This study addresses the pressing need to reassess competitiveness within destination contexts and its impact on destination performance and choice, especially amid the ongoing tourism recovery and transformation. Departing from traditional frameworks that often lack empirical grounding or focus predominantly on the supply side, this research adopts a demand-side perspective, centering on the perceptions of Chinese outbound tourists toward destinations in the Asia–Pacific region. Data from a comprehensive online survey, which garnered responses from 1034 Chinese tourists aged 18 or above, possessing passports and ensuring gender-even representation, are understood and analyzed through exploratory factor analysis (EFA) and structural equation modeling with partial least squares (SEM-PLS). The current study not only develops and empirically validates a higher-order composite scale incorporating both reflective and formative constructs but also examines the performance of top-selected destinations in terms of competitiveness across these constructs using ANOVA and post hoc analysis. It aims to offer specific implications for strengthening and revitalizing the tourism industry in Asia–Pacific destinations to ensure vibrancy, inclusivity, and resilience.