Do culturally competent employees make for happy visitors? The case of a sports event in Australia

Building on a three-dimensional cultural competence model and treating customer–employee exchange as a vital form of social exchange, this study examines how different dimensions of cultural competence of service providers and their social investment impact event attendees' perceived destination experience and behavioral intentions in cross-cultural service encounters. Using data collected during a major sports event in Australia, the study found that cultural awareness and skills significantly influenced event attendees' perceived social investment and destination experience, while the role of cultural knowledge was not significant. Employees' cultural awareness and cultural skills had a stronger influence on perceived social investment among international tourists than they did on domestic tourists, but social investment had a stronger influence on domestic tourists' destination experience and revisit intention than it did on that of international tourists. The study contributes to an enhanced understanding of how cultural competence can shape customers’ destination experience. In addition, it introduced a cultural perspective to the social exchange process, contributing to the broadening and deepening of social exchange theory.