*2.3. Neighboring Countries*

Neighboring countries might compete for the same visitors, or there might be complementarity. Kadir and Abd Karim (2009) reported complementarity among Malaysia, Thailand, and the Philippines for British and American tourist flow. Tourists tend to visit all three countries on the same trip, similar to a travel package.

Patsouratis et al. (2005) investigated tourism competition among Mediterranean countries. Greece, Portugal, and Spain offer quite similar products (beaches, sun, sea, etc.), and thus, they are competing tourist destinations. Greece and Spain are major competitors for British visitors. Increased prices in Spain will increase the demand for visiting Greece. Since it is more expensive to stay in Spain, many travelers will replace Spain with Greece. Añaña et al. (2018) identified significant competition between destinations, where the price level is just one of many factors that influence the choices that travelers make.
