Efficiency of the Malaysian Hotel Industry: A Distance Function Approach

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Author(s)
Saleh, AS
Assaf, AG
Nghiem, HS
Griffith University Author(s)
Year published
2012
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Show full item recordAbstract
This article introduces the distance function approach with both the DEA bootstrap and Sf methods to examine the efficiency of the hotel industry in malaysia. The DEA results reveal that, on average, the malaysian hotels under investigation are 66% efficient compared with the best practices in the industry. It is also shown that large hotels are relatively more efficient than small hotels. After taking into account the differences in size and operational practices (proxies by the availability of a food and beverage operation), the average efficiency of malaysian hotels rose to 83%. It seems also that the inclusion of a food ...
View more >This article introduces the distance function approach with both the DEA bootstrap and Sf methods to examine the efficiency of the hotel industry in malaysia. The DEA results reveal that, on average, the malaysian hotels under investigation are 66% efficient compared with the best practices in the industry. It is also shown that large hotels are relatively more efficient than small hotels. After taking into account the differences in size and operational practices (proxies by the availability of a food and beverage operation), the average efficiency of malaysian hotels rose to 83%. It seems also that the inclusion of a food and beverage operation is a source of inefficiency, especially for small hotels.
View less >
View more >This article introduces the distance function approach with both the DEA bootstrap and Sf methods to examine the efficiency of the hotel industry in malaysia. The DEA results reveal that, on average, the malaysian hotels under investigation are 66% efficient compared with the best practices in the industry. It is also shown that large hotels are relatively more efficient than small hotels. After taking into account the differences in size and operational practices (proxies by the availability of a food and beverage operation), the average efficiency of malaysian hotels rose to 83%. It seems also that the inclusion of a food and beverage operation is a source of inefficiency, especially for small hotels.
View less >
Journal Title
Tourism Analysis
Volume
17
Issue
6
Copyright Statement
© 2012 Cognizant Communication Corporation. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Subject
Tourism Economics
Commercial Services
Marketing
Tourism