Cost efficiency of International tourist hotels in Taiwan: A data envelopment analysis application

Jin-Li Hu*, Hwai Shuh Shieh, Chia Hui Huang, Chia Ning Chiu

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

43 Scopus citations

Abstract

This paper uses the data envelopment analysis approach to measure cost, allocative and overall technical efficiencies of international tourist hotels (ITHs) in Taiwan during 1997-2006. There are three outputs, three inputs, three input prices and four environmental variables in the empirical model. The cost inefficiency of these hotels is from verall technical inefficiency. International tourist hotels in Taiwan have an average efficiency of 57%. Chain systems, non-metropolitan areas and occupancy rate have significantly positive impacts on all efficiency scores of Taiwan's ITHs. The distance from the nearest international airport significantly worsens their efficiency scores.

Original languageEnglish
Pages (from-to)371-384
Number of pages14
JournalAsia Pacific Journal of Tourism Research
Volume14
Issue number4
DOIs
StatePublished - 1 Dec 2009

Keywords

  • Cost efficiency
  • Data envelopment analysis
  • International tourist hotel
  • Taiwan

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