Michael Porter’s competitive positioning view (CPV) and Diamond Model have long shaped urban tourism competitiveness research in China. However, applying market-centric logic to China’s state-driven development model, which relies heavily on political promotion targets and centralized capital allocation, creates major governance problems, including destination homogenization, growing fiscal burdens, and declining community well-being. To address this institutional mismatch, this conceptual paper examines why Porterian logic falls short in Chinese urban tourism and proposes a shift toward Jay Barney’s resource-based view (RBV). Using the valuable, rare, inimitable, and non-substitutable (VRIN) criteria, the study redefines destination competitiveness around four internal capabilities: authentic core assets, memorable tourism experiences, holistic sustainability, and resident well-being. The proposed framework reorients destination strategy away from capital-intensive, superficial expansion and toward the cultivation of internal, non-replicable governance capabilities. It therefore offers a theoretically grounded perspective for tourism researchers and practical guidance for destination management organizations seeking sustainable competitive advantage in emerging Asian economies.
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