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 might you still want to write a resignation letter? Many experts believe that writing a formal or even a basic resignation letter when you're leaving your current job helps make you seem more courteous and professional. However, the real reason to write a resignation letter is to create a paper trail documenting that you have given notice (if your employer requires two weeks notice or some other amount of notice) on a certain date, and to formally kick of the process should there be any legal hiccups (quite rare) with incorrectly processing your final paycheck and last day of benefits.