Evaluating the efficiency of Korean festival tourism and its determinants on efficiency change: Parametric and non-parametric approaches

Abstract

Local festivals may leverage local specialties and various historical, cultural, and artistic resources throughout their respective regions to attract tourists, inducing positive economic impacts. In this study, this paper is a first attempt to analyze the relative efficiency of local festival tourism by using parametric and non-parametric approaches with the data from local festivals held in Korea from 2015 to 2018. We also deal with the efficiency determinants of each typology of festivals by employing a truncated regression with double bootstrapping. Results showed that the leading sources of inefficiency were primarily embedded in pure technology inefficiency, while the principal operational drivers posed different effects depending on the typology of festivals. These insights have important practical implications for the local festival organizing committees and operators in Korea and are helpful in developing tailored operational strategies to maximize the efficiency among different typologies of festivals.