Abstract:
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The existing and potential tourism flows into destinations are directly linked to its overall
competitiveness. The main objective of this study was to examine the competitiveness of Lalibela
town as tourist destination. The study employed both descriptive and explanatory research designs
in line with mixed research approach. In total, 324 respondents were selected from the target
population of the study using census sampling and seven key informants were selected using
purposive sampling technique. Both primary and secondary data sources were employed. Survey
questionnaires and interview were used to collect primary data. Literature from books, articles,
documents and unpublished thesis were used for secondary data sources. The quantitative data
was analyzed through descriptive statistics(frequency, percentage, mean and standard
deviation)and inferential statistics (Pearson correlation and Multiple linear regression) through the
help of Statistical Package for Social Science version 20. The qualitative data was analyzed
through narrative analysis. Situational conditions and supporting factors had strong positive and
significant relationship with destination competitiveness. Whereas, destination attractors,
destination management and demand condition had moderate positive and significant effect with
destination competitiveness. destination attractors (β=.733, p-value=.000), situational conditions(β
=.694, p-value =.000) and demand conditions (β =.482, p-value =.000) had greater effect in
predicting destination competitiveness. Whereas, supporting factors (β=.289, p-value=.000) and
destination management (β =.088, p-value =.024) had least effect in predicting destination
competitiveness. The researcher recommended that all tourism stakeholders should sustain and
enhance the five destination competitiveness factors for the destination competitiveness of Lalibela
town as tourist destination.