Given the dramatic development of technology and transportation, the variety of destinations competing for domestic and international travelers is now much broader than in the past. The pressure exerted by competition is compelling Arab South Mediterranean Countries governments to reevaluate the existing tourism resources and to capitalize on them in order to maintain a competitive edge. The objective of this paper is to provide policy makers in the considered region of the world with a methodical approach toward managing their tourism activities. The approach adopted provides some insights into the role of the competitive advantage in shaping the tourism policy. In the process, the utility of the shift-share technique toward that end is explored to understand what decides comparative advantages in tourism and to investigate the interface between specialization (measured by the revealed comparative advantage) and level of development in Arab South Mediterranean Countries tourism industry.