An examination of the operating efficiency of international tourist hotels in Taiwan and associated factors

Abstract

This study examines the operating efficiency of international tourist hotels in Taiwan. Data envelopment analysis (DEA) is used to evaluate the relative efficiency management of chain and independent tourist hotels based on data from 2006 and 2007, allowing for the comparison of competitiveness between the different categories of international tourist hotels. Tobit regression analysis is used to assess whether factors such as the operating model and guest nationality have a significant impact on the operating efficiency, providing a basis for true improvement. Research results show that chain and independent international tourist hotels have exhibited significant improvements in terms of scale efficiency. While independently operated tourist hotels did improve significantly in overall efficiency and pure management efficiency, chain tourist hotels did not show significant improvements in these measures. In terms of the impact of environmental variables on efficiency, the hotel-operating model and guest nationality did have a significant positive impact on the overall efficiency. Key words: Efficiency, data envelopment analysis, Tobit regression analysis.