This note presents an efficiency measure for the tourism industry. It demonstrates the value of the proportional distance function, which simultaneously contracts inputs and expands outputs for analysing efficiency. It can be stated that if the tourism industry were to include this measure in the analysis of its technical efficiency, new possibilities would be opened up with regard to managerial recommendations.
BarrosC.AlvesF. (2004), ‘Productivity in the tourism industry’, International Advances in Economic Research, Vol 10, pp 215–225.
2.
BarrosC. (2005a), ‘Measuring efficiency in the hotel sector’, Annals of Tourism Research, Vol 32, pp 456–477.
3.
BarrosC. (2005b), ‘Evaluating the efficiency of a small hotel chain with a Malmquist productivity index’, International Journal of Tourism Research, Vol 7, pp 173–184.
4.
BriecW. (1997), ‘A graph type extension of Farrell technical efficiency measure’, Journal of Productivity Analysis, Vol 8, pp 95–110.
5.
BoussemartJ.P.BriecW.KerstensK.PoutineauJ.C. (2003), ‘Luenberger and Malmquist productivity indices: Theoretical comparisons and empirical illustration’, Bulletin of Economic Research, Vol 55, pp 391–405.
6.
ChambersR.G. (1996), ‘A new look at exact input, output, and productivity measurement’, Working Paper 96–05, Department of Agricultural and Resource Economics, College of Agriculture and Natural Resources, University of Maryland, College Park, MD.
7.
ChambersR.G.ChungY.FäreR. (1996), ‘Benefit and distance functions’, Journal of Economic Theory, Vol 70, pp 407–419.
8.
ChiangW.TsaiH.WangL. (2004), ‘A DEA evaluation of Taipei hotels’, Annals of Tourism Research, Vol 31, pp 712–715.
