Regional Tourism Development

Local natural and cultural resources should be the basic elements to differentiate destinations through innovative products and services, in order to ensure both their competitiveness and sustainability in the long run. This chapter covers a critical literature review on the topics of innovation, differentiation, competitiveness, and sustainability in tourism. A panel data model is developed in order to define regional demand functions for regions in Portugal, Spain, France, and Italy, estimating the influence of natural and cultural heritage, innovation, and other “traditional” factors of competitiveness on the attractiveness of tourism destinations.