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This paper analyzes the effects of tourist nationality sources on international tourist hotels' (ITHs) cost efficiency in Taiwan and the factors affecting a tourist's choice of a hotel. The data envelopment analysis (DEA) approach is used to compute cost efficiency scores of 61 ITHs in Taiwan during 1998-2007. The number of Asian, North American, Japanese, and local tourists has significantly positive effects on cost efficiency, but the number of overseas Chinese has a negative effect on cost efficiency. The number of tourists of other nationalities has no influence on cost efficiency. Generally, most tourists in Taiwan prefer a larger, older, and closer-to-airport hotel. This study also finds that the chain system, the number of scenic spots surrounding hotels, and the ratio of individual tourists all significantly improve the cost efficiency of ITHs in Taiwan.

The purpose of this study is to conduct an investigation into the link between cost efficiency and financial performance as it pertains to the hotel industry. This study employs DEA approach to estimate cost efficiency and uses three traditional financial indicators, such as the ratio of net operating profit before taxes, the ratio of earnings before taxes, and return on assets before taxes, to measure financial performance.Data were generated from 68 hotels in the international tourist hotels in Taiwan from 1997 to 2006. The major finding indicates that cost efficiency is insignificantly associated with the financial performance, whatever three above financial performance variables. The implications of the findings are discussed and the limitations of the study as well as future research directions are addressed.

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This paper analyzes the self-positioning of international tourist hotels (ITHs) in Taiwan at the corporate strategy level and posits two types of positioning strategy-room revenue-oriented and food and beverage (F & B) revenue-oriented -to examine which one is suitable for ITHs. Hotels located in Hualien and in scenic areas have a significantly negative effect on the ratio of F & B revenue to total revenue, implying that hotels in these areas should be room revenue-oriented. Local tourists have a significant positive impact on the ratio of F&B revenue to total revenue, whereas Asian tourists have a significant negative impact on the ratio. Moreover, the operation-year and room price have significantly negative effects on the ratio of F & B revenue to total revenue, suggesting that historic hotels should adopt room revenue-oriented positioning and improve their service quality so as to be able to increase the room price. The number of restaurants has a positive effect on the ratio of food and beverage revenue to total revenue. Therefore, the hotels adopting F&B revenue-oriented positioning should offer diversified types of restaurants for various tourists.