A DEA Approach for Evaluating the Labor Efficiency in the Rural Hotel Industry

Abstract

In this paper, labor efficiency in the rural hotel industry is analyzed while considering the characteristics regarding labor and infrastructure of the various Spanish provinces. The methodological procedure consisted of the analysis of 52 Spanish provinces. As analysis, Data Envelopment Analysis (DEA) and Multivariate Analysis have been used. Although rural tourism is consolidated in the Spanish holiday culture, the effect of labor efficiency on Spanish provinces is uneven. Performance depends on the geographical area; thus, labor efficiency is only achieved in Asturias and Balearic Islands, where rural tourism has a strong and positive impact on employment. The variable length of stay of the holiday period carries important weight for labor efficiency to be reached in said provinces. It can be observed that hotels located in places with charm and with special environmental protection contribute directly to the labor efficiency of the area due to the direct relationship between the area of protected land and the labor efficiency of the province. Several provincial groups are established with a variety of different characteristics, which confirms that the level of labor efficiency in the sector has yet to be maximized.