Destination competitiveness is a relatively young research area. Much research has been done on a conceptual level. Only recently, some authors have developed measures of this highly complex construct. The measure where the most data are available is the Travel & Tourism Competitiveness Index (TTCI), developed by the World Economic Forum. This paper aims at testing this measure’s explanatory power and proposing alternative models within the framework of the (TTCI). Results show that the explanatory power for a dynamic performance criterion is limited and that models that are less pre-structured fit better, explain more and reveal reasons for heterogeneity.