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Purpose The purpose of this paper to study the hotel performance determinants by examining the impact of the internal and the external environment of the hotel on its performance. Design/methodology/approach A bootstrapped truncated regression model is used following the evaluation of efficiency score for hotels using data envelopment analysis (DEA). The effects of the cited variables are discussed to determine the best development strategy for increasing hotel performance. Findings This paper has four major contributions. First, the test results confirm that macro-contextual factors, such as international attraction and market competition, have a direct influence on hotel efficiency. Second, hotel efficiency depends on hotel characteristics, such as hotel age, hotel type, management type and the location of the hotel. Third, the tenure of the general manager, education level of the board staff and number of managers influence hotel efficiency. Finally, general tourism wages increase the efficiency score of the corporate hotel performance. Research limitations/implications Tourism employment studies require further improvement, and their challenges should be highlighted when countries develop tourism strategies. Moreover, hiring employees with a better educational background appears to be an effective human resource strategy to reduce inefficiency in the hotel sector. Tourism performance and development need a thorough investigation into tourism wages to attract the best students and the best graduates to the tourism sector to bring out the needed number and skills of employees. Practical implications The conclusions of this paper are consistent with the literature results. However, it is important to separate market concentration from market competition for whose literature concluded an opposite influence on the hotel performance. The authors explain this contrast by the measure choice. Social implications The performance of the hotel depends not only on the physical resources and on the destination characteristics but also on the management characteristics. Originality/value This paper is the first to test empirically the influence of destination attractiveness, competition level, hotel size, hotel age, management contract, hotel type, location, advertising, manager’s tenure, tourism education and wages on the hotel performance in Tunisia.

This study uses data envelopment analysis and a two-stage procedure to compare the performance of Tunisian tourism destinations and to examine the impact of investment (public and private), economic circumstances, workers skills, and travel agent number on the efficiency of Tunisian tourism destinations. In the first stage, the efficiency score is calculated. This calculation is followed in the second stage with a bootstrapped truncated regression model examining the effects of the cited variables to determine the best development strategy that can increase the tourism competitiveness of Tunisian tourism destinations. This study has six major conclusions. First, the test results confirm that the destination efficiency is sensitive to public and private investment in the tourism industry. Second, the trade deficit has a significant negative impact on the efficiency of the country destinations. Third, tourism education and training in Tunisia do not meet the Tunisian tourist market needs. Fourth, the wage level in the tourism sector positively affects the performance of destinations. Fifth, whereas the number of Type A (hold and sell travel) travel agencies positively affects the performance of a destination, Type B agencies (only sell travels) negatively influence it. Last, tourism destinations have to develop commodities, tourism monuments, leisure activities, and other para-tourism activities to attract more tourists or to improve their length of stay.