Role of destination competitiveness and national corruption in hotel performance: A study of developing economies of Central America

ABSTRACT

The objective of this study was to investigate the relationship between destination competitiveness (DC), national corruption and hotel performance (HP). A panel data analysis was applied to the Central American region. The results reveal that corruption has an impact on DC and HP. Such findings are important for the region as many of the countries are battling high levels of corruption while developing tourism industry. In addition, DC was found to have a unidirectional impact on HP. These findings provide a number of theoretical and managerial implications, reinforcing the role of a “shadow” economy and the importance of tourism.

KEYWORDS:

• Destination competitiveness
• hotel performance
• national corruption
• developing economies
• Central America

Acknowledgments

The authors would like to acknowledge the cooperation of STR, Nashville, TN, USA for providing the data.