Enhancing the Competitiveness of Small and Medium-Sized Tourism Enterprises

independently produced elements which effectively constitute tourists’ total experience of the destination. However, due to their vulnerability, deficient marketing and management functions, and dependence upon distribution channel partners they also tend to jeopardise the benefits of tourism activity for destinations and host communities. Nevertheless, the prosperity of destinations and SMTEs are closely interrelated, as the fortune of the one heavily depends upon the management and competitiveness of the other [4]. This article elaborates on some of the major strategic weaknesses faced by SMTEs, based on strategic analysis undertaken for the SMTEs in the Aegean Islands, Greece [20]. It suggests that SMTEs should coordinate their offering, enhance their competitiveness and achieve a higher tourist satisfaction in order to be able to maximise their profitability in the long term. Technology provides unprecedented opportunities for the coordination of SMTEs at the local level; enables SMTEs to provide a seamless tourism product in order to enrich the total customer satisfaction; enhances business efficiency; and empowers organisations with economies of scope. In this sense Destination Integrated Computer Information Reservation Management Systems (DICIRMSs) are proposed as a strategic tool for SMTEs’ cooperation towards achieving maximisation of consumer satisfaction; enhancing the competitiveness and profitability of destinations and SMTEs; as well as developing destinations and local areas sustainably and ensuring prosperity of local population. Tourism destinations are traditionally dominated by small and medium-sized tourism enterprises (SMTEs) which provide an amalgam of products and services such as accommodation, catering, transportation, attractions and activities. SMTEs originate a variety of benefits for destinations by providing tourists with direct contact with the local character and also by facilitating rapid infusion of tourist spending into the host community, stimulating the multiplier effects. They also contribute significantly to the range, variety, authenticity and quality of the 'tourism experience'.