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Using a Two-Stage DEA Model to Measure Tourism Potentials of EU Countries and Western Balkan Countries: An Approach to Sustainable Development

Author

Listed:
  • Boris Radovanov

    (Department of Business Informatics and Quantitative Economics, Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

  • Branislav Dudic

    (Faculty of Management, Comenius University in Bratislava, 820 05 Bratislava, Slovakia
    Faculty of Economics and Engineering Management, University Business Academy, 21000 Novi Sad, Serbia)

  • Michal Gregus

    (Faculty of Management, Comenius University in Bratislava, 820 05 Bratislava, Slovakia)

  • Aleksandra Marcikic Horvat

    (Department of Business Informatics and Quantitative Economics, Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

  • Vincent Karovic

    (Faculty of Management, Comenius University in Bratislava, 820 05 Bratislava, Slovakia)

Abstract

The concept of sustainable tourism development is imposed as an inevitable way of improving the tourism industry as a whole. This study tries to offer an adequate inclusion of sustainable factors in overall tourism development efficiency results. Through the detection and estimation of potential sources of efficiency, the paper will do the efficiency benchmarking of tourism services on the level of countries as destinations. In order to complete the task, data collection was focused on 27 EU countries and five Western Balkan countries over the period from 2011 to 2017. This paper utilized an output-oriented data envelopment analysis (DEA) procedure to estimate efficiency scores for each country, and a panel data Tobit regression model to emphasize the (in)significance of each individual tourism development indicator. The results in the first stage show relatively high-efficiency scores, particularly in the case of EU 15 countries and with room for improvement in the case of the others. The second stage reveals positive and significant effects on relative tourism efficiency by the sustainability of tourism development, the share of GDP, tourist arrivals and inbound receipts, as well as visa requirements and rate of use. Policymakers should gradually take control of the mentioned variables to protect the interests of all relevant stakeholders involved in the tourism development process.

Suggested Citation

  • Boris Radovanov & Branislav Dudic & Michal Gregus & Aleksandra Marcikic Horvat & Vincent Karovic, 2020. "Using a Two-Stage DEA Model to Measure Tourism Potentials of EU Countries and Western Balkan Countries: An Approach to Sustainable Development," Sustainability, MDPI, vol. 12(12), pages 1-12, June.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:12:p:4903-:d:372116
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    References listed on IDEAS

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    Cited by:

    1. Wu, Yueh-Cheng & Lin, Sheng-Wei, 2022. "Efficiency evaluation of Asia's cultural tourism using a dynamic DEA approach," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).

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