Heterogeneous Technical Efficiency of Hotels in Luanda, Angola

Abstract

This paper uses a random frontier model to analyse technical efficiency in a data set of hotels in Luanda, the capital city of Angola, for 1990-2007. The hotels are ranked according to their technical efficiency, disentangling homogeneous and heterogeneous variables. This methodology attempts to account for observed and unobserved heterogeneity across hotels. The study rests on the premise that hotels in Luanda have an established role in the business market and emerging significance in the tourism market, broadly defined. Based on the analysis, the authors conclude that those hotels adopting a more strategic approach are better, and thus more efficient, than those that lack vision. They then point to the wider implications of the discussion.

The contributions of economics to hospitality literature: A content analysis of hospitality and tourism journals

“…Other than the market analysis studies, the next major topical area derived from the literature review was performance-related studies, which mainly involved productivity (e.g., Surugiu et al, 2012;Botti et al, 2010;Jones and Siag, 2009;Reynolds, 2003;Hu and Cai, 2004;Johns et al, 1997) and efficiency analyses (Oliveira et al, 2013;Honma and Hu, 2012;Barros et al, 2010;Untong et al, 2011;Wu et al, 2010;Barros, 2005;Hwang and Chang, 2003). As alternative ways of measuring performance, productivity and efficiency are concerned with input-output relationships.…”

Analysis of the efficiency of golf tourism via the Internet. Application to the Mediterranean countries

“…Another group of papers study the performance of hotels Lee, Kao, & Nugroho, 2009;Scholochow, Fuchs, & Höpken, 2010;Shang, Wang, & Hung, 2009) or hotel chains (Botti, Briec, & Cliquet, 2009;Neves & Lourenço, 2009;Perrigot, 2009). Other papers have analysed the hotel sector in particular countries, such as Portugal (Barros, Botti, Peypoch, & Solonandrasana, 2009), Angola (Barros, Dieke, & Santos, 2010), Slovenia (Assaf & Cvelbar, 2010), Italy (Pulina, Detottoa, & Pabaa, 2010), and Taiwan (Hsieh & Lin, 2010;Hu, Shieh, Huanga, & Chiua, 2009;Wu 2009;Yu & Lee, 2009).…”

Unpacking the Growth of Hotel Chains in Africa: Enterprises and Patterns

“…Structural issues concerning the ownership and investment (domestic and foreign) and the technical efficiency of hotels also represent significant sub-themes in the African context (eg. Barros & Dieke, 2008;Snyman & Saayman, 2009;Barros, Dieke & Santos, 2010;Gatsinzi & Donaldson, 2010). Issues pertaining to the technical efficiency of African hotels are highlighted in the case of Luanda, Angola (Barros & Dieke, 2008;Barros et al, 2010).…”

“…Barros & Dieke, 2008;Snyman & Saayman, 2009;Barros, Dieke & Santos, 2010;Gatsinzi & Donaldson, 2010). Issues pertaining to the technical efficiency of African hotels are highlighted in the case of Luanda, Angola (Barros & Dieke, 2008;Barros et al, 2010). The phenomenon of service outsourcing by hotels has been interrogated in research conducted in Accra, Ghana (Himaey, 2012;Hiamey & Amenumey, 2013).…”