1 Introduction

Tourism plays a crucial role in the economic development of many nations, particularly in developing economies, where it can be a significant driver of growth and employment. Formerly marginalized in the tourism sector, the developing world has now evolved into a key driver of its expansion [1]. However, advanced nations consistently hold top positions in the World Economic Forum (WEF) Travel and Tourism Competitiveness Index. Meanwhile, developing economies express concerns regarding environmental sustainability, human resources, job prospects in tourism, and the prioritization of tourism [2]. According to Sanches-Pereira and associates [3], developing countries have yet to fully capitalize on their tourism potential. Therefore, understanding the factors that contribute to tourism competitiveness in developing economies is essential for policymakers, industry stakeholders, and researchers alike.

Numerous studies have explored tourism competitiveness, aiming to comprehend the diverse factors influencing a country’s capacity to attract and retain tourists [4,5,6,7,8,9,10]. The evaluation of a country’s tourism competitiveness encompasses an analysis of various dimensions, including natural and cultural resources, infrastructure, policy environment, and overall appeal to tourists. The majority of these studies were carried out in well-established destinations and emphasize the viewpoints of tourism experts and industry practitioners, who are deemed to possess the highest level of knowledge regarding management and competitiveness [11]. Unfortunately, the perspective of residents has been largely overlooked.

Residents, as integral stakeholders, contribute to the co-creation of the destination’s identity, influencing its attractiveness and sustainability. They play a crucial role in shaping the destination’s image and influencing the overall visitor experience. To achieve sustainable and inclusive tourism development in any country, particularly a developing one, and to ensure the overall well-being of local communities, residents’ attitudes towards tourism development should be acknowledged [12]. Positive attitudes can contribute to a welcoming and friendly environment, enhancing the competitiveness of the destination in the global tourism market. The residents’ perspective is crucial because they are the primary stakeholders who directly experience the consequences of tourism activities in their daily lives. Residents of different destinations may have a different view of what characterizes a good stay and well-being in a destination compared to experts or tourists [13, 14]. Unlike tourists, residents tend to have a more complex interpretation of a destination, as it holds greater significance for them beyond being just a vacation spot. For residents, a tourist destination is a social place where they earn their livelihood, interact with community members, utilize resources that influence their living and working conditions, and enjoy natural resources and cultural offerings for their personal well-being. When they have the opportunity to leverage these resources, they actively engage in tourism-related activities by providing services to tourists [15]. Additionally, these residents possess local knowledge that can enhance the tourist experience by recommending attractions or facilities to visit [16]. Thus, their role in evaluating destination attributes is significant, as they serve as prosumers—both consumers of local services and co-creators of the tourist experience. Moreover, the evaluation of destination attributes is complex for this group of stakeholders, as their perspectives can significantly impact the residents' quality of life [17]. Therefore, the aim of this study is to assess the key determinants of tourism competitiveness in a developing country from the residents’ viewpoint.

In this context, Serbia was chosen as the research area because it is an emerging tourism destination and a developing economy actively seeking a stronger presence in the global tourism arena. Strategically located in Southeast Europe, Serbia boasts a diverse cultural and historical heritage, abundant tourism attractions, and faces notable developmental challenges, sustainability efforts, and deliberate market positioning. This makes Serbia an interesting area for studying tourism destination competitiveness (TDC). The country holds a relatively modest competitive position globally, ranking 83rd among 140 countries listed in the WEF Travel & Tourism Competitiveness Report 2019 [2]. The World Travel & Tourism Council (WTTC) reported that in 2021, the total contribution of travel and tourism to Serbia’s GDP was 3.6%, and it accounted for 5.4% of employment [18]. Recognizing tourism as a priority sector, Serbia aims to leverage it for overall economic and social growth [19]. However, academic studies on TDC in Serbia are scarce and primarily focus on the perspectives of tourism experts and industry practitioners [20,21,22,23]. To the best of the authors’ knowledge, no attempt has been made so far to investigate residents’ opinions towards TDC in Serbia. Therefore, this study is significant as it aims to address this gap by developing a tailored competitiveness model that considers Serbian residents’ attitudes toward competitiveness indicators.

Through a comprehensive analysis, the study aims to shed light on the key factors influencing the tourism competitiveness of a developing economy, thereby offering valuable policy recommendations for fostering sustainable tourism development in developing economies. The paper is structured as follows: Sect. 2 sets the theoretical framework, Sect. 3 describes the methodology, Sect. 4 presents the main results, Sect. 5 provides a discussion, and Sect. 6 outlines the main conclusions.

2 Literature review

2.1 The role of residents in assessing the competitiveness of a tourist destination

Tourist destinations that demonstrate the ability to foster economic prosperity or environmental well-being, while also prioritizing environmental conservation and enhancing residents’ quality of life, are likely to positively influence residents’ perceptions of tourism and increase the overall destination’s competitiveness [24, 25]. Numerous empirical studies have been conducted to date, applying various TDC models. These studies utilize data on specific destinations to assess the significance of attributes relevant to tourism competitiveness [11, 26]. It is unlikely that all these factors have the same impact and significance in shaping the level of competitiveness for different stakeholders within the tourism industry. Nonetheless, it is crucial to establish a comprehensive list of relevant variables and promote research conducted from the perspective of various stakeholders for a thorough understanding of a destination’s competitiveness. The role of residents in assessing destination competitiveness can be approached from different aspects. When managing the competitiveness and development of a destination, it is important to take into account local perspectives, as residents are inherent and deeply engaged stakeholders. Furthermore, the residents’ perspectives become increasingly significant, particularly in organizational aspects, as residents will assume a foundational role in presenting the destination's image, preserving its heritage, and enhancing its attractiveness [9, 27].

Research focusing on destination image states that residents’ positive perceptions of the destination image may positively influence their views on the impacts and changes imposed by tourism in the community [28]. Since destination image serves as a reliable measure of destination attractiveness, it naturally contributes to the destination's competitiveness [29]. As a result, residents play a crucial role in strengthening the destination image, which is vital for setting the place apart from other destinations [9]. This, in turn, can increase their intention to support the development of tourism and enhance the destination’s competitiveness. When considering the contribution of communities to promoting tourism development, residents are recognized as both carriers and actors in destination marketing and competitiveness efforts. The competitiveness of a destination encompasses not only its natural landmarks but also its unique cultural and heritage aspects inherent to the locality. Strzelecka and associates [30] discovered that residents with deeper knowledge and comprehension of natural and cultural resources manifest a stronger sense of place attachment. This indicates that residents perceive various aspects of destination competitiveness that are closely related to the distinctive local environments and accessible resources at destinations. Initially, residents tend to perceive certain characteristics of TDC at a high level, including natural and cultural competitiveness. Ahn and Bessiere [15] examine that distinctive regional characteristics like contextual and natural competitiveness are valued as crucial tourism assets by residents. Additionally, technological advancements such as mobile applications, artificial intelligence, virtual reality, and online information are recognized as significant elements of destination competitiveness. Consequently, practitioners and governments should aim to maximize the utilization of these competitive resources, foster the development of innovative travel products and activities, and create strategies for successful and sustainable destination management. Success for a tourist destination is often measured by various indicators such as the number of tourists, tourism revenue, length of stay, visitor satisfaction, and the destination’s image. However, true success goes beyond these quantitative measures to include qualitative aspects like resident satisfaction, environmental sustainability, and the overall quality of life for those living in the destination.

The connection between competitiveness and success lies in a destination’s ability to balance the needs and expectations of tourists with the well-being of its residents and the sustainability of its resources. A highly competitive destination that attracts many visitors might not be truly successful if it neglects the quality of life of its residents or the preservation of its natural and cultural assets [14]. Conversely, a destination that prioritizes resident satisfaction and sustainability is likely to achieve long-term success, fostering a supportive community and preserving its appeal for future visitors. Research by Dwyer [14, 31] emphasizes the importance of incorporating broader measures of success into the evaluation of destination competitiveness. This includes considering factors such as resident well-being, environmental impact, and socio-cultural benefits.

Bu and associates [9] analyzed residents’ attitudes toward tourism development, focusing on perceived advantages, experienced effects, and willingness to support tourism initiatives. Their research highlighted residents’ belief in the government’s pivotal role in enhancing a destination’s image and competitiveness. This underscores the need to prioritize enhancing residents’ quality of life and well-being through tourism. Effective destination governance stresses the involvement of residents in the development process [32] acknowledging their direct experience of tourism's impacts [33]. Prioritizing residents’ interests is crucial for maximizing benefits from tourism development and fostering sustainable destination growth [30, 34]. Detailed insights into residents' perspectives can validate planning processes and promote community-based sustainable development approaches [35]. Studies indicate that residents may perceive environmental impacts of tourism negatively. Gajdosik and associates [33] highlighted concerns such as noise pollution, water and air pollution, and issues with parking and construction. On the other hand, Vodeb [36] emphasized the importance of early engagement with residents in destination development to secure their participation and manage expectations effectively. This collaborative approach ensures that actions align with community interests and receive local support.

The role of residents in shaping the competitiveness of a destination is often underestimated but becomes apparent through their attitudes toward tourists and their impact on enhancing visitor experiences and the overall destination atmosphere. Previous studies have explored residents’ emotional responses and attitudes toward tourists [37], their behavioral interactions with tourists [25], and their cognitive assessments of tourism [38]. Local residents play a crucial role in shaping the visitor experience by actively participating in and contributing to tourism products and services. Positive interactions between residents and tourists contribute to a favorable destination image, thereby increasing competitiveness [9, 27]. Tse & Wing Sun Tung [25] highlight various strategies for policymakers in the tourism sector to foster positive resident-tourist interactions, thereby enhancing destination attractiveness and competitiveness.

Studies also examine how residents act as ambassadors for their destinations, influencing others, including family and friends, to visit their hometowns [39, 40]. As reliable informants, residents actively contribute to the uniqueness and attractiveness of their city when recommending it [41]. Thus, destination management organizations (DMOs) could benefit from involving residents more actively in destination promotion, potentially boosting both competitiveness and effective promotion [25].

Several studies have examined the economic impact of tourism from residents’ perspectives, revealing that residents typically view these impacts positively [42]. The competitive attributes of a destination can enhance its economic benefits, particularly when residents effectively utilize local resources [43]. This perspective suggests that increasing household income can confer a competitive advantage. Residents achieve this through various tourism-related business activities, such as selling handmade goods, running restaurants, and providing services as local travel agencies and guides [31, 44].

Research on residents’ perceptions of tourism development and competitiveness primarily focuses on identifying, quantifying, and comparing different attributes that potentially shape perceptions of tourism and its effects [33]. Bu and colleagues [9] argue that tourism planners should actively seek input and recommendations from local residents regarding destination management and promotion, thereby evaluating resources as critical factors contributing to competitiveness. Additionally, tourism planning initiatives should offer opportunities for residents to engage in various activities and foster effective coordination among stakeholders.

While it is crucial for destinations to establish long-term competitive strategies aimed at enhancing their ability to offer diverse tourism experiences, it is equally important to understand how local residents perceive the competitiveness of their destination. Most significantly, local residents play an active role in contributing to tourism planning [45]. Despite this pivotal role, there remains a noticeable gap in the tourism literature regarding the analysis of residents' perceptions of destination competitiveness and their influential role in shaping this process. To address this gap, the present study aims to evaluate the developed model of competitiveness specifically with the local population as the target group. Developing and refining a measurement model tailored to assess residents' perspectives on tourism destination competitiveness involves creating comprehensive frameworks that capture their perceptions across different dimensions such as natural and cultural resources, quality of tourism offerings, infrastructure, management frameworks, and environmental concerns. While literature on residents’ perspectives regarding tourism destination competitiveness is currently limited, this research may prove valuable in conducting studies across developing economies to understand variations in resident attitudes and factors influencing tourism competitiveness.

The paper also outlines key points and highlights the gaps in research regarding the role of residents in evaluating TDC (see Table 1). Such research enables tourism planners and policymakers to assess the strengths and weaknesses of destinations [23, 46,47,48,49], drawing insights from local residents. The objective is to create a model that is tailored to the preferences and perspectives of this target group, thereby promoting the significance of local involvement and participation. Given the dynamic nature of destinations, which evolve over time and undergo continuous change, the primary contribution of the present study is to identify the key determinants and planning factors that residents perceive as crucial for enhancing the competitiveness of their destination.

Table 1 Summary of key points and missing research topics on the role of residents in assessing TDC
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3 Methodology

The creation of the model is performed in three stages: In-depth literature review, Pilot testing and Model set and validation.

3.1 In-depth literature review

In order to generate a pool of indicators for measuring TDC, a detailed literature review has been done, taking into account the Scopus database in the period of from 2000 to March 2022. A total of 558 papers with the main keywords “destination competitiveness” and “sustainable tourism indicators” were selected for the analysis, while after initial screening, 232 papers were selected as relevant for further analysis. Most of these studies utilized established models for TDC evaluation, particularly relying on well-known models such as the Integrated Destination Competitiveness model [50] or the Ritchie and Crouch [51] model, emphasizing the perspectives of tourism experts and industry stakeholders, while overlooking the viewpoint of residents. In the second round of analysis, 12 tourism experts from Serbia reviewed the indicators extracted from relevant papers and removed repetitive and irrelevant items for the analysis of TDC. After a long process of purifying the relevant indicators, a list of 165 indicators was extracted and included in the pilot questionnaire for local communities.

3.2 Pilot testing

Pilot testing was conducted from June to August 2022 via email and standard paper-pen surveys with representatives of local communities in Serbia. Participants were randomly selected from major cities and tourism destinations such as Subotica, Novi Sad, Belgrade, Niš, Leskovac, Zlatibor, and Kopaonik. The pilot research aimed to eliminate any misunderstandings related to the questions and to remove indicators that community members lacked sufficient knowledge to evaluate. Respondents were asked to estimate the relevance of each of the 165 indicators for measuring the tourism destination competitiveness (TDC) of Serbia on a Likert scale from 1 to 5 (1—not relevant at all, 5—very relevant). They were also given options to mark 6 if a question was “not well formulated” and 0 if they felt they “didn’t have enough knowledge.”

Indicators were divided into logical groups to facilitate the elimination and evaluation process. Pilot testing was conducted on a sample of 30 representatives of local communities. Typically, preliminary pilot tests are administered to a small set of respondents, with a sample size of about 30 to 50 individuals [52]. Afterwards, the responses were analyzed, and indicators were ranked based on the mean values of the answers and standard deviations. Indicators with a mean value below 4 and high standard deviations were marked for exclusion from the study. Additionally, any indicators that were unclear or beyond the scope of local knowledge were eliminated. From the initial 165 indicators, 60 relevant indicators were identified for the final stage of the research.

3.3 Model set and validation

3.3.1 Participants

A total of 456 representatives from local communities across Serbia participated in the final stage of the research. For model validation, the sample was divided into two parts: Sample 1 (N = 153 respondents) was used for Exploratory Factor Analysis (EFA), while Sample 2 (N = 303 respondents) was used for Confirmatory Factor Analysis (CFA). In both samples, there were slightly more female respondents. The age range was from 18 to 73 in Sample 1 and up to 75 in Sample 2. The highest number had completed secondary school, followed by those with higher education. Additionally, the majority of the sample were not employed in tourism.

3.3.2 Procedure and research instrument

The field research with the local population of Serbia was carried out from June until December in 2023. A total of 456 respondents from all over Serbia participated in the survey. The largest number of respondents are from Belgrade, Novi Sad, Niš, Subotica, Leskovac, Užice, Kopaonik and Zlatibor, but the sample also includes subjects from the rest of Serbia. One of the primary criteria for conducting the research was selecting cities and tourist regions that play a significant role in Serbia’s tourism industry, offer diverse tourist attractions, and have the potential to provide a comprehensive understanding of the factors influencing TDC. The sample selection was random, with the condition that respondents reside in the given city/destination and are above 18 years old.

The survey instrument consisted of 60 items measuring TDC of Serbia, which were extracted in the previous phases of model building, as well as socio-demographic characteristics of the respondents. The participants were asked to evaluate their agreement with the statements referring to TDC of Serbia on a 5-point Likert scale (1-I totally disagree, 5-I totally agree). The research was conducted using standard paper-and-pen surveys by 10 trained researchers who collected data in the field. Additionally, respondents were offered the option to complete the survey via tablet or mobile phones to accommodate different preferences and ensure maximum reach. Researchers conducted on-site intercept surveys at key locations such as parks, shopping centres, public transportation hubs, tourist attractions, as well as during some local events and gatherings. This involved directly approaching individuals in these areas and inviting them to participate in the survey. In some cases, local tourism organizations helped to distribute the survey and encouraged participation. Small incentives, such as faculty promotional gifts (e.g. pencils, folders, notepads) were offered to encourage participation. Clear and concise information about the purpose of the survey, its importance, and how the data would be used was provided to potential respondents. The survey was anonymous and voluntary, but respondents were asked to provide some basic information such as age, gender and education (Table 2). Statistical software IBM SPSS 23 and AMOS were used for data analysis.

Table 2 Basic characteristics of respondents (in %)
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4 Results

4.1 Exploratory factor analysis (EFA)

In order to identify the latent dimensions of Serbia's TDC, EFA was conducted on sample 1 (N = 153 respondents). Item analysis showed a high KMO = 0.923, and the statistically significant value of Bartlett’s sphericity test was confirmed (χ2 = 9896.90, df = 2485, p < 0,000). The analysis of item correlations revealed a significant number of correlations with values above 0.3, which led to the conclusion that the data are suitable for EFA. Items that had factor loadings lower than 0.3 (a total of 10 items) were excluded from the further analysis [53]. The method of principal components with Promax rotation (due to established correlations between factors) and Kaiser normalization was used to extract factors. As a result, considering only factors whose eigenvalues were equal to or greater than one, five factors were extracted with total of 50 items, which explain 50,56% of the variance. The five identified factors are: F1 Natural and cultural resources, F2 Quality of Tourist offer and infrastructure, F3 Situational conditions for tourism development and management, F4 Destination perception and experience, and F5 Pollution. The results of EFA are presented in Table 3.

Table 3 The results of EFA—Factor structure and factor loadings
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4.2 Confirmatory factory analysis

CFA is used on sample 2 (N = 303 respondents) to validate and confirm the factor structure obtained by EFA. The AMOS program for the Windows operating system was used for CFA. The Mardia index of multivariate kurtosis was above 3 for all tested models, indicating significant multivariate kurtosis. Therefore, it was justified to use robust methods and indices based on this method [54]. The fit or appropriateness of the model was assessed using the following indices: Sattora-Bentler χ2 (S-B χ2)—if it is insignificant, then the model has a good fit, but since it is sensitive to the number of respondents, it is mostly significant in a greater number of cases, Standardized Root Mean-Square Residual (SRMR), Root Mean-Square Error Of Approximation (RMSEA)—SRMR and RMSEA should be less than 0.08 [55], Comparative Fit Index (CFI), Normed Fit Index (NFI), Non-Normed Fit Index (NNFI)—if the CFI, NFI and NNFI are over 0.90, the model has a good fit [56]. In order to achieve adequate fit indices, modification indices were used with which AMOS suggests and proposes changes to the model.

When the first model obtained by exploratory factor analysis was tested, satisfactory fit indices were not achieved. First, it was suggested that several items should be excluded because they achieved saturation on several factors simultaneously (8 items in total). Moreover, the items that initially were part of the factor Situational conditions for tourism development and management (The positioning of the country as a tourist destination on the international market is effective, Social networks are effectively used to support the marketing activities) are suggested to be a part of the factor Destination perception and experience.

After these changes, the model was run again, and although the fit indices were visibly improved, a satisfactory fit index was still not achieved. The modification indices now suggested the exclusion of 10 more items. The final modifications related to the addition of correlations between individual items that belonged to the same factors. After these changes, a satisfactory fit model and the final structure of the competitiveness model were achieved. The final model consists of five factors: 1. Natural and cultural resources, 2. Quality of tourist offer and infrastructure, 3. Situational framework of tourism development and management, 4. Destination perception and experience and 5. Pollution.

The final fit indices are shown in Table 4.

Table 4 Fit indices of the tested model
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The final model is shown in Table 5, it consists of the five mentioned factors and a total of 32 indicators.

Table 5 Structure of the final model of competitiveness of the tourist destination (local population)
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Factor 1: Natural and cultural resources is a factor referring to natural and cultural resources (tangible and intangible) of Serbia. Factor 2: Quality of tourist offer and infrastructure—refers to the quality of tourist infrastructure, signalization and accessibility of destination, including the quality of tourist offer and activities. Factor 3: Situational framework of tourism development and management—refers to the extent to which the conditions in Serbia are favourable for tourism development. This factor also contains items related to sustainability and ethics in tourism, i.e., local community support for tourism development, tourism companies operate in accordance with ethical principles etc. Factor 4: Destination perception and experience—refers to the perception of the brand, the image of Serbia as a tourist destination, destination positioning, but also quality of the overall experience at the destination. This factor also includes an assessment of the possibility of booking services, and the willingness to recommend Serbia as a destination to others. Finally, the last extracted factor is Factor 5: Pollution, referring to the assessment of the noise level, water and air pollution. This factor is of immense importance, as it indicates that local population consider pollution as important element of TDC.

4.3 Descriptive statistics and measurement model validity

Descriptive statistics for all variables are presented in Table 6. It can be seen that Cronbach’s alpha coefficient for all variables/dimensions is above 0.7. This means that the instruments used in the study are reliable and that they measure the given constructs. The results show that Natural and cultural resources are the best-rated factor in Serbia's competitiveness as a tourist destination, which means that Serbia has rich cultural and natural resources and great potential for tourism development. The lowest rated factor is the Factor 3: Situational framework of tourism development and management, especially the item Political values, the overall political situation and stability in Serbia are favourable for the development of tourism. Only one item in this group exceeds 3.5, which is the residents support the development of tourism. This is followed by factor Quality of tourist offer and infrastructure, where the items related to the transport infrastructure and signalization Local tourist and traffic signalization is in line with the needs of tourists, a high-quality air traffic infrastructure and A high quality bicycle and pedestrian paths are the lowest rated together with the item Quality offer of amusement and theme parks. On the other hand, the highest rated item in this group is Diverse and high-quality restaurant offer. The concerning fact is also that Pollution is rated above 3.5 which could negatively influence competitive position of Serbia on travel market.

Table 6 Descriptive statistics and measurement model validity
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The data obtained from the research pointed to the basic shortcomings that affect the competitiveness of Serbia as a tourist destination, and they should be the focus of further tourism strategies and initiatives.

Before conducting CFA, convergent and divergent validity of the constructs was calculated to check the measurement model validity. The convergent validity of each dimension was examined by calculating the score of the average variance extracted (AVE, [57]). A substantial convergent validity is achieved when all item-to-factor loadings are significant and the AVE score is higher than 0.50 within each dimension, but AVE of 0.40 is still acceptable if the composite reliability (CR) is higher than 0.60 [58]. Results showed that all dimensions had AVE higher than 0.40 and CR higher than 0.60 (Table 6) which indicates good convergent validity. Discriminant validity was then checked by comparing the average variances extracted (AVEs) for each latent factor with the squared correlation estimates between latent constructs. Fornell and Larcker [57] noted that the discriminant validity is guaranteed when the AVEs are greater than the squared correlation estimates (Table 7).

Table 7 Correlation estimates and average variances extracted
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5 Discussion

The primary aim of this study was to address significant gaps identified in previous TDC research. These gaps primarily include the lack of consideration for residents’ attitudes towards TDC indicators and the absence of specifically tailored models to assess destination competitiveness in developing countries from the residents' perspective. Existing literature has predominantly focused on residents' perceptions of destination image [9, 28, 29] or place attachment [30, 59], but lacked comprehensive models for measuring destination competitiveness. It is evident that residents possess specific knowledge, information, and emotional attachment to their living destinations [60]. Therefore, assessing competitiveness from their viewpoint requires specific indicators, which may differ in some aspects from traditional TDC models where assessments are typically conducted by tourism stakeholders or tourists. To address these gaps and contribute to theory in this area, our research employed a multi-step approach. This approach included a literature review of existing models, pilot testing for indicator selection, and model validation through CFA. Through this rigorous scientific process, we selected indicators and validated a model structure tailored for assessing residents’ perceptions in developing economies. This model represents the first of its kind in the existing literature on this topic, marking a significant theoretical contribution. The final model of the study comprises five factors: Natural and cultural resources, Quality of tourist offer and infrastructure, Situational framework of tourism development and management, Destination perception and experience and Pollution, encompassing 32 indicators. The model is tailor-made through pilot testing, where residents themselves identified indicators, they could assess based on their knowledge, experiences and information levels. Those indicators were further validated through survey research involving another sample of residents, and tested through EFA and CFA.

The application of this model to Serbia, a developing economy, has yielded insightful findings. Previous research has highlighted residents’ significant role in assessing natural and cultural resources [30] and shaping destination image [9, 28, 29], given their extensive knowledge and role as destination promoters and ambassadors. This aligns with two factors in our model: Natural and cultural resources, and Destination perception and experience. Additionally, our model underscores residents’ crucial role in evaluating the Quality of tourist offerings and infrastructure. Residents often utilize tourism infrastructure extensively [61], granting them firsthand insights into its quality. Moreover, some residents are directly involved in tourism-related businesses, providing further expertise in this area [15, 44]. A novel aspect of our model is the recognition of residents’ capability to assess the Situational framework of tourism development and management. This factor evaluates the conditions favoring tourism development at a destination, a role traditionally fulfilled by tourism stakeholders without residents’ input [32, 45]. Furthermore, sustainability factors, crucial for competitiveness in developing countries, receive attention through the Pollution factor, which reflects residents’ concerns about environmental conditions at their destination. This tailor-made model for residents’ assessment of TDC serves as a new tool for enhancing local involvement and participation in TDC assessment, particularly beneficial for developing economies in their early stages of tourism development [3]. Engaging residents in understanding factors influencing TDC is essential for effective tourism decision-making and planning processes.

Additionally, this study contributes to the limited understanding of residents' attitudes toward TDC in Serbia, marking the first inclusion of their perspectives in the competitiveness assessment. It offers long-term recommendations for integrating residents into the assessment process. The model indicates that Serbia's primary competitive advantage lies in its natural and cultural resources, while significant opportunities for improvement exist in the other four factors. Residents express concerns about the Situational framework of tourism development and management, particularly noting political stability as a factor negatively impacting destination competitiveness. They also highlight areas needing improvement in the Quality of tourist offerings and infrastructure. Pollution emerges as another concern, with residents indicating room for enhancing environmental sustainability to bolster Serbia's competitive position. A detailed analysis of each factor's components provides valuable insights for destination managers regarding residents' perceptions of the current state of TDC, identifying major gaps and advantages.

6 Conclusion

Numerous empirical studies have utilized various models to assess TDC predominantly from the perspectives of tourism experts and industry practitioners, often overlooking the viewpoint of residents. Establishing a comprehensive list of TDC variables and promoting research that incorporates perspectives from diverse stakeholders are crucial for a comprehensive understanding of TDC. Notably, destinations that successfully foster economic prosperity and environmental conservation while enhancing residents' quality of life tend to positively influence residents’ perceptions and overall TDC. This study focuses specifically on developing economies, which face unique challenges and opportunities in tourism development. The model developed is tailored to these contexts, providing insights that are more relevant and applicable to similar countries, thereby enhancing the theoretical framework of TDC in these regions.

To date, several studies have highlighted the significant role of residents, among other stakeholders, in comprehending and enhancing destination competitiveness. Their active involvement contributes to enhancing the destination's image, preserving its heritage, and increasing its overall attractiveness. Moreover, positive resident perceptions of the destination’s image can improve their attitudes towards tourism impacts and changes, thereby enhancing overall competitiveness. Success in tourism goes beyond mere quantitative metrics such as tourist numbers and revenue; it encompasses qualitative factors like resident satisfaction, environmental sustainability, and overall quality of life. Hence, achieving a balance between the needs of tourists, the well-being of residents, and the sustainability of resources is critical for long-term success. Integrating residents’ attitudes provides a more holistic view of TDC and acknowledges the pivotal role of the local population in shaping a welcoming and hospitable environment.

Finally, by understanding residents' perceptions across various dimensions such as natural and cultural resources, tourism offerings, infrastructure, management frameworks, and environmental aspects, tourism planners and policymakers can better assess the strengths and weaknesses of destinations. Encouraging local involvement and participation in tourism planning is vital, given the dynamic nature of destinations. This research helps identify the key determinants and planning factors that residents perceive as important for the competitiveness of their destination, highlighting the significance of local involvement in shaping successful and sustainable tourism development. The final model in this study consists of five distinct factors: Natural and cultural resources, Quality of tourist offer and infrastructure, Situational framework of tourism development and management, Destination perception and experience, and Pollution. These factors provide a comprehensive framework for assessing TDC from a residents' perspective, which can be used as a benchmark for future studies.

7 Practical implication

The practical application of the model lies in the fact that it is made to be used for the continuous evaluation of destination competitiveness by residents in developing economies. This could be performed as a regular research procedure of local or regional tourism organisations that could include residents in assessing destination competitiveness together with other important target groups such as tourism stakeholders and tourists. The model highlights the importance of community engagement in tourism development. By fostering positive attitudes among residents, destinations can enhance their attractiveness and competitiveness in the global market. The model provides a structured framework for evaluating TDC, which can be used by researchers and practitioners to benchmark performance and identify areas for improvement. Policymakers can use the model to understand residents' attitudes towards tourism, enabling them to create policies that align with local needs and preferences. This can lead to more sustainable and accepted tourism development strategies. Industry stakeholders can utilize the insights from the model to enhance the quality of tourist offerings and infrastructure, ensuring they meet both resident and tourist expectations. This can improve overall satisfaction and competitiveness. By considering factors such as pollution and the situational framework of tourism development, the model encourages sustainable practices that benefit, the environment, the local community, and visitors. It should be also emphasized that TDC is a multi-faced concept and its assessment requires the involvement of all important stakeholders at the destination in order to get a concrete pathway to increasing tourism competitive position on the market. The involvement of the local population in evaluating competitiveness may necessitate significant shifts in attitudes toward tourism planning, development, management, and destination marketing. Anticipated outcomes include a broader understanding of the factors contributing to destination competitiveness and clearer insights into the population’s role in this process. Developing a model to measure residents’ perspectives on tourism competitiveness ensures greater relevance to the diverse realities of various destinations, considering that the validation and adaptation of existing models might be less effective across different cultural and geographical contexts. The practical benefits of the application of the model are numerous. However, the most important is the fact that measuring residents’ attitudes about destination competitiveness is essential for creating a balance between the economic benefits of tourism and the well-being of the local community. It allows for sustainable development, positive destination branding, and the creation of an overall positive experience for both residents and visitors.

Based on the research findings, we propose several recommendations for policymakers to enhance Serbia’s TDC:

  1. 1.

    Engage residents: Involve residents in tourism planning and decision-making processes, as well as in TDC assessment, to foster more sustainable and accepted tourism development strategies.

  2. 2.

    Utilize the new model: Apply the newly developed model tailored to capture residents’ TDC assessments in developing economies, gaining comprehensive insights into the strengths and weaknesses of the destination from a local perspective.

  3. 3.

    Regular monitoring: Implement a regular monitoring system using this model to track changes in TDC over time, helping to identify trends, policy impacts, and areas needing improvement.

  4. 4.

    Focus on quality improvement: Address residents' concerns regarding the quality of tourism infrastructure and services. Improvements in these areas can enhance both resident and tourist satisfaction, boosting overall competitiveness.

  5. 5.

    Address environmental concerns and promote sustainability: Recognize environmental sustainability as a key competitiveness factor. Implement measures to reduce pollution and improve environmental conditions, responding to residents’ concerns and enhancing the destination’s appeal. Encourage sustainable tourism practices that benefit both the environment and the local community.

  6. 6.

    Improve tourism development conditions: Address residents’ concerns about the situational framework of tourism development, particularly regarding political stability and favourable conditions for tourism growth, to significantly enhance the destination’s competitiveness.

  7. 7.

    Strive for sustainable development: Ensure that tourism development strategies balance economic benefits with the well-being of the local community. This includes considering residents’ satisfaction, environmental sustainability, and overall quality of life in tourism planning and development

8 Limitation and further research

The current study also has certain limitations. Firstly, the model has been tested in one developing economy (Serbia) chosen as a case study to conduct initial research. The model should be applied and replicated in other developing economies to confirm and validate the structure and prove the comparability of results obtained in various developing economies. Secondly, since this was an initial study aimed at creating a new model, the research was conducted only once. Continuous monitoring and longitudinal studies are necessary to track progress and draw conclusions about changes in destination competitiveness. Longitudinal studies play a crucial role in evaluating TDC by offering insights into trends, policy impacts, and causal relationships over time. Such information is vital for making informed decisions, especially in developing economies where understanding the long-term effects of tourism policies and interventions is critical.

Future research should also examine the impact of certain independent variables (such as their active engagement in tourism, tourism and pro-environmental attitudes etc.) and sociodemographic characteristics on residents’ perceptions of TDC. It would be also beneficial to reshape, modify and test the model for different target groups such as tourists or tourism stakeholders to enable a holistic approach to TDC research in developing countries.