Measuring sustainability and competitiveness of tourism destinations with data envelopment analysis

Abstract

This study analyses sustainability and competitiveness through measurements of efficiency, using data envelopment analysis. It constructs a meta-frontier non-radial directional distance function (meta-frontier NDDF) approach, which is then used to define a tourism development index and a tourism sustainability index. Using these indexes, the paper evaluates the efficiency of the tourism sector and its dynamic evolution for 27 cities in the Yangtze River Delta, China, (YRD) from 2010 to 2019. Considering regional heterogeneity, this paper analyzes the meta-frontier, group-frontier efficiency and technology gap ratio of urban tourism in the YRD, and explores the competitiveness of the cities. The results show that the more traditional measure of tourism efficiency, namely the tourism development index, which does not take account of the sector’s undesirable output (i.e., the negative impacts of carbon emissions from travel), produces overestimates. This study highlights the following practical implications: The increasing competition among tourism destinations requires tourism industry managers to determine the appropriate allocation of resources to promote the sustainable development of urban tourism. In the context of the need for global ‘carbon neutrality’, more consideration should be given to the negative impact of tourism on the natural environment to enhance the competitiveness of tourist destinations.