You want your intent to be as direct as possible. You are leaving, plain and simple. There's no need to mention where you're going. You can discuss that with your boss (though you're not obligated to do so) and your colleagues if you want, but there's little purpose for including that in your resignation letter. That's especially true if you're moving over to a competitor__you don't want to create ill will in this letter or cause any drama.
Why a Resignation Letter? In these digital times, why should we submit a resignation letter, anyway? A paper trail does seem old_fashioned, but in this case, it's a best practice. It makes your intentions clear, as well as the conditions. You're removing any ambiguity about the end of your time there.