This paper examines competitiveness and efficiency issues related to destinations in the Mediterranean Region. Following a detailed discussion on methodology, a hedonic analysis is performed, where the price of holiday packages is regressed on a number of package characteristics, operator and location scaling factors. Those, which are statistically significant among the latter, are subsequently used into a second-step correlation framework, which aims at offering a valid interpretation of the observed price differentials among core and peripheral holiday destinations. On these grounds, a number of policy measures are finally discussed.


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