Abstract

This study analyzes the impact of management approach on the economic efficiency of local public facilities, focusing particularly on island and non-island regions. Particularly, the research explores how the economic efficiency of public facility management in island regions may differ from other regions, taking into account the unique characteristics of island areas. The distinctive features of island regions, such as limited resource accessibility, create a responsibility for the government to provide essential services to residents and tourists. Consequently, the management methods of public facilities become more crucial in island regions compared to non-island areas, posing a significant challenge in terms of economic sustainability. Additionally, the low population in island regions imposes limitations on generating internal revenue, which can hinder the sustainable operation of public facilities. Furthermore, island regions possess unique historical and cultural aspects that influence the management styles of public facilities, requiring an integrated approach that combines local characteristics and expertise. Empirical analysis results reveal that, in terms of profit after deducting costs, direct management facilities are relatively advantageous in island regions compared to non-island areas. As the first study to demonstrate how the economic efficiency of local public facilities may differ based on the regional uniqueness of islands, this research emphasizes the policy necessity of considering regional characteristics, such as those found in island areas, when deciding on the management methods of public facilities.

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