Petra Vasanicova

University of Prešov,

Prešov, Slovakia

E-mail: petra.vasanicova@unipo.sk 

ORCID 0000-0001-7353-2057

Factors influencing business environment within travel and tourism competitiveness

Sylvia Jencova

University of Prešov,

Prešov, Slovakia 

E-mail: sylvia.jencova@unipo.sk 

ORCID 0000-0002-0736-0880

Beata Gavurova

Corresponding Author

Technical University of Košice,

Košice, Slovakia

E-mail: beata.gavurova@tuke.sk 

ORCID 0000-0002-0606-879X

Radovan Bacik

University of Prešov,

Prešov, Slovakia 

E-mail: radovan.bacik@unipo.sk 

ORCID 0000-0002-5780-3838 

Abstract. Business environment is an essential indicator of a country's competitiveness in general, and in the tourism field in particular. The aim of this paper is to examine whether indicators of the Business Environment pillar of the Travel and Tourism Competitiveness Index (TTCI) share common factors. We use TTCI data of seven indicators obtained from World Economic Forum’s Executive Opinion Survey for 119 countries during 2017 and 2019. Factor analysis shows two common factors, namely General legislative conditions (protection of property rights, regulations on foreign direct investment, indicators of legal and judicial systems, and market dominance) and Taxation (specifically, its extent and effect on incentives to work and invest). Data of TTCI show that overall Switzerland, Singapore, Hong Kong, and Finland have the best business environment. Contrastingly, doing business is most difficult in Venezuela, Bolivia, and Mauritania. The specific findings are very similar for both analysed years. The results of this study could be useful in any attempts to manage the business environment in travel and tourism.

Received: February, 2021

1st Revision: March, 2021

Accepted: October, 2021

DOI: 10.14254/2071-789X.2021/14-4/15

JEL Classification: L83, Z38, L59

Keywords: business environment, competitiveness, tourism, index, taxation, legislative conditions, factor analysis