The Economic Efficiency of the Tourism Industry: A Global Comparison

Abstract

Although the measurement of efficiency and productivity in the tourism industry at the micro level has been the subject of considerable research in recent years, there has been little research at the macro level. Using data envelopment analysis, this paper analyses the efficiency of the tourism sector in 105 countries, including 34 developed and 71 developing countries. It finds that globalization and accessibility are critical for the efficiency of the tourism sector in developing countries and that labour productivity may be a good proxy for the efficiency of the aggregate tourism industry.

Analysing how cultural factors influence the efficiency of tourist destinations in Chile

“…In this vein, we might first point to the works of Hadad, Hadad, Malul, and Rosenboim (2012) and Assaf and Josiassen (2012) where, amongst the sample of countries analysed, a wide range of Latin American countries are considered. A more specific case study is given in the work of Pérez, Guerrero, Pérez, and Caballero (2014) who conduct research into the efficiency of natural tourist destinations Broadly speaking, studies measuring the competitiveness of tourist destinations using non-parametric methods and two-stage efficiency analysis employ a managerial production function, albeit one which is applied to regional entities (Cracolici et al, 2008).…”

ESM-VT Yöntemi ile Uluslararası Destinasyonların Turizm Sektörü Etkinliğinin Değerlendirilmesi (Evaluation of the Tourism Sector Effectiveness of International Tourism Destinations with ESM-VT Method)

“…Due to the increasing economic importance of tourism as a source of international income and domestic employment and the increasing competition in the global tourism market, productivity and efficiency analyses in the tourism sector have significantly been subjects of research in recent years (Hadad, et al, 2012). However, these researches largely include the efficiency and effectiveness of micro-units in the tourism industry such as hotels and travel agencies, museums, local destinations, etc.…”

“…(Pestana, et al, 2011;Cracolici, et al, 2008;Luo, et al, 2014;Barros & Alves, 2004). Studies evaluating the effectiveness and efficiency of the tourism sector at the macro level are rather limited (Assaf & Dwyer, 2013;Hadad, et al, 2012). However, the efficiency of the tourism sector of a country in long term (especially the ability of the sector in achieving maximum output from a given input set) significantly affects the international market share and profitability (Hadad, et al, 2012, p. 932).…”

“…In the study, labor refers to the number of employees in the tourism sector, while capital refers to the infrastructure of tourism sector and natural and cultural resources (Hadad et al, 2012). In this context, four input variables were used in the study.…”

“…An active tourism sector brings more tourists to the country and generates more revenue per tourist (Hadad, et al, 2012). Number of tourists refers to the number of international tourists visiting the country within one year.…”