000) Lessons in managed destina-a competitor may have compromised the compari- tion competitiveness The case of Foxwoods Casino Re-son Future studies should extend the range of in- sort Tourism Management 21(1) 23ndash32

Dwyer L amp Kim C (2003) Destination competitivenessternational and local perspectives Thirdly theDeterminants and indicators Current Issues in Tourismpresent study has explored the managerial per-6(5) 369ndash414spective towards competitiveness factors associ-

Dwyer L Livaic Z amp Mellor R (2003) Competitive-ated with Taiwan as a hot springs tourism destina- ness of Australia as a tourist destination Journal oftion Given the importance of consumer perceptions Hospitality and Tourism Management 10(1) 60ndash78

Dwyer L Mellor R Livaic Z Edwards D amp Kim Cit would be useful to incorporate hot springs visi-

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

lands (2005) New Taiwan Weekly Retrieved from Saaty T L (1980) The analytical hierarchy processPlanning priority setting resource allocation Newhttpwwwnewtaiwancomtwbulletinviewjspbulletin

id=22639 York McGraw-HillSaaty T L amp Kearns K P (1985) Analytical planningHowie F (2003) Managing the tourist destination Lon-

don Continuum The organization of systems New York Pergamon PressHudson S Ritchie J B R amp Timur S (2004) Measur-

Page 11: International Competitiveness in Hot Springs Tourism: An

540 LEE AND KING

springs and spa tourism and the principal competi- that Taiwan has one of the highest concentrationsand greatest variety of hot springs in the worldtor for Taiwan Japan has abundant natural hot

springs and hot springs are intrinsic to Japanese this is not surprising The three lowest ranked de-terminants were assuring the proper constructionculture The centuries-old tradition of hot springs

and onsen bathing has made Japan a leading spa of pipe and pumping system (mean = 177) build-ing sewage system infrastructure and wastewatertourism destination During Taiwanrsquos occupation

by the Japanese prior to 1945 many hot springs treatment facilities (mean = 190) and controllingthe use of hot springs water (mean = 201) Thesefacilities were built in Japanese style and adopted

the Japanese hot springs bathing traditions and relate to the capability of hot springs proprietorsto protect conserve and manage the environmentmanners This legacy is still evident in some of

Taiwanrsquos oldest and finest hot springs regions In and natural resources in compliance with the prin-ciples of sustainability It is suggested that an en-this historical context and given growing interna-

tional competition a comparison of the relative vironmental management self-regulation mecha-nism would be a useful addition to the dailyperformances of the hot springs tourism sector in

Taiwan and Japan is timely practices of hot springs proprietors Many proprie-The competitiveness rating for Taiwanrsquos hot tors have an exclusive focus on the maximization

springs tourism sector (final score = 284) was of short-term profitability The effects of their ac-lower than for Japan (final score = 416) and was tions on local communities and the environmentbelow neutrality (lt3 on a scale of 1ndash5) The more and their responsibility to customers are ignoredsalient findings in Table 5 are highlighted It is Currently there is no direct regulation of hotnoted that Taiwan has performed less effectively springs spa operations though there is a strongthan Japan on the three measures of destination case for a more active regulation of such activitiescompetitiveness The lowest rating applied in the Significant differences are evident between thecase of tourism destination strategies (weighted weight means for Taiwan and Japan These in-mean = 245) All of the determinants originating clude controlling the use of hot springs waterfrom the dimension tourism destination strategies building sewage system infrastructure and waste-rated lower than the neutral score of 3 These find- water treatment facilities ensuring the properings are not surprising in view of the absence of construction of pipe and pumping system and au-regulations to oversee enterprise-level operations thentic accommodation experiences Taiwanrsquosand of legislation to protect the use of water greatest weaknesses are the capacity of its hotwithin the hot springs areas These human re- springs proprietors to minimize environmentalsource and strategic capacity related problems damage and comply with environmental sustain-need urgent resolution if Taiwanrsquos hot springs ability standards Japanrsquos Hot Springs Law (1948)tourism sector is to develop and prosper In con- prescribes a definition for hot springs to be recog-trast Japan is rated above 4 on each of the three nized as an onsen Compliant onsen operators whomajor dimensions The most favorably rated di- contribute to regional economic development aremension was tourism destination environments eligible for subsidies (Matsushita 1994) To match(weighted mean = 454) Japan has a long history Japanrsquos accomplishments Taiwan will need a col-of communal bathing and visiting hot springs is a laborative government and industry mechanism tomajor highlight of travel within Japan Increasing pursue longer term sustainabilitypublic awareness of the value of leisure and recre-ation for health and wellbeing has created favor- Conclusions and Managerial Implicationsable conditions for the further development of hot

Hot springs tourism is an emerging sector insprings and spa tourism in Japan (MatsushitaTaiwan and in this context it is particularly im-1994)portant to develop a guiding framework based ofThe only item where Taiwan recorded a higherdestination competitiveness from a supply-sidescore than Japan and received the highest weightedperspective The relative importance of destinationmean among the 38 determinants (weighted mean =

413) was high-grade natural hot springs Given competitiveness has been evaluated using three

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 541

Table 5Comparative Destination Weights for Taiwan and Japan

Taiwan Japan

Weighted WeightedWeight Mean Mean Mean Mean

Tourism destination resources and attractors 294 301 407 417Attractions 324 330 414 423

High grade natural hot springs 0018 406 413 400 407Plentiful natural hot springs 0017 378 384 400 407Abundant natural scenery 0025 383 389 428 439Souvenir shopping 0020 228 233 422 430Year-round recreational activities 0022 228 233 422 431

Transport 289 296 383 393Convenient access to hot springs 0026 317 325 389 399Sound local transportation network 0023 289 296 394 403Ample parking 0023 261 267 367 375

Accommodation 263 266 421 427Availability of sufficient accommodation 0006 283 285 389 391High quality and international standard accommodation 0015 283 287 444 451Authentic accommodation experiencesa 0015 233 237 433 440Comfortable accommodation in a natural setting 0019 250 255 417 425

Safety and security 298 303 411 419Destination safety 0012 400 405 417 422A safe bathing environment 0027 311 319 428 440Hygiene standards for hot springs spa equipment 0024 250 256 428 438Personal safety and hygienemdashbasic rules and responsibility 0014 250 254 417 423Emergency medical care and the availability of ambulance services 0015 278 282 367 373

Tourism destination strategies 240 245 397 408Capability of the authorities 250 256 390 399

Providing leadership for coordination within the sector 0020 244 249 394 402Encouraging innovation of hot springs spa products amp services 0016 256 260 394 400Undertaking domestic and international marketing campaigns 0018 294 299 411 418Conducting regular surveys on tourist behavior amp satisfaction 0009 217 219 311 314Assisting hot springs properties in licensing matters 0032 217 224 372 384Creating and maintaining a hot springs database 0017 239 243 433 440Implementing hot springs water quality inspections 0029 278 286 394 405Effective design and construction of new and existing hot springs areas 0036 256 265 411 426

Capability of hot springs proprietors 230 236 404 416Promoting the health and medical benefits of hot springs 0019 261 266 433 441Providing a diverse range of leisure and health-oriented facilities 0024 244 250 428 438Maintaining high-quality hot springs spa-related facilities and equipment 0031 272 280 400 412Ensuring professional and technical competence and effective staff 0030 250 258 411 423Developing a third party certificate and accreditation schemes 0026 244 250 400 410Controlling the use of hot springs watera 0035 194 201 417 432Building sewage system infrastructure amp wastewater treatment facilitiesa 0036 183 190 383 397Ensuring the proper construction of pipe and pumping systemsa 0027 172 177 383 393Ensuring a value-for-money in tourism destination experience 0026 250 257 383 393

Tourism destination environments 352 367 422 454Sociocultural change 353 367 436 442

Public interest in health-leisure activities 0037 344 357 428 444Emergence of health-conscious consumers 0046 361 378 444 464

Market demand 350 379 408 448Expansion of the leisure and domestic tourism market 0069 356 381 400 428More demanding travelers 0096 344 377 417 454

Final score 276 284 406 416

aThe weighted mean difference between two destinations exceeded

542 LEE AND KING

headings namely tourism destination resources tourism provides an extension of the current liter-ature on the relative competitiveness of tourismand attractors tourism destination strategies and

tourism destination environments The present destinations (Dwyer et al 2003 Enright amp New-ton 2004 Kozak amp Rimmington 1999) Implica-study supplements the current literature on tourism

destination competitiveness by integrating the tions are drawn for government and industry witha view to increasing visitations Taiwan currentlythree categories of destination competitiveness

which have been prominent in previous models rates low in the context of competitiveness butaddressing this deficiency rates high in terms of(Dwyer amp Kim 2003 Enright amp Newton 2004

Ritchie amp Crouch 2000 2003) It is acknowl- importanceedged that each subsector has unique features andattributes and its own set of competitive factors A Focus on Preventative and Curative CareThe sector-specific model of destination competi-

In the context of an expanding pool of consum-tiveness that has been proposed in this research is

ers who have the time money and motivation tocapable of capturing the nature and characteristics

pursue and maintain a healthy life the diversityof the hot springs tourism sector and is well suited

and smoothness of mineral springs has been a sig-for purposes of comparison It has been demon-

nificant advantage for tourism provision in Tai-strated that the AHP method is an appropriate

wan The use of natural hot springs for the treat-method for generating insights that could form a

ment of disease constitutes another potentialbasis for enhancing the competitiveness of Tai-

market segment There is a business opportunitywanrsquos hot springs tourism sector Taiwan is a col-

for resort proprietors to market the medicinal andlectivist culture with an emphasis on the pursuit of

therapeutic benefits of hot springs bathing toharmony with others (Hofstede 1980) On this ba-

health-conscious consumers who are seeking tosis the AHP method may accommodate the di-

enhance their well-being through travel Toverse opinions of individual participants and avoid

achieve this proprietors should refresh their pre-the dominance of any individual or small group

ventative and health-oriented services and fa-Participants in the current survey had an equal

cilities Diversification of product offerings andvoice The AHP also accommodated the geograph-

tourist activities is also needed The Taiwan gov-ically dispersal of participants (Armacost Hos-

ernment could assist by establishing a research en-seini amp Edwards 1999) Previous AHP applica-

tity dedicated to hot springs sector and supportingtions have been confined to destinations at a

the development of a national database Hotgeneric level (Crouch 2008 Crouch amp Ritchie

springs treatments are as diverse as the waters2005) The present study shows the merit of

themselves A database could inform the publicapplying the AHP approach for analyzing destina-

about the location of relevant hot springs andtion competitiveness in the context of hot springs

about their health and tourism attributes In someas an important subsector of tourism It contributes

European countries skin disease sufferers who areto knowledge by extending the application of AHP

in receipt of health insurance-funded prescriptionto destination competitiveness as it applies to sub-

are entitled to receive spa treatments If Taiwanrsquossectors of tourism

national health insurance system were to subsidizeTo test the applicability of a sector-specific

spa treatments it would enhance the appreciationdestination competitiveness model Japan was

of the therapeutic and curative effects of hotchosen as a benchmark for comparison purposes

springs and extend their use into the medical fieldThe comparative analysis has shown that Taiwanis less competitive than Japan in all fields with the

Sustainability Principlesexception of high-grade natural hot springs Thefindings reveal potential areas for improvement if Tourism development associated with the growth

in visitation to hot springs has impacted on theTaiwanrsquos authorities and enterprises are to boostcompetitiveness and narrow the gap with Japan natural environment If Taiwan is to achieve an

appropriate balance between protecting resourcesThe application of a comparative study in the con-text of a subsector of tourism namely hot springs and stimulating tourism development stakehold-

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 543

ers at both the national and the enterprise level tors in future research to compare the demand andsupply-side perspectives Finally the study bringswill need to engage actively with environmental

management issues and engage in partnerships together the various concepts of destination com-petitiveness and identifies sector-specific strate-The national authorities are responsible for formu-

lating and implementing tourism policy and for gies environmental factors and unique destina-tion attributes as major constructs These insightsdeveloping strategies consistent with the sustain-

able use of lands hot springs and other natural could be further extended by examining the inter-play between internal and external factors as theyresources An effective and principled system of

deterrence is needed involving fines for the illegal influence the formulation and implementation ofdestination strategies in the pursuit of competitive-use of lands and hot springs Destination manage-

ment organizations should work with independent nessthird parties to promote and endorse the imple-mentation of sustainable water resource manage- Referencesment and environmental protection practices Hot

Armacost R L Hosseini J amp Edwards J (1999) Usingsprings proprietors should incorporate sustainabil- the analytical hierarchy process as a two-phase inte-ity principles within the design and construction grated decision approach for large nominal groupsof spring water distribution sewage treatment Group Decision and Negotiation 8(6) 535ndash555

Buhalis D (2000) Marketing the competitive destinationwastewater collection and piping and pumpingof the future Tourism Management 21(1) 97ndash116systems Sustainable tourism development is pred-

Cavana R Y Delahaye B L amp Sekaran U (2001) Ap-icated upon responsible behaviors by stakeholders plied business research Qualitative and quantitativewithin the hot springs tourism sector to ensure the methods Milton Qld John Wiley

Cheng E W L amp Li H (2001) Analytic hierarchy pro-long-term prosperity and quality of life for futurecess An approach to determine measures for businessgenerationsperformance Measuring Business Excellence 5(3)30ndash36

Limitations and Opportunities Cheng E W L Li H amp Ho D C K (2002) Analyticfor Future Research hierarchy process (AHP) A defective tool when used

improperly Measuring Business Excellence 6(4)This investigation has prompted a number of 33ndash37

Crouch G I amp Ritchie J R B (1999) Tourism competi-questions and various areas of potential study aretiveness and societal prosperity Journal of Businessevident The proposed destination competitivenessResearch 44(3) 137ndash152model should have international applicability es-

Crouch G I amp Ritchie J R B (2005) Application ofpecially in emerging Asian destinations similar to the analytic hierarchy process to tourism choice andTaiwan Additional validation of the proposed decision making A review and illustration applied to

destination competitiveness Tourism Analysis 10(1)framework should be undertaken Second the pro-17ndash25posed hot springs competitiveness model is ge-

Crouch G I (2008) Modelling destination competitive-neric Given time and cost constraints all key in-ness A survey and analysis of the impact of competi-

formants in the present study were Taiwanese tiveness attributes Gold Coast Qld Sustainable Tour-Respondents may tend to exaggerate the competi- ism CRC

Deng J King B amp Bauer T (2002) Evaluating naturaltiveness of their own country relative to othersattractions for tourism Annals of Tourism Research(Dwyer et al 2003) The limited knowledge and29(2) 422ndash438practical experience of informants about Japan as

drsquoHauteserre A M (2000) Lessons in managed destina-a competitor may have compromised the compari- tion competitiveness The case of Foxwoods Casino Re-son Future studies should extend the range of in- sort Tourism Management 21(1) 23ndash32

Dwyer L amp Kim C (2003) Destination competitivenessternational and local perspectives Thirdly theDeterminants and indicators Current Issues in Tourismpresent study has explored the managerial per-6(5) 369ndash414spective towards competitiveness factors associ-

Dwyer L Livaic Z amp Mellor R (2003) Competitive-ated with Taiwan as a hot springs tourism destina- ness of Australia as a tourist destination Journal oftion Given the importance of consumer perceptions Hospitality and Tourism Management 10(1) 60ndash78

Dwyer L Mellor R Livaic Z Edwards D amp Kim Cit would be useful to incorporate hot springs visi-

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

lands (2005) New Taiwan Weekly Retrieved from Saaty T L (1980) The analytical hierarchy processPlanning priority setting resource allocation Newhttpwwwnewtaiwancomtwbulletinviewjspbulletin

id=22639 York McGraw-HillSaaty T L amp Kearns K P (1985) Analytical planningHowie F (2003) Managing the tourist destination Lon-

don Continuum The organization of systems New York Pergamon PressHudson S Ritchie J B R amp Timur S (2004) Measur-

Page 12: International Competitiveness in Hot Springs Tourism: An

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 541

Table 5Comparative Destination Weights for Taiwan and Japan

Taiwan Japan

Weighted WeightedWeight Mean Mean Mean Mean

Tourism destination resources and attractors 294 301 407 417Attractions 324 330 414 423

High grade natural hot springs 0018 406 413 400 407Plentiful natural hot springs 0017 378 384 400 407Abundant natural scenery 0025 383 389 428 439Souvenir shopping 0020 228 233 422 430Year-round recreational activities 0022 228 233 422 431

Transport 289 296 383 393Convenient access to hot springs 0026 317 325 389 399Sound local transportation network 0023 289 296 394 403Ample parking 0023 261 267 367 375

Accommodation 263 266 421 427Availability of sufficient accommodation 0006 283 285 389 391High quality and international standard accommodation 0015 283 287 444 451Authentic accommodation experiencesa 0015 233 237 433 440Comfortable accommodation in a natural setting 0019 250 255 417 425

Safety and security 298 303 411 419Destination safety 0012 400 405 417 422A safe bathing environment 0027 311 319 428 440Hygiene standards for hot springs spa equipment 0024 250 256 428 438Personal safety and hygienemdashbasic rules and responsibility 0014 250 254 417 423Emergency medical care and the availability of ambulance services 0015 278 282 367 373

Tourism destination strategies 240 245 397 408Capability of the authorities 250 256 390 399

Providing leadership for coordination within the sector 0020 244 249 394 402Encouraging innovation of hot springs spa products amp services 0016 256 260 394 400Undertaking domestic and international marketing campaigns 0018 294 299 411 418Conducting regular surveys on tourist behavior amp satisfaction 0009 217 219 311 314Assisting hot springs properties in licensing matters 0032 217 224 372 384Creating and maintaining a hot springs database 0017 239 243 433 440Implementing hot springs water quality inspections 0029 278 286 394 405Effective design and construction of new and existing hot springs areas 0036 256 265 411 426

Capability of hot springs proprietors 230 236 404 416Promoting the health and medical benefits of hot springs 0019 261 266 433 441Providing a diverse range of leisure and health-oriented facilities 0024 244 250 428 438Maintaining high-quality hot springs spa-related facilities and equipment 0031 272 280 400 412Ensuring professional and technical competence and effective staff 0030 250 258 411 423Developing a third party certificate and accreditation schemes 0026 244 250 400 410Controlling the use of hot springs watera 0035 194 201 417 432Building sewage system infrastructure amp wastewater treatment facilitiesa 0036 183 190 383 397Ensuring the proper construction of pipe and pumping systemsa 0027 172 177 383 393Ensuring a value-for-money in tourism destination experience 0026 250 257 383 393

Tourism destination environments 352 367 422 454Sociocultural change 353 367 436 442

Public interest in health-leisure activities 0037 344 357 428 444Emergence of health-conscious consumers 0046 361 378 444 464

Market demand 350 379 408 448Expansion of the leisure and domestic tourism market 0069 356 381 400 428More demanding travelers 0096 344 377 417 454

Final score 276 284 406 416

aThe weighted mean difference between two destinations exceeded

542 LEE AND KING

headings namely tourism destination resources tourism provides an extension of the current liter-ature on the relative competitiveness of tourismand attractors tourism destination strategies and

tourism destination environments The present destinations (Dwyer et al 2003 Enright amp New-ton 2004 Kozak amp Rimmington 1999) Implica-study supplements the current literature on tourism

destination competitiveness by integrating the tions are drawn for government and industry witha view to increasing visitations Taiwan currentlythree categories of destination competitiveness

which have been prominent in previous models rates low in the context of competitiveness butaddressing this deficiency rates high in terms of(Dwyer amp Kim 2003 Enright amp Newton 2004

Ritchie amp Crouch 2000 2003) It is acknowl- importanceedged that each subsector has unique features andattributes and its own set of competitive factors A Focus on Preventative and Curative CareThe sector-specific model of destination competi-

In the context of an expanding pool of consum-tiveness that has been proposed in this research is

ers who have the time money and motivation tocapable of capturing the nature and characteristics

pursue and maintain a healthy life the diversityof the hot springs tourism sector and is well suited

and smoothness of mineral springs has been a sig-for purposes of comparison It has been demon-

nificant advantage for tourism provision in Tai-strated that the AHP method is an appropriate

wan The use of natural hot springs for the treat-method for generating insights that could form a

ment of disease constitutes another potentialbasis for enhancing the competitiveness of Tai-

market segment There is a business opportunitywanrsquos hot springs tourism sector Taiwan is a col-

for resort proprietors to market the medicinal andlectivist culture with an emphasis on the pursuit of

therapeutic benefits of hot springs bathing toharmony with others (Hofstede 1980) On this ba-

health-conscious consumers who are seeking tosis the AHP method may accommodate the di-

enhance their well-being through travel Toverse opinions of individual participants and avoid

achieve this proprietors should refresh their pre-the dominance of any individual or small group

ventative and health-oriented services and fa-Participants in the current survey had an equal

cilities Diversification of product offerings andvoice The AHP also accommodated the geograph-

tourist activities is also needed The Taiwan gov-ically dispersal of participants (Armacost Hos-

ernment could assist by establishing a research en-seini amp Edwards 1999) Previous AHP applica-

tity dedicated to hot springs sector and supportingtions have been confined to destinations at a

the development of a national database Hotgeneric level (Crouch 2008 Crouch amp Ritchie

springs treatments are as diverse as the waters2005) The present study shows the merit of

themselves A database could inform the publicapplying the AHP approach for analyzing destina-

about the location of relevant hot springs andtion competitiveness in the context of hot springs

about their health and tourism attributes In someas an important subsector of tourism It contributes

European countries skin disease sufferers who areto knowledge by extending the application of AHP

in receipt of health insurance-funded prescriptionto destination competitiveness as it applies to sub-

are entitled to receive spa treatments If Taiwanrsquossectors of tourism

national health insurance system were to subsidizeTo test the applicability of a sector-specific

spa treatments it would enhance the appreciationdestination competitiveness model Japan was

of the therapeutic and curative effects of hotchosen as a benchmark for comparison purposes

springs and extend their use into the medical fieldThe comparative analysis has shown that Taiwanis less competitive than Japan in all fields with the

Sustainability Principlesexception of high-grade natural hot springs Thefindings reveal potential areas for improvement if Tourism development associated with the growth

in visitation to hot springs has impacted on theTaiwanrsquos authorities and enterprises are to boostcompetitiveness and narrow the gap with Japan natural environment If Taiwan is to achieve an

appropriate balance between protecting resourcesThe application of a comparative study in the con-text of a subsector of tourism namely hot springs and stimulating tourism development stakehold-

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 543

ers at both the national and the enterprise level tors in future research to compare the demand andsupply-side perspectives Finally the study bringswill need to engage actively with environmental

management issues and engage in partnerships together the various concepts of destination com-petitiveness and identifies sector-specific strate-The national authorities are responsible for formu-

lating and implementing tourism policy and for gies environmental factors and unique destina-tion attributes as major constructs These insightsdeveloping strategies consistent with the sustain-

able use of lands hot springs and other natural could be further extended by examining the inter-play between internal and external factors as theyresources An effective and principled system of

deterrence is needed involving fines for the illegal influence the formulation and implementation ofdestination strategies in the pursuit of competitive-use of lands and hot springs Destination manage-

ment organizations should work with independent nessthird parties to promote and endorse the imple-mentation of sustainable water resource manage- Referencesment and environmental protection practices Hot

Armacost R L Hosseini J amp Edwards J (1999) Usingsprings proprietors should incorporate sustainabil- the analytical hierarchy process as a two-phase inte-ity principles within the design and construction grated decision approach for large nominal groupsof spring water distribution sewage treatment Group Decision and Negotiation 8(6) 535ndash555

Buhalis D (2000) Marketing the competitive destinationwastewater collection and piping and pumpingof the future Tourism Management 21(1) 97ndash116systems Sustainable tourism development is pred-

Cavana R Y Delahaye B L amp Sekaran U (2001) Ap-icated upon responsible behaviors by stakeholders plied business research Qualitative and quantitativewithin the hot springs tourism sector to ensure the methods Milton Qld John Wiley

Cheng E W L amp Li H (2001) Analytic hierarchy pro-long-term prosperity and quality of life for futurecess An approach to determine measures for businessgenerationsperformance Measuring Business Excellence 5(3)30ndash36

Limitations and Opportunities Cheng E W L Li H amp Ho D C K (2002) Analyticfor Future Research hierarchy process (AHP) A defective tool when used

improperly Measuring Business Excellence 6(4)This investigation has prompted a number of 33ndash37

Crouch G I amp Ritchie J R B (1999) Tourism competi-questions and various areas of potential study aretiveness and societal prosperity Journal of Businessevident The proposed destination competitivenessResearch 44(3) 137ndash152model should have international applicability es-

Crouch G I amp Ritchie J R B (2005) Application ofpecially in emerging Asian destinations similar to the analytic hierarchy process to tourism choice andTaiwan Additional validation of the proposed decision making A review and illustration applied to

destination competitiveness Tourism Analysis 10(1)framework should be undertaken Second the pro-17ndash25posed hot springs competitiveness model is ge-

Crouch G I (2008) Modelling destination competitive-neric Given time and cost constraints all key in-ness A survey and analysis of the impact of competi-

formants in the present study were Taiwanese tiveness attributes Gold Coast Qld Sustainable Tour-Respondents may tend to exaggerate the competi- ism CRC

Deng J King B amp Bauer T (2002) Evaluating naturaltiveness of their own country relative to othersattractions for tourism Annals of Tourism Research(Dwyer et al 2003) The limited knowledge and29(2) 422ndash438practical experience of informants about Japan as

drsquoHauteserre A M (2000) Lessons in managed destina-a competitor may have compromised the compari- tion competitiveness The case of Foxwoods Casino Re-son Future studies should extend the range of in- sort Tourism Management 21(1) 23ndash32

Dwyer L amp Kim C (2003) Destination competitivenessternational and local perspectives Thirdly theDeterminants and indicators Current Issues in Tourismpresent study has explored the managerial per-6(5) 369ndash414spective towards competitiveness factors associ-

Dwyer L Livaic Z amp Mellor R (2003) Competitive-ated with Taiwan as a hot springs tourism destina- ness of Australia as a tourist destination Journal oftion Given the importance of consumer perceptions Hospitality and Tourism Management 10(1) 60ndash78

Dwyer L Mellor R Livaic Z Edwards D amp Kim Cit would be useful to incorporate hot springs visi-

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

lands (2005) New Taiwan Weekly Retrieved from Saaty T L (1980) The analytical hierarchy processPlanning priority setting resource allocation Newhttpwwwnewtaiwancomtwbulletinviewjspbulletin

id=22639 York McGraw-HillSaaty T L amp Kearns K P (1985) Analytical planningHowie F (2003) Managing the tourist destination Lon-

don Continuum The organization of systems New York Pergamon PressHudson S Ritchie J B R amp Timur S (2004) Measur-

Page 13: International Competitiveness in Hot Springs Tourism: An

542 LEE AND KING

headings namely tourism destination resources tourism provides an extension of the current liter-ature on the relative competitiveness of tourismand attractors tourism destination strategies and

tourism destination environments The present destinations (Dwyer et al 2003 Enright amp New-ton 2004 Kozak amp Rimmington 1999) Implica-study supplements the current literature on tourism

destination competitiveness by integrating the tions are drawn for government and industry witha view to increasing visitations Taiwan currentlythree categories of destination competitiveness

which have been prominent in previous models rates low in the context of competitiveness butaddressing this deficiency rates high in terms of(Dwyer amp Kim 2003 Enright amp Newton 2004

Ritchie amp Crouch 2000 2003) It is acknowl- importanceedged that each subsector has unique features andattributes and its own set of competitive factors A Focus on Preventative and Curative CareThe sector-specific model of destination competi-

In the context of an expanding pool of consum-tiveness that has been proposed in this research is

ers who have the time money and motivation tocapable of capturing the nature and characteristics

pursue and maintain a healthy life the diversityof the hot springs tourism sector and is well suited

and smoothness of mineral springs has been a sig-for purposes of comparison It has been demon-

nificant advantage for tourism provision in Tai-strated that the AHP method is an appropriate

wan The use of natural hot springs for the treat-method for generating insights that could form a

ment of disease constitutes another potentialbasis for enhancing the competitiveness of Tai-

market segment There is a business opportunitywanrsquos hot springs tourism sector Taiwan is a col-

for resort proprietors to market the medicinal andlectivist culture with an emphasis on the pursuit of

therapeutic benefits of hot springs bathing toharmony with others (Hofstede 1980) On this ba-

health-conscious consumers who are seeking tosis the AHP method may accommodate the di-

enhance their well-being through travel Toverse opinions of individual participants and avoid

achieve this proprietors should refresh their pre-the dominance of any individual or small group

ventative and health-oriented services and fa-Participants in the current survey had an equal

cilities Diversification of product offerings andvoice The AHP also accommodated the geograph-

tourist activities is also needed The Taiwan gov-ically dispersal of participants (Armacost Hos-

ernment could assist by establishing a research en-seini amp Edwards 1999) Previous AHP applica-

tity dedicated to hot springs sector and supportingtions have been confined to destinations at a

the development of a national database Hotgeneric level (Crouch 2008 Crouch amp Ritchie

springs treatments are as diverse as the waters2005) The present study shows the merit of

themselves A database could inform the publicapplying the AHP approach for analyzing destina-

about the location of relevant hot springs andtion competitiveness in the context of hot springs

about their health and tourism attributes In someas an important subsector of tourism It contributes

European countries skin disease sufferers who areto knowledge by extending the application of AHP

in receipt of health insurance-funded prescriptionto destination competitiveness as it applies to sub-

are entitled to receive spa treatments If Taiwanrsquossectors of tourism

national health insurance system were to subsidizeTo test the applicability of a sector-specific

spa treatments it would enhance the appreciationdestination competitiveness model Japan was

of the therapeutic and curative effects of hotchosen as a benchmark for comparison purposes

springs and extend their use into the medical fieldThe comparative analysis has shown that Taiwanis less competitive than Japan in all fields with the

Sustainability Principlesexception of high-grade natural hot springs Thefindings reveal potential areas for improvement if Tourism development associated with the growth

in visitation to hot springs has impacted on theTaiwanrsquos authorities and enterprises are to boostcompetitiveness and narrow the gap with Japan natural environment If Taiwan is to achieve an

appropriate balance between protecting resourcesThe application of a comparative study in the con-text of a subsector of tourism namely hot springs and stimulating tourism development stakehold-

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 543

ers at both the national and the enterprise level tors in future research to compare the demand andsupply-side perspectives Finally the study bringswill need to engage actively with environmental

management issues and engage in partnerships together the various concepts of destination com-petitiveness and identifies sector-specific strate-The national authorities are responsible for formu-

lating and implementing tourism policy and for gies environmental factors and unique destina-tion attributes as major constructs These insightsdeveloping strategies consistent with the sustain-

able use of lands hot springs and other natural could be further extended by examining the inter-play between internal and external factors as theyresources An effective and principled system of

deterrence is needed involving fines for the illegal influence the formulation and implementation ofdestination strategies in the pursuit of competitive-use of lands and hot springs Destination manage-

ment organizations should work with independent nessthird parties to promote and endorse the imple-mentation of sustainable water resource manage- Referencesment and environmental protection practices Hot

Armacost R L Hosseini J amp Edwards J (1999) Usingsprings proprietors should incorporate sustainabil- the analytical hierarchy process as a two-phase inte-ity principles within the design and construction grated decision approach for large nominal groupsof spring water distribution sewage treatment Group Decision and Negotiation 8(6) 535ndash555

Buhalis D (2000) Marketing the competitive destinationwastewater collection and piping and pumpingof the future Tourism Management 21(1) 97ndash116systems Sustainable tourism development is pred-

Cavana R Y Delahaye B L amp Sekaran U (2001) Ap-icated upon responsible behaviors by stakeholders plied business research Qualitative and quantitativewithin the hot springs tourism sector to ensure the methods Milton Qld John Wiley

Cheng E W L amp Li H (2001) Analytic hierarchy pro-long-term prosperity and quality of life for futurecess An approach to determine measures for businessgenerationsperformance Measuring Business Excellence 5(3)30ndash36

Limitations and Opportunities Cheng E W L Li H amp Ho D C K (2002) Analyticfor Future Research hierarchy process (AHP) A defective tool when used

improperly Measuring Business Excellence 6(4)This investigation has prompted a number of 33ndash37

Crouch G I amp Ritchie J R B (1999) Tourism competi-questions and various areas of potential study aretiveness and societal prosperity Journal of Businessevident The proposed destination competitivenessResearch 44(3) 137ndash152model should have international applicability es-

Crouch G I amp Ritchie J R B (2005) Application ofpecially in emerging Asian destinations similar to the analytic hierarchy process to tourism choice andTaiwan Additional validation of the proposed decision making A review and illustration applied to

destination competitiveness Tourism Analysis 10(1)framework should be undertaken Second the pro-17ndash25posed hot springs competitiveness model is ge-

Crouch G I (2008) Modelling destination competitive-neric Given time and cost constraints all key in-ness A survey and analysis of the impact of competi-

formants in the present study were Taiwanese tiveness attributes Gold Coast Qld Sustainable Tour-Respondents may tend to exaggerate the competi- ism CRC

Deng J King B amp Bauer T (2002) Evaluating naturaltiveness of their own country relative to othersattractions for tourism Annals of Tourism Research(Dwyer et al 2003) The limited knowledge and29(2) 422ndash438practical experience of informants about Japan as

drsquoHauteserre A M (2000) Lessons in managed destina-a competitor may have compromised the compari- tion competitiveness The case of Foxwoods Casino Re-son Future studies should extend the range of in- sort Tourism Management 21(1) 23ndash32

Dwyer L amp Kim C (2003) Destination competitivenessternational and local perspectives Thirdly theDeterminants and indicators Current Issues in Tourismpresent study has explored the managerial per-6(5) 369ndash414spective towards competitiveness factors associ-

Dwyer L Livaic Z amp Mellor R (2003) Competitive-ated with Taiwan as a hot springs tourism destina- ness of Australia as a tourist destination Journal oftion Given the importance of consumer perceptions Hospitality and Tourism Management 10(1) 60ndash78

Dwyer L Mellor R Livaic Z Edwards D amp Kim Cit would be useful to incorporate hot springs visi-

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

lands (2005) New Taiwan Weekly Retrieved from Saaty T L (1980) The analytical hierarchy processPlanning priority setting resource allocation Newhttpwwwnewtaiwancomtwbulletinviewjspbulletin

id=22639 York McGraw-HillSaaty T L amp Kearns K P (1985) Analytical planningHowie F (2003) Managing the tourist destination Lon-

don Continuum The organization of systems New York Pergamon PressHudson S Ritchie J B R amp Timur S (2004) Measur-

Page 14: International Competitiveness in Hot Springs Tourism: An

INTERNATIONAL COMPETITIVENESS IN HOT SPRINGS TOURISM 543

ers at both the national and the enterprise level tors in future research to compare the demand andsupply-side perspectives Finally the study bringswill need to engage actively with environmental

management issues and engage in partnerships together the various concepts of destination com-petitiveness and identifies sector-specific strate-The national authorities are responsible for formu-

lating and implementing tourism policy and for gies environmental factors and unique destina-tion attributes as major constructs These insightsdeveloping strategies consistent with the sustain-

able use of lands hot springs and other natural could be further extended by examining the inter-play between internal and external factors as theyresources An effective and principled system of

deterrence is needed involving fines for the illegal influence the formulation and implementation ofdestination strategies in the pursuit of competitive-use of lands and hot springs Destination manage-

ment organizations should work with independent nessthird parties to promote and endorse the imple-mentation of sustainable water resource manage- Referencesment and environmental protection practices Hot

Armacost R L Hosseini J amp Edwards J (1999) Usingsprings proprietors should incorporate sustainabil- the analytical hierarchy process as a two-phase inte-ity principles within the design and construction grated decision approach for large nominal groupsof spring water distribution sewage treatment Group Decision and Negotiation 8(6) 535ndash555

Buhalis D (2000) Marketing the competitive destinationwastewater collection and piping and pumpingof the future Tourism Management 21(1) 97ndash116systems Sustainable tourism development is pred-

Cavana R Y Delahaye B L amp Sekaran U (2001) Ap-icated upon responsible behaviors by stakeholders plied business research Qualitative and quantitativewithin the hot springs tourism sector to ensure the methods Milton Qld John Wiley

Cheng E W L amp Li H (2001) Analytic hierarchy pro-long-term prosperity and quality of life for futurecess An approach to determine measures for businessgenerationsperformance Measuring Business Excellence 5(3)30ndash36

Limitations and Opportunities Cheng E W L Li H amp Ho D C K (2002) Analyticfor Future Research hierarchy process (AHP) A defective tool when used

improperly Measuring Business Excellence 6(4)This investigation has prompted a number of 33ndash37

Crouch G I amp Ritchie J R B (1999) Tourism competi-questions and various areas of potential study aretiveness and societal prosperity Journal of Businessevident The proposed destination competitivenessResearch 44(3) 137ndash152model should have international applicability es-

Crouch G I amp Ritchie J R B (2005) Application ofpecially in emerging Asian destinations similar to the analytic hierarchy process to tourism choice andTaiwan Additional validation of the proposed decision making A review and illustration applied to

destination competitiveness Tourism Analysis 10(1)framework should be undertaken Second the pro-17ndash25posed hot springs competitiveness model is ge-

Crouch G I (2008) Modelling destination competitive-neric Given time and cost constraints all key in-ness A survey and analysis of the impact of competi-

formants in the present study were Taiwanese tiveness attributes Gold Coast Qld Sustainable Tour-Respondents may tend to exaggerate the competi- ism CRC

Deng J King B amp Bauer T (2002) Evaluating naturaltiveness of their own country relative to othersattractions for tourism Annals of Tourism Research(Dwyer et al 2003) The limited knowledge and29(2) 422ndash438practical experience of informants about Japan as

drsquoHauteserre A M (2000) Lessons in managed destina-a competitor may have compromised the compari- tion competitiveness The case of Foxwoods Casino Re-son Future studies should extend the range of in- sort Tourism Management 21(1) 23ndash32

Dwyer L amp Kim C (2003) Destination competitivenessternational and local perspectives Thirdly theDeterminants and indicators Current Issues in Tourismpresent study has explored the managerial per-6(5) 369ndash414spective towards competitiveness factors associ-

Dwyer L Livaic Z amp Mellor R (2003) Competitive-ated with Taiwan as a hot springs tourism destina- ness of Australia as a tourist destination Journal oftion Given the importance of consumer perceptions Hospitality and Tourism Management 10(1) 60ndash78

Dwyer L Mellor R Livaic Z Edwards D amp Kim Cit would be useful to incorporate hot springs visi-

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

lands (2005) New Taiwan Weekly Retrieved from Saaty T L (1980) The analytical hierarchy processPlanning priority setting resource allocation Newhttpwwwnewtaiwancomtwbulletinviewjspbulletin

id=22639 York McGraw-HillSaaty T L amp Kearns K P (1985) Analytical planningHowie F (2003) Managing the tourist destination Lon-

don Continuum The organization of systems New York Pergamon PressHudson S Ritchie J B R amp Timur S (2004) Measur-

Page 15: International Competitiveness in Hot Springs Tourism: An

544 LEE AND KING

(2004) Attributes of destination competitiveness A ing destination competitiveness An empirical study ofCanadian Ski resorts Tourism and Hospitality Planningfactor analysis Tourism Analysis 9(12) 91ndash101

Enright M J amp Newton J (2004) Tourism destination and Development 1(1) 79ndash94Kobayashi H (2000) Onsen in Japan Towards a strongcompetitiveness A quantitative approach Tourism

Management 25(6) 777ndash788 focus on nature and health The Forum on Thermalismin Japan TokyoFaulkner B Fredline E amp Oppermann M (1999) Desti-

nation competitiveness An exploratory examination of Kotler P Haider D H amp Rein I (1993) Marketingplaces Attracting investment industry and tourism toSouth Australiarsquos core attractions Journal of Vacation

Marketing 5(2) 125ndash139 cities states and nations New York Free PressKozak M amp Rimmington M (1999) Measuring touristGearing C Swat W amp Var T (1974) Establishing a

measure of touristic attractiveness Journal of Travel destination competitiveness Conceptual considerationsand empirical findings International Journal of Con-Research 12(4) 1ndash8

Harker P T amp Vargas L (1987) The theory of ratio temporary Hospitality Management 18(3) 273ndash283Lee C -F amp King B (2009) A determination of destina-scaled estimated Saatyrsquos analytical hierarchy process

Management Science 33(11) 1385ndash1403 tion competitiveness for Taiwanrsquos hot springs tourismsector using the Delphi technique Journal of VacationHassan S S (2000) Determinants of market competitive-

ness in an environmentally sustainable tourism industry Marketing 15(3) 243ndash257Manente M amp Minghetti V (2006) Destination manage-Journal of Travel Research 38(3) 239ndash245

Heath E (2003) Towards a model to enhance destination ment organizations and actors In D Buhalis amp C Costa(Eds) Tourism business frontiers Consumers prod-competitiveness A Southern African perspective Jour-

nal of Hospitality and Tourism Management 10(2) ucts and industry (pp 228ndash236) Burlington MAElsevier Butterworth Heinemann124ndash141

Henderson J C (2004) Healthcare tourism in Southeast Matsushita K (1994) Hot springs and forest recreationtourism Mem Fac Agr Kagoshima Uni 30 129ndash143Asia Tourism Review International 7(34) 111ndash121

Hembry P M (1989) The English spa 1560ndash1815 A so- Ritchie J R B amp Crouch G I (2000) The competitivedestination A sustainability perspective Tourism Man-cial history London Athlone Press

Hofstede G (1980) Culturersquos consequences International agement 21(1) 1ndash7Ritchie J R B amp Crouch G I (2003) The competitivedifferences in work-related values Beverly Hills CA

Sage Publications destination A sustainable tourism perspective NewYork CABI PublicationsHot springs proprietors pay hot springs usage fees on public

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