Abstract: | This study presents the Tourism Competitiveness Theory Hypothesis, anchored on a dynamic framework, and unifying the competitiveness theory with human development. The hypothesis rests on the recursive nature between tourism competitiveness and human development. The relationship was tested through a mixed-effect regression model in ten South American countries. The results suggest mutual reinforcement links mediated by the human development dimensions, especially health. The study also designed a typology model identifying four groups of countries that revealed distinct, non-linear behavioral patterns. Theoretical and managerial implications centered on the relevance of resource use, public allocation choices toward human development sectors, and the required sequencing to promote the mutual reinforcement nature embedded in the Tourism Competitiveness Theory Hypothesis. |