<jats:p>We analyzed the relationship between tourism destination competitiveness (TDC) and economic performance using the Travel and Tourism Development Index (TTDI) and various tourism metrics. Employing a Structural Equation Model (SEM) and the latest available 2021 data, we focused on factors such as connectivity, infrastructure, demand drivers, sustainability, and the enabling environment. The findings indicated a positive correlation between these factors and the pillars of destination competitiveness. Key elements such as connectivity, infrastructure, demand drivers, sustainability, and enabling environment significantly influence TDC in Asia. Our research demonstrates that these indicators strongly affect various aspects of performance in Asian countries, including tourism arrivals, revenue, and job creation. We found a negative correlation between certain aspects of destination performance and tourism growth, suggesting that highly competitive destinations may experience lower growth rates than less competitive ones, thereby affecting the overall development of the sector. This highlights the necessity of specific strategies to leverage the positive influence of competitive tourist destinations on economic dynamics and job creation within a destination. This study highlights the crucial role of core resources and infrastructure in enhancing tourism performance and competitiveness, and advocates targeted efforts for sustainable and resilient sector growth. These findings offer valuable insights into the relationship between competitiveness and performance in the Asian tourism industry.</jats:p>
