The impact of tourist destination on hotel efficiency: A data envelopment analysis approach [Summary]

Abstract

Few findings from the study can be implied to management activities of policy-makers and hoteliers in the destination. To figure out tourist destination characteristics that boost hotel efficiency is the common interest for them. Politically, it could be suggested to implement policies in order to increase local demands, accessibility, and agglomeration since they affect positively hotel efficiency. Therefore, public-private cooperation is needed in order to promote destination images, to improve transportation networks, or developing supportive economic activities in the destination. For hotels, to pursue property efficiency would lead to preferring concentration which could harm the competitiveness of the destination in the medium term. So it is suggested in the article to combine policies that foster concentration with getting rid of entry barriers so that market contestability would prevent the increase in prices.