Destination competitiveness analysis for creative crafts industries in Bantul Yogyakarta Indonesia
Destination competitiveness analysis for creative crafts industries in Bantul Yogyakarta Indonesia

Summary/Abstract: Escalating competition among destinations has become more obvious. Shopping for handicrafts is one of important activities in tourism. Handicraft industry is a low technology, labor intensive, and run dominantly by small medium enterprises (SMEs). Handicraft industry is one of creative industries sector in Indonesia that promises to accelerate the growth of the Indonesian economy. To remain competitive, understanding on the competitive nature of handicrafts market need to be continuously monitored and adjusted to SMEs strategies. Using partial least squares path modeling on a cross-sectional sample of 54 SMEs owners in Bantul Yogyakarta, this study examines relationships among factors of destination competitiveness with clusters competitiveness and socio-economic welfare. The predictors assessed include given resources, created resources, related-supporting factors, demand conditions and strategy-structure-rivalry. Results indicate that supporting factors and strategy-structure-rivalry are not significantly impact on cluster competitiveness. The new final model was found that clusters competitiveness mediates the relationships between three destination competitiveness factors and socio-economic welfare. This study enriches theories on destination competitiveness, particularly in assessing clusters as the object of the study. The results are also important for policymakers in strengthening destination competitiveness strategy.

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