Capacities and competencies as sources of competitive advantage: The case study of Latvian hotels

This paper focuses on describing how capacities and competences could be use for achieving a sustainable competitive advantage within hotels management since tourism has gained a special position in the export of services and regional development and entrepreneurship in Latvia, and played a significant role in the rapid transition from ineffective planning to full-scale competition. In this study the focus is on Latvian hotels, since hospitality industry and tourism in general mirror the development of this country, presenting the process through which competencies and capacities can be used as determinants of the competitive advantage.