Skip to main content

Free Content Measuring the cost efficiency of international tourist hotels in Taiwan

Download Article:
(PDF 103.9 kb)


This study employs data envelopment analysis (DEA) to evaluate the relative cost efficiency of 49 international tourist hotels in Taiwan. The study uses five different measures: overall efficiency (OE), allocative efficiency (AE), technical efficiency (TE), scale efficiency (SE) and pure technical efficiency (PTE). Applying efficiency measures derived from the DEA estimation, hotel efficiency determinants are evaluated using the Tobit regression model. A bootstrapping technique is applied to overcome the interdependency problem of the DEA efficiency scores adopted in the regression analysis. The empirical results demonstrate that the international tourist hotel industry in Taiwan is inefficient, with most efficiency losses attributable to technical inefficiencies, of which scale inefficiencies are the primary cause – the scale of operations of international tourist hotels in Taiwan being too small to enable the cost-savings associated with larger-scale operations. The Tobit regression results indicate that the proportion of foreign individual travellers (FIT), online transaction function (WEB) and franchising (HOTELTYPE) are related to a better performance of international tourist hotels in Taiwan. The number of years a hotel has been operating (AGE) is not significantly related to any of the efficiency measures.


Document Type: Research Article


Publication date: March 1, 2006

More about this publication?
  • Tourism Economics, published bimonthly, is a peer-reviewed journal devoted to the economics and finance of tourism worldwide. Articles address the components of the tourism product (accommodation; restaurants; merchandizing; attractions; transport; entertainment; tourist activities); and the economic organization of tourism at micro and macro levels (market structure; role of public/private sectors; community interests; strategic planning; marketing; finance; economic development).

    Fast Track. Tourism Economics Fast Track papers have been peer-reviewed, revised and fully accepted for publication. However, although these are the final versions from the authors, they are unedited manuscripts and will undergo a rigorous editing process before their appearance in an issue of the journal. This means that the Fast Track manuscripts may not conform to journal style in terms of presentation, spelling and other usages. They may also contain errors of typography, grammar, spelling, referencing, etc, all of which will be corrected in the processes of copy-editing and proofreading.
    Tourism Economics operates a Fast Track online publication system so that papers can be published and made available almost immediately on final acceptance by the journal. Each Fast Track article is given a DOI. When the paper is assigned to an issue, this DOI will automatically be transferred to the article in the journal issue.
    Fast Track articles may be cited using the DOI. Citations should include the author's or authors' name(s), the title of the article, the title of the journal followed by the words Fast Track, the year of Fast Track publication and the DOI. For example:

    Smith, J. (2013), Article title, Tourism Economics Fast Track, DOI xxxxxxxx.

    Once the paper has been published in an issue of the journal, the DOI will automatically resolve to that final version and the article can be cited in accordance with normal bibliographical conventions.

  • Subscribe to this Title
  • Ingenta Connect is not responsible for the content or availability of external websites

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more