On the analysis of efficiency in the hotel sector: Does tourism specialization matter?

This article analyzes the consequences of tourism specialization on efficiency in the hotel sector. The evidence found in other sectors and economies supports the goodness specialization. Nevertheless, tourism-led economies have particular issues that need to be addressed such as seasonality and the...

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Published in:Tourism economics : the business and finance of tourism and recreation 2023-02, Vol.29 (1), p.92-115
Main Authors: Pérez-Granja, Ubay, Inchausti-Sintes, Federico
Format: Article
Language:English
Subjects:
Comparative analysis
Comparative studies
Competitiveness
Efficiency
Panel data
Provinces
Seasonal variations
Specialization
Spillover effect
Tourism
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description This article analyzes the consequences of tourism specialization on efficiency in the hotel sector. The evidence found in other sectors and economies supports the goodness specialization. Nevertheless, tourism-led economies have particular issues that need to be addressed such as seasonality and the lack of significant tradable competitive activities that could trigger spillover effects to services. Spain provides a suitable context for a comparative case study where industrial-led provinces coexist with others that are tourism-led. The article assumes a novel panel data stochastic frontier (SF) model where inefficiency is explained by industrial and service specialization, international competitiveness, tourism specialization, quality of tourism supply, and seasonality. All variables contribute to reducing inefficiency, but service specialization makes the biggest impact. Hence, tourism-led provinces produce the highest efficiency scores.
doi_str_mv 10.1177/13548166211039301
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source International Bibliography of the Social Sciences (IBSS); SAGE
subjects Comparative analysis
Comparative studies
Competitiveness
Efficiency
Panel data
Provinces
Seasonal variations
Specialization
Spillover effect
Tourism
title On the analysis of efficiency in the hotel sector: Does tourism specialization matter?
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